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Arrington's CrunchPad Dies

adeelarshad82 writes "Michael Arrington announced the death of the CrunchPad on Monday morning in a blog post heavily spiced with angst and drama. According to Arrington, the Crunchpad, a 12-inch Web tablet expected to be priced at about $300, was just days away from launch. At the last minute, however, Arrington received an email from Chandra Rathakrishnan, the chief executive of manufacturing partner Fusion Garage, apparently trying to cut Arrington out of the product on the eve of the launch. Fusion Garage, according to Arrington, wanted to market the device itself under its own name; which obviously was the deal breaker. Arrington claims that the company had overcome obstacles at every stage in the business such as deals with Intel, retail launch, securing venture capital and angel investments. Interesting bit is that some were already speculating that the Crunchpad was not real."

175 comments

  1. Unfortunate by milas · · Score: 2, Interesting

    But here's to hoping it relaunches with an ARM processor running Chrome OS! This seems like the perfect application for it, really.

    1. Re:Unfortunate by sopssa · · Score: 0, Offtopic

      I wish they would had done it the same way Courier is. After thinking about it, flat pad is kind of clumsy. Book like device seems a lot nicer for surfing and reading in couch/bed. You can go into a much more comfortable position too.

      Someone should create such with Chrome OS, actually (with an option to install another linux distro)

    2. Re:Unfortunate by jpedlow · · Score: 1

      Sad, I was going to (wanted to) buy one. :( Although, one running chrome would be pretty B-A :)

    3. Re:Unfortunate by TheModelEskimo · · Score: 4, Interesting

      What's up with all the Chrome on ARM astroturfing around here...? It's quite obvious, guys.

    4. Re:Unfortunate by Jaysyn · · Score: 0, Offtopic

      ^^^ This isn't a Troll either ^^^

      --
      There is a war going on for your mind.
    5. Re:Unfortunate by jhol13 · · Score: 1

      Why? There are phones which run full Linux (N900, Android, ...), why an earth would someone want to have less powerful OS on a tablet?

    6. Re:Unfortunate by Hijacked+Public · · Score: 2, Insightful

      I think it is just a new level of fanboyism, to proclaim perfection as being the combination of an OS you've never used or seen installed on hardware you've never used or seen.

      I'm hodling out for FooOS on a FooPad running FooChip. Think of anything you might like to do, either with a computer or without. FooCombo can facilitate that.

      --
      "Sacrifice for the good of The State" - The State
    7. Re:Unfortunate by Anonymous Coward · · Score: 0

      A battery life measured in days, rather than hours?

    8. Re:Unfortunate by Dhrakar · · Score: 3, Funny

      So, wouldn't that be 'mastroturfing'? That is, interjecting into any conversation the particular Object of your fanboi-ism that you are fantasizing about?

    9. Re:Unfortunate by Traa · · Score: 2, Insightful

      Wasn't me, but could have been. I wouldn't be astroturfing, I'd be one of the many many engineers actually working on ARM processors. Are we not welcome here?

    10. Re:Unfortunate by couchslug · · Score: 1

      "What's up with all the Chrome on ARM astroturfing around here...? It's quite obvious, guys."

      Slashdot has turned into Chromedot, a frenzied example of browser appliance worship.

      --
      "This post is an artistic work of fiction and falsehood. Only a fool would take anything posted here as fact."
    11. Re:Unfortunate by StarsAreAlsoFire · · Score: 2, Funny

      It'll never run without Flarp.

    12. Re:Unfortunate by lamapper · · Score: 3, Insightful

      Why? There are phones which run full Linux (N900, Android, ...), why an earth would someone want to have less powerful OS on a tablet?

      The Nxxx Nokia's are much more than mere phones, they are full blown Linux hand helds that will let you do just about anything a Linux PC, netbook or laptop will do. Why anyone would limit themselves with any other operating system is beyond me. With Linux, there are no tethering issues, no restrictions, nada, none. I call that "smart".

      If a phone will NOT allow you to run Linux, at least one of the many distros, well it just is NOT smart!

      For many years Nokia has been ahead of everyone offering these Linux hand held smart devices. Nokia N770 was the first, than came the N800 (FM chip on board); then the N880 and now the N900! If any tablet or hand-held is more limiting than any of the Nokia Nxxx hand held smart devices, why on earth would you waste your money buying it!

      Note: I am not saying that you must run Linux, only that you should be able too! Big difference when you have choices as any intelligent consumer would want to have, preferably at least three choices, as if you only have two choices, you have no choice!

      For me its not a matter of the hardware, but the books themselves, either I can read them (open data formats ONLY) on a Linux computer or I can not. If I can not, I simply will not purchase them. Keep it Simple!

      --
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    13. Re:Unfortunate by nacturation · · Score: 1

      Absolutely brilliant!

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    14. Re:Unfortunate by MoeDrippins · · Score: 1

      Not "NOT welcome", but just around "tolerated". This is the land of those that not only don't believe everything they read, but rather disbelieve everything they see. It's the same group that on every video they view, comment "fake".

      --
      Before you design for reuse, make sure to design it for use.
  2. Seeing Arrington's rants... by sopssa · · Score: 4, Insightful

    It wouldn't be a surprise if the whole thing was just a hoax. Like the other article says:

    Arrington, who is not a journalist (and has never professed to be one), regularly talks to financial guys, with close ties to virtually every major technology company. He's also plugged into these same companies at even higher levels. Oh, and he also invests in companies he writes about. At times, this can make his information incredibly prescient and also highly self-serving. The problem is, no one can tell the difference.

    And a few days before launch and dies for such a stupid reason? Please.

    1. Re:Seeing Arrington's rants... by eldavojohn · · Score: 5, Insightful

      It wouldn't be a surprise if the whole thing was just a hoax. Like the other article says:

      Arrington, who is not a journalist (and has never professed to be one), regularly talks to financial guys, with close ties to virtually every major technology company. He's also plugged into these same companies at even higher levels. Oh, and he also invests in companies he writes about. At times, this can make his information incredibly prescient and also highly self-serving. The problem is, no one can tell the difference.

      And a few days before launch and dies for such a stupid reason? Please.

      Then what were we seeing in the videos on Youtube? Really expensive tablet PCs? They couldn't get that down to $200? I'm just confused as to what his motivation would be ... I think inflating your stock with a fake product and then dumping all the stock you have before it crashes would look hilariously like insider trading. So what's going on? What do they mean by "plugged into these same companies at even higher levels"?

      In his 'rant' he's also calling these people out on infringing on his (and other people's) IP if they launch ... which are pretty heavy claims. I kind of get the feeling this isn't a hoax and there will be serious fallout one way or the other if they don't iron things out between each other. IP suit if it launches and fruitless R&D and production money if it doesn't.

      --
      My work here is dung.
    2. Re:Seeing Arrington's rants... by Anonymous Coward · · Score: 0

      Well, you can also see a prototype on Fusion Garage's web site.

    3. Re:Seeing Arrington's rants... by WaywardGeek · · Score: 5, Interesting

      And a few days before launch and dies for such a stupid reason? Please.

      I'm guessing you've never started a company. When you do, you'll find out that a fair number of your friends turn into psychopaths when money is involved. This is why the best number of partners in any new venture is 1. I got screwed by AMIS in a somewhat similar situation. We co-developed the Express Array using our technology from cell design to routing. The first chip came out and worked 8 months after we started this very aggressive project. The day the chip worked, AMIS basically said "we don't need you anymore. Fuck off and die now." For AMIS, the entire project was delayed a year. It was incredible, unexplainable stupidity. And yet, it's an entirely common story.

      --
      Celebrate failure, and then learn from it - Nolan Bushnell
    4. Re:Seeing Arrington's rants... by bckspc · · Score: 5, Interesting

      I was just going to post something to the same effect. A good friend of mine was pushed out of his company by his partner, board, and angel investors when his invention was close to launch. Another friend turned evil on me when our own start-up company was approached about acquisition. Even though we were 50-50 partners, I still feel like I got shafted. And every slashdot reader knows that Windows is dominant not because of its technical merits, but because of legal -- and illegal -- bullying. Screw or be screwed seems to be the name of the game. Sometimes it seems the only way to win is not to play.

    5. Re:Seeing Arrington's rants... by asackett · · Score: 4, Interesting

      If I had mod points I'd award a quadrillion of them for:

      I'm guessing you've never started a company. When you do, you'll find out that a fair number of your friends turn into psychopaths when money is involved. This is why the best number of partners in any new venture is 1.

      I've seen this too many times. For anyone who hans't: If you want to know what a partnership is like, here's what you do: Come up with a great idea, then work yourself nearly to death over 18 months to two years while ignoring your family, friends, and health. When the idea has been made tangible and needs just a few minor tweaks, hand over all of your work to someone you'll never want to see again.

      --

      Warning: This signature may offend some viewers.

    6. Re:Seeing Arrington's rants... by h4rm0ny · · Score: 3, Informative


      Arrington is a Stanford educated lawyer with former clients such as Pixar and Apple. If he's making claims like this in his blog, they're not going to be spurious. He'll know what he's doing.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    7. Re:Seeing Arrington's rants... by bvankuik · · Score: 3, Informative

      Problem is that without partners, you do not have any leverage whatsoever. I am sorry for playing bullshit bingo, but leverage means here that with two partners, you can do more together than each partner separately could have done. Doing everything yourself is a good way to limit yourself or put a weakness in your product (because for instance you know jack shit about electronics which plays a nontrivial role in your product).

      I am a business owner and have run a couple of projects for clients. I do not have any partners but I have the same supplier for over two years. We have a client-supplier relation but even there, you need the combination of rules and understanding. But lately I notice that we will never grow beyond calculating costs for the next project. You need partners for that.

      If that is fine with you, then do it yourself. I know I will. I am just not a team player and way too bone headed and authoritative to play nice with a partner. However that means a big limitation (besides the obvious strengths).

    8. Re:Seeing Arrington's rants... by jbezorg · · Score: 2, Insightful

      Playing the Devil's advocate: He also knows just how far he can push the legal envelope and that also takes well thought out claims and statements. In other words, just because he is a Stanford educated lawyer with former clients such as Pixar and Apple, doesn't mean he is incapable of these acts.

      --
      I've lost all my marbles except one & It's fun to test angular & centripetal acceleration in my skull
    9. Re:Seeing Arrington's rants... by lennier · · Score: 1

      "Sometimes it seems the only way to win is not to play."

      Or to nuke Las Vegas.

      --
      You are not a brain: http://books.google.com/books?id=2oV61CeDx-YC
    10. Re:Seeing Arrington's rants... by Evets · · Score: 2, Informative

      The only way to ensure that you will move forward along with a company you started is to ensure that you are not a replaceable asset to the company. Once big money investors get involved, you can expect that any founders will be pushed out the door unless they have real long term value. Technical knowledge of an existing invention != value in a lot of cases. Technical knowledge of a future, more profitable invention might, but even then there must be faith in your ability to complete the task combined with the lack of faith in anybody else to do the same.

      Never go after outside money unless you absolutely have to, and never allow your value to be underestimated. Easier said than done.

    11. Re:Seeing Arrington's rants... by h4rm0ny · · Score: 1


      Granted. But I'm basically saying that if you don't have a solid case, posting the sort of things on his blog that he has done would be a very stupid mistake. And his career inclines me to think that he's not likely to make such a mistake. Ergo, he means it and will be tearing them a new one. I did look for information from Fusion Garage on this but they have nothing on there yet (fair enough, it's very soon to have responded and they may not publicly anyway). But in the absence of counter-evidence, it does look as though Fusion Garage have shot themselves in the foot quite badly. Maybe they just took his input for granted and weren't thinking much about the share in the IP he had. Maybe they thought he'd lie down without a fight. Either way, looks like a big mistake.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    12. Re:Seeing Arrington's rants... by jbezorg · · Score: 1

      So, in short, we don't know. Riiggght....

      I'll bring the popcorn, you bring the drinks and we'll see how this plays out.

      --
      I've lost all my marbles except one & It's fun to test angular & centripetal acceleration in my skull
    13. Re:Seeing Arrington's rants... by Anonymous Coward · · Score: 0

      Oh? And your list of successful solo ventures includes what? And are Google, Microsoft, Apple, HP, Intel etc etc all exceptions to this rule, or evidence that your personal story - no matter how painful - isn't a good basis for giving out bad advice to other people?

    14. Re:Seeing Arrington's rants... by PopeRatzo · · Score: 2, Insightful

      you'll find out that a fair number of your friends turn into psychopaths when money is involved.

      The same can be said for wives, siblings, politicians, nations, clergy, and probably the Buddha himself.

      Point being: the guy who suggested that money is the root of all evil was +5, Insightful.

      It's also why you'll never be happy if your main focus is on making (or having) money.

      --
      You are welcome on my lawn.
    15. Re:Seeing Arrington's rants... by asackett · · Score: 1

      The same can be said for wives, siblings, politicians, nations, clergy, and probably the Buddha himself.

      In my experience, precisely three-quarters of all of my wives have fit your assertion, as have half of all of my children. The other identifiable classes you mentioned I prefer to avoid.

      --

      Warning: This signature may offend some viewers.

    16. Re:Seeing Arrington's rants... by cunina · · Score: 0, Offtopic

      One bit of wisdom I've learned over the years: never, ever, ever go 50-50 on a venture. Make it 50.1% - 49.9%. You are better off with 49.9% of a company than with exactly 50% (assuming one other partner).

    17. Re:Seeing Arrington's rants... by Obispus · · Score: 1

      Felix Dennis' "How to get rich" has many anecdotes about his climb to success. While the book is not really a recipe for getting rich :-), he makes this point over and over again: ownership and control of your venture are everything. Who controls a business can force its sale, implement a merger, fire you, take a great deal more money out of it than minority shareholders. Besides, usually not all shares are equal in power. Many tech startup founders diluted, inch by inch, their participation in their own companies to gain capital to expand and survive. Others, like Gates and Ellison, did not.

    18. Re:Seeing Arrington's rants... by PopeRatzo · · Score: 1

      I understand completely. However, I didn't mean to single out any class as being particularly vulnerable to money-induced psychosis.

      Like you, exactly 3/4 of my wives have been so afflicted. The current one is a peach. Having grown up under communism, she seems to have been somewhat inoculated against this disease. As long as there's fresh vegetables and bread in the market and plenty of low-cost toiletries, she's satisfied. The other nice thing is that it seems her country of birth put a very high premium on quality education, because she was able to come over here and get a PhD in Math with surprising ease.

      She does seem a little puzzled, though, when US radio talkers go on and on against universal health care and wring their hands over the possibility of the US becoming a "European-style" socialist nation. Her response is, "We should be so lucky".

      She's a peach. As is written somewhere, a frugal wife is a pearl of great value. And her Balkan accent gives me goose-bumps.

      --
      You are welcome on my lawn.
  3. Angst and Drama? Try Hilarity by eldavojohn · · Score: 5, Insightful
    Email from Chandra's shareholder:

    We still acknowledge that Arrington and TechCrunch bring some value to your business endeavorIf he agrees to our terms, we would have Arrington assume the role of visionary/evangelist/marketing head and Fusion Garage would acquire the rights to use the Crunchpad brand and name. Personally, I don’t think the name is all that important but you seem to be somewhat attached to the name.

    Translation:

    I'd like to cash in on Arrington's hard work. Does he have some sort of puppeteer's slot in his ass or lower back where we could shove our arm during launches? Or is he run by remote control? Does he come with instructions or ... how does this 'Arrington thing' work exactly? Please toss him the offer of looking like Steve Jobs in the eyes of the public but being my subservient bitch behind the curtains and being forever financially crippled. If he requests vasaline, we may be able to find some funding somewhere but we're not making any promises. There are sharks and there are sheep ...

    Honestly, I applaud Arrington's levelheaded response. I believe mine would have consisted of nothing more than "WTF?" and an image.

    Aside from all that, I'm sad because I really was excited to see what came out of this and would have been interested after the price dropped a bit. I mean, depending on battery life, you'd have to be nuts to get a Kindle over this.

    --
    My work here is dung.
  4. They're right.... by cephalien · · Score: 1, Interesting

    It -isn't- real.

    Not until they're actually being produced.

    So yes, this is vaporware (at least for now)

    --
    If firefighters fight fire, and crimefighters fight crime, what do freedom fighters fight? - George Carlin
  5. Arrogant Power Play by FireIron · · Score: 2, Interesting

    I would have been a customer for this device, but after this I will not now or ever buy anything under the Fusion Garage brand.

    1. Re:Arrogant Power Play by Dogtanian · · Score: 1, Troll

      I would have been a customer for this device, but after this I will not now or ever buy anything under the Fusion Garage brand.

      For some reason, the link where Fusion Garage gives their side of the story is missing in my browser. Can you provide me with it? I know you must have it, because only an idiot would make a kneejerk response like that based on having heard only one side of a story like this.

      (And no, if Arrington turns out to be the one in the right here, you're still an idiot for jumping to conclusions without having heard all the evidence first).

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
    2. Re:Arrogant Power Play by jjohnson · · Score: 2, Funny

      only an idiot would make a kneejerk response like that based on having heard only one side of a story like this.

      You must be new here.

      --
      Anyone who loves or hates any language, platform, or manufacturer, doesn't know what they're talking about.
    3. Re:Arrogant Power Play by FireIron · · Score: 4, Funny

      For some reason, the link where Fusion Garage gives their side of the story is missing in my browser. Can you provide me with it?

      For some reason, the clause in the Slashdot TOS that requires me to hear both sides of an argument before rendering my personal opinion is missing in my browser. Can you provide me with it?

    4. Re:Arrogant Power Play by bugnuts · · Score: 2, Informative

      For some reason, the link where Fusion Garage gives their side of the story is missing in my browser. Can you provide me with it?

      A tiny amount of digging would show that they have a blog.

      In it, they state they are doing the software for it, and the entire vision of the product is from Arrington. There cannot be a product without a vision on what is needed. In patent law, the person that has the actual vision has rights to the patent, no matter how many people are involved in the technical aspects (i.e. building it).

      My thoughts are that Arrington should hire a team to write the software to his specs, and get a product out the door.

    5. Re:Arrogant Power Play by lanyslinas · · Score: 3, Interesting

      Looks like they just took down the blog. Shady.

    6. Re:Arrogant Power Play by bugnuts · · Score: 3, Informative

      Nasty. Here's some of the text from my cache. There are links directly to techcrunch. I have the full, saved files including comments, if anyone is interested.

      Techcrunch Tablet Prototype B
      January 19th, 2009
      Goto comments Leave a comment

      There is an air of excitement permeating through Fusion Garage at the moment. Michael Arrington of Techcrunch just wrote an update on the Techcrunch Tablet Prototype B.

      It's our software that is running on the tablet as demonstrated in the videos embedded in the article. We continue to work with Louis Monier on the feature set and the user experience. We are thrilled with this progress and would like to take the opportunity to thank Michael and Louis for giving us the opportunity to work with them on the Techcrunch Tablet.

      Its early days yet but we are big believers of the Browser As An Operating System and the Techcrunch Tablet Initiative.

      A nice way to begin 2009 here at FusionGarage !

    7. Re:Arrogant Power Play by Dogtanian · · Score: 1

      You must be new here.

      Compared to you, yeah. I've only been here for 7 1/2 years, and I have a lousy six-digit ID. (^_^)

      'Course, this means I still get to look down my nose at the people with circa 1.5m seven-digit IDs ;-)

      --
      "Slashdot - News and Chat Sites Deviant". (Click "homepage" link above for details).
  6. Re:Angst and Drama? Try Hilarity by postbigbang · · Score: 2, Insightful

    On the other hand, let's see what Fusion Garage ships. Might be ok. Too bad Arrington gets cut out of the deal. You'd think a lawyer would have better smarts about these things.

    Oh, wait....

    --
    ---- Teach Peace. It's Cheaper Than War.
  7. Didn't die by Anonymous Coward · · Score: 0, Informative

    It would be more accurate to say CrunchPad was miscarried.

  8. Days from Launch? by Anonymous Coward · · Score: 1, Insightful

    When you write "days from launch", do you mean that there are thousands of boxes of these things sitting in distribution centers, waiting to go to stores?

    Or do you mean they were hoping the printer was going to deliver a new batch of "CrunchPad" decals in a few days, designed to fit over the "Dell" logo on the laptop they were going to use in upcoming demos?

    1. Re:Days from Launch? by dagamer34 · · Score: 2, Informative

      I don't think you read the article because it addressed that very point. They were days away from a public announcement and they had some units ready to go for the press and then this shit gets pulled on him.

    2. Re:Days from Launch? by Anonymous Coward · · Score: 1, Insightful

      Yes, I read the article, and they had two hand-built versions of this thing, that sometimes ran for up to an hour before crashing.

      Also, they invented a time machine, because somehow these setbacks went backwards in time and prevented them from holding the pre-launch part scheduled for November 20th.

      I'm not sure where anyone gets "days from launch" from that, and I'm not sure why the Slashdot editors felt that including it in their "summary" would increase revenue.

    3. Re:Days from Launch? by h4rm0ny · · Score: 2, Informative

      Yes, I read the article, and they had two hand-built versions of this thing, that sometimes ran for up to an hour before crashing.

      Also, they invented a time machine, because somehow these setbacks went backwards in time and prevented them from holding the pre-launch part scheduled for November 20th.

      I'm not sure where anyone gets "days from launch" from that, and I'm not sure why the Slashdot editors felt that including it in their "summary" would increase revenue.

      You're a moron. The article doesn't say that it ran "up to an hour before crashing", it said "it ran for several hours without crashing" which he said was good enough for demos. Fair enough. I don't know where the Hell you got the part about having two hand-built versions of the thing and there's nothing like that in the article. As regards the time machine... The possibility that he is narrating events that happened a couple of weeks ago rather than today seems to be beyond your comprehension. The official launch was set for the 20th. The fatal email came through a few days before that. Wisely, Arrington did not post the story until he'd pursued things privately first, hence the news breaks today. Wow - did you fail to comprehend the article!

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    4. Re:Days from Launch? by Dun+Malg · · Score: 1

      The fatal email came through a few days before that.

      I'm pretty sure nobody died. Did you perhaps mean "fateful"?

      --
      If a job's not worth doing, it's not worth doing right.
    5. Re:Days from Launch? by h4rm0ny · · Score: 1

      I'm pretty sure nobody died. Did you perhaps mean "fateful"?

      No, I meant fatal. It killed the project. The wonderful thing about the English language is how poetic it can be. ;)

      But no offense taken - you're talking to someone who gets irritated when people say 'continuous' when they meant 'continual'. :)

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
  9. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 4, Insightful

    The Kindle is actually $260 now, and it has an non-backlit eInk screen with a three-week battery-life. It has always-on, free 3G internet access, and it has accesses to the gigantic Amazon digital book store.

    This thing might have been a cool (concept for a) gadget, but it is certainly not a replacement for the Kindle. The Kindle is aimed at (and is perfect for) people who like to read BOOKS.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  10. principles principles.. by VMaN · · Score: 1, Interesting

    I wonder if I'll still stick to my principles if the "wrong" company will produce this thing..

    1. Re:principles principles.. by h4rm0ny · · Score: 1


      Heh! The previews of Microsoft's Courier look fantastic. I think your principles re: "wrong company" are about to get tested. ;)

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
  11. Shareholders... by Anonymous Coward · · Score: 0, Interesting

    ...smells like Apple or Microsoft got hold of some of the shareholders or of the CEO.

    Hows that for conspiracy?

    AC

    1. Re:Shareholders... by Volante3192 · · Score: 2, Insightful

      Meh, just seems like classic moneygrubbing stupidity.

      "We want more money from this otherwise you can't have it!" is a rallying cry too often seen in the world of music rights to TV show DVD releases. I mean, take WKRP. Instead of cutting a deal, the rates to relicence the music remained too high to include the original track. So the rightsholders end up losing money, the customers get a subpar product, and no one really wins.

      Take the money and run; keep trying to win against the banker will just get you the suitcase with $1 when you should've settled for the $17,000 offer.

  12. some of us by Anonymous Coward · · Score: 0

    Some of us were highly skeptical of the claims he was making all along. Curious to see that the whole thing died because the contracts apparently forgot to include a clause that his company actually owns the device they're producing (one of the first things any company would 100% ensure is in there). Fitting end for a guy who seems like such an asshole.

  13. Re:Angst and Drama? Try Hilarity by cabjf · · Score: 5, Interesting

    Unless they rework everything that touches the co-owned intellectual property, there is no way Fusion Garage can legally ship anything. Arrington said as much and stated that a lawsuit would be waiting for Fusion Garage should they attempt to ship anything without CrunchPad's approval.

  14. CrunchPad by Anonymous Coward · · Score: 0

    Too busy to RTFA, but is that some kind of toilet-based tablet?

  15. mods on crack (Re:Angst and Drama? Try Hilarity) by corbettw · · Score: 5, Insightful

    This whole thread has been modded Troll. I'm guessing the CEO of Fusion Garage somehow got mod points.

    --
    God invented whiskey so the Irish would not rule the world.
  16. Re:Angst and Drama? Try Hilarity by postbigbang · · Score: 1

    Lending further suspicion to the whole matter....

    --
    ---- Teach Peace. It's Cheaper Than War.
  17. Re:mods on crack (Re:Angst and Drama? Try Hilarity by maxume · · Score: 1

    It seems to happen from time to time. I figure it is people 'protesting' something to do with the moderation system.

    --
    Nerd rage is the funniest rage.
  18. Re:Angst and Drama? Try Hilarity by PitaBred · · Score: 2, Informative

    Meh. I'm holding out for a Nook. More open, more features, same price.

  19. Who Is Doing What? by Kozar_The_Malignant · · Score: 5, Insightful

    I'm not sure what Arrington is bringing to the party here. He's not an engineer that I know of, but more of a money guy. It seems like Fusion Garage was doing all of the heavy lifting on the project. It's not clear how much skin Arrington had in the game. If he was providing serious development capital, he has a point. If all he was providing was "vision" and bloviation and hype via his blog, with maybe a seriously minority share of the capital, then he should STFU. There must be some sort of written contract for a venture like this. Let's see what it says.

    Personally, I don't feel that the branding of something with "Arrington", "Tech Crunch", or "Crunchpad" brings a lot to the table.

    --
    Some mornings it's hardly worth chewing through the restraints to get out of bed.
    1. Re:Who Is Doing What? by pitchaxistheory · · Score: 4, Informative

      I've been keenly following the development of this device in the hopes of getting one before Christmas. Anyway, here's a newspaper article dated Aug '09 about the company behind all the "heavy lifting". Seems that they got into a partnership with Arrington with the hopes of him being the marketing guy. http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_410527.html

    2. Re:Who Is Doing What? by iamhassi · · Score: 2, Insightful

      "If all he was providing was "vision" and bloviation and hype via his blog, with maybe a seriously minority share of the capital, then he should STFU."

      As much as I hate Arrington and the "CrunchPad" because better $300 Tablet PCs already exist, I would have to disagree with you on this. Manufacturing a device and getting it to market is one thing, but advertising it is the other side of the coin. Hell look at the pet rock, anyone could literally make a "pet" rock at home for free, yet the idea made the creator a millionaire within 6 months, all through advertising and hype.

      I think Arrington was doing his fair share just blogging and creating hype over the product, he even managed to get it on slashdot 5 times. Announcing that the product is vaporware likely killed his credibility with blogs and fans worldwide, he will never be trusted again when he announces a new product.

      --
      my karma will be here long after I'm gone
    3. Re:Who Is Doing What? by Brett+Buck · · Score: 1

      I'm not sure what Arrington is bringing to the party here. He's not an engineer that I know of, but more of a money guy.

              Uh, try doing this project *without* a money guy, and see how far you get. Then you will know what he is bringing to the party.

            I'm an engineer, too, but you have to recognize that to do something like this requires a lot more than engineering.

              Brett

    4. Re:Who Is Doing What? by tbuskey · · Score: 1

      Replace CrunchPad with Macintosh and Arrington with Jobs if it helps outline who does what.

      Ok, Jobs probably got into lots more detail, but he's not an engineer or programmer. Jobs certainly was a major factor in the Mac's design.

      I'd say Arrington is probably similar with the Crunchpad. He provided 2 prototypes, office space, access to Silicon Valley capital.

    5. Re:Who Is Doing What? by Anonymous Coward · · Score: 0

      I'm not sure what Arrington is bringing to the party here. He's not an engineer that I know of, but more of a money guy. It seems like Fusion Garage was doing all of the heavy lifting on the project. It's not clear how much skin Arrington had in the game. If he was providing serious development capital, he has a point. If all he was providing was "vision" and bloviation and hype via his blog, with maybe a seriously minority share of the capital, then he should STFU.

      Replace "Arrington" with "Jobs", and "Fusion Garage" with "Apple" and see how far that goes.

    6. Re:Who Is Doing What? by element-o.p. · · Score: 1

      Vision and (as much as I hate to say it) marketing are indeed valuable parts of developing a product. Do you think Bill Gates wrote all of the code that made Microsoft what it is? Maybe in the DOS days, but I seriously doubt that he contributed a significant portion of the 29+ million lines of code in Windows 2000...or even a significant portion of the 4-5 million lines of code in WinNT3.1. No, Gates was the guy with the vision and the connections. How about Steve Jobs? From what I understood, Woz did the heavy lifting back in the day, but Jobs provided the drive, the vision and the marketing that made Apple a household name.

      Like it or not, this is why most of us reading /. will most likely remain obscure: we can do the heavy lifting, and we may even have the vision, but marketing and advertising are essential if you ever want to have anyone outside of your mom and dad know what you developed in your spare time in the basement.

      --
      MCSE? No, sir...I don't do Windows. Yes, I am an idealist. What's your point?
    7. Re:Who Is Doing What? by watanabe · · Score: 2, Insightful

      I haven't read the contract, but I can tell you exactly what happened:

      Arrington has good idea, promises to market it, and work on it, plus provide a (modicum) of resources. Engineering Company gets involved. Capitalists get involved and put money in. Guaranteed: Arrington's dollars are all soft-dollars, time, energy, shared office space, PR, marketing, etc.

      In the end: it works. Woohoo!

      Now, Money guys look at the project, and they think: "OMG, this looks like it will ship and sell. We're all going to make some money, that's good. Let's review the Cap table to see what we'll be making. Hey, WTF? This Arrington guy negotiated like 35-45% of this project for himself, and all he's done is write a few articles about it, and pestered Fusion's engineers.. We could have paid like $20k to some PR firm to do that, how did he end up with 40% of this project?"

      They call the engineering guys and say: "Do we need Arrington?"

      Engineering guys say "Um, to build this project and ship it, we definitely do not need Arrington. Why?"

      Capitalists say: "Because he's worthless, and it would be WRONG to give him the stake he got in the project."

      Engineers say: "... um, ?"

      Capitalists say: "We're going to execute a clawback, drill Arrington down to 8-10%, and then you and we will get to split the remainder. This isn't being bad, this is being right and moral. He just got too much of the pie up front."

      Engineers say: ".. will you talk to him about it?"

      Capitalists say: "You're the CEO, you talk to him."

      Engineers " .. Okay. "

      Guess what, it happens ALL THE TIME. There are a number of possible solutions to a situation like this, but usually you need to plan upfront for it, and be ready. I don't think he was ready, which is too bad.

    8. Re:Who Is Doing What? by Kozar_The_Malignant · · Score: 1

      >Arrington has good idea, promises to market it, and work on it, plus provide a (modicum) of resources. Engineering Company gets involved. Capitalists get involved and put money in. Guaranteed: Arrington's dollars are all soft-dollars, time, energy, shared office space, PR, marketing, etc.

      I think you have this right. If Arrington was the real venture capital behind this, he would have it locked up tight. The fact that he is talking about suing Chandra's stockholders says that he isn't the real money behind this venture. If Arrington was the real VC behind this, the other stockholders wouldn't be worth suing.

      --
      Some mornings it's hardly worth chewing through the restraints to get out of bed.
    9. Re:Who Is Doing What? by Gilmoure · · Score: 1

      And my dad giving me a pet rock for Christmas. WTF? Even 8 year olds knew it was a joke. Thanks, dad. Enjoy the High Karate.

      --
      I drank what? -- Socrates
    10. Re:Who Is Doing What? by TheMCP · · Score: 1

      It doesn't matter whether he's just an ideas guy or provided money or whatever. What matters is what the contract he signed with Fusion Garage says about who the intellectual property belongs to. If it says he owns all the IP, then they have to cough it up for him so he can take it to another firm for manufacture. If it says they own the IP, then Arrington can go suck a lemon while Fusion Garage releases hardware. If the contract doesn't specify who owns the IP, then Arrington is an idiot.

      What really pisses me off is that he could have hired Americans to do the design and sourcing and coding, and had a responsible reputable firm do just the manufacture. I even know a large number of the people he'd need, and at least most of them are available.

  20. Hire a lawyer by harmonise · · Score: 5, Insightful

    Airing your dirty laundry on your blog is a sure-fire way to alienate the very people with which you want to reach an agreement. You've no doubt made it harder to resolve your differences amicably, even if Fusion Garage were the ones being dicks.

    --
    Cory Doctorow talking about cloud computing makes as much sense as George W Bush talking about electrical engineering.
    1. Re:Hire a lawyer by Anonymous Coward · · Score: 1, Informative

      Arrington himself is a lawyer.

    2. Re:Hire a lawyer by fuzzyfuzzyfungus · · Score: 3, Insightful

      It isn't clear(particularly given that Arrington specifically classifies the crunchpad as being "in the deadpool") that he has any real interest in reaching an agreement.

      If, for whatever reason, he considers it highly unlikely that they'll be able to come to any agreement useful to him, it wouldn't be totally unexpected for him to attempt to pay the other guy back, and then some, in his own coin. Refuse to budge on any trademark/IP/whatever issues, indefinitely scuttling a release anywhere in the WIPO world, and use his considerable blog-fu to sink whatever is left.

    3. Re:Hire a lawyer by analog_line · · Score: 3, Insightful

      I very much doubt that an amicable settlement is desired by either party.

      FusionGarage's shareholders think they can use Michael Arrington's personal investment in the project as leverage to get more ownership of the product. This situation has apparently been unfolding out of the public eye for at least a couple of weeks, according to Arrington's post. They're playing hardball, and they figure that they can shove the terms of this new deal down Arrington's throat because he doesn't want the public embarrassment of not getting it done, and not wanting his baby to be stillborn. I'm sure that those shareholders have done this successfully with a lot of other wide eyed tech entrepreneurs. The shareholders probably believe that what is likely a minor investment in the grand scheme of things can be risked. If they lose it all because Arrington decides to call their bluff, they very well may not care.

      Michael Arrington more likely than not went into this in a totally naive manner. I wouldn't doubt that there are a number of things he did wrong that enabled this situation. However, that doesn't change the fact that his partners are now attemtpting to blackmail him, probably legally. They have part ownership of the IP, that means they have a voice. However, Arrington has that same part ownership. He also, as the saying goes, buys ink by the gallon. He has decided that he's willing to shoot the hostage and eat the loss rather than see the people who betrayed his (naive) trust profit.

      As he said, there's going to be lawsuits back and forth on this, and the place this will be resolved is in the court system, probably many years down the line.

    4. Re:Hire a lawyer by Jah-Wren+Ryel · · Score: 1

      I wish more people would do things that way.
      Keeping your trap shut for your own self-interest may be the smart thing to do.
      But letting everyone else know just how douchey the other guy is may end up doing everybody else a favor.

      It's like those non-disclosure terms for a lot of liability settlements. Its great for the one guy who would otherwise get dicked over, but then the guilty party is free to continue with their bad practices potentially harming lots of other people who would otherwise have been forewarned.

      --
      When information is power, privacy is freedom.
    5. Re:Hire a lawyer by h4rm0ny · · Score: 1


      Sometimes it's worth taking some pain yourself in order to punish the other party. It may not be a good short-term strategy, but it can sure as Hell be a good long-term strategy. Feels good, too.

      Love the sig. by the way. Come to think of it, nice nick, also. ;)

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
  21. Lesson #1: Might Makes Right by mpapet · · Score: 5, Interesting

    This is pretty run-of-the-mill back stabbing in OEM/ODM business.

    1. The manufacturer sees an opportunity with a weak 'partner'
    2. Screws the partner.
    3. Profit!

    The thing is 'Fusion Garage' would have screwed him even if they worked a geographic restrictions deal out. If there was any meaningful market acceptance, any number of bigger OEM's would have taken their lunch in ~24 months.

    Sad it has to go like this, but this very common unless you are an HP/Apple/Dell. Typical chicken-egg capitalism problem.

    --
    http://www.maxineudall.com/2010/02/should-economists-be-sued-for-malpractice.html
  22. Totally moronic approach by MikeRT · · Score: 1

    Even a geek with full-blown asperger's syndrome could predict how Arrington and his crew would react to this approach to renegotiating the IP rights. If they had been at least moderately smart about it, they would have come forward with some sort of half-serious offer like buying out some of TechCrunch's equity in the IP or agreeing to assume TechCruch's liability for the business side of getting it out there, warranting it, etc. in exchange for a greater cut of the pie.

    This... just comes off as a blatant attempt to stab a partner in the back if this story can be believed.

  23. Re:Angst and Drama? Try Hilarity by SydShamino · · Score: 2, Funny

    Meh. I'm holding out for a Nook. More open, more features, same price.

    My wife's is supposed to ship today. She placed her order within an hour of announcement and hopefully won't get hit by the 2010 bump.

    --
    It doesn't hurt to be nice.
  24. Re:Michael Arrogant Fail by fuzzyfuzzyfungus · · Score: 2, Insightful

    To be fair, it sounds like the technological side of the job was fairly simple. Knock together some commodity parts, put on a coat of polish, all set.

    The "dealing with everybody's least favorite social primate" part, on the other hand...

  25. And nothing of value was lost by slyborg · · Score: 3, Funny

    The only reason anyone is talking about this is because of Arrington's relentless zeal for self-promotion. I never thought this thing was going to happen, and in regard to keeping Arrington's name in circulation, it was a smashing success. The only thing missing from this soap opera is that Google/Microsoft/Apple diabolically combined with SMERSH to stop the CrunchPud before it could lead to world peace.

    1. Re:And nothing of value was lost by uvajed_ekil · · Score: 1

      Yeah, and a project like this could be killed on the eve of its "launch?" Right. If this is that great of an idea, all the technical stuff has been worked out, a bunch of folks have dumped a bundle of money into, and they can really sell it for $300, someone will find a way to make it work. Do I think that is the case? Nope. If it were, we'd be talking about a real launch, not arguments over who gets how much of the alleged profits.

      --
      This is a hacked account, for which the owner can not be held responsible.
    2. Re:And nothing of value was lost by Kozar_The_Malignant · · Score: 1

      >The only thing missing from this soap opera is that Google/Microsoft/Apple diabolically combined with SMERSH to stop the CrunchPud

      You're on the right track, but in order to be credible, a conspiracy theory must include the Knights Templar.

      --
      Some mornings it's hardly worth chewing through the restraints to get out of bed.
    3. Re:And nothing of value was lost by Arimus · · Score: 1

      and the FBI/CIA/NSA/MI-5/MI-6/KGB/FSB/

      --
      --- Users are like bacteria -> Each one causing a thousand tiny crises until the host finally gives up and dies.
    4. Re:And nothing of value was lost by mujadaddy · · Score: 1

      >The only thing missing from this soap opera is that Google/Microsoft/Apple diabolically combined with SMERSH to stop the CrunchPud

      You're on the right track, but in order to be credible, a conspiracy theory must include the Knights Templar.

      That's just what the Rosicrucians would like you to think!

      --
      Populus vult decipi, ergo decipiatur...
      "Force shits upon Reason's back." - Poor Richard's Almanac
  26. Re:Angst and Drama? Try Hilarity by Daniel_Staal · · Score: 2, Funny

    I got notification from UPS a bit earlier today that they had a package for me. Since the only package I'm waiting on at the moment is a Nook, I think your wife will be getting hers. (I ordered a few days after the announcement.)

    --
    'Sensible' is a curse word.
  27. News Flash! by locallyunscene · · Score: 1

    Interesting bit is that some were already speculating that the Crunchpad was not real."

    Internet claims unreleased product is vaporware. Not interesting.

    Quoted link in TFS is referring to googlephone, not crunchpad FWIW.

    Whether these claims of backstabbing to death a product just before release and if it is par for the course as some posters have claimed is what flips my interesting bit.

    1. Re:News Flash! by Murple+the+Purple · · Score: 1

      > Quoted link in TFS is referring to googlephone, not crunchpad FWIW.

      Au contraire, my fine lazy reader.

  28. The device was stable enough for a demo. by cjjjer · · Score: 2, Funny

    It went hours without crashing.

    ...Good selling point.

  29. Re:Angst and Drama? Try Hilarity by jfruhlinger · · Score: 2, Interesting

    Translation: I'd like to cash in on Arrington's hard work.

    I have no reason to doubt that Arrington is being screwed here, and that he does in fact have intellectual property rights that are being trampled on, but how much hard work did he actually do on this thing? My understanding is that he mostly said, "I want this thing with these specs at this price, make it happen" and his manufacturing partner is the one that actually built it.

    Arrington is providing (a) his services as a sort of ideal end-user (i.e. if this one tech-savvy guy really, really wants a thing that works exactly like this, there's probably a market for it) and (b) a ready-made market in the shape of his extensive and influential (in tech circles) audience. The latter indeed took hard work to amass, but he's not the one who actually built the CrunchPad.

  30. Its called a shot-gun clause... by IpSo_ · · Score: 3, Insightful

    ALWAYS, ALWAYS, ALWAYS have a shot-gun clause with a hard time limit in any significant partnership agreement. This "co-owned" 50/50 split stuff is BS and is way too likely to go sour.

    If they had a shot-gun clause in their agreement, this would be a simple matter of one party or the other buying full rights and continuing on with the project, no legal system and multi-year drawn out court battles designed to put all the money in lawyers pockets. The issue would be resolved in a matter of days and both parties would essentially be happy.

    --
    Open Source Time and Attendance, Job Costing a
    1. Re:Its called a shot-gun clause... by vlm · · Score: 2, Insightful

      If they had a shot-gun clause in their agreement, this would be a simple matter of one party or the other buying full rights and continuing on with the project, no legal system and multi-year drawn out court battles designed to put all the money in lawyers pockets.

      Only if both sides have roughly the same financial resources. Otherwise the poor guy can't possibly buy out the rich guy, so the rich guy has a huge advantage... I get the feeling, in this situation, the other guys have a lot more resources.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    2. Re:Its called a shot-gun clause... by Anonymous Coward · · Score: 0

      Also such an outcome is predicated on the assumption both parties are out for financial gain. By Arrington's admission, money wasn't his goal.

    3. Re:Its called a shot-gun clause... by IpSo_ · · Score: 1

      So? The "rich" guy needs to make the "poor" guy a reasonable offer, because as per the shot-gun clause any offer that is made first can be countered by the other party at the exact same price. So if the "rich" guy tries to lowball the "poor" guy, it could easily come back to bite him.

      It basically comes down to this, if the "poor" guy can't get his hands on enough capital to meet the original shot-gun clause offer, likely the project isn't worth it to begin with, but at least he gets to walk away with some cash, likely more money then he or any outside investors think the project is worth.

      Given the alternative, the "poor" guy couldn't afford any court costs anyways and would be likely to lose everything PLUS lawyer costs if it ever went to court, so with a shot-gun clause in tact he at least has the option to raise more capital, or he gets bought out for a reasonable amount.

      You can't get a more fair system then the shot-gun clause, and one party being "rich" and the other being "poor" makes virtually no difference either.

      --
      Open Source Time and Attendance, Job Costing a
    4. Re:Its called a shot-gun clause... by Archangel+Michael · · Score: 1

      I've actually seen one of these clauses invoked in a local business here. The hostile buyout offer was submitted and the guy responding gladly took the terms of the offer, as opportunity to buy out the originator.

      The problem was, the originator of the offer tried to change his mind on the deal, and tried to renegotiate the buy/sell price and sued, to raise the price.

      While the suit was in court, proceeded to try to destroy the business and all the various partnerships that were built up over the course. About halfway through the courts, the second guy realizing the sabotage was starting to work, accepted the "re-negotiated" price, in court.

      That is when the first guy accused the second guy of sabotaging the business and rejected the price, and resorted back to a new lower than original price, whereby the second guy promptly agreed to buy at that price.

      The courts, seeing through the scam at that point sealed the deal at the new lower price, and called the lawyers to draw up the papers at that price.

      It was hell for my friend at the time, but it is kind of funny now. The asshole screwed himself, in what we now refer to as "autoanalcoitus".

      --
      Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
    5. Re:Its called a shot-gun clause... by dlgeek · · Score: 1

      That's not necessarily true. Lets say Rich and Poor both have equal equity in a business, they've been putting in significant cash (lets say it's been $20K each) but it's not there yet. There's another $20K until the product is ready to ship, at which point it will bring in $200K in revenue. (This means each partner would have put in $30K for a $100K result, giving $70K profit each). Rich has a lot of cash on hand, Poor doesn't (he only has the $10K to finish left). Rich offers to buy out Poor at $20K. Now, since Poor doesn't have $20K, he's forced to sell to Rich. Poor just spent two years working on the project, only to get just his original money back, a significant opportunity cost. Rich put a total of $60K ($20K initial, $20K buyout, $20K to finish the project) for a $200K payout, giving him a $140K profit, much more than he'd have gotten. The $20K wasn't fair since Poor didn't have the resources to continue on his own.

    6. Re:Its called a shot-gun clause... by IpSo_ · · Score: 1

      Okay and not having a shot-gun clause results in this:

      Rich telling Poor to go screw himself, taking whatever he can and continuing to build the project and sell it... Poor doesn't have the 10s of thousands of dollars to take Rich to court where there is still a 50/50 chance at best that he may or may not walk away with anything other than a fat lawyer bill. At this point the court has to decide who is in the "wrong" when there may or may not be clear cut terms.

      I've personally been involved with the sale of a business which exceeded 6 figures, the sale contract was done up by experienced lawyers in which the buyer would make two payments, one up front and another X days after. The buyer also provided personal promissory notes from himself, his wife, and signed over collateral in the form of real-estate.

      Well, the buyer never made the 2nd payment, and even with the promissory notes and collateral it still cost 40K in lawyer fees and took almost two years to get a judgment against them before the seller could legally have access to any assets, which turns out by the time this all panned out they were all mortgaged to the hilt and the economy went into the dumps making the collateral (real estate) is worth a fraction of what it originally was. Since the banks get first priority on mortgages, its all worthless to the seller. The best course of action is to wait it out and hopefully the buyer gets into a position to actually make the payment, or have something worth taking.

      Now a shot-gun clause wouldn't have helped in this situation, but the point is, going to court is pretty much guaranteed lose situation for "regular folk". At LEAST a shot-gun clause has a "out" with clear and simple terms. If one party tries to get nasty at that point there really isn't any decision for a court to make other than uphold the exchange of money/property/intellectual property. It would still probably cost thousands upon thousands of dollars to actually enforce, but that is a fraction of the alternative.

      Its not ideal by any means, but its the lesser of two evils and its always a way out that is as fair as possible.

      --
      Open Source Time and Attendance, Job Costing a
    7. Re:Its called a shot-gun clause... by eightball · · Score: 2, Insightful

      A complementary story:
      Banker meets with Poor and learns that for an infusion of $20k, there is projected to be a return of $200k. This is based on a real product that can be at least partially demonstrated. Also there is evidence that the project is worth at least $20k due to the fact that Rich made that offer.

    8. Re:Its called a shot-gun clause... by jvkjvk · · Score: 1

      So, I guess you consider any offer made by the 'rich' partner that is, say 1% greater than, what the 'poor' partner can afford to pay is "fair"?

      Hmm. I don't think that seems quite right. My only option in that situation is to basically hock my stake in the business to another partner to come up with the additional monies.

      Unless there is something else going on, it does indeed seem that one party being rich and the other poor does make a difference, even with this type of arrangement.

      Regards.

    9. Re:Its called a shot-gun clause... by IpSo_ · · Score: 1

      Yes, its completely fair.

      If "Rich" guy somehow knows that your entire networth is $500,000 (most of it equity in your home) and he offers $505,000 for the company, he is either a complete idiot or the company isn't worth that much to begin with.

      If "poor" guy can't come up with $505,000 by mortgaging his house and getting a $5000 loan from his family/bank, then the project obviously isn't worth that amount, let alone $5000 to someone on the "outside". Selling a 1% stake in your company to retain 99% is a small price to pay. If the company has any worth whatsoever, a bank isn't going to have a problem loaning you the money for a lowball shot-gun clause offer.

      As I mentioned in my other post, I would rather walk away from a bad business relationship with $505,000 in my pocket, then what the alternative would be without a shot-gun clause.

      If your business partner is that much of a jerk and "rich" it would be guaranteed a few years in court, guaranteed several hundred thousand dollars in lawyer bills, all for what? The CHANCE (no guarantee) of getting only PART (assuming 50/50 partnership) of the company if there is anything left of it in the end.

      Shot-gun clauses are the last resort, they are not ideal by any means, but when you are dealing with someone who is completely unreasonable, its the best case scenario and you should be thankful to get anything out of it. Thats the price you pay for having a bad business partner.

      If you would rather spend years in court and help your lawyer pay for his fancy car/house, be my guest, don't use a shot-gun clause.

      --
      Open Source Time and Attendance, Job Costing a
  31. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 1

    That thing looks great, too. But how many books are available for it? Until most publishers wise up and start offering DRM-free books, the size of the library your ebook has access to is an extremely important factor.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  32. He can talk the talk by mrgreenfur · · Score: 4, Insightful

    He lampoons startups every day and finally tries something on his own and realizes it's harder said than done, what a surprise. This guy is a dick and always has been; it's kinda nice to hear he's having trouble!

    1. Re:He can talk the talk by uvajed_ekil · · Score: 2, Funny

      Oh come one now, this is the guy who brought us the _______________, which at only $________ is super amazing, because it can __________ and __________, and is far superior to its top competitor, the ____________.


      *The above sentence is to be completed at some point in the future, if and when it ever becomes applicable.*

      --
      This is a hacked account, for which the owner can not be held responsible.
    2. Re:He can talk the talk by CodeBuster · · Score: 2, Funny

      This guy is a dick and always has been; it's kinda nice to hear he's having trouble!

      Nothing like a little Schadenfreude to brighten one's day after all...

    3. Re:He can talk the talk by /dev/trash · · Score: 1

      Duke Nukem Forever
      35
      do 3-d
      oral favors
      WoW

  33. Re:Angst and Drama? Try Hilarity by interval1066 · · Score: 2, Interesting

    ...but how much hard work did he actually do on this thing?

    Doesn't matter. The post clearly shows (if accurate) that Arrington owns a piece of the intellectual property that make up the CrunchPad. Its as if a bunch of different people got together to make a pizza chain with one guy coming up with the name, logo, mascot, and business plan, and the other guys deciding to ace that first guy out yet retaining all of that first guy's input. Its a blatant rip-off of Arrington, no matter how much work he did. If you own a piece, you own a piece. That fact isn't up for debate. I bet you'd be pissed off too if this happened to you; even if you spent all the development time sitting on your couch channel surfing.

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  34. If you assume, you make an ASS out of U and ME by Anonymous Coward · · Score: 1, Insightful

    FTA: It was about the thrill of building something with a team that had the same vision.

    Obviously, Arrington assumed too much about his partner who, along with the partner's shareholders, had a different vision.

  35. Somewhere right now.... by Rude+Turnip · · Score: 2, Funny

    Leo LaPorte is laughing his ass off and noting that Karma is a bitch.

    1. Re:Somewhere right now.... by XPeter · · Score: 1

      This is what you get for questioning Leo's integrity.

      --
      "The difference between genius and stupidity is that genius has it's limits" - Albert Einstein
  36. "10 Most Brilliant Products of 2009" by nscheffey · · Score: 1

    So was the Crunchpad the most award winning vaporware product of all time?

    1. Re:"10 Most Brilliant Products of 2009" by ClosedSource · · Score: 1

      I never understood why popular mechanics is talking about computers and electronics. Shouldn't they have articles about building doghouses and such?

  37. Re:Angst and Drama? Try Hilarity by vlm · · Score: 1

    That thing looks great, too. But how many books are available for it? Until most publishers wise up and start offering DRM-free books, the size of the library your ebook has access to is an extremely important factor.

    Nobody would ever trade ebooks like they trade music. Nope.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  38. Re:Angst and Drama? Try Hilarity by Culture20 · · Score: 1

    I have no reason to doubt that Arrington is being screwed here, and that he does in fact have intellectual property rights that are being trampled on, but how much hard work did he actually do on this thing? My understanding is that he mostly said, "I want this thing with these specs at this price, make it happen" and his manufacturing partner is the one that actually built it.

    This needs to be propped up as a shining example of what will happen to all U.S.A. IP companies in the next century unless they get manufacturing back in the US again. It's just the start of the rest of the world realizing: "Hey, we're making this stuff; you're just the guys who gave us the ephemeral part." (well, not really, China's realized it for a long time now, but they just make off-branded copies)

  39. Re:Angst and Drama? Try Hilarity by COMON$ · · Score: 1

    Ya, and in 2 years we will see yet another RIM style lawsuit, this seems to be the style of things now adays. Either way, this is the first time I have seen this device and I sure would have bought one. But I think the apple tablet might be along the lines of what I will end up getting.

    --
    CS: It is all sink or swim...oh and did I mention there are sharks in that water?
  40. Silly Americans by J4 · · Score: 1

    At least the company _let_him_know_ they were gonna cut him out.
    There is nothing stopping them from going ahead with production and marketing.
    As in the music business: if there's a profit, then there's a problem.
    If the lawyers can't feed it's moot.

    1. Re:Silly Americans by mlingojones · · Score: 1

      There actually is something stopping them, that "something" being the fact that they don't own the intellectual property for the device.

  41. Re:Angst and Drama? Try Hilarity by postbigbang · · Score: 1

    Who knows? Tablet vaporstuff is in vogue... even Barnes and Noble can't ship one. Bezos is selling 'em like hot cakes.

    I think the patent on paper has expired.YMMV.

    --
    ---- Teach Peace. It's Cheaper Than War.
  42. Re:Angst and Drama? Try Hilarity by Myrv · · Score: 3, Informative

    I have no reason to doubt that Arrington is being screwed here, and that he does in fact have intellectual property rights that are being trampled on, but how much hard work did he actually do on this thing? My understanding is that he mostly said, "I want this thing with these specs at this price, make it happen" and his manufacturing partner is the one that actually built it.

    Well, to Arrignton's credit he (or the TechCrunch side of things) did build the first prototype. He also provided office space for Fusion Garage and no doubt was integral in the testing. There's also a lot of talk about setting up distribution and funding although it's hard to say how much of that was Arringtons doing. Overall I would say Arrington has contributed at least an equal share into the project.

  43. this is called "out-sourcing" by cnkurzke · · Score: 1

    In other news:
    Somewhere in an asian bazaar you can now buy the first version of a $299 "CrumblePad" in either pink, lime green or yellow.

    Large volume container shipping will begin in January, and the "Disneay" branded child friendly version with preloaded pirated Disney movies dubbed to chinese is in the works.

  44. Re:Angst and Drama? Try Hilarity by Daniel_Staal · · Score: 1

    Actually, that's one of the advantages of the Nook in my opinion: It uses an open, standard format (EPUB) as it's normal book format. The format supports DRM, but doesn't require it, and there are quite a few ebook stores out there already selling books in epub format. Nearly every other ebook reader on the market is also supporting the epub format. (The exception is the Kindle, which uses a proprietary format.)

    Current bestsellers are likely to be DRM'd if you can find them, but most of everything else is available and non-DRM'd, if you look.

    --
    'Sensible' is a curse word.
  45. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 1

    In slashdot parlance, you are spreading FUD. The Kindle most certainly uses non-proprietary book formats. You can use mobi, txt, and pdf directly, for example. Any other format can be used by via conversion.

    Having a more limited selection of books for the Nook is not an advantage of the Nook; it's an advantage of the Kindle.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  46. Re:Angst and Drama? Try Hilarity by Qzukk · · Score: 1

    Looking at the specs, it reads PDF, eReader and EPUB in addition to B&N's own format, so a lot of ground is covered outside of just B&N's store (eg Project Gutenberg) but you're right, it will be up to publishers to say "we want nook users to be able to read this" either through B&N or some other means.

    If B&N moves forward with opening it to developers (even if we're only allowed to use wifi) I will buy at least one.

    --
    If I have been able to see further than others, it is because I bought a pair of binoculars.
  47. Re:Angst and Drama? Try Hilarity by Wootie+Woo · · Score: 1

    I was totally expecting this comment to come from PizzaAnalogyGuy. I was wrong. =p

  48. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    And this is an issue how? People trade BOOKS and there are even publicly funded entities facilitating this! I've spent at least $300 on books by an author that I found I liked after borrowing books from a friend. Libraries are good for (active) authors as they introduce them to readers with zero financial risk and if they enjoy them enough, they are likely to buy their own copy rather than wait for the library's.
    I admit that the ability to loan a copy immediately is a change, but you could easily set things up to switch from DRM to DRM-free after the first month (pirated copies will be available regardless by then). This avoids the nasty side effects of the DRM managers folding, depriving you of goods that you paid for.

  49. Re:Angst and Drama? Try Hilarity by node+3 · · Score: 3, Insightful

    Doesn't matter. The post clearly shows (if accurate) that Arrington owns a piece of the intellectual property that make up the CrunchPad.

    So, patents are *good* today? It's tough to keep track...

    Seriously, Arrington clearly bit off *far* more than he could chew. Any jackass can "invent" a tablet. "10 inch screen, wireless, touch input, long battery life, less than $300!" How hard is that? The hard part is actually designing, manufacturing, and bringing the product to market. Those things are *very* difficult. That's why all those great ideas everyone comes up with never happen.

    Arrington's posts about the CrunchPad were *always* exaggerated and idealistic in tone. These are good signs that he was deluded and had a fantasy of grandeur. This was compounded by the slashdot-types who would *love* a CrunchPad.

    Arrington clearly had the desire, the drive and the imagination, and even that's a lot. After all, he got a lot further than any of us would have. But he clearly didn't have what it takes to make the product real. If the product *really* was just "days away" from production, and if he *really* has done all the work people are attributing to him, he could just take his project to someone else. But he can't, because he really *didn't* do as much as he thought, and he really *wasn't* just days away from production.

    Too bad, too. Because the CrunchPad sure did *sound* like a great *idea*.

  50. Re:Angst and Drama? Try Hilarity by Daniel_Staal · · Score: 2, Informative

    mobi is a proprietary format (it is owned by a company, and they control the format), and Kindle's version isn't straight mobi, it's a slight modification. Txt and pdf aren't ebook formats. (They are text and e-paper formats, respectively. Yes, there is a difference.) And the Nook can use those as well.

    epub is a true open format: available to any without licensing fees and such. Software is available freely to convert books and other text into it, and out of it should you so choose. (Provided they haven't been encrypted using the DRM provision, of course.)

    And it's the Kindle that has the more limited selection: Epub is the more common format, and the Nook also supports the older (proprietary) eReader format, that has been used for around 10 years, starting on the Palm platform.

    I fully expect to be able to read 70-90% of my current library of ebooks without conversion on my Nook. I'd have to convert 100%, using Amazon's service, on the Kindle.

    --
    'Sensible' is a curse word.
  51. Good luck with that by Anonymous Coward · · Score: 0

    Aside from your snide reply to being asked a very legitimate question...

    Do you really think anyone cares? Slashdolts always make these claims that they're going to boycott this or refuse to work with some company because of an issue of some sort. In fact these claims have also been the basis of many a fanboi crying that Microsoft is going to fail any day now. I've been hearing that claim every time MS fumbles the ball for 10 years. I still have yet to see you guys get one right.

    This product is fail, IMHO, from a technology aspect. But the truth of the matter is that I wouldn't care less about the political aspect of the company unless they were skinning animals alive or selling children into the slave trade. If they had a good product I'd put my money down to buy it just like anyone else.

    Sorry but if you really think you're going to change this kind of thing you need to work on companies that really deserve the beat down first. This, to me, is just one businessman taking advantage of the short sightedness of another businessman. Every society has this happening all the time. And why should I boycott a company because someone else wasn't smart enough to cover themselves?

  52. Re:Angst and Drama? Try Hilarity by jythie · · Score: 1

    Which makes me think Fusion Garage had a bit of group think between a bunch of non-lawyers that convinced themselves that they would get away with something like this.

  53. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    If the product *really* was just "days away" from production, and if he *really* has done all the work people are attributing to him, he could just take his project to someone else.

    [citation needed]

  54. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 2, Informative

    I'm not sure if your confusion stems from the fact that this is to complicated for you to understand, or that you don't want to understand.

    First, the Kindle supports mobi. Regular, non-DRM mobi format. Your claim otherwise is factually, indisputably false.

    Secondly, it's the number of books supported that matters. If a book is only available in a format the Nook can't read but the Kindle can, the fact that the Nook supports your favorite format doesn't count for shit.

    So in conclusion: both the Kindle and the Nook support open ebook formats. The Kindle also supports the format used by the Amazon store; the nook does not. If the number of books available from the Amazon store is much larger than those available for the Nook, that's a serious advantage for the Kindle as an ebook reader.

    Good luck to B&N. I hope they get full publisher support eventually. Without it, the Nook will be a 2nd-class citizen of the ebook world.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  55. Victory by transami · · Score: 1

    Don't you see? The "shareholders" never had any intention of letting this go to market. This is not about an attempt to steal intellectual property. It's about eliminating competition for similar proprietary technology (Nook, Kindle, Apple's eventual tablet, etc.) The large media players are doing everything they can to reign in the Internet. The ruination of the CrunchPad is a victory for them.

    --
    :T:R:A:N:S:
    1. Re:Victory by Anonymous Coward · · Score: 0

      Nook, Kindle, Apple's eventual tablet, etc.

      it's kind of telling where your head is when that is what you've listed as the tablet market offerings. sad that this came from someone with such a low uid. i would expect this out of someone who's been in the game for about as long as i've been using my first tablet*.

      * my 7 year old hp tablet is still chugging along just fine and it is just as good as this product. thankyouverymuch.

  56. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    If all you claim is true than it will be an open and shut case in court. My guess is that Arrington did a lot less than he said and has no paper to back up his claim of being an owner of the IP.

    I don't think any company worth their VR would fumble the ball this bad but I have been wrong before.

  57. Re:Angst and Drama? Try Hilarity by iluvcapra · · Score: 1

    What I don't understand is why Fusion Garage owns any of the intellectual property whatsoever... From the TFA it's not even clear that Arrington properly retained sole ownership of the "CrunchPad" trademark, it's all intermingled and joint. He says in TFA it's like "Foxconn calling Apple and telling them they are stealing the iPhone," but it isn't like that at all. Foxconn is a bloody vendor, not a partner.

    You'd think the least he would have done is had non-compete language in the recision provisions of their joint venture, since this sort of outcome seems like it would be pretty easy to predict, doing equity deals with strangers, with no history or track record, informally sharing office space and all manner of IP back and forth.

    Basically what Fusion Garage did is they hired Arrington as a consultant and marketer (as they say, an "evangelist") and now they're telling him to take a hike, and this ostensibly-smart "insider" finds himself without recourse.

    --
    Don't blame me, I voted for Baltar.
  58. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    First, the Kindle supports mobi. Regular, non-DRM mobi format.

    That's not really the point... Find me the documentation on the mobi format. I've tried, it's harder to suss out than .doc. Have you ever hexdumped a .mobi? It's a trainwreck. The only effective way you can make or read a .mobi is by licensing an app or library from the company that owns the format. There's may be no DRM, but it certainly isn't "open."

  59. finally tries something on his own? by slashmojo · · Score: 1

    Are you forgetting Techcrunch (and several related sites) itself? I'd say he already did the startup thing on his own and appears to be doing quite well.

    Also he was co-founder of another startup a few years ago which deadpooled. So he's been there, done that too.

  60. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 1

    The point, if you missed it, is that very many books are available for the Kindle. If the publishers don't release books in a format the Nook can read, it doesn't matter much at all what format it supports.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  61. Re:Angst and Drama? Try Hilarity by Daniel_Staal · · Score: 1

    Ok, double-checking: The Kindle supports both it's own version of mobi, and the normal mobi format. Sorry, I was confused there.

    Mobi is not an open format: It is based off of an open ebook format, but it is a proprietary format by the Mobipocket company, who licenses it and controls what and how devices can read it.

    ePub is an open, documented format by an international standards body, that can be implemented freely.

    Amazon lists that they have over 360,000 ebooks available.

    B&N lists just under 105,000.

    Those are what are directly available through their own sites. Baen.com also has ebooks available. As does Fictionwise. And Project Gutenburg. And TOR. And Google books. And eReader. And probably a few dozen others I can't think of at the moment. All of the above have downloads in ePub format. All but Google have in Kindle format as well.

    Converters - for every platform - can be found as free downloads for ePub. A free converter to mobi format can be downloaded from Mobipocket's website, for Windows 2000/XP only. (And requires Internet Explorer.)

    The number through the dedicated sites is relevant, but is not the whole story. It is slightly easier to find ePub books from other sites, and it is definitely easier to create your own. (Especially if you don't run Windows.)

    That's short-term, and right now. Longer term, ePub is easier and cheaper to support, and is supported by more different types of devices. (Including one, now, with the market visibility of the Kindle.) It's also a slightly newer format. Amazon is going to find itself in the position of being a sole defender of a file format (which they do not even own, and have to pay to use), while the rest of the industry is standardizing on a different format. It might have the installed base to defend that, but I doubt it overall.

    Both formats are already widely used, along with a good half-dozen other formats. (Which are dieing slow deaths.) Every major publisher has books for sale someplace in both formats. Minor publishers are likely to have their entire catalogs.

    While the Kindle was the only major player, there was a slight move to standardize on it's format. However, the rest of the ebook market (fragmented and invisible as it might be) had been moving steadily towards ePub. Now there is a major player using that format, which is a real open standard, and not just the format of the dominant company.

    I think both formats at this point have enough of a mass of books for any normal reader to be likely to find books they would like to read in it. Mobi/Kindle may have a slight current edge, in sheer numbers. ePub is easier to use and freer, while being extremely competitive in title selection.

    (In computer-history terms: mobi is .doc, and ePub is a well-designed ODF, and it's still the start of the document format wars. I think the format that the publishers and device manufactures can use easily will be the dominant format, since the install base is still small.)

    --
    'Sensible' is a curse word.
  62. ah for the good old dayz... by Thud457 · · Score: 1
    --

    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  63. Re:Angst and Drama? Try Hilarity by interval1066 · · Score: 1

    I'm not arguing in favor of patents. If you start a business and I steal it from you, not just take the idea but tell you to your face that you were a partner but are no longer, and my lawyer slaps you with filed papers to that effect, is that a patent issue? Or a simple civil case, name your poison- say theft, breach of contract, breaking of agreements, christ, I could go on...

    --
    Python: 'And then suddenly you have a language which says "we're all stuck with whatever the whiniest coder wants".'
  64. I have a hard time believing... by nilbog · · Score: 1

    I have a hard time believing that they were days away from launch, and there is not a stockpile of units somewhere with the "crunchpad" branding written all over them. I could see the deal falling through days before manufacturing begins, but once you actually make the devices it's kinda the point of no return.

    Unless they're just going to hit a bargain bin in some third world country. But it sounds like Arrington is already too heavily invested if it was indeed days away from launch.

    --
    or else!
    1. Re:I have a hard time believing... by GameMaster · · Score: 1

      Apparently, it was a paper launch. As far as I can tell, they were days away from showing the final production model to the public for the first time. Before this, all they showed were prototypes. According to his post, the software wasn't done yet, causing it to crash after a few hours.

      --

      Rules of Conduct:
      #1 - The DM is always right.
      #2 - If the DM is wrong, see rule #1
  65. Re:Angst and Drama? Try Hilarity by larry+bagina · · Score: 2, Informative

    Bezos says he's selling them, but he hasn't released any sales figures.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  66. Re:Angst and Drama? Try Hilarity by larry+bagina · · Score: 2, Funny

    It's true; his wife is getting my package right now.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  67. Re:Angst and Drama? Try Hilarity by Lord+Ender · · Score: 1

    With a book store one third of the size, it sounds like the Nook will only satisfy people who read primarily copyright-expired works. Those of us who want books written in the past seventy years have only the Kindle as a legitimate ebook option. As much as you talk about the format, you forget that it's the books that matter--not the binding. Some day, if BN can get enough publishers to play ball, it may be a contender. But right now, the Nook is the Zune to Amazon's iPod.

    --
    A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
  68. You use that word by Anonymous Coward · · Score: 0

    I do not think you know what it means.

  69. Re:Angst and Drama? Try Hilarity by Myopic · · Score: 1

    how much hard work did he actually do on this thing? My understanding is that he mostly said, "I want this thing with these specs at this price, make it happen" and his manufacturing partner is the one that actually built it.

    That sounds a little like Steve Jobs.

  70. Re:Angst and Drama? Try Hilarity by Nithendil · · Score: 1

    It is relatively easy to invent things; it is another matter entirely to get enough people to care about it. I'm sure everyone here has thought up a patentable idea, the difference is the drive to do something with it.

  71. Where's the source? by Len · · Score: 2, Insightful

    The CrunchPad was supposed to have open hardware & software, right?
    It was almost finished and ready for release, right?
    So where's the hardware design & source code? Or was all that "open" talk just BS meant to get support from the slashcrunch crowd?

  72. Re:Angst and Drama? Try Hilarity by Gilmoure · · Score: 1

    Ah, but will he let others look at his wife's nook?

    --
    I drank what? -- Socrates
  73. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    *Patents* *aren't* *universally* *good* *or* *universally* *bad,* *and* *I* *wouldn't* *expect* *someone* *who* *thinks* *as* *much* *to* *be* *able* *to* *separate* *their* *opinion* *of* *the* *man* *and* *the* *product* *from* *the* *discussion* *of* *legal* *responsibility* *that's* *going* *on.*

  74. Re:Angst and Drama? Try Hilarity by cc_pirate · · Score: 1

    In all likelihood is was a group of fscking MBAs. I've never met an MBA that wasn't turned into a complete a**hat by his stint in MBA school. It's like they teach negative morality there. 'Anything is ok that makes you money. If you don't think that way you are a chump, etc.'

    That school of thought is a big part of the reason we just had a massive economic crash. I hope he tears these guys a new a**hole.

    --

    "There are laws that enslave men, and laws that set them free. " - Sean Connery as King Arthur

  75. Re:Angst and Drama? Try Hilarity by PopeRatzo · · Score: 3, Interesting

    The culture in most B-Schools is really kind of interesting and disgusting. My office is directly adjacent to my institution's business school and I'll sometimes have lunch in their cafeteria, because the food is decent. I suppose that when you're charging a quarter of a million for a degree you are somewhat required to provide edible food. It's hard not to notice that nearly every single student or faculty member there is a tool. I only wish I was making a generality.

    Take the ugliest tendencies of a jock fraternity, add greed, avarice, hair-gel, flop-sweat and downright meanness.

    Ever see the movie Glengarry Glen Ross? Think of the Alec Baldwin character. Now take away the charm and intelligence and give him the patina of higher education and the aroma of Axe body spray. That's the population of a business school.

    I sometimes play in a floating poker game for academics. The only person we've ever had to physically put out was from the B-School. And get this: it was a asst prof from Romance Languages that executed the bum's rush. The ejectee went on to create a retail start-up that made some money, grew fast and went down hard. I've heard that some working stiffs got hurt in the deal, but the major players went on to give "make money at home" seminars and host an infomercial on local AM radio (the kind that try to sound like a real radio talk show). And this is a guy from one of the top-ten US biz schools.

    By comparison, the folks over at the law school are sweethearts.

    --
    You are welcome on my lawn.
  76. Arrington pulled a SourceForge by tlambert · · Score: 4, Interesting

    Arrington pulled a SourceForge.

            http://www.techcrunch.com/2008/07/21/we-want-a-dead-simple-web-tablet-help-us-build-it/

    He declared a project, didn't put much in beyond the idea for the project, and then expected people to flock to the project and build it for him. Very much the same way people declare projects on SourceForge, and then expect volunteer programmers to come out of the woodwork and build whatever their pet project happens to be.

    The only difference here is that it involved both hardware and software, and not just software.

    I went to the Internet WayBack Machine and read all of the blogs from Fusion Garage (the actual site is currently down, probably intentionally), and it looks like all of the software was done by them, including the OS, and it looks (from Arrington's blogs) like a lot of the hardware was done by Intel.

    I don't mean to discount the value of vision or publicity, but really, he intended to Open Source everything about the tablet when he declared the project, and I don't really see a lot of value being taken from him in that case, since he wouldn't be building hardware anyway. The only money would be in margin on the hardware if the software was all out there. A lot of people have posted similar specifications for what they'd like to see in a tablet computer, and the only difference between them and Arrington is Arrington has a lot of self-publicity and got a startup to bite on the bait to actually build the thing.

    Arrington might have some arguments with regard to industrial design, but the prototype hardware was not built by him, and the software that made that hardware live and breathe was definitely not his.

    I've worked at combo hardware/software startups, and I've worked at software-only startups (including my own), and universally, the hardware in the hardware/software startups was all about minimal COGS and industrial design (being at Apple now, that's pretty much all there is). The value-add over commodity hardware is that it isn't "cheapest vendor of the part of the day" (so the hardware is reliable and not crap because of constantly retooled assembly lines), and it's the software. When Apple builds a laptop, it doesn't build hardware, and it doesn't build software, it builds systems. The people who don't get that and churn out 1.5%-4% margin crap do so at their peril.

    My reading of things is that Arrington is no Jonathan Ive, and he's no Steve Jobs when it comes to design of hardware or software.

    Fusion Garage may have taken his idea and run with it.. and they want to cut him in on profits from something, the intrinsic value of which he intended to give away for no profit, but they don't seem to be ripping him off to do it, although they do seem to be leveraging as much as they can to get him to accept a minority role with regard to what he brings to the table (which, per the above, by my reckoning, isn't much; sorry, Arrington).

    As more than one V.C. has told me in the past, the point is not the idea; there are millions of good ideas that go unfunded all the time (I'll point at SourceForge again, where "funding" equates to "provision of manpower necessary to complete a project"); what a V.C. funds is the ability to execute on a vision, no matter whose vision it is, and the team behind that ability to execute on the vision and bring a product to market. 1 in 10 entrepreneurs get funded; 1 in 10 of those fail in the first year. That's only a 1 in 100 chance of being around after a year.

    Arrington's failure is no less spectacular than anyone else's in that 99 out of 100 failures, he's just made it more public by ranting about it.

    Ironically, the idea may still not be a failure, merely a failure on his part to control the thing which was built on his (and a lot of other peoples similar) idea, if Fusion Garage or someone else simply continues on and executes on it.

    Good luck in your future endeavors, but don't think that by declaring an idea publically that you've built or created anything.

    -- Terry

    1. Re:Arrington pulled a SourceForge by ClosedSource · · Score: 1

      VCs fund with the hope of a big payday. They don't care if it's achieved through a product launch or not. As a condition to their contribution they will usually end up with the controlling interest and may replace the original executive team with their own people.

      On the other hand, a fraction of a big payday is usually better than 100% of nothing.

  77. Re:Angst and Drama? Try Hilarity by Buelldozer · · Score: 1

    So what you're saying is that your wife is holding out for some nookie. Gotcha.

  78. Re:Angst and Drama? Try Hilarity by Buelldozer · · Score: 1

    BTW, native PDF support was released for the Kindle on 11/24.

    http://ireaderreview.com/2008/01/18/how-to-view-pdf-files-on-the-kindle/

  79. If you think this sucks by Anonymous Coward · · Score: 0

    I would encourage anyone who is upset by these actions to sign the petition "Without Arrington I Wont Buy A CrunchPad" at http://www.petitionspot.com/petitions/CrunchPad/

  80. Re:Angst and Drama? Try Hilarity by w0mprat · · Score: 1

    Translation: I'd like to cash in on Arrington's hard work.

    I have no reason to doubt that Arrington is being screwed here, and that he does in fact have intellectual property rights that are being trampled on, but how much hard work did he actually do on this thing? My understanding is that he mostly said, "I want this thing with these specs at this price, make it happen" and his manufacturing partner is the one that actually built it.

    Arrington is providing (a) his services as a sort of ideal end-user (i.e. if this one tech-savvy guy really, really wants a thing that works exactly like this, there's probably a market for it) and (b) a ready-made market in the shape of his extensive and influential (in tech circles) audience. The latter indeed took hard work to amass, but he's not the one who actually built the CrunchPad.

    Then.. Arrington = Manager ?

    --
    After logging in slashdot still does not take you back to the page you were on. It's been that way for 20 years.
  81. Re:Angst and Drama? Try Hilarity by mlingojones · · Score: 1
    Bullshit alert!

    What I don't understand is why Fusion Garage owns any of the intellectual property whatsoever...

    Probably because they worked with them to develop the final prototypes, although that's just speculation.

    From the TFA it's not even clear that Arrington properly retained sole ownership of the "CrunchPad" trademark, it's all intermingled and joint.

    Actually, I thought he made it pretty clear that TechCrunch retained sole ownership of the "CrunchPad" trademark when he said "we solely own the CrunchPad trademark."

    You'd think the least he would have done is had non-compete language in the recision provisions of their joint venture

    Except this isn't COMPETING. They're still trying to sell the product, just without TechCrunch's involvement.

    Basically what Fusion Garage did is they hired Arrington as a consultant and marketer (as they say, an "evangelist") and now they're telling him to take a hike, and this ostensibly-smart "insider" finds himself without recourse.

    Except they can't do that without his permission. They're at a stalemate where neither one of them can make the product.

  82. Re:Angst and Drama? Try Hilarity by iluvcapra · · Score: 1
    --
    Don't blame me, I voted for Baltar.
  83. Re:Angst and Drama? Try Hilarity by Daengbo · · Score: 1

    It looks like you missed the point.

    Him: Actually, that's one of the advantages of the Nook in my opinion: It uses an open, standard format (EPUB) as it's normal book format.

    You: The Kindle most certainly uses non-proprietary book formats.

    Him: mobi is a proprietary format (it is owned by a company, and they control the format), and ... epub is a true open format: available to any without licensing fees and such.

    You: First, the Kindle supports mobi. Regular, non-DRM mobi format. Your claim otherwise is factually, indisputably false.

    Him: The only effective way you can make or read a .mobi is by licensing an app or library from the company that owns the format.

    You: The point, if you missed it, is that very many books are available for the Kindle.

    His point from the beginning was that the Nook uses an open format. You ignored (or missed) that point and argued something entirely different -- that the number of books available matters.

    Had you not had your morning coffee yet?

  84. Re:Angst and Drama? Try Hilarity by Anonymous Coward · · Score: 0

    *You* really *seem* as if *you* *know* what you'*re* talking *about*.

  85. Re:Angst and Drama? Try Hilarity by arethuza · · Score: 2, Interesting

    Many years ago ('95) when my then startup company was living hand to mouth we were approached by a rather slick character who had Big Plans - he was talking to lots of hardware and infrastructure providers about this huge project and he wanted us to to the software component - because we were Java specialists (not exactly very common back then). We had a lot of meetings - some with major 3-letter hardware vendors and we got rather excited about the whole thing. Turns out he was a dick collecting information for his MBA project - which of course he managed to forgot to mention to anyone. The hardware and telco guys were really quite upset and they were way more experienced than us (not to mention that they actually wore suits to the meetings). Subsequent experience with "really bright" people with MBAs from "top schools" has reinforced a view in me that is entirely consistent with your comment about them generally being a bunch of tools.

  86. who cares? by Anonymous Coward · · Score: 0

    isn't that the guy with startup website that only posts about twitter.. and like 40 times a day.. boring.. move on

  87. Re:Angst and Drama? Try Hilarity by stephanruby · · Score: 1

    Intellectual Property? He has no patent, no contract, a trademark that apparently is not going to be used, and he says himself that everything is open sourced. What's preventing the manufacturer from continuing without him? Or him, proceeding without that particular manufacturer? In fact, what's preventing any manufacturer from taking the open source designs (after the first device is sold) and just running with it -- without either of them?

  88. Re:Angst and Drama? Try Hilarity by SirWinston · · Score: 1

    > Its as if a bunch of different people got together to make a pizza chain with one
    > guy coming up with the name, logo, mascot, and business plan, and the other guys
    > deciding to ace that first guy out yet retaining all of that first guy's input.

    I don't think so. They're not using Arrington's name, logo, mascot, or business plan. They're using his idea, and you can't copyright or patent a basic idea (badly misapproved patents notwithstanding). Using your pizza chain analogy, it's like a guy got the idea to start a pizza chain, brought a bunch of other people together, and then those other people squeezed him out and started their own pizza chain without him.

    At most, Arrington gave some general input on design--"no bigger than X, make the bezel flush, thinner; icons should be here, make one that does that" etc. The fact that he may have been the one who came up with the general idea should make no difference unless he had signed contracts, which he doesn't or else we would've heard about it. It's not even a new idea--it's just a slight but far more usable evolution of Microsoft's Smart Display, which itself is just a crippled version of the touchscreen tablet pc.

    --
    "It's a damn poor mind that can only think of one way to spell a word."--Andrew Jackson