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Nearly 150 Companies Show Interest in the Tech Love Boat

New submitter dandv writes with a story from VentureBeat about another entry in the race to escape national jurisdiction by offshoring work — literally offshoring, that is : "Blueseed is a Silicon Valley company that plans on launching a cruise ship 30 minutes from the coast of California, housing startup entrepreneurs from around the world. These startuppers won't need to bother with U.S. visas, because the ship will be in international waters. They'll have to pay tax to whatever country they're incorporated in, though. So far, 146 startups said they'd like to come to the ship."

26 of 332 comments (clear)

  1. I fail to see the point by msobkow · · Score: 3, Insightful

    You can remotely access and program pretty much any system you'd ever work on in an offshoring relationshing. Your physical location has little or nothing to do with the ability to provide the contracted services.

    While there is demand for at least some of the offshore service provider's staff to be working on-site with the customer companies, you wouldn't be able to do that with this ship. You still wouldn't have a visa, so you still wouldn't be allowed to "land" from the ship for such meetings.

    In order to be in international waters, the ship would be what, 200 miles out from shore? That's a pretty long ride for any landbound customers to take in order to come meet with you on the ship. Customers don't tend to meet at provider sites; they expect the provider to come to them.

    That being the case, what is the actual purpose served by working on this ship?

    Or is this like the old Sealand failure? A great idea in concept that has no practical purpose and few real backers?

    --
    I do not fail; I succeed at finding out what does not work.
    1. Re:I fail to see the point by fuzzyfuzzyfungus · · Score: 3, Interesting

      It seems particularly odd when one considers the fact that you don't need to spend months on a boat 200 miles off California to enjoy the privilege of booking a slightly-eyebrow-raising percentage of your profits through an anodyne corporate PO box in some sunny tax haven. You can do that from the comfort of your own home.

      Is there a large market of non-US-citizens who can't secure visas(or who find longterm shipboard stays more comfortable than flying out for a meeting?) but desperately crave physical proximity to silicon valley, possibly along with an internet connection to it that is far suckier than a hardline from virtually anywhere in the not-actively-fighting-a-brutal-meatgrinder-bush-war world?

      I understand the appeal of tax dodges; but I don't understand what this boat concept brings to the game.

    2. Re:I fail to see the point by vlm · · Score: 4, Informative

      In order to be in international waters, the ship would be what, 200 miles out from shore?

      I've looked into cruising and the myriad of laws. First of all you just described the EEZ limit which controls "traditional money making activities and environmental laws" but expressly does not include loitering. So its a fuzzy zone. The coast guard can order you to not discharge your blackwater tanks, cannot tell you not to just sit/anchor there, can tell you not to fish there, and running an office is somewhat vague.

      The contiguous zone is 24 miles and you must follow customs laws presumably including visas. This is a recent "American Empire" turn of the century thing and the whole world used to (still does?) respect only 12 miles. In the REALLY olden days before the previous turn of the century it was defined as a cannon shots length, or so I'm told, like a mile or two.

      This is very important to cruisers... more than 200 miles away you can technically tell all authorities other than your flag nation to F-off, but you need to stay at least 24 miles away or else have to go thru customs, and in that range from 24 to 200 miles you sorta have to listen to them. Customs is not necessarily the end of the world, but its nice to not even have to think about it. For example, say you were sailing from California to Alaska, it would be extremely advisable to stay at least 24 miles away from the Canadian shore.

      Disclaimer, I've done hundreds of hours of sailing on little craft, mostly inland, but never across an ocean.

      30 miles in a 150 knot helicopter for the VCs to visit you is what, 12 minutes of flight? I'm not seeing this as a serious issue. Also I can see a pleasure cruise on a well appointed yacht when making visits rather than flying, if they're in the mood for some fun.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    3. Re:I fail to see the point by jythie · · Score: 3, Interesting

      Well, their plan is they will not be in international waters so the commute is pretty short. Instead they will fly the flag of some minor country and anchor within US waters, which is a legal grey area that in theory should leave them outside US/CA regulation/taxation yet still be able to commute in for meetings.

      But as others have pointed out it has many of the same problems as Sealand did. It is a nice concept in theory and in fiction, but in reality such plans have significant issues and, for their customers, end up with the same basic issues that basing out of a major country has with the added problem of not having a robust legal system. If nothing else, one of their big claims is that they avoid the 'immigration' problem.. by implementing their own immigration system. So you still have to go through an immigration process, just an easier to bribe one.

      I am skeptical that many of these startups are expressing real 'I would pay' interest or have really thought about the full legal ramifications of such a setup. Blueseed really seems to be more of a scam to get investor money then anything else.

    4. Re:I fail to see the point by jythie · · Score: 4, Interesting

      Realisticly it doesn't actually bring much, but it draws on a rather heavy Ayn Rand mythology that they are hoping to capitalize on. The theory is supposed to be that if you take away all those pesky regulations then 'real entrepreneurs '.. some kind of the 'the best rise in power when not being kept down by other people in power, except each other since that is dog eat dog, but because people who already have power are bad we need to stop them, but not new power which should be unchecked'. So beyond just taxes and visas they can suspend things like workers rights, wages, etc... so all those pesky things like stopping child labor, taking sexual advantage of your subordinates, firing injured people, making them work 140 hour weeks but still in debt to the company store, all those things are perfectly legal again... and part of the mythology is whitewashing how badly those went the first time around.

      Oh, and of course the ship will probably have its own company store.. so everyone there will have to pay whatever prices the Blueseed charges for things like food, power, internet access, etc.

      Which is why sane companies will probably stay away, but gullible startups who have read more fiction then done research might find the place appealing.

    5. Re:I fail to see the point by jythie · · Score: 4, Informative

      Yep. That is the idea. Reap the benefits they want directly want, get the advantages of benefits that effect them indirectly (like the education system), but not have to pay for any of it and claim with a strait face that they are dong the capitalist thing of paying only for services they use.

    6. Re:I fail to see the point by crazyjj · · Score: 3, Informative

      That's one of the problems with libertarian dreamers. They crave a dog-eat-dog world, but they all think THEY'RE going to be one of the top dogs. They watch Firefly and think they're going to be Malcolm Reynolds. It never occurs to them that the vast, vast, vast majority of citizens in a truly libertarian system would basically be dirt-poor slaves to a handful of top dogs, and the odds of you being one of those top dogs (unless you're *already* very wealthy and powerful) is slim to none.

      --
      What political party do you join when you don't like Bible-thumpers *or* hippies?
    7. Re:I fail to see the point by DerekLyons · · Score: 5, Informative

      This is very important to cruisers... more than 200 miles away you can technically tell all authorities other than your flag nation to F-off

      This is mostly true, and can bite them in the butt.
       
      If they intend to operate out of US ports, and provide anything that even looks remotely like passenger service (I.E. hosting staff for their clients) then they can't exit and re-enter the United States without visiting a "distant foreign port". Back in the day when there was tons of coastwise passenger transport, this protected US firms from foreign competition. Today it mostly means that Alaska cruises have to port at Victoria and Maratimes/East Coast cruises usually in Halifax. For Blueseed this is going to mean visiting Mexico between port visits to the US. (And they *will* either have to visit the US or sail across the Pacific Ocean for servicing - a ship can't stay at sea forever.)
       
      Also, pretty much every nation subscribes to SOLAS and even the flag-of-convenience nations have safety requirements. Not to mention, that if they ever port, they'll be subject to safety inspections by the Coast Guard of the nation they're porting in. These are non-trivial to comply with and are deadly serious - the can be at a minimum refused entry, or at worst impounded for failing to comply. On top of these inspections, if they hope to carry insurance, the ship will have to regularly be inspected and certified on a regular basis by a legitimate classification society...
       
      These "tech Love Boat" companies all sound to me to have based their plans on urban legends about how the law of the sea and related conventions work, and not on any real world legal and business research.

  2. The US should provide no protection by bstarrfield · · Score: 4, Insightful

    None. The "Tech Love Boat" exists solely as a tax and immigration dodge, and its founders are proud of it. May real pirates raid this libertarian haven; may real storms smash its bow. Let me hazard a guess that they'll incorporate in Antigua, and pay no taxes, and that they'll import slave labor from India to work in the bowels of the ship.

    Blueseed wants the benefits of proximity with Silicon Valley, and none of the costs. Why should we give a damn about them?

    I'd also like to know who these "entrepreneurs" are. Let them live in their cabins and bar them from the shore. They don't want to pay for civilization, due to their brilliant and stunning gifts. They choose to leave civilization to live in their Brave New Race to the Bottom, _stay there_.

    When a crime occurs on the "Love Boat", who will settle that crime? Blueseed? So they'll be a government, too. Hmm, maybe an invasion sounds good..

    --
    /* Dang, I can't type that well. */
    1. Re:The US should provide no protection by Anonymous Coward · · Score: 4, Insightful

      That sounds like a really good response.

      If you're a nationalist.

      Seriously, it's not a tax dodge, though it is an immigration dodge. It's about startups being able to engage with the tech centre of the world without arbitrary red tape blocking them from doing it on the US mainland.

      I don't even understand how you can complain about both immigration and tax avoidance in the same post. If they were allowed to immigrate they would be able to pay tax, if they were allowed to pay tax they'd be able to immigrate. You can't bitch and moan about the two in one sentence, the fact they can't immigrate means they can't pay tax. Whining that people for not paying tax in your country whilst simultaneously implying you don't want them in your country is one of the most laughably irrational arguments I've heard on Slashdot in a while, and in recent months the standard hasn't exactly been particularly high.

      The fact that your country is horrendously paranoid, and massively afraid of immigration despite having a relatively tiny population density is why these sorts of far fetched schemes arise in the first place. Of course, none of that would be so bad if it weren't for the fact that your entire nation is built off the back of relatively recent mass immigration.

  3. I predict another Sealand by DeathToBill · · Score: 5, Informative

    The advantage of these ventures is that they're outside national jurisdiction. The problem with these ventures is that they're outside national jurisdiction - and for almost every company out there, they benefit from the protection of a country's laws more than they suffer from them.

    Sealand failed because anyone who hosted data there was wide open to the whim of Roy Bates - and if you didn't like his whim, you had no recourse. This will be no different.

    A good article on Sealand: http://www.theverge.com/2012/3/28/2909303/sealand-havenco-doomed-data-haven-history

    --
    Slashdot - News for Nerds, Stuff that Matters, in ISO-8859-1 Has just realised that beta makes this signature redundant
    1. Re:I predict another Sealand by Githaron · · Score: 3, Interesting

      The advantage of these ventures is that they're outside national jurisdiction. The problem with these ventures is that they're outside national jurisdiction - and for almost every company out there, they benefit from the protection of a country's laws more than they suffer from them.

      Sealand failed because anyone who hosted data there was wide open to the whim of Roy Bates - and if you didn't like his whim, you had no recourse. This will be no different.

      A good article on Sealand: http://www.theverge.com/2012/3/28/2909303/sealand-havenco-doomed-data-haven-history

      If you outright bought the boat, the only whim would be your own. Of course, true pirates could also come back to the high seas.

  4. However, just like Ayn Rand by Kupfernigk · · Score: 3, Insightful

    All these Randians will expect the US Government to rescue them when their ship goes tits up. Perhaps the best answer is for the US Coastguard to quote them to provide emergency services - 35% of turnover?

    --
    From scarped cliff or quarried stone she cries "A thousand types are gone, I care for nothing, no not one."
  5. Hey, worked for Sealand by crazyjj · · Score: 3, Insightful

    Why is it that every Libertarian seems to think that they can skirt laws just by taking some boat out to international waters? As if the nearby country is going to be like "Damn, we know you committed the murder, but you were JUST over the line into international waters, so we're going to have to let you go!"

    --
    What political party do you join when you don't like Bible-thumpers *or* hippies?
  6. Forget insurance ... what about health care? by Barbara,+not+Barbie · · Score: 3, Insightful

    When the nearest hospital is over 200 miles away, you'd better have helicopters ready to make the jump. And you'd better have them cleared for permission to enter US air space with no notice (like that's going to happen).

    This is just another scam. Another variant of the "company town", where they deduct your room and board and other expenses from your pay, and if at some point you don't like it, you can take a long walk off a short plank.

    --
    Let's call it what it is, Anti-Social Media.
    1. Re:Forget insurance ... what about health care? by Barbara,+not+Barbie · · Score: 3, Interesting

      Remember - the US has NOT ratified the "Law of the Sea" treaty - UNCLOS. Under existing international law, they still have jurisdiction out to the 200 mile limit, not just the 12 mile territorial water limit, nor the additional 12 mile exclusion zone.

      Other nations have the right to "innocent passage". A barge anchored within 200 miles is not engaged in "innocent passage", and as such, does not have the legal rights enjoyed by vessels engaged in "innocent passage."

      However, even vessels engaged in "innocent passage" still need to conform to the sovereign states requirements for things like a valid insurance policy for indemnification in the case of bunker oil spills, etc. right out to the 200 mile limit.

      Don't expect this idea to float unless there's lots of campaign contributions also floating around.

      --
      Let's call it what it is, Anti-Social Media.
  7. VC Vipers by tungstencoil · · Score: 4, Insightful

    Am I the only one who read this as "VCs will found a way to get cheap offshore talent under their collective wings by purchasing a cruise ship on which to enslave, err, house their startup 'incubators'"?

  8. Sweatship by xxxJonBoyxxx · · Score: 4, Funny

    Sweatship

  9. Re:I'm Andrew Ryan... by h4rr4r · · Score: 4, Insightful

    Nice reference, great game, but here in reality the man did not toil alone. He was not able to produce without the poor being kept away from his warehouse at night, he was not able to risk only his investment by nature but by laws governing incorporation, nor was he able to get it to market without roads. I love how those who have never done a day of physical labor like to talk about sweat, blood and tears though.

  10. weird ignorant /.er opinions by vlm · · Score: 4, Funny

    Let me summarize an entire articles worth of weird and ignorant /.er opinions:

    1) this is the first boat that is not US flagged to ever sail either in or nearby the USA, and if it docks for repairs it'll be the first time a foreign vessel has ever entered a US port, so no one will have any idea what to do.

    2) there exists a single line in the sandy sea bottom, on one side its complete and total utter US control and the other side is all pirates.

    3) magically, because this platform has servers instead of oil drilling equipment, decades of regulation and case law from the oil biz could not possibly apply to this biz, just because it makes for a nice sounding argument.

    4) no one has ever lived on a boat for an extended length of time, nor is it even theoretically possible, much less comfortable.

    5) the relationship must be binary, either a ship and its flag nation must be US lapdogs and hard core statists, or it must be a libertarian paradise, and only one of those possibilities is unrealistic therefore it Must be the other far extreme possibility (laughably goes for both sides arguments)

    6) Foreigners and foreign sailors have never been present on a ship entering a us port, so no one will have any idea what to do.

    7) Closely tied to #5, There are only binary governments, the hard core statist fascist western govts like the us and our european lapdogs, and pure capitalist anarchy, therefore since its probably going to be flagged out of panama or something, and panama isn't quite the usa, therefore slavery and polygamy will rule the ship. Uh, no. I don't think very many flag nations allow that on their ships. As a wild guess, I've been on cruise ships that are panama registered, if this tub's panama registered it'll be about as wild as a cruise ship... probably a nude tanning deck, a casino to gamble in, no secret police checking to see if couples in bed together are married (to each other) and are of the correct gender, and generally anyone looking "old enough" gets to drink alcohol and smoke tobacco although technically you have to be 18 in Panama (I think). That's probably about as wild as Panama is going to let it get.

    8) A crime has never before happened on board a ship, therefore no one will have any idea how to handle a criminal activity if one happens.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  11. Re:Quick primer on the downfall of the US economy by vlm · · Score: 3, Informative

    Actually we still have the largest manufacturing sector in the entire world by quite a bit.
    We have completely and almost totally destroyed our consumer products manufacturing, true. The only thing I've bought in 20 years made in the USA is/was some plastic trash cans and oddly enough a gasket-less aluminum pressure cooker made in Wisconsin.

    The whole world depends on the USA either exclusively or as a majority provider for aerospace, mining equipment, heavy stuff like that. To a much lesser extent we still make cranes too. And chemical process equipment although like cranes we're trying to give that away to China as fast as we can. You can almost draw a graph of "unit weight" on the x-axis and percent imported on the y-axis and you'll see damn near a straight line where we import 99% of our kitchenware but we manufacture 99% of the world's production of 100 kiloton and up mining dragline equipment (you know, the things that strip entire mountaintops off?) and practically all mining trucks larger than 100 tons.

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  12. Maritime law disagrees by chrb · · Score: 3, Informative

    None. The "Tech Love Boat" exists solely as a tax and immigration dodge, and its founders are proud of it. May real pirates raid this libertarian haven

    Under international maritime law, all nations have a duty to combat piracy. "Piracy is of note in international law as it is commonly held to represent the earliest invocation of the concept of universal jurisdiction. The crime of piracy is considered a breach of jus cogens, a conventional peremptory international norm that states must uphold. Those committing thefts on the high seas, inhibiting trade, and endangering maritime communication are considered by sovereign states to be hostis humani generis (enemies of humanity)" Wikipedia

    The bottom line is that it isn't in the interests of the United States to have pirates operating off the U.S. coast, even if they only target vessels of other nations.

    When a crime occurs on the "Love Boat", who will settle that crime?

    It is exactly the same legal situation as a crime on a cruise ship. The passengers are subject to the legal sysem of their flag nation, and of others that exercise extraterritorial jurisdiction. The U.S. Constitution gives the federal courts jurisdiction over maritime matters, so it is up to the courts to rule on which particular crimes are worthy of extraterritorial jurisdiction. See In international waters, are you beyond the reach of the law?

  13. Re:Quick primer on the downfall of the US economy by the+eric+conspiracy · · Score: 5, Informative

    Exactly. The grandparent is complete bullshit and should be modded down.

    The US is the world's largest manufacturing nation in terms of economic output. People seem to forget giant companies like Intel, Caterpillar, Boeing, Cisco, ADM etc. not to mention the pharmaceuticals and the farming industry which are world leading. Not only that but the US does it with a mere 8% of its workforce. The economic output of the average US worker is more than 10 times that of his Chinese equivalent because he's more technically skilled and produces far more valuable products in a highly automated setting.

    The Boeing main aircraft assembly building in the Seattle area is the largest manufacturing facility in the world.

    http://www.boeing.com/commercial/facilities/

    It was Boeing who discovered the Y2K problem because they are such a large consumer of aluminum they have to project consumption of aluminum a decade in advance so the aluminum industry can scale their capacity to match their consumption.

    I don't know where people get the idea the US isn't competitive in manufacturing. It is a huge force on a global scale in manufacturing, and factors like low energy costs because of the vast natural gas reserves being developed are likely to keep it that way. Anyone writing that the US has no manufacturing capability is full of bullshit.

    http://www.shopfloor.org/2011/03/u-s-manufacturing-remains-worlds-largest/18756

    http://business.time.com/2011/03/10/can-china-compete-with-american-manufacturing/

  14. Re:Wonderful idea, hope it works and takes off by roman_mir · · Score: 3, Interesting

    The freest country with slavery and voting for only wealthy white landowners

    - first of all, you are saying it like it was a bad thing that only landowners could vote.

    As to blacks, as I said, I would NOT have ratified that Constitution with that language in it, but by 1870 the slavery was no longer the same issue at all.

    I am against democracy, unless you are mistaken, I am against democracy, AFAIC democracy is mobocracy, it is the gateway to tyranny, that is my conviction.

    OTOH having a representative democracy is fine, where a subgroup of people will vote on issues directly, not the entire population.

    In 1870 to 1913 we had the beginnings of the labor movement.

    - so? There could be no labour movement before there was labour, could there? When everybody is a subsistence farmer, hunter / gatherer, they don't form unions. But that's not why wealth was created at all. Wealth was created by the businesses, not by unions.

    The businesses made people productive, provided management, efficient allocation of land, labour and capital and created the goods that actually were then bought by the very people who were working. That's how the tide lifted the boats.

    As the free market capitalism provided the profits and investment capital, this was used to acquire and build better tools, making the workers more efficient and productive, and this is why one person could do much more with the tools than anybody before could without those tools, that's what investment is, and that's how a worker becomes more affluent earners - by being more efficient, by doing more with less time. That's why the working hours could eventually be shorted, that's why there were weekends.

    Subsistence farmers don't get to enjoy 8 hour days and 5 working day weeks, they don't have that luxury. Only capitalist free market could create that.

    The reality is trickle down does not work, and the rich are more than happy to take all the gains.

    - nonsense.

    This so called 'trickle down economics' is the ONLY economics that works. The more productive a worker at a factory is building cars, the more efficiently the cars are built, they cheaper they can be sold, so that more people buy them, because more profits are made by selling more cheaper products, not fewer more expensive products.

    Originally only the very rich could afford cell phones, computers, plasma TVs. Today everybody has them - that's how productive the capitalists made the workers, that everybody can afford these things.

    THAT is trickle down economics, THAT is how wealth is distributed in the free market. Your problem is you think about wealth in terms of money - but the best way to treat money is to have it concentrated in the hands of those, who were the best at organising land, capital and labour to produce that profit, that resulted from all those efficiencies and overproduction, and the market willing to pay for those profits.

    You are saying that the wealth isn't being distributed? How many cell phones have you had in your life? Cars? Houses? Pairs of clothes? Shoes? TVs? Computers? Tables? Chairs?

    You think wealth is what the rich have and you do not? Wealth is what you can use on daily basis, the rich have the WORK.

    You think Steve Jobs having spent under 4% of his entire fortune during his life enjoyed the wealth he created by using it? NO. It was all invested, 96% of his wealth was always invested, so that slobs like you could be lifted in the tide that he was busy creating.

    So only those with money should be allowed to vote?

    - straw man.

    The only people who PAY for the music should be able to order it. Those who pay income taxes to the federal gov't are those who should be allowed to vote, nobody else.

    If I lose my job and live off my savings for a year I should not be able to vote?

    - CORRECT.

    NOT IN THAT YEAR.

  15. Wrong. by SuperKendall · · Score: 3, Interesting

    That's one of the problems with libertarian dreamers. They crave a dog-eat-dog world, but they all think THEY'RE going to be one of the top dogs.

    Wrong. In a truly dog-eat-dog world, any dog that gets too far ahead gets eaten by the pack...

    Libertarians have no desire for power. They just want to see limited power OVER THEM. You seeing it as a quest for power over others is more revelatory to your own subconscious desires and/or fears than that of Libertarians.

    Basically, you apparently can't handle a world where you are not on a leash...

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Wrong. by crazyjj · · Score: 5, Insightful

      Wrong. In a truly dog-eat-dog world, any dog that gets too far ahead gets eaten by the pack.

      Yeah, except it has never once worked out that way in reality. In lawless regions or other areas where the government is weak, what inevitably happens is that you end up with a handful of powerful warlords who basically terrorize and dominate the populace. They build up their own private armies to not only protect themselves from the "pack" but to do whatever the fuck else they want too, including showing up at your home periodically to take anything they want and rape your wife. Life is great if you happen to be one of those warlords (or one of their family or close friends). Life is complete shit if you're anyone else.

      And you're not escaping the leash. You're just trading in the democratic government leash for the much tighter and shorter leash that the rich and powerful will have you on in your libertarian paradise.

      --
      What political party do you join when you don't like Bible-thumpers *or* hippies?