Tuesday, December 11, 2007

Nano Tech Firms Renting out University Labs For Research


Neil Kane and his staff had figured out how to rearrange methane gas to create industrial diamond, but their company couldn't afford to build the highly specialized lab needed to develop such nanotechnology.

So they hit the rental market and paid for lab time at Cornell University's Nanoscale Science and Technology Facility.
Thirteen nano-level university laboratories across the country are hiring themselves out to businesses eager to make their mark in the millennium of the minuscule. The intimidatingly named National Nanotechnology Infrastructure Network, begun in 2004, is funded in part with $14 million a year from the National Science Foundation.
Participating business owners say the network allows them to do much more research than they would have without access to its resources. That research, to which the businesses retain all rights, will foster better products and industrial processes that will bolster the national economy, they say.
The number of companies taking advantage of the network is growing 10 percent a year, said the National Science Foundation's senior engineering adviser, Lawrence Goldberg.
Host universities can apply the fees they receive to anything they like, including beefing up their lab equipment. Those fees ranged in fiscal 2007 from a few hundred dollars to $100,000. Cornell's lab and a dozen other campus nano-labs around the country cater mainly to students, faculty and visiting scholars. They are built and run with public and private money.
In addition to Cornell's lab, participants are at Stanford, Pennsylvania State, Harvard, Howard and North Carolina State universities, at Georgia Institute of Technology and at the universities of Michigan, Washington, California, Minnesota, New Mexico and Texas.
Even though the universities must give up some use of the labs and don't get royalties from the business work done there, as they would from most academic work that later proved marketable, the arrangement seems to sit well with universities, businesses and government.
Mark Zupan, dean of the University of Rochester's Simon Graduate School of Business Administration in Rochester, N.Y., sees the tradeoff as promoting innovation. He said he worried only that businesses might try to use the universities' names or reputations to enhance the credibility of their research.
In response to concern among participating researchers about how research and technology move between academia and business, a group of researchers will explore and monitor the issue, according to the network's Web site.
Kane, president of Advanced Diamond Technologies Inc. near Chicago, said his company could not hope to turn its patented material into a cell-phone chip or a vision-restoring retinal implant if it couldn't rent lab time at Cornell.
"We have our own equipment for making the diamond," Kane said. "But all of the subsequent steps require access to a clean room, to tens of millions of dollars of equipment that no small company could ever afford. Many big companies can't afford it either."
Machines coated with hard, heat-resistant, low-friction diamond last longer and work more efficiently, Kane said. His company's specialty is depositing the diamond uniformly on silicon wafers, a key innovation toward someday making micro-machines entirely out of diamond.
Even Fortune 500 firms "that can afford to have their own research infrastructure are not comfortable enough to handle some new nanomaterials" and rely on academia to help them out, said Yoshio Nishi, a former chief scientist at Texas Instruments who heads the Stanford Nanotechnology Facility in California.
Although the operating scale is infinitesimal — a nanometer is roughly 10,000 times smaller than the diameter of a human hair — the economic possibilities are colossal. By 2014, nanotechnology might generate $2.6 trillion of manufacturing output and employ 2 million people, Lux Research Inc. of New York estimates.
"It's the fixed costs that kill you," said Matt Miller, chief executive of Multispectral Imaging Inc. of Parsippany, N.J., which is renting lab time for two of his researchers at Cornell.
Miller's three-year-old startup is developing thermal imaging technology to help find people trapped in burning buildings.
In the 12 months through September, nearly 700 companies — mostly small startups, but also some corporate titans — paid for lab space and research help from the network, which is anchored by Cornell and Stanford and boasts top-of-the-line nanoengineering tools, techniques and staffs.
Business community members prefer the university labs to five similar ones owned by the federal government, which spends $1.4 billion on nanotechnology each year, because the government labs impose more restrictions.
"They're open to the outside community but require collaboration with Department of Energy researchers," Goldberg said.
"Many biotech or semiconductor-related technologies have emanated from university campuses as a result of our nation's investment in basic scientific research, and that's very much the case here too," said Sean Murdock of NanoBusiness Alliance, a trade association.

Vudu Inc to Distribute HD Movies Online Also

In a major shift in movie distribution, a high-definition version of the hit "The Bourne Ultimatum" will be released through Vudu Inc.'s online service Tuesday — the same day the DVD comes out.
It is the first of many HD movies Vudu plans to deliver online at the same time DVDs become available.
Owners of Vudu's set-top box, which costs $399, use a high-speed Internet connection to watch the movies they rent and to download the ones they buy.
Movies usually are released in staggered windows in different formats — DVD, online through Xbox Live and other companies, or on demand on cable.
But Hollywood studios are experimenting more with digital distribution, and a few have agreed to work with Vudu to sell HD movies, though the selection remains limited.
Some in the industry worry that competition between the two high-definition formats — Blu-ray and HD DVD — is holding back production in high definition as consumers debate which format to use. For consumers who download movies with Vudu, that choice is not an issue, however.
Universal Pictures, the studio behind the "Bourne" movies, is the first to offer a downloadable HD version of a movie the same day as the DVD is released.
In addition to working with Universal, Vudu has signed deals to distribute HD content from Paramount Pictures and Lionsgate Entertainment Corp. Universal is owned by NBC Universal, a joint venture of General Electric Co. and Vivendi Universal, while Paramount is a division of Viacom Inc. Lionsgate is independent.
The Vudu box, which first went on sale in October, offers a catalog of about 5,000 standard-definition films, which can be rented for 99 cents to $4.99. Some films, including the HD editions of the "Bourne" films, can only be purchased, meaning they can be stored permanently on the set-top.
"The Bourne Identity," "The Bourne Supremacy," and "The Bourne Ultimatum" will sell for $24.99 each, though Vudu customers can get the two older movies for free during the holiday season.

AT&T boosts dividend, expanding TV plans

AT&T Inc. on Tuesday raised its dividend 12.7 percent, announced a share buyback and set a long-term target for its TV service, which is delivered over phone lines, saying it will be available to 30 million customers by 2010.
Shares of the telecommunications company jumped more than 6 percent in morning trading.
At a conference with analysts in New York, AT&T touted a turnaround in its once-shrinking business of serving corporate clients, as well as strong performance from its wireless division. It expects revenue to grow around 5 percent next year.
The company said it will buy back 400 million shares, which represent about 7 percent of the company's stock, would cost $15.16 billion. AT&T said it expects to complete the repurchase by the end of 2009.
The company said the new repurchase plan supersedes an existing one announced in 2006. AT&T bought $13 billion in shares under that authorization.
AT&T's dividend will rise to 40 cents from 35.5 cents. It will be paid Feb. 1 to shareholders of record on Jan. 10. the telecommunications company said Tuesday.
AT&T shares rose $2.41, or 6.4 percent, to $40.31 in morning trading Tuesday.
UBS analyst John Hodulik said Wall Street was expecting a buyback, but the size was bit larger than expected.
"They're generating a lot of cash and have to do something with it," Hodulik said. He said management also probably looks at the company's own stock as a good value, after falling from around $42 in October.
The TV announcement by chief executive Randall Stephenson reinforces AT&T's commitment to the service, known as U-verse. Recent news reports said the San Antonio-based company was in talks to acquire satellite TV broadcaster Dish Network Corp., formerly known as EchoStar Communications Corp., which would have given AT&T ownership of a different route to reach customers. However, those talks have likely been shelved because of federal anti-collusion rules surrounding a spectrum auction that will start in January. AT&T already resells Dish service.
Stephenson told analysts the new U-verse buildout target includes customers in the Southeastern states formerly served by BellSouth Corp., which AT&T acquired late last year.
AT&T also said it aimed to have more than 1 million U-verse at the end of 2008. It had 126,000 subscribers at the end of September, the latest figures it has released.
The U-verse rollout has been delayed several times. A month ago, AT&T trimmed its coverage target for the end of next year to 17 million homes from 18 million. The delay was due to a shift in resources to the former BellSouth.
U-verse has also had some technical problems, but AT&T said customer trouble contact rates have been cut in half in 2007.
AT&T expects to spend between $4.5 billion and $5 billion on U-verse through 2008. The deployment is expected to reduce 2008 earnings by 12 to 14 cents a share.
At the analyst meeting, Ralph de la Vega, the head of AT&T's wireless division, addressed Verizon Wireless' announcement two weeks ago that it would open its network by the end of 2008 to any devices that pass a technical inspection.
De la Vega emphasized that the Global System for Mobile, or GSM, network technology that AT&T uses already means customers can connect any compatible device by inserting a Subscriber Identity Module, or SIM chip.
"AT&T is the most open carrier in the U.S.," de la Vega said. "Open access is a change only for non-GSM carriers."
Verizon Wireless' plans go farther, however, in that they plan to allow device manufacturers to buy wholesale access and deal with end customers themselves, while AT&T envisions keeping the customer relationships. Verizon Wireless is a joint venture of New York-based Verizon Communications Inc. and Vodafone Group PLC of Britain.
Google Inc. made another big splash in the wireless world in November, revealing a project to create a software package for cell phones. AT&T is not a member of Google's alliance, but de la Vega noted that company already carries phones with six different operating systems and would evaluate Google's software, called Android, on the same basis.
But in comments on the sidelines of the conference, de la Vega indicated that he had higher expectations for Apple Inc.'s iPhone, which is exclusively carried by AT&T in the U.S. Apple has said it will make it easier next year for third-party developers to make software for the phone, which is now a relatively closed platform.
"The jury is still out on Android," de la Vega said. "I think Apple has the right model."

Beatles hairdresser selling memorabilia


A lock of John Lennon's hair is being put up for sale.

Lennon gave Betty Glasow, the Beatles' hairdresser, the lock of hair in a copy of his book "A Spaniard in the Works." In the dedication he wrote, "To Betty, Lots of Love and Hair, John Lennon."
On Wednesday, fans will have the chance to bid on the hair and other autographed photos and Beatles memorabilia when they go up for auction in Worthing, in southern England.
The book — with the hair still inside — could fetch as much as $6,200, said Nick Muston, director of Gorringes auction house.
Glasow, who kept the Beatles' moptops trimmed on the set of the films "A Hard Day's Night" and "Help!" decided to sell the items because she wanted fans to have them, Muston said.
"She feels that rather than these things being stuck in a drawer with nobody enjoying them, real enthusiasts (could) get their hands on these things," Muston said.
Other items in the sale include signed photographs of the Beatles dedicated to Glasow, including one where George Harrison signed the photo George "Dandruff" Harrison.
Another lot includes a program, ticket and screw from one of the seats at a 1965 Beatles Christmas Concert at Hammersmith Apollo in London, where fans ripped out seats so they could dance in the aisles.
Glasow has also worked with a number of actors. Her collection includes a photo album of signed photos and personal messages from Michael Caine, from "Educating Rita"; Peter Ustinov, from "Death on the Nile"; Steve McQueen, from "The War Lover"; Harrison Ford, from "Patriot Games"; and the cast of the Harry Potter films.

Ask.com Incorparates Personal Privacy Features


Web search site Ask.com is launching a feature that allows users to delete data on their search queries in an effort to bolster personal privacy while surfing the Internet.

A link titled AskEraser will be featured on the site's home page and all search results pages, with a clear choice to signal whether the feature should be "On" or "Off" during a user's search requests.
"We take significant steps to protect any data that's stored in our servers, but for those people who want to take extra precautions, AskEraser let them take the issue completely off the table," Ask.com Chief Executive Jim Lanzone said in an interview ahead of Tuesday's launch.
When activated, AskEraser deletes all subsequent search queries and related information linked to a user's "cookies," or identifying information from their computers. The feature becomes available on Tuesday for U.S. and UK users, and will expand to global sites in 2008.
Earlier this year, Ask said it had changed its data retention policy to separate a person's search history from their identifying Internet information after 18 months. The company is part of Internet conglomerate IAC/InterActiveCorp.
The opportunity to stake out private space on the Web becomes more critical as Internet use grows more deeply embedded into daily life and as Web sites and advertisers seek information on user behavior to send them targeted messages.
Ask is working on its own products that take better advantage of Web usage patterns, on an anonymous basis, to improve the relevance of the search results it can offer.
"Hand in hand with that is getting people the option of not participating" when they don't want to, Lanzone said.

Vikram Pandit to be CEO of Citi Bank

Citigroup Inc. named Vikram Pandit, the head of its investment banking business, as its chief executive officer Tuesday, charging him with restoring the bank's profitability and reputation after missteps in lending and investing left Citi with billions of dollars in losses this year.

The banking company named Sir Win Bischoff, who has been Citi's acting CEO, as its chairman, replacing Robert E. Rubin, who had stepped into the role when former CEO and chairman Charles Prince was ousted last month.
Pandit, who ran a hedge fund bought by Citi earlier this year, is seen as a careful, decisive investment banker — qualities Citi needs following the revelation that Citi's writedowns of soured mortgages could amount to as much as $17.5 billion by the end of the year.
The appointments came after a two-day meeting of Citi's board.
Pandit is well known on Wall Street, having worked at Morgan Stanley for two decades until 2005, when he and a few other disgruntled colleagues left the brokerage and founded the hedge fund Old Lane Partners.
Earlier this year, Citigroup bought Old Lane for $800 million and put Pandit in charge of Citi's alternative investments. A few months later, Pandit took over the bank's markets and banking unit as well, and then reconfigured the business to mirror the Morgan Stanley structure he was familiar with.
His performance as Citi's leader will undoubtedly be scrutinized by investors until they see positive results — including his willingness to challenge the Citi strategy of the past several years. One question on Wall Street is whether Pandit will be beholden to the Citi board, which has remained steadfastly loyal to the Sanford Weill regime. Weill, a board member, built Citigroup through a series of mergers and acquisitions over the past few decades, and many have attributed the bank's failings this year to the Weill culture: Prince was his hand-picked successor.
Bischoff was the chairman of the British investment bank Schroders PLC, then joined Salomon Smith Barney Inc., a subsidiary of Citi, when it acquired Schroders. He began his current position in May 2000.
Unlike Merrill Lynch & Co., which took just two weeks to find a replacement for Stan O'Neal, its embattled CEO and another casualty of the mortgage crisis, Citi's search dragged on. Merrill's nab of John Thain, a Goldman Sachs alum who turned around the once-troubled New York Stock Exchange, eliminated him as a possibility for Citi.
Citi, with all its bad debt — not to mention the hemorrhaging funds known as structured investment vehicles that it manages — appeared to be a beast no one wanted to tame. According to various media reports, Citi's overtures to big names in the banking industry such as Deutsche Bank CEO Josef Ackermann and Royal Bank of Scotland CEO Frederick Goodwin were spurned.
Pandit faces multiple challenges. He must not only attract more cash to offset Citi's debt and bulk up the bank's risk management, but he also needs to strengthen Citi's lackluster consumer-oriented businesses and clean up its reputation.
Citi has shed about $120 billion in market capitalization this year, putting its market cap below that of Bank of America Corp. Citi is still the largest U.S. bank by assets, though, so while most major financial companies have seen problems navigating a surge in foreclosures and a freeze-up in credit, Citi's losses have been seen on Wall Street as particularly egregious.
Citi's cash levels will get a boost by the Abu Dhabi Investment Authority, which in late November bought a 4.9 percent stake in Citi for $7.5 billion. But the investment, while helpful in offsetting some of Citi's bad debt, is not a panacea. Many analysts and shareholders believe Pandit needs to sell more assets to bring in cash and make the huge conglomerate leaner. Citigroup has said non-essential assets selloffs are in the works, but many shareholders are hoping for more ruthless spinoffs — such as Citi's brokerage arm, Smith Barney.
The board has been adamant, though, about not breaking up the bank.
Rubin, who led the search committee, said after Prince's resignation that they were looking for someone to focus on Citigroup's "multiplicity of businesses."
"It is very important that whoever we have has a strong international focus — not necessarily enormous international experience, but can relate to the globalization of this institution and Chuck's (Prince's) strategy of having to ever increase that involvement," Rubin said at the time.
A few analysts have even tossed around the idea of another big bank like JPMorgan Chase & Co. and Bank of America Corp. buying or merging with Citi. But given regulatory obstacles and the credit market problems facing even the best-positioned banks, other analysts say such a deal is unlikely at this time.

Fed To The Rescue: Cuts Rate By A Quarter Point

The Federal Reserve cut a key interest rate by one-quarter of a percentage point Tuesday, but Wall Street took a tumble. Investors were disappointed that the central bank did not act more boldly to keep the country out of a recession.
The reduction in the federal funds rate to 4.25 percent marked the third rate cut in the past three months. Fed officials signaled that further cuts were possible if a severe housing downturn and mortgage lending crisis get worse.
But Wall Street was looking for a much stronger sign. The Dow Jones industrial average, which had been up about 40 points in afternoon trading, plunged by more than 200 points as investors deciphered the Fed's comments.
"They should have issued a statement that they were prepared to do what they needed to do to return the credit markets to more normal conditions and to protect the economy from the effects of the credit crisis," said David Jones, chief economist at DMJ Advisors.
David Wyss, chief economist at Standard & Poor's in New York, said he was still looking for three more rate cuts early next year, even though the language in the statement was not as forceful as some had expected.
Commercial banks quickly matched the Fed move by trimming their prime lending rate to 7.25 percent. That put the benchmark rate for millions of business and consumer loans at its lowest point in two years.
In addition to cutting the funds rate, the Fed announced it was reducing its discount rate, the interest it charges to make direct loans to banks, by a quarter-point as well to 4.75 percent. This reduction was aimed at encouraging banks to borrow more freely from the Fed at a time when there are worries that a rising number of bad loans will prompt banks to tighten credit conditions too severely, adding another strain on the already fragile economy.
The Fed embarked on this round of rate cuts in September in response to severe turbulence in credit markets around the globe as investors reacted to various reports of mounting losses from defaults in subprime mortgages, the latest fallout from the worst slump in the U.S. housing market in more than two decades.
After cutting the funds rate by a half-point on Sept. 11 and a quarter-point on Oct. 31, the central bank indicated that those two reductions might be all that were needed to combat the threat of a recession given that financial markets appeared to be stabilizing.
However, increased market turbulence following the October meeting and growing fears of a recession caused the Fed to do an about-face.
In a brief statement explaining its action, the Fed said that recent economic data indicated that the economy is slowing, "reflecting the intensification of the housing correction and some softening in business and consumer spending."
The Fed also noted that "strains in financial markets have increased in recent weeks."
In its Oct. 31 statement, the Fed said it viewed the risks from weak growth as roughly balanced with the risks of higher inflation.
However, that phrase was changed in the current statement to read, "Recent developments, including the deterioration in financial market conditions, have increased the uncertainty surrounding the outlook for economic growth and inflation."
The Fed vote for the rate cut was 9 to 1 with Eric S. Rosengren dissenting, arguing for a bigger, half-point cut in the funds rate.
Many economists believe the housing slump and credit turmoil have raised the risks of a recession. Many analysts believe that economic growth, as measured by the gross domestic product, may have dipped to a barely perceptible 1 percent rate, raising the chance that some shock, such as another surge in energy prices, could push the country into a recession.
But many analysts still believe the Fed will be able to respond forcefully enough with rate cuts that it will keep the current expansion alive. These analysts believe that the economy will start to rebound to faster growth by the middle of next year, when they expect that lower mortgage rates will have spurred a rebound in home sales.