I Love my iPad--Another Game Changer from Apple

Unboxing my new iPad.

During my lifetime, I've been truly blown away more times by Apple than any other company. They've done it to me five times now.

I can still remember the very first time I ran each of these devices from Apple: Apple IIe, iPod/iTunes, iPhone, and the Mac. Each time I was completely blown away, giddy even, with the sizable leap in innovation with each of these products. Well, it happened to be again yesterday, when my iPad was delivered to my home. I spent a good portion of the day using it. And I have to say, I love it. It exceeded my expectations.

Sure, I expected it to be nice, but in a way my expectations were kept in check, given I have owned the iPhone since the day it came out. I guess in a way I was expecting it to be just an iPhone, only bigger. I found it to be so much more. The larger screen allows iPad apps to be much nicer than their iPhone counterpart. They aren't just marginally better and easier to use, but a magnitude better.

With a few taps I was streaming full-length TV shows in beautiful clarity. Photo viewing, web browsing and email have never been so enjoyable. Games are amazing. It's the ideal device to use while watching TV, laying in bed, and certainly to watch movies while traveling.

It's not perfect, no 1st generation product is. Just like with the iPhone, I'm sure it will improve each year. But, this first product is far enough along for me to already know I wouldn't want to not have one. Anyone who waits for the next generation of the iPad will miss out on all the amazing things it can do right now.

For those of you skeptical about "do I really need a device between my iPhone and laptop?" You'll see. You do. And you will be getting an iPad. The iPad will be big. That's my prediction.

Apple has done it again.

Kevin

PS: As some of you may know, my company has five different apps in the Top 100 of the iPhone app store (social networking). We just submitted our first iPad-optimized app, CLIPish for iPad, and it should be available any day in the app store. Look for it.

Michael Robertson Finally Has a Good Idea, Mine.

Robertson FINALLY has a good idea, which he talked about in his most recent Michael's Minute called byo.fm. Oh, wait, that's right, this wasn't Robertson's idea, it was MY idea from years ago when I pitched it to him at MP3.com, called My Way Radio. I've posted below one of the mocks I made when I made my pitch to Robertson. In fact, you can find the Power Point overview I put together for My Way Radio back then here. You won't see anything on byo.fm that wasn't discussed in my overview. Glad to see the light finally came on for him.

Robertson likes to bill himself as a forward-thinking visionary. It would appear he's more a backward-thinking idea taker. Robertson, just remember as you're building out your new venture, you're helping prove MY idea was a good one. Thanks Michael! I wish you much success with my idea, it IS a good one! =)

The mock I made for MyWayRadio.com from nearly ten years ago.

Kevin

My Third Annual American Idol Predictions - Season 9 - 2010

As some of you know, each year I make my predictions for who I think will win American Idol and in what order I think the contestants will be voted off. (Here were my predictions for 2009 and for 2008.) I set my predictions after the first performance night of the Top 12 (which was last night).

Here are my predictions for this year. As always, I'm not saying these are my PERSONAL favorites, but just how I think America will end up voting. (Siobhan, Lee and Didi are my personal favs.)

My predictions are:

CLICK TO ENLARGE - #1 is my predicted winner,
and #12 my prediction as first to be voted off.

Also, as with previous years, email me with YOU predictions or post them as a comment to this thread, and we'll use the same point system used in previous years to see who is winning at the end of each week and how we all did by the end of the season. (Don't worry if you miss sending me your predictions before they start voting people off tonight, as the point system takes into account when you jumped in with your predictions with a slight penalty for jumping in late.)

To make it easy to email or post your predictions, here are the contestant's names in text form, so you can easily cut, paste and move them around in the order you predict.

Aaron Kelly
Andrew Garcia
Casey James
Crystal Bowersox
Didi Benami
Lacey Brown
Lee Dewyze
Katie Stevens
Michael Lynche
Paige Miles
Siobhan Magnus
Tim Urban

Kevin

SCORING POINT SYSTEM: Every week, you get 1 point for every number off you were for where someone would be voted off. For example, if you predict Casey will make it to #2, but he gets voted off #4, then you get 2 points. If you guess it smack on, you get no points. Like Golf, the LOWEST SCORE WINS.

PENALTY POINTS FOR LATE ENTRANTS: If your prediction doesn't come in before the first round (when there were 12 contestants), you are penalized 1 point. If you miss the first two rounds, you are penalized 3 points. If you miss the first three rounds, you are penalized 6 points. No more entries after the first three rounds and we are down to 9 contestants.

Nearly Two Years and Michael Robertson Remains Silent to Linspire Shareholders

Michael Robertson still not talking to shareholders.

It's been nearly two years since Michael Robertson sold Linspire to Xandros without any shareholder input. To this day, Robertson has never held a shareholder meeting or sent any communication to the one hundred or so Linspire shareholders with the details about that transaction.

It took a shareholder lawsuit (which Robertson unsuccessfully tried to thwart) for Robertson to finally come up with any information. After a year and a half, that case was finally settled. Here is what was disclosed from that settlement:

Kevin La Rue 7:36am March 11th, 2010

Dear Fellow Stockholder of Digital Cornerstone (formerly known as Linspire, Inc.),

As you may know, in October 2008, I initiated a lawsuit as a shareholder of Linspire relating to actions taken by Michael Robertson and Larry Kettler in operating Linspire and their mismanagement of the company. I have settled this matter, receiving no money from Linspire personally, but required that a condition of settlement be that I be allowed to disclose to the other shareholders the information I learned during the litigation about what happened to the company’s assets.

Specifically, under the terms of the settlement agreement, I have been authorized to disclose to the shareholders of Linspire how Linspire’s funds were used by category, how much cash Linspire had at the time its assets were sold to Xandros, and a specific accounting of distributions to Linspire’s shareholders or shareholder related entities. It is important to note that the settlement specifically states that this disclosure I am making is not made on behalf of Linspire, Michael Robertson or Larry Kettler.

Based on the information I received during the course of the litigation, below is the disclosure I have been authorized and am able to make to each of you:

As of July 31, 2007, Linspire had $3,802,531.20 of cash on hand. As of June 30, 2008, when Linspire sold substantially all of its non-cash assets to Xandros, Inc., Linspire had $1,077,952.58.

Between June 2007 and June 2008, Linspire expended: $286,329.96 on its data center.

Between July 2007 and July 2008, Linspire expended: $1,629,907.06 in payroll expenses.

Between June 2007 and June 2008, Linspire paid Ajax13, a company related to Michael Robertson, $180,000.00 for a licensing fee for certain software Linspire was allegedly using.

In September 2008, Linspire transferred $600,000.00 to “SKL Trust, Michael Robertson” for “MP3Tunes Pmt.”

Finally, Xandros acquired Linspire for 4,098,360 shares of Xandros (a privately held company). I was unable to verify the valuation of those shares or to obtain who or what entity currently owns these Xandros shares.

I have tried to send this information to all the shareholders of whom I am aware and for which I have a method to contact them (via email addresses or social media services). To the extent you know any other Linspire shareholders, please feel free to forward this to them for their information.

Yours,

Carl Kevin La Rue

It would appear this is the best the Linspire shareholders can hope for. No shareholder meeting. No detailed explanation. In fact, you'll notice one of the terms of the settlement was that the disclosure was NOT made "on behalf of Robertson," who is clearly doing everything possible to avoid any accounting to Shareholders.

I'm sure the Linspire common shareholders would still like to know:

What was the valuation of the Xandros stock? Who holds that stock now? (Presumably Robertson took this as the preferred shareholder.)

What in the world did Linspire need from Ajax13 to warrant a $180K payment to this Robertson-owned company? As the former CEO for Linspire, I can't think of a single thing that Ajax13 had which Linspire needed, but I can certainly see Ajax13 needing Linspire's cash.

It appears that Robertson forced Linspire into liquidation so he could take the $600K (and presumably all the Xandros stock), and yet has kept the company going to attack former employees. The 100 some-odd shareholders still hold stock in Digital Corner Stone, Inc., and that company has lawsuits going on, attacking former employees and trying to shut down Freespire.com. I still own shares of that business. I don't want to see them attacking good people. To this day, Robertson is using Digital Cornerstone to attack Theresa, Cliff, Randy, and others, forcing them to each spend thousands in legal bills defending their good names.

I have no problem with Robertson as a preferred shareholder getting what is rightfully his due. What I DO have a problem with is 1) him doing everything he did without sharing any information to shareholders for years, and 2) him transferring the assets out of the company as some "liquidation," and then keeping the company going so that Robertson can attack good, honest people.

Michael acts as if because he put up millions, he's the only one who deserves to be treated with any fairness or respect in the Linspire failure. He gives no credit to the 100 or so shareholders who wrote checks to buy shares in the company and exercise stock options, or the employees who worked countless, dedicated hours. When I left there, the team of employees left the company profitable with millions in the bank. How are they rewarded? With legal attacks. The $600K Robertson took was only made possible because of the work those employees did. You could take all the salaries from all the employees he is attacking, for the entire time they worked at Linspire, and it would not equal the revenue these employees brought in to Linspire in their last year there alone. Way to "take care of the peeps" Robertson.

Not long ago, I emailed Michael and offered to take down Freespire.com and even purge all my blogs about him if he would back off his legal attacks against these good people. Robertson declined my offer and to this day continues his attacks.

Even if what he did was technically proper, the way he has treated shareholders and employees is unethical and wrong. That's what I have a problem with.

Kevin

Will Freedom of Speech be Banned in America? Michael Robertson hopes so!

Will freedom of speech be banned in America? If Michael Robertson has his way it will be. He wants Freespire.com taken down because the site is critical of him and exposes many of his questionable business practices. Robertson is trying to use trademark law to shut down Freespire.com. Fortunately, America has a rich history of supporting freedom of speech on the Internet. Robertson already lost in summary judgment in the case, and it goes to full trial later this month. (If you're in the San Diego area and would like to attend the hearing, email me for details.)

For Robertson to shut Freespire.com down, he needs to prove I had bad faith intent to "profit" from the site, such as by confusing visitors. For example, show that people visiting Freespire.com would somehow be so daft that they would be confused and think the site was run by Xandros (the trademark holder for the term "Freespire") and that this confusion was created so that I would profit from the site.

If you visit http://freespire.com, you'll see first hand how ridiculous that argument is. There's clearly no confusion that this site is from Xandros (or Linspire), nor has there ever been any such confusion, and the site has never received one dime of revenue or profited. (Robertson's lawyers know the case is a dog, but they love taking Robertson's money and he's crazy enough to pay it. Doi!)

Xandros, the trademark holder, has never expressed to me any problem with the Freespire.com site or asked me to turn the domain name over to them. It's Robertson (who does NOT have the trademark) who is spending tens of thousands trying to take Freespire.com down and silence his detractors. Does anyone really think Robertson is looking out for Xandros? Robertson doesn't even look out for his OWN employees and shareholders, why would he care about Xandros? He clearly only cares about one thing--twisting trademark law to kill freedom of speech that is critical of him.

Robertson loves to whine about others who don't respect freedom of markets, speech, etc., and yet he's the one wasting loads of cash trying to do that very thing.

Long live freedom of speech. Hopefully the court will defend it later this month. I have every confidence they will. I'll be back to report when it does.

Kevin

117 of My Favorite Albums Growing Up

I just got back from seeing the movie Pirate Radio. I really liked it (8 out of 10 stars for me), particularly the music. It was great listening to all that music I grew up to, and the movie reminded me just how much I miss "albums," something we seemed to have lost with the digital music revolution. Watching this movie inspired me to put the below collage together of 117 albums that most influenced me growing up. I'm sure I missed some, but this gives you an idea of what shaped my musical tastes. Other than grouping the same band/artist together, these are in no particular order. (Click to enlarge.)

117 of My Favorite Albums Growing Up
(In no particular order) - Click to Enlarge.

How many of these do you know? Did any have an impact on you? What great albums did I miss? What were some of your most influential records growing up?

Kevin

Gizmo5 / SIPphone Shareholders--Beware of Michael Robertson's History

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There have been rumors reported in the press that Gizmo5 (SIPphone) could be sold soon (now confirmed here). In a previous blog, I cautioned any prospective buyers to be sure and do full due diligence. I encouraged them to not just take Robertson at his word (something no one should ever do with someone like Michael Robertson), but be sure and take a full accounting of any code, data centers, and speak personally with each and every employee.

Today, I want to caution any Gizmo5/SIPphone shareholders. They should look at how Michael Robertson dealt with the 100-some-odd Shareholders at Linspire when he sold that company's assets.

Here is what happened at Linspire:

1. Robertson sold Linspire without any input or notice from the majority of individual Shareholders. Even large shareholders, such as myself, were kept completely in the dark.

2. Millions in cash is still missing and unaccounted for to Linspire shareholders.

3. Robertson sold all the Linspire assets in a secret, backroom deal that to this day the terms of which have never been disclosed to the Linspire shareholders. Linspire's assets were sold well over a year ago and Robertson hasn't given ANY report or accounting to the Linspire shareholders. As I predicted, it would require a lawsuit to get Robertson to tell shareholders what happened, and even after that, we still have no answers.

4. The only accounting that was made, was Robertson talking to the press, where he basically said he and his father-in-law, as preferred shareholders, would be the only ones to see anything from the sale.

5. To date, every Linspire common shareholder has lost 100% of their investment, without any notice from Robertson, who remains in hiding from Linspire shareholders. (Actually, ONE common shareholder, Tina Stahlke-Donaldson, was able to sell some of her shares back to the company at a nice profit, after Robertson forced the CFO to accommodate that transaction. Why the special treatment for this one female employee? More on that in a future blog.)

Because VC's are involved at Gizmo5/SIPphone, they may force Robertson to behave more ethically there than he did at Linspire. However, my advice to any Gizmo5 shareholder would be to not sign anything without a full accounting BEFOREHAND. My instincts tell me that you, just like the Linspire common shareholders, could also walk away with nothing, even if Robertson does. Michael will want big numbers to be splashed around in the press so he can pretend to have had a success, but in the end, how much did individual shareholders make? (Thousands of shareholders lost millions at MP3.com, and Linspire shareholders lost all their investment and STILL don't even know what Linspire sold for.) If you are in fact going to get the shaft, you better have Michael explain himself BEFORE the deal is done. If Gizmo5 sells to a big company, that company may never disclose the actual purchase price, and if Robertson treats you the way he did Linspire shareholders, HE will never tell you either.

I'm not sure why anyone would pay more than a few million for Gizmo5, but even if Robertson were to sell it for a big number, I predict the common shareholders still see little to nothing. The VCs will likely have 3x or more liquidation preferences, and knowing Robertson as I do, I wouldn't be at all surprised if he will somehow get the same treatment with his shares. Even if someone was crazy enough to value Gizmo5 for tens of millions, watch how quickly Robertson can "creatively" make sure that as much as possible drops to his pockets, not the common shareholder's.

Why would Robertson suddenly get generous with employees and common shareholders? He is the greediest person I know. Remember, this is the same person who tried to have several former employees arrested for "embezzlement" in a failed attempt to try and take back their severance payments. When those attempts were flatly rejected by the San Diego police department, he then sued these employees to get his greedy little hands on THEIR severance. All that failed energy, work, and harassment over a couple hundred thousand dollars?!? Why would any expect Robertson to suddenly grow a conscience?

Ask questions BEFORE any deal is done, otherwise, you could end up just like the Linspire shareholders, with shares of stock worth less than toilet paper and no answers.

I hope I'm wrong, and the Gizmo5/SIPphone shareholders actually see a return on their investment. I'll be sure and report if they do. At the end of the day, Robertson's real worth will not be determined by how much money he lines his own pockets with (like he did at MP3.com), but how much do ALL the investors make? THAT is the number that REALLY matters.

Kevin

Michael Robertson, the greediest man I know.