Michigan Legislature Approves Labor Limit

Fabrizio Costantini for The New York Times

Protesters argued on the steps of the Michigan Capitol on Tuesday as state lawmakers considered right to work legislation.

LANSING, Mich. — The Michigan Legislature approved sweeping legislation on Tuesday that vastly reduces the power of organized labor in a state that has been a symbol of union dominance and served as an incubator for union activity over decades of modern American labor history.

The two bills, approved by the House of Representatives over the shouts of thousands of angry union protesters who gathered on the lawn outside the Capitol building, will among other things, bar both public and private sector union workers from being required to pay fees as a condition of their employment.

The bills have already been approved by the State Senate, and Gov. Rick Snyder has said he intends to sign the legislation as soon as this week. Procedural maneuvering could still briefly delay the bill through calls for reconsideration.

Lisa Posthumus, a House Republican, who said her family included union members, said the legislation gave workers the freedom to make their own choices. “Yes, we are witnessing history,” she said. “This is the day when Michigan freed its workers.”

Mark Meadows, a House Democrat, had a different take. “I was hoping that this day would never come,” he said. “In the last two years there’s been a chipping away at bargaining. But today, the corporations delivered the coup de grâce.”

From a distance, there would seem no more unlikely a success for such legislation than Michigan, where labor, hoping to demonstrate strength after a series of setbacks, asked voters last month to enshrine collective bargaining into the State Constitution.

But that ballot measure failed badly, and suddenly a reverse drive was under way that has brought the state to a moment startling in its symbolism. How the home of the United Automobile Workers finds itself on the cusp of becoming the 24th state to ban compulsory union fees — and only the second state to pass such legislation in a decade — is the latest chapter in a larger battle over the role of unions in the industrial heart of the nation.

As the debate over the bills intensified Tuesday, the authorities closed the Capitol after saying the building had reached its capacity of more than 2,000. That left thousands of noisy union members — many dressed in red — on the lawn outside, although the doors to the building were opened again later in the morning.

Streets around the Capitol were also closed to traffic and clusters of state police, some equipped with riot gear, kept posts throughout the building and along nearby streets.

At least two school districts around the state announced that they would close for the day, as word spread that teachers and other workers planned to protest in Lansing.

As Republicans in the state House moved uncommonly swiftly to pass the measures, union demonstrators outside — the sound of their drumbeats becoming progressively louder inside the chamber — chanted, “Kill the bill! Kill the bill!”

Once the first bill — related to public employees — was approved by a 58-to-51 vote, union supporters cried out from the gallery, “Recall! Recall! Recall!”

Republicans hold a 64-to-46 majority in the state House, and aside from a few dissenters, the vote was generally along party lines.

The second bill, covering private sector unions, was passed by the House about an hour and a half later by a 58-to-52 vote.

Democrats around the nation, including President Obama, have denounced the measures in recent days.

“You know, these so-called right-to-work laws, they don’t have to do with economics,” said Mr. Obama, during a visit to a truck factory outside Detroit on Monday. “They have everything to do with politics. What they’re really talking about is giving you the right to work for less money.”

Before the first House vote Tuesday, Democrats had sought to slow down the proceedings by employing whatever tactics they could dream up. One was to offer an array of amendments with the idea of destabilizing the bill by a thousand cuts. Among the suggestions: Send the question to a public vote. Each amendment however, was quickly rejected.

Mary M. Chapman contributed reporting in Lansing, and Steven Yaccino in Chicago.

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Latin music star Jenni Rivera believed dead in plane crash

Fans of Mexican-American singing star Jenni Rivera held a vigil Sunday night in Lynwood

MEXICO CITY — Mexican American singer Jenni Rivera, the "diva de la banda" whose commanding voice burst through the limits of regional Latin music and made her a cross-border sensation and the queen of a business empire, was believed to have died Sunday when the small jet carrying her and members of her entourage crashed in mountainous terrain.

Rivera, a native of Long Beach, was 43. Mexico's ministry of transportation did not confirm her death outright, but it said that she had been aboard the plane and that no one had survived the crash. Six others, including two pilots, also were on board.

"Everything suggests, with the evidence that's been found, that it was the airplane that the singer Jenni Rivera was traveling in," said Gerardo Ruiz Esparza, Mexico's secretary of communications and transportation. Of the crash site, Ruiz said: "Everything is destroyed. Nothing is recognizable."

Word of the accident ricocheted around the entertainment industry, with performer after performer expressing shock and grief. Fans gathered outside Rivera's four-acre estate in Encino.

"She was the Diana Ross of Mexican music," said Gustavo Lopez, an executive vice president at Universal Music Latin Entertainment, an umbrella group that includes Rivera's label. Lopez called Rivera "larger than life" and said that based on ticket sales, she was by far the top-grossing female artist in Mexico.

"Remember her with your heart the way she was," her father, Don Pedro Rivera, told reporters in Spanish on Sunday evening. "She never looked back. She was a beautiful person with the whole world."

Rivera had performed a concert in Monterrey, Mexico, on Saturday night — her standard fare of knee-buckling power ballads, pop-infused interpretations of traditional banda music and dizzying rhinestone costume changes.

At a news conference after the show, Rivera appeared happy and tranquil, pausing at one point to take a call on her cellphone that turned out to be a wrong number. She fielded questions about struggles in her personal life, including her recent separation from husband Esteban Loaiza, a professional baseball player.

"I can't focus on the negative," she said in Spanish. "Because that will defeat you. That will destroy you.... The number of times I have fallen down is the number of times I have gotten up."

Hours later, shortly after 3 a.m., Rivera is believed to have boarded a Learjet 25, which took off under clear skies. The jet headed south, toward Toluca, west of Mexico City; there, Rivera had been scheduled to tape the television show "La Voz" — Mexico's version of "The Voice" — on which she was a judge.

The plane, built in 1969 and registered to a Las Vegas talent management firm, reached 11,000 feet. But 10 minutes and 62 miles into the flight, air traffic controllers lost contact with its pilots, according to Mexican authorities. The jet crashed outside Iturbide, a remote city that straddles one of the few roads bisecting Mexico's Sierra de Arteaga national park.

Wreckage was scattered across several football fields' worth of terrain. An investigation into the cause of the crash was underway, and attempts to identify the remains of the victims had begun.

Rivera, a mother of five and grandmother of two, was believed to have been traveling with her publicist Arturo Rivera, who was not related to her, as well as with her lawyer, hairstylist and makeup artist; reports of their names were not consistent. Their identities were not confirmed by authorities. The pilots were identified as Miguel Perez and Alejandro Torres.

In the world of regional Latin music — norteño, cumbia and ranchera are among the popular niches — Rivera was practically royalty.

Her father was a noted singer of the Mexican storytelling ballads known as corridos. In the 1980s he launched the record label Cintas Acuario. It began as a swap-meet booth and grew into an influential and taste-making independent outfit, fueling the careers of artists such as the late Chalino Sanchez. Jenni Rivera's four brothers were associated with the music industry; her brother Lupillo, in particular, is a huge star in his own right.

Born on July 2, 1969, Rivera initially showed little inclination to join the family business. She worked for a time in real estate. But after a pregnancy and a divorce, she went to work for her father's record label and found her voice, literally and figuratively.

She released her first studio album in 2003, when she was 34.

Her path had not been easy, but rather than running from it, she wrote it into her music — domestic violence; struggles with weight; raising her children alone, or "sin capitan," without a captain. She was known for marathon live shows that left audiences exhilarated and exhausted; by the fifth hour of one recent performance, she was drinking straight from a tequila bottle and launching into a cover of "I Will Survive."

In a witty and sometimes baffling stew of Spanish and English, she sang about her three husbands, about drug traffickers, in tribute to her father, in tribute to her gynecologist.

She became, in a most unlikely way, a feminist hero among Latin women in Mexico and the United States and a powerful player in a genre of music dominated by men and machismo. Regional Mexican music styles had long been seen as limiting to artists, but Rivera shrugged off the labels and brought traditional-laced music — some of which sounded perilously close to polka — to a massive pop audience.

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Videos: Rare Glimpses of Amazing Birds-of-Paradise Courtship Rituals

Birds of paradise have evolved into very conspicuous animals with orange, red and turquoise plumage and ornate wire-like feathers that have captured the imagination of scientists and bird enthusiasts alike.

Their showy features are a delight to behold, but they would also make them an easy target for hungry cats and other predatory mammals -- if there were any around. The absence of such predators is precisely what allowed these otherwise impractical species to evolve.

"There was an evolutionary opportunity to develop that kind of extravagance," ornithologist Ed Scholes of the Cornell Lab of Ornithology said. "They're a quirk of geography."

More than 20 years ago, wildlife photographer Tim Laman saw his first birds of paradise, the Standardwing and the Red Bird of Paradise, while traveling in Indonesia. He started imagining a project to photograph every species of these birds in their natural habitats of New Guinea and parts of Australia.

"It was one of the dream assignments on my list," said Laman, who's also a rainforest biologist with a Ph.D. from Harvard.

Laman, whose work often focuses on conservation, finally pitched the project to National Geographic in 2003. He teamed up with Scholes, and during the next three years the pair made five trips to New Guinea and managed to photograph about half of the 39 species of birds of paradise.

After eight years, Laman and Scholes completed their mission of photographing all of the bird-of-paradise species, including the ballerina-like bronze parotia, which only recently was recognized as the 39th species.

The project took Laman and Scholes through more than 200 flights, 18 expeditions and thousands of hours spent hiding in blinds as high as 50 meters above ground. They set up a battery-powered jungle ethernet and remote-controlled cameras hooked up to laptops to take the nearly 40,000 photographs that comprise the Birds of Paradise Project.

Here is a selection of some of the best videos and photos from their avian adventures.

Above:

Goldie’s Bird-of-Paradise

Goldie’s birds-of-paradise live on two or three islands on the western edge of Papua New Guinea.

Males coordinate their displays and their calls sound almost like an intense duet, says Scholes.

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Australian DJs break silence over UK royal prank tragedy

CANBERRA (Reuters) – Two Australian radio announcers who made a prank call to a British hospital treating Prince William‘s pregnant wife Kate broke a three-day silence on Monday to speak of their distress at the apparent suicide of the nurse who took their call.

The 2DayFM Sydney-based announcers, Mel Greig and Michael Christian, said the tragedy had left them “shattered, gutted, heartbroken”.

Greig and fellow presenter and prank mastermind Christian have been in hiding since nurse Jacintha Saldanha‘s death and the subsequent social media outrage at their prank.

Their show, “Hot 30,” has been terminated, the station’s parent company, Southern Cross Austereo (SCA), said in a statement on Monday. SCA also announced a company-wide suspension of prank calls.

Greig told Australian television her first thought when told of Saldanha‘s death was for her family.

“Unfortunately I remember that moment very well, because I haven’t stopped thinking about it since it happened,” she said, amid tears and her voice quavering with emotion. “I remember my first question was ‘was she a mother?’”

“I’ve wanted to just reach out to them and just give them a big hug and say sorry. I hope they’re okay, I really do. I hope they get through this,” said a black-clad Greig when asked about mother of two Saldanha’s children, left grieving their mother’s death with their father Ben Barboza.

Saldanha, 46, was found dead in staff accommodation near London’s King Edward VII hospital on Friday after putting the hoax call through to a colleague who unwittingly disclosed details of Kate’s morning sickness to 2DayFM’s presenters.

British Prime Minister David Cameron said news of the Saldanha’s death was “shocking”.

“I just feel incredibly sorry for her and her family. It’s an absolute tragedy this has happened, and I’m sure everyone will want to reflect on how it was allowed to happen,” he said.

The hospital at which Saldanha worked told the BBC it had not disciplined her for taking the prank call. Police said a post-mortem examination would be conducted on Tuesday.

FIRESTORM

A recording of the call, broadcast repeatedly by the station, rapidly became an internet hit and was reprinted as a transcript in many newspapers.

But news of Saldanha’s death sparked the Internet firestorm, with vitriolic comments towards the DJs on Facebook and Twitter.

Christian said his only wish was that Saldanha’s grief-stricken family received proper support.

“I hope that they get the love, the support, the care that they need, you know,” said Christian, who like Greig struggled to talk about the tragedy.

Both Greig, 30, and Christian were relatively new to the station, with Greig joining in March and Christian having been in the job only a few days before the prank call after a career in regional radio.

Greig said she did not think their prank would work.

“We thought a hundred people before us would’ve tried it. We thought it was such a silly idea and the accents were terrible and not for a second did we expect to speak to Kate, let alone have a conversation with anyone at the hospital. We wanted to be hung up on,” she said.

Christian drew headlines only two weeks before the royal prank call by angering fellow passengers with a harmonica playing stunt aboard pop star Rihanna’s private jet.

SCA, 2Day’s parent company, has received more than 1,000 complaints from Australians over the actions of the popular presenters, who have both been taken off air during an broadcasting watchdog investigation.

“SCA and the hosts of the radio program have also decided that they will not return to the airwaves until further notice,” SCA said in a statement.

Shares in SCA fell 5 percent on Monday after two major Australian companies pulled their advertising with the radio station in protest and other advertising was suspended.

The station said it had tried to contact hospital staff five times over the recordings.

“It is absolutely true to say that we actually did attempt to contact those people on multiple occasions,” said SCA chief executive Rhys Holleran.

“No one could have reasonably foreseen what has happened. I can only say the prank call is not unusual around the world,” he said.

The fallout from the radio stunt has brought back memories in Britain of the death of William’s mother Diana in a Paris car crash in 1997 and threatens to cast a pall over the birth of his and Kate’s first child.

Australia’s Communications Minister Stephen Conroy sought to deflect calls for more media regulation, telling journalists that a looming investigation by Australia’s independent regulator should be allowed to happen without political interference.

(Additional reporting by Mohammed Abbas in London; Editing by Michael Perry)

Celebrity News Headlines – Yahoo! News

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A Breakthrough Against Leukemia Using Altered T-Cells

PHILIPSBURG, Pa. — Emma Whitehead has been bounding around the house lately, practicing somersaults and rugby-style tumbles that make her parents wince.

It is hard to believe, but last spring Emma, then 6, was near death from leukemia. She had relapsed twice after chemotherapy, and doctors had run out of options.

Desperate to save her, her parents sought an experimental treatment at the Children’s Hospital of Philadelphia, one that had never before been tried in a child, or in anyone with the type of leukemia Emma had. The experiment, in April, used a disabled form of the virus that causes AIDS to reprogram Emma’s immune system genetically to kill cancer cells.

The treatment very nearly killed her. But she emerged from it cancer-free, and about seven months later is still in complete remission. She is the first child and one of the first humans ever in whom new techniques have achieved a long-sought goal — giving a patient’s own immune system the lasting ability to fight cancer.

Emma had been ill with acute lymphoblastic leukemia since 2010, when she was 5, said her parents, Kari and Tom. She is their only child.

She is among just a dozen patients with advanced leukemia to have received the experimental treatment, which was developed at the University of Pennsylvania. Similar approaches are also being tried at other centers, including the National Cancer Institute and Memorial Sloan-Kettering Cancer Center in New York.

“Our goal is to have a cure, but we can’t say that word,” said Dr. Carl June, who leads the research team at the University of Pennsylvania. He hopes the new treatment will eventually replace bone-marrow transplantation, an even more arduous, risky and expensive procedure that is now the last hope when other treatments fail in leukemia and related diseases.

Three adults with chronic leukemia treated at the University of Pennsylvania have also had complete remissions, with no signs of disease; two of them have been well for more than two years, said Dr. David Porter. Four adults improved but did not have full remissions, and one was treated too recently to evaluate. A child improved and then relapsed. In two adults, the treatment did not work at all. The Pennsylvania researchers were presenting their results on Sunday and Monday in Atlanta at a meeting of the American Society of Hematology.

Despite the mixed results, cancer experts not involved with the research say it has tremendous promise, because even in this early phase of testing it has worked in seemingly hopeless cases. “I think this is a major breakthrough,” said Dr. Ivan Borrello, a cancer expert and associate professor of medicine at the Johns Hopkins University School of Medicine.

Dr. John Wagner, the director of pediatric blood and marrow transplantation at the University of Minnesota, called the Pennsylvania results “phenomenal” and said they were “what we’ve all been working and hoping for but not seeing to this extent.”

A major drug company, Novartis, is betting on the Pennsylvania team and has committed $20 million to building a research center on the university’s campus to bring the treatment to market.

Hervé Hoppenot, the president of Novartis Oncology, called the research “fantastic” and said it had the potential — if the early results held up — to revolutionize the treatment of leukemia and related blood cancers. Researchers say the same approach, reprogramming the patient’s immune system, may also eventually be used against tumors like breast and prostate cancer.

To perform the treatment, doctors remove millions of the patient’s T-cells — a type of white blood cell — and insert new genes that enable the T-cells to kill cancer cells. The technique employs a disabled form of H.I.V. because it is very good at carrying genetic material into T-cells. The new genes program the T-cells to attack B-cells, a normal part of the immune system that turn malignant in leukemia.

The altered T-cells — called chimeric antigen receptor cells — are then dripped back into the patient’s veins, and if all goes well they multiply and start destroying the cancer.

The T-cells home in on a protein called CD-19 that is found on the surface of most B-cells, whether they are healthy or malignant.

A sign that the treatment is working is that the patient becomes terribly ill, with raging fevers and chills — a reaction that oncologists call “shake and bake,” Dr. June said. Its medical name is cytokine-release syndrome, or cytokine storm, referring to the natural chemicals that pour out of cells in the immune system as they are being activated, causing fevers and other symptoms. The storm can also flood the lungs and cause perilous drops in blood pressure — effects that nearly killed Emma.

Steroids sometimes ease the reaction, but they did not help Emma. Her temperature hit 105. She wound up on a ventilator, unconscious and swollen almost beyond recognition, surrounded by friends and family who had come to say goodbye.

But at the 11th hour, a battery of blood tests gave the researchers a clue as to what might help save Emma: her level of one of the cytokines, interleukin-6 or IL-6, had shot up a thousandfold. Doctors had never seen such a spike before and thought it might be what was making her so sick.

Dr. June knew that a drug could lower IL-6 — his daughter takes it for rheumatoid arthritis. It had never been used for a crisis like Emma’s, but there was little to lose. Her oncologist, Dr. Stephan A. Grupp, ordered the drug. The response, he said, was “amazing.”

Within hours, Emma began to stabilize. She woke up a week later, on May 2, the day she turned 7; the intensive-care staff sang “Happy Birthday.”

Since then, the research team has used the same drug, tocilizumab, in several other patients.

In patients with lasting remissions after the treatment, the altered T-cells persist in the bloodstream, though in smaller numbers than when they were fighting the disease. Some patients have had the cells for years.

Dr. Michel Sadelain, who conducts similar studies at the Sloan-Kettering Institute, said: “These T-cells are living drugs. With a pill, you take it, it’s eliminated from your body and you have to take it again.” But T-cells, he said, “could potentially be given only once, maybe only once or twice or three times.”

The Pennsylvania researchers said they were surprised to find any big drug company interested in their work, because a new batch of T-cells must be created for each patient — a far cry from the familiar commercial strategy of developing products like Viagra or cholesterol medicines, in which millions of people take the same drug.

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Advertising: In Beyoncé Deal, Pepsi Focuses on Collaboration

Beyoncé at a Pepsi photo shoot in October. The images will appear early next year as life-size cardboard cutouts in stores.

FOR its campaign with Beyoncé next year, Pepsi doesn’t just want to sign up the telegenic pop star for another TV commercial. It also wants to get into the Beyoncé business.

In an expansion of the recent marketing experiments that have brought PepsiCo ever closer to the music industry, the company has embarked on a hybrid project with Beyoncé that will include standard advertising like commercials as well as a multimillion-dollar fund to support the singer’s chosen creative projects.

“Pepsi embraces creativity and understands that artists evolve,” Beyoncé said in a statement. “As a businesswoman, this allows me to work with a lifestyle brand with no compromise and without sacrificing my creativity.”

The campaign will coincide with a blitz of promotion for her next album, which has no title or release date so far but is expected in 2013. Sometime after she performs at the Super Bowl halftime show on Feb. 3 (also sponsored by Pepsi), Beyoncé will appear in a new TV ad — her fifth for the soft drink since 2002 — and her face will be on a limited-edition line of soda cans.

The less conventional aspects of the deal are meant as collaborative projects that indulge Beyoncé’s creative whims, and might well have no explicit connection to Pepsi products. They are still at the brainstorm stage, but could include live events, videos, “a cool photo shoot” or almost anything else, said Lee Anne Callahan-Longo, the general manager of Parkwood Entertainment, Beyoncé’s company.

For Pepsi, the goal is to enhance its reputation with consumers by acting as something of an artistic patron instead of simply paying for celebrity endorsements.

“Consumers are seeking a much greater authenticity in marketing from the brands they love,” said Brad Jakeman, president of PepsiCo’s global beverage group. “It’s caused a shift in the way we think about deals with artists, from a transactional deal to a mutually beneficial collaboration.”

The multiyear campaign is estimated at $50 million, the bulk of it for media placements and promotions around the world, and the remainder split roughly equally between Beyoncé’s fee and what Pepsi calls a creative content development fund.

•

According to the tracking firm Kantar Media, PepsiCo and its archrival the Coca-Cola Company each spent about $148 million in the United States to advertise their soft drink brands in the first six months of 2012, across all measured forms of media, like television, print, digital and radio.

Over the last decade many consumer brands have been taking more active roles with artists, particularly in pop music. Converse, Red Bull and Toyota’s Scion line, for example, have become as familiar in the music business as any label or concert promoter by paying to help create and promulgate music.

Bands always risk fan disapproval when shaking hands with big corporations. But with record company budgets diminished, Madison Avenue money is often seen as essential. PepsiCo has been part of this trend through Green Label Sound, a label financed through its Mountain Dew drink, which over the last four years has paid to release free music by under-the-radar groups like Matt & Kim and the Cool Kids.

“We recognize that there have been massive disruptions in music industry: lower investment in artist development, fewer points of distribution, financial constraints,” said Frank Cooper, a top marketing executive in PepsiCo’s beverage division who has been a force for such projects. “We look at those disruptions as opportunities for Pepsi.”

These deals are not limited to music. In 2010, Jay-Z (Beyoncé’s husband) teamed with Microsoft to promote his memoir, “Decoded.” According to a case study led by Anita Elberse, a Harvard Business School professor, the publisher could contribute only $50,000 for marketing, but Microsoft paid $2 million for an elaborate scavenger hunt that promoted the book as well as its new search engine, Bing.

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3 killed, 4 wounded in Tulare County shooting

Three people were fatally shot and four others wounded, including two young children, Saturday night on the Tule River Reservation in Tulare County, authorities said.

The suspect, who fled with his two young daughters, was later shot by sheriff’s deputies and taken into custody, according to the Tulare County Sheriff’s Department. The two girls, who were among those shot, were rescued.

The incident began about 7:45 p.m. when the Sheriff’s Department received a 911 call about shots fired in the 100 block of Chimney Road of the Tule River Indian Reservation about 60 miles northeast of Bakersfield, according to a Sheriff’s Department statement.

In a trailer on the property, deputies discovered an adult male and an adult female who had been fatally shot, authorities said. A male juvenile who suffered a gunshot wound was transported to a hospital. 

At a shed on the property, deputies found another male victim who had been fatally shot, authorities said.

The suspect, identified as Hector Celaya, 31, of the Tule River Indian Reservation, fled the scene in a Jeep Cherokee with his two daughters, Alyssa, 8, and Linea, 5, authorities said. An Amber Alert was issued around 11 p.m.

Detectives used Celaya’s cellphone to locate him.

A deputy spotted the vehicle and after failing to make a traffic stop, a slow-speed pursuit began, authorities said.

The suspect eventually stopped and fired his weapon at deputies, who returned fire and struck the suspect twice, seriously wounding him, authorities said.

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New Crowdfunding Site Seeks to Protect Backers of Industrial Design

Entrepreneur Jamie Siminoff wants to build more credibility into crowdfunding — so he’s launching a new platform that takes responsibility for ensuring the viability of new projects.

The crowdfunding process, pioneered by sites like Kickstarter, has had its share of huge successes, as well as failures. The problem, says Siminoff, is that when a venture fails, the funders are left holding the bag. That’s all well and good if you were investing in an artist’s crazy project. It’s much more of a problem if you thought you were pre-ordering a nearly finished gadget.

The biggest culprit for these kinds of issues are physical products. Witness the anger unleashed when Kickstarter darling Pebble announced a further delay alongside underwhelming color choices.

This kind of issue is why Kickstarter recently made some changes, undertaking a combination of education and rule revision. They reminded consumers that Kickstarter is not a store while requiring that all projects disclose risks and challenges, as well as forbidding renderings and concept videos in hardware products.

Siminoff’s answer is Christie Street, a crowdfunding site devoted exclusively to physical products. The promise of Christie Street is that it will vet the projects that it launches carefully, and provide guarantees of progress along the way. The idea is that these protections will make consumers feel safer about the products they’re backing. “We built something that we felt we needed,” he says.

Christie Street, named for the New Jersey road where Edison’s workshop was located, will require that all funders go through an auditing process before they are allowed to go live. Siminoff says that the idea will be to check for basic viability, a kind of sanity test.

“You look at the chips they say they want to use, the size of components that will need to fit in, and so on,” he says, “You check that things conform to what’s available on the market.” From there, they also perform third-party audits of the places where the product will be manufactured, and look at things like production cost and likely shipping time, to ensure that all of this seems realistic.

It’s an all-or-nothing audit. Either the new project meets Christie Street’s approval or it doesn’t. “Our feeling is that the customer that’s buying doesn’t have the sophistication to make the right decision [about whether a design's production targets are reliable],” says Siminoff, “The only way is create a place where you can trust to buy.”

Even after the initial approval, Christie Street stays involved in the project. Successfully funded projects get their money in stages, with Christie Street holding the rest in escrow. Inventors get one-third of the money on funding, one-third of the money once they have a production-ready prototype, and the final one-third when they have a golden prototype, which means they are ready for full manufacturing.

If at any time along the way the project fails, Christie Street will can the project and refund the remaining money to investors.

What constitutes failure? Siminoff ticks off four conditions.

First, the inventor could for whatever reason announce that they couldn’t finish.

Second, if the project ends up more than six months late. “This forces people to be more careful with their delivery dates,” says Siminoff.

Third, if the product falls short of what was promised. “If the pre-production sample is more than 15 percent worse than what was promised, we will not allowed you to manufacture the product,” says Siminoff. (For example, if you promised me 512GB and only delivered 256.)

Last, says Siminoff there are other nuances that they’ll have to work out as the site develops. For example, if a product ends up requiring significant redesign, then Christie Street might end up withholding funds. “Design is a tougher one to quantify,” he says, “but it’s important that the design overall fits what was promised to the customer.”

For the extra cautious, Christie Street goes even further than the refund of remaining money. For 10 percent of their pledge value, backers can insure their entire pledge. If the project goes wrong they’ll get all of it back. Combine that with a pledge from inventors that the product will retail for at least 10 percent more than the pledge amount, and you can either take a 10 percent discount for some additional risk or pay full retail, with a money-back guarantee.

In effect, Christie Street is navigating a space between crowfunding sites like Kickstarter and Indiegogo, which expect backers to handle a lot of their own due diligence while allowing the inventors to be entrepreneurs, and crowdsourcing design sites like Quirky, which handles all of the business elements in-house.

Christie Street is an effort at drawing the lines of trust in a new way, one tied directly to the realities of post-industrial product design. Rather than a blanket ban on renderings and early designs, or a Wild West ‘anything goes’ approach, they instead seeks to tame the parts where production can go really wrong, in the devilish details of prototyping and manufacturing. It leaves questions of whether or not the thing is cool to the wisdom of the crowds, while taking on the question of whether or not the thing is possible.

This is obviously a lot more intervention between middleman and inventor than you’d see on a site like Indigegogo or Kickstarter. Siminoff says that they can still take the same 5 percent cut as their competitors because physical products tend to be involved higher dollar-value projects from the start. “If all goes well, we’ll be doing 10 to 15 live projects a months a year from now,” he says, “We think we can be profitable in the product world.”

“We’re not trying to make it where inventors are just be a name on a product,” says Siminoff, “We still want them to be entrepreneur and build this thing. We just want to make sure that they don’t fail in a way that hurts the customer.”

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Cablevision to raise Internet prices by $5 a month

(Reuters) – Cablevision Systems Corp, the New York-based cable operator, said on Thursday it would raise its Internet prices by $ 5 in January, representing an average hike of 3.2 percent for customers’ total monthly bills.

The company said in a statement that prices for its video and phone services will not be affected and that prices for promotional packages, which generally last one year, will not rise.

But all customers who have Internet service as part of their video or phone package will see prices rise.

Cablevision said it had not raised Internet prices in a decade. It raised video prices in 2011, which saw customer bills rise by 2.88 percent on average.

The company said it has invested $ 140 million in improving its Internet network, deployed more than 50,000 WiFi “hotspots,” and puts no usage caps on its service, unlike some cable competitors.

Canaccord Genuity analyst Tom Eagan downgraded his Cablevision rating from “buy” to “hold” on November 27 and said that Cablevision would lose customers if it were to decide to raise prices not long after Superstorm Sandy.

“Given the massive service outages among its subscribers (after Sandy), we don’t believe the company can raise rates … without incurring material customer churn,” Eagan said.

The cable provider, which is controlled by the Dolan family, said in early November that costs from Sandy, which knocked out service for as many as half its customers, would be substantially higher than its $ 16 million bill from Hurricane Irene in 2011.

Like bigger operators Comcast and Time Warner Cable, Cablevision has been losing customers to rivals such as satellite television provider DirecTV and telephone operator Verizon Communications.

Cablevision shares closed up 2.6 percent, at $ 14.16, on Thursday.

(Reporting By Liana B. Baker; Editing by Steve Orlofsky and Leslie Adler)

TV News Headlines – Yahoo! News

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New Taxes to Take Effect to Fund Health Care Law

WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.

The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.

Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.

To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.

The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.

Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.

Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.

Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.

Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.

In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.

Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.

Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.

The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.

David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.

The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.

Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.

Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.

In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.

Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.

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