Tribune Co. set to exit bankruptcy protection

Tribune Co. is expected to emerge from bankruptcy protection Monday with a new board of directors composed largely of entertainment-industry veterans.

Exiting bankruptcy would mark a milestone for Tribune, the parent of the Los Angeles Times and other newspaper and television properties.

Tribune sought court protection in December 2008 after a leveraged buyout by real estate magnate Sam Zell saddled the company with $12.9 billion in debt just as advertising revenue was collapsing. It is one of the longest bankruptcy cases in U.S. corporate history.

Tribune will emerge as a slimmed-down entity with a more stable financial base. But the media conglomerate will still be buffeted by the larger forces pounding the newspaper industry, specifically uncertainty over whether papers can generate sufficient revenue from digital operations.

"Tribune is far stronger than it was when we began the Chapter 11 process four years ago and, given the budget planning we've done, the company is well-positioned for success in 2013," Eddy Hartenstein, Tribune's chief executive, wrote in a note to employees Sunday night.

Tribune's new board of directors is expected to be made up of a who's who of Hollywood players. Most have no hands-on experience running newspapers and television stations, which are Tribune Co.'s biggest assets.

Five of the seven members have ties to the entertainment and media industries, including Hartenstein and Peter Liguori, a former News Corp. executive who is expected to succeed Hartenstein as Tribune CEO in the next few weeks.

Quiz: The year in business

Also expected to be named to the board are Peter Murphy, previously a longtime executive at Walt Disney Co.; Ross Levinsohn, former head of global marketing at Yahoo Inc.; and Craig A. Jacobson, a veteran entertainment attorney.

The board will be rounded out by Bruce Karsh, president of Oaktree Capital Management, the Los Angeles distressed-debt firm that owns about 23% of the new Tribune; and Kenneth Liang, an Oaktree managing director.

Tribune, the parent of the Los Angeles Times, owns 23 local television stations, eight daily newspapers and Internet and other media properties.

Those holdings include KTLA-TV Channel 5, the Chicago Tribune, and national cable station WGN-TV. Tribune also holds slightly less than one-third of the Food Network cable channel and about a 25% stake in the CareerBuilder website.

Liguori is also a former Discovery Communications senior executive whose resume is in programming and marketing. He headed both the FX cable network and Fox Broadcasting at News Corp. At Discovery he served as chief operating officer of the cable programming giant.

Murphy spent almost two decades at Disney, rising to the position of chief strategist. He founded private investment firm Wentworth Capital Management. He has close ties to Angelo, Gordon & Co., an investment firm that will own roughly 9% of the new Tribune Co.

Levinsohn is a former head of global marketing at Yahoo. He also served briefly as its interim CEO prior to Google Inc.'s Marissa Mayer being tapped for that job. Levinsohn also is a former News Corp. executive who headed its interactive unit.

Jacobson, an attorney at Hansen, Jacobson, Teller, Hoberman, Newman, Warren, Richman, Rush & Kaller is one of Hollywood's more prominent deal-makers. His clients have included several high profile executives and performers such as Ryan Seacrest.

Tribune remained profitable throughout the bankruptcy, building cash reserves of more than $2.5 billion as of Nov. 18, according to a U.S. Bankrutpcy Court filing this month. Creditors are expected to immediately take nearly $3 billion in cash out of the new company, some of it coming from a new $1.1 billion loan that was approved as part of the bankruptcy.

A key question still to be answered is what Tribune will do with its newspapers. Some analysts believe the company will seek to sell the slower-growing newspapers to focus on TV holdings.

As for the Los Angeles Times, Rupert Murdoch's News Corp. has expressed interest, according to people familiar with the matter.

Aaron Kushner, owner of the Orange County Register, and Doug Manchester, the San Diego real estate developer who last year bought the local Union Tribune newspaper, also have shown interest.

Austin Beutner, the former venture capitalist and ex-deputy mayor of Los Angeles, told The Times in October that he has reached out to civic-minded investors who would consider acquiring the paper.

walter.hamilton@latimes.com

joe.flint@latimes.com

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Officials warn holiday revelers against firing weapons

By Richard Winton, Los Angeles Times

December 29, 2012, 8:59 p.m.

Los Angeles officials are warning that anyone discharging a firearm into the air to celebrate the new year not only risks killing someone but could also face a lengthy prison sentence.

"Firing into the air weapons in celebration puts innocent lives at risk," Mayor Antonio Villaraigosa said last week. "Nothing ruins the holiday season like an errant bullet coming down and killing an innocent."

Villaraigosa said the misuse of firearms is on everyone's mind in the wake of the Newtown, Conn., school shooting that left six adults and 20 children dead. The mayor vowed that authorities will pursue criminal charges for anyone caught in possession of a weapon in public.

For more than a decade, city and county leaders have tried to quell celebratory gunfire.

Los Angeles Police Chief Charlie Beck said a bullet discharged into the air falls at a rate of 300 to 700 mph, depending on the weapon — "easily enough to crack the human skull."

"Please celebrate New Year's with your family, not in [Sheriff] Lee Baca's jail or my jail," Beck said, pledging to capture anyone firing a weapon. "Firing a gun in the air isn't only dangerous and a crime but socially unacceptable."

L.A. County Dist. Atty. Jackie Lacey said that anyone caught firing a weapon — even if they don't hit someone — will face a felony charge and a fine of up to $10,000 and a possible three-year sentence. A conviction would be considered a strike offense and the suspect would lose the right to own a firearm.

Supervisor Mark Ridley-Thomas said that in some county areas, special equipment has been deployed to spot shots within seconds and track their locations.

"The madness of gun violence has to stop," he said. "This is a matter of physics. What goes up must come down."

richard.winton@latimes.com

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The Boy Genius Report: The Wii U is Nintendo’s last console

I remember it still — people flipped out about the Nintendo (NTDOY) Wii. Yes, its name was mocked for a while, but there was genuine excitement around what Nintendo was doing with motion and the entire gameplay experience. While the original Nintendo Wii was almost an Apple (AAPL)-like product — Nintendo focused on the gameplay and not on specs; the company didn’t even have HD graphics when every other console did — the Nintendo Wii U clearly demonstrates how far Nintendo has fallen and how out of touch the company is.

[More from BGR: Samsung could face $ 15 billion fine for trying to ban iPhone, other Apple devices]

I bought a Nintendo Wii U for one reason and one reason only, and that’s to play and beat “Super Mario Bros. U.” I’ll probably end up returning the console after I’m done, because that’s how horrible the Wii U actually is.

[More from BGR: Five-year-old finds porn on refurbished Nintendo 3DS from GameStop]

First of all, the fact that Nintendo actually decided to ship this joke of a controller called the GamePad with a 6.2-inch touchscreen in the middle says it all. It only lasted for around two hours per charge over the week I’ve used it, and it’s big, clunky and made of glossy Nintendo plastic. The problem it, it has no charm. It feels thrown together to try to make a statement, one that says that Nintendo isn’t afraid of the iPads or Android tablets or iPhones or iPod touches, and that it too can take on touch just as it took on motion.

It fails miserably. And that’s just the controller.

The actual console is one that finally for the first time ever supports HDMI and HD graphics, yet Nintendo’s flagship game doesn’t look good in high-definition. The console’s UI is a mess, and let’s be honest, we are living in a time where we are so connected, where so much is shared across continents instantly, that real design transcends what country it was designed in.

When you see a beautiful iPhone app’s interface, there’s a good chance you couldn’t tell if it was designed by a company in San Francisco or Paris or Hong Kong. But Nintendo’s interface is blatantly Japanese, and it lacks any and all sophistication. It’s like all of Nintendo’s designers just gave up and are living in a time when Apple’s iOS devices and Google’s (GOOG) Android devices don’t exist, blissfully ignoring the threat that their company is facing from all angles.

The Wii U experience is so terrible that it took over an hour to update the software on the console recently, and apparently that wasn’t that bad. People have told me their updates took over 4 hours when performed closer to Christmas. Do you know what that 7-year-old is doing during those 4 hours you’re making him wait? Playing Temple Run or Angry Birds on his iPad mini. Way to go Nintendo.

I’ll go on record and say that I think this is the last video game console Nintendo will make for the home. I just don’t see the future here with hardware. Not by a mile.

Nintendo needs to realize that hardware is hardware and that Nintendo’s hardware isn’t special, it isn’t elegant and it isn’t thoughtful. It’s merely a delivery mechanism in a time where design has never been more important.

Nintendo is a great company, one that has invented so many great products, but sooner or later it will be forced to offer its titles on iOS devices and Android devices. It’s going to get to that point. There’s way too much revenue to be made — Nintendo isn’t Sega, and Sega is crushing it as a software-only company.

I just hope Nintendo follows suit sooner or later, because I have $ 9.99 ready to go for the Super Mario app on iOS.

This article was originally published by BGR

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning friends who drew concern from government officials and her own entourage.

But the records, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the files show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

___

Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Questcor Finds Profit for Acthar Drug, at $28,000 a Vial

Kevin Moloney for The New York Times

Christina Culver with her son Tyler, 6, at home in Colorado Springs this month. In 2007, Tyler was hospitalized when the price of Acthar soared.

THE doctor was dumbfounded: a drug that used to cost $50 was now selling for $28,000 for a 5-milliliter vial.

The physician, Dr. Ladislas Lazaro IV, remembered occasionally prescribing this anti-inflammatory, named H.P. Acthar Gel, for gout back in the early 1990s. Then the drug seemed to fade from view. Dr. Lazaro had all but forgotten about it, until a sales representative from a company called Questcor Pharmaceuticals appeared at his office and suggested that he try it for various rheumatologic conditions.

“I’ve never seen anything like this,” Dr. Lazaro, a rheumatologist in Lafayette, La., says of the price increase.

How the price of this drug rose so far, so fast is a story for these troubled times in American health care — a tale of aggressive marketing, questionable medicine and, not least, out-of-control costs. At the center of it is Questcor, which turned the once-obscure Acthar into a hugely profitable wonder drug and itself into one of Wall Street’s highest fliers.

At least until recently, that is. Now some doctors, insurance companies and investors are beginning to have doubts about whether the drug is really any better than much cheaper alternatives. Short-sellers have written scathing criticisms of the company, questioning its marketing tactics and predicting that its shareholders are highly vulnerable.

 That Acthar is even a potential blockbuster is a remarkable turn of events, considering that the drug was developed in the 1950s by a division of Armour & Company, the meatpacking company that once ruled the Union Stock Yards of Chicago. As in the 1950s, Acthar is still extracted from the pituitary glands of slaughtered pigs — essentially a byproduct of the meatpacking industry.

The most important use of Acthar has been to treat infantile spasms, also known as West syndrome, a rare, sometimes fatal epileptic disorder that generally strikes before the age of 1.

For several years, Questcor, which is based in Anaheim, lost money on Acthar because the drug’s market was so small. In 2007, it raised the price overnight, to more than $23,000 a vial, from $1,650, bringing the cost of a typical course of treatment for infantile spasms to above $100,000. It said it needed the high price to keep the drug on the market.

“We have this drug at a very high price right now because, really, our principal market is infantile spasms,” Don M. Bailey, Questcor’s chief executive, told analysts in 2009. “And we only have about 800 patients a year. It’s a very, very small — tiny — market.”

Companies often charge stratospheric prices for drugs for rare diseases — known as orphan drugs — and Acthar’s price is not as high as some. Society generally tolerates those costs to encourage drug companies to develop crucial, possibly lifesaving drugs for these often neglected diseases.

But Questcor did almost no research or development to bring Acthar to market, merely buying the rights to the drug from its previous owner for $100,000 in 2001. And while the manufacturing of Acthar is complex, it accounts for only about 1 cent of every dollar that Questcor charges for the drug.

Moreover, the tiny “orphan” market soon became much bigger. Before long, Questcor began marketing the drug for multiple sclerosis, nephrotic syndrome and rheumatologic conditions, even though there is little evidence that Acthar is more effective for those other conditions than alternatives that are far cheaper. And the company did so without being required to prove that the drug actually works. That is because Acthar was approved for use in 1952, before the Food and Drug Administration required clinical trials to show a drug is effective for a particular disease. Acthar is essentially grandfathered in.

Today, only about 10 percent of the drug’s sales are for infantile spasms. The new uses, Mr. Bailey has told analysts, represent multibillion-dollar opportunities for Acthar and Questcor, its sole maker.

The results have been beyond even the company’s wildest dreams. Sales of Acthar, which accounts for essentially all of Questcor’s sales, totaled nearly $350 million in the first nine months this year, up 145 percent from the period a year earlier. In the same period, Questcor’s earnings per share nearly tripled, to $2.12. In the five years after the big Acthar price increase in August 2007, Questcor shares rose from around 60 cents to about $50, in one of the best performances of any stock in any industry.

But in September, the shares plummeted after Aetna, the big insurer, said it would no longer pay for Acthar, except to treat infantile spasms, because of lack of evidence the drug worked for other diseases. The stock now trades at $26.93.

Peter Wickersham, senior vice president for cost of care at Prime Therapeutics, a pharmacy benefits manager that has found the drug is possibly being overused, says the huge increase in Acthar’s price for patients “just invites the type of scrutiny that it’s received.”

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Creating the illusion of snow becomes big business for MagicSnow

On a recent Sunday morning in Los Angeles, Adam Williams and his crew set up their blowers outside a house in Hancock Park and blanketed the yard in 20 tons of snow.

Using 15-pound blocks of crushed ice, it took Williams and his crew about 2 1/2 hours to cover the front lawn and build half a dozen snowmen in a commercial for the cable channel FearNet. In the ad, a little girl cheerfully entombs someone who appears to be her father inside one of the snowmen.

To create the effect, producers of the commercial turned to MagicSnow Systems, a 10-year-old Los Angeles company. MagicSnow is best known for its twice daily snow show at the Grove shopping center that runs through New Year's Eve, but the rest of the time it specializes in manufacturing snow effects for commercial shoots, music videos, concerts and shows at malls, Hollywood premieres, and even cruise ships.

PHOTOS: Hollywood backlot moments

"When I first moved out here, I missed a lot of things about the holidays, including the snow," said Williams, founder and president of MagicSnow. "What we're doing is filling the void by providing the experience of snow in a warm-weather climate. It's not a hard concept to sell."

Williams, raised in a small town outside of Cleveland, moved to Los Angeles to pursue his career as a magician, performing at the Magic Castle in Hollywood. During a lull in work, he began to think of ways he could expand his act by creating the illusion of something that was a novelty in Los Angeles — snow.

"I never set out to start a special effects business,'' said Williams, 35. "My goal was to become a world-famous magician. I realized when I moved out here that that wasn't a realistic goal for me, but that didn't mean I had to give up my dream of creating illusions. I still feel like I'm a magician."

Williams initially used confetti to create the snow illusion, but that proved too messy to clean up. The type of simulated "snow" used in the film industry collects on the ground. Williams needed a snow-like substance that could be used in crowds, would vanish quickly and not leave a residue.

He and a chemist friend spent weeks experimenting with various ingredients in his kitchen, shooting samples into his yard from his back porch to test the mixture. Eventually, he developed his proprietary formula made of water and a foam substance. MagicSnow also makes real snow, which was used in the FearNet ad.

Williams launched his company in 2002 and got his first big break when he pitched his idea of putting on a Christmas magic show with falling snow to Rick Caruso, developer of the newly opened Grove in the Fairfax district.

GRAPHIC: Faces to watch in 2013

"Rick said he was more interested in the snow than the magic," said Williams. "He said, 'I'd love to have you come in and create this snowfall illusion,' so I jumped at the opportunity."

The fake snow, blown from rooftops and choreographed to Christmas music and the Grove's nightly fountain show, was a hit with shoppers, prompting Caruso to add MagicSnow shows to his other shopping mall, the Americana at Brand in Glendale.

"Adam and his team have the exceptional ability to transform spaces with their customized snowfall experiences, making our nightly holiday snow shows magical," said Paul Kurzawa, chief operating officer of Caruso Affiliated. With the exposure from the Grove, Williams' company expanded rapidly, installing snow-making systems in 55 shopping centers across the country operated by General Growth Properties. MagicSnow also made snow for the Rockettes at Radio City Music Hall in New York and for numerous live television shows, concerts and movie premieres, including the 2003 premiere of "Elf" at the Grove.

More recently he has expanded into the television business, doing commercials for Land Rover and FearNet.

"It just snowballed," Williams said.

MagicSnow, which also sells and installs snow-making equipment, will generate about $3 million a year in revenue in 2012, up about 25% over the prior year, he said.

His company has gone global, installing snow-making systems for clients in Indonesia, Germany, Brazil and Mexico, where his equipment is used at a shopping center in the Polanco area of Mexico City — a deal that started after the son of the shopping center developer saw the snow show at the Grove and told his father about it.

MagicSnow's corporate clients include Princess Cruises and toy maker Mattel Inc., which recently recruited Williams and his team to create a winter wonderland theme for underprivileged children at the company's El Segundo headquarters.

Using more than 375 tons of snow supplied by MagicSnow, the volunteers and children built nearly 1,300 snowmen in an hour.

An adjudicator from Guinness World Records chronicled the work but disqualified about 20 snowmen. The reason: Their arms fell off, they didn't have a carrot nose or they were simply too short, Williams said.

"Unfortunately, we fell just short of a world record," he said.

richard.verrier@latimes.com

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Small-scale solar's big potential goes untapped

NIPTON, Calif. — Gerald Freeman unlocks the gate to the small power plant and goes inside. Three rows of solar collectors, elevated on troughs that track the sun's arc like sunflowers, afford a glimpse of California's possible energy future.

This facility and a smaller version across the road produce some 70 kilowatts of electricity, about 80% of the power required by Nipton's 60 residents, its general store and motel.

Freeman, a Caltech-trained geologist and one-time gold mine owner, understood when he bought this former ghost town near the Nevada border that being off the grid didn't have to mean going without power.

He contracted with a Bay Area company to install solar arrays on two plots of land. The town has a 20-year agreement to buy its power at a below-market rate.

Projects like these make do with scant financing opportunities and little support from the federal government.

The Obama administration's solar-power initiative has fast-tracked large-scale plants, fueled by low-interest, government-guaranteed loans that cover up to 80% of construction costs. In all, the federal government has paid out more than $16 billion for renewable-energy projects.

Those large-scale projects are financially efficient for developers, but their size creates transmission inefficiencies and higher costs for ratepayers.

Smaller alternatives, from rooftop solar to small- and medium-sized plants, can do the opposite.

Collectively, modest-sized projects could provide an enormous electricity boost — and do so for less cost to consumers and less environmental damage to the desert areas where most are located, say advocates of small-scale solar power.

Recent studies project that California could derive a substantial percentage of its energy needs from rooftop solar installations, whether on suburban homes or city roofs or atop big-box stores.

::

Janine Blaeloch, director of the nonprofit Western Lands Project, said smaller plants were never on the table when the federal solar policy was conceived early in President Obama's first term.

Utilities and solar developers wanted big plants, so that's what's sprouting in Western deserts, she said.

"There was a pivot point when they could have gone to the less-damaging alternative," Blaeloch said, referring to both federal officials and environmental groups that have supported large-scale solar projects.

"There's no question that it was a matter of choice, and it was the wrong choice."

Built in far-flung locations where there is plenty of open land, large-scale plants require utilities to put up extensive transmission lines to connect to the grid.

Utilities charge ratepayers for every dollar spent building transmission lines, for which the state of California guarantees utilities an annual return of 11% for 40 years.

By comparison, small-scale plants can be built near population centers and provide power directly to consumers, reducing the demand for electricity from the grid.

Rooftop solar goes one step further.

It not only cuts demand from the grid, but also can allow homeowners and businesses to sell back excess power.

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Makers of $99 Android-Powered Game Console Ship First 1,200 ‘Ouyas’

Like Nintendo’s Wii U game console, the Ouya (that’s “OOH-yuh”) has an unusual name and even more unusual hardware. The console is roughly the size of a Rubik’s cube, and is powered by Android, Google‘s open-source operating system that’s normally found on smartphones and tablets.

Ouya’s makers, who are preparing the console for its commercial launch, encourage interested gamers to pop the case open and use it in electronics projects … or even to write their own games for it. Especially if they’re among the 1,200 who are about to receive their own clear plastic Ouya developer consoles.

Not exactly a finished product

The limited-edition consoles, which have been shipped out to developers already, are not designed for playing games on. They don’t even come with any.

Rather, the point of these consoles is so that interested Android developers can write games for the Ouya, which will then be released to gamers when the console launches to the public. Fans who pledged at least $ 1,337 to Ouya’s record-breaking Kickstarter project will get one, and while they’re not quite suited for playing games on — “we know the D-pad and triggers on the controller still need work,” Ouya’s makers say — the clear plastic developer consoles serve as a preview of what the finished product will look like, and a reminder of Ouya’s “openness.”

You keep using that word …

In the food and drug industries, terms like “organic” and “all-natural” are regulated so that only products which meet the criteria can have them on their labels. In the tech world, however, anyone can claim that their product is “open,” for whatever definition of “open” they like.

The term was popularized by the world’s rapid adoption of open-source software, like Android itself, where you’re legally entitled to a copy of the programming code and can normally use it in your own projects (like Ouya’s makers did). But when tech companies say that something is “open,” they don’t necessarily mean that the code or the hardware schematics use an open-source license.

How Ouya is “open”

Ouya’s makers have released their ODK, or developer kit, under the same open-source license as Android itself. This allows aspiring game developers to practice their skills even without a developer console, and to improve the kit however they want. The hardware itself is currently a “closed” design, however, despite the clear plastic case. The makers have expressed enthusiasm for the idea of hardware hackers using it in projects, and have said, “We’ll even publish the hardware design if people want it,” but so far they haven’t done so.

What about the games?

The most relevant aspect of “openness” to normal gamers is that Ouya’s makers say “any developer can publish a game.” This model is unusual for the console world, where only select studios are allowed to publish their wares on (for instance) the PlayStation Network, but is more familiar to fans of the anything-goes Google Play store for Android. Several big-name Android developers — including console game titan Square-Enix — have already signed up to have their wares on the Ouya.

Preordered Ouya game consoles (the normal ones, not the developer edition) will ship in April. They will cost $ 99 once sales are opened to the general public.

Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
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Memphis Aims to Be a Friendlier Place for Cyclists

Lance Murphey for The New York Times

The Shelby Farms Greenline, which replaced a Memphis rail line.

MEMPHIS — John Jordan, a 64-year-old condo appraiser here, has been pedaling his cruiser bicycle around town nearly every day, tooling about at lunchtime or zipping to downtown appointments.

“It’s my cholesterol-lowering device,” said Mr. Jordan, clad in a leather vest and wearing a bright white beard. “The problem is, the city needs to educate motorists to not run over” the bicyclists.

Bike-friendly behavior has never come naturally to Memphis, which has long been among the country’s most perilous places for cyclists. In recent years, though, riders have taken to the streets like never before, spurred by a mayor who has worked to change the way residents think about commuting.

Mayor A. C. Wharton Jr., elected in 2009, assumed office a year after Bicycling magazine named Memphis one of the worst cities in America for cyclists, not the first time the city had received such a biking dishonor. But Mr. Wharton spied an opportunity.

In 2008, Memphis had a mile and a half of bike lanes. There are now about 50 miles of dedicated lanes, and about 160 miles when trails and shared roads are included. The bulk of the nearly $1 million investment came from stimulus money and other federal sources, and Shelby County, which includes Memphis, was recently awarded an additional $4.7 million for bike projects.

In June, federal officials awarded Memphis $15 million to turn part of the steel truss Harahan Bridge, which spans the Mississippi River, into a bike and pedestrian crossing. Scheduled to open in about two years, the $30 million project will link downtown Memphis with West Memphis, Ark.

“We need to make biking part of our DNA,” Mr. Wharton said. “I’m trying to build a city for the people who will be running it 5, 10, 15 years from now. And in a region known to some for rigid thinking, the receptivity has been remarkable.”

City planners are using bike lanes as an economic development tool, setting the stage for new stores and enhanced urban vibrancy, said Kyle Wagenschutz, the city’s bike-pedestrian coordinator, a position the mayor created.

“The cycling advocates have been vocal the past 10 years, but nothing ever happened,” Mr. Wagenschutz said. “It took a change of political will to catalyze the movement.”

Memphis, with a population of 650,000, is often cited among the unhealthiest, most crime-ridden and most auto-centric cities in the country. Investments in bicycling are being viewed here as a way to promote healthy habits, community bonds and greater environmental stewardship.

But as city leaders struggle with a sprawling landscape — Memphis covers about the same amount of land as Dallas, yet has half the population — their persistence has run up against another bedeviling factor: merchants and others who are disgruntled about the lanes.

A clash between merchants and bike advocates flared last year after the mayor announced new bike lanes on Madison Avenue, a commercial artery, that would remove two traffic lanes. Many merchants, like Eric Vernon, who runs the Bar-B-Q Shop, feared that removing car lanes would hurt businesses and cause parking confusion. Mr. Vernon said that sales had not fallen significantly since the bike lanes were installed, but that he thought merchants were left out of the process.

On McLean Boulevard, a narrow residential strip where roadside parking was replaced by bike paths, homeowners cried foul. The city reached a compromise with residents in which parking was outlawed during the day but permitted at night, when fewer cyclists were out. Mr. Wagenschutz called the nocturnal arrangement a “Cinderella lane.”

Some residents, however, were not mollified. “I’m not against bike lanes, but we’re isolated because there’s no place to park,” said Carey Potter, 53, a longtime resident who started a petition to reinstate full-time parking.

The changes have been panned by some members of the City Council. Councilman Jim Strickland went as far as to say that the bike signs that dot the streets add “to the blight of our city.”

Tensions aside, the mayor’s office says that the potential economic ripple effect of bike lanes is proof that they are a sound investment.

A study in 2011 by the University of Massachusetts found that building bike lanes created more jobs — about 11 per $1 million spent — than any other type of road project. Several bike shops here have expanded to accommodate new cyclists, including Midtown Bike Company, which recently moved to a location three times the size of its former one. “The new lanes have been great for business,” said the manager, Daniel Duckworth.

Wanda Rushing, a professor at the University of Memphis and an expert on urban change in the South, said bike improvements were of a piece with a development model sweeping the region: bolstering transportation infrastructure and population density in the inner city.

“Memphis is not alone in acknowledging that sprawl is not sustainable,” Dr. Rushing said. “Economic necessity is a pretty good melding substance.”

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Individual mandate in healthcare was year's top consumer story

This was the year of the healthcare mandate. No other consumer story of 2012 comes close.

In a split decision, with Chief Justice John G. Roberts Jr. casting the deciding vote, the U.S. Supreme Court upheld the cornerstone of President Obama's healthcare reform law, the most sweeping overhaul of our dysfunctional medical system in decades.

The so-called individual mandate requires that most people have health insurance. It's the trade-off for the insurance industry's agreement to stop denying coverage to people with preexisting conditions and to stop charging higher rates if you get sick.

It's also the trade-off for insurers to remove limits on how much treatment they'll cover annually or over your lifetime.

"It's a huge deal," said Lee Goldberg, vice president of health policy for the National Academy of Social Insurance, a Washington think tank. "Without the mandate, you're much more likely to have spiraling healthcare costs and an unsustainable market for coverage."

Critics of the mandate, and there are plenty of them, say it represents a government takeover of healthcare, a socializing of medicine. The government, they say, can't make you buy something you don't want.

But that's not how the mandate works. No one's forcing you to buy insurance. No one's forcing you to be covered.

However, there will be a tax penalty if you decide that you want to take your chances. And there's a very good reason for this: Taking your chances is foolish.

Unless you're Superman, you're going to need healthcare at some point in your life. That's just a fact.

"No one's going to throw you in jail if you don't have insurance," said Richard Curtis, president of the Institute for Health Policy Solutions. "But if you ever have an accident and have to use the [emergency room], that tax penalty will help to defray the cost that will be covered by those who do have insurance."

Beginning in 2014, the penalty for going uninsured will be no more than $285 per family or 1% of income, whichever is greater. The cap rises to $975 or 2% of income a year later, and then up to $2,085 per family or 2.5% of income by 2016.

Opponents of healthcare reform conveniently ignore the basic economics of the insurance business. Insurers aren't service providers. They're risk managers. They examine the risk they face by covering a group or individual and price their policies accordingly.

The larger the risk pool, obviously, the cheaper the coverage. That's because the risk to health insurers goes down if younger and healthier people are included in the mix. The result: more affordable coverage for everyone.

Taken to its logical extreme, the most effective and efficient health insurance system for the United States would be something like a Medicare-for-all approach in which the risk pool comprises everybody in the country — young and old, healthy and sick.

In fact, we're already well down that road. Federal and state programs such as Medicare, Medicaid and veterans' assistance accounted for about 45% of total U.S. healthcare spending in 2010, according to a recent study by the National Institute for Health Care Management Foundation.

The amount of public money spent on healthcare should serve as a wake-up call to all those who think the world would end if the U.S. followed Britain, France, Canada and other developed countries in enacting a national health insurance system.

For the U.S., it would simply be an expansion of a system that already exists but is hobbled by the inefficiency of denying Medicare and other programs access to healthier members of the population, thus saddling taxpayers with a disproportionately large number of higher-risk people.

The individual mandate won't radically change things. The healthcare insurance system will remain divided between a public sector that focuses primarily on aging and sick people and a private sector that, for purely financial reasons, provides increasingly less access to affordable coverage.

Average premiums for employer-sponsored family health insurance plans rose 62% from 2003 to 2011 to $15,022 a year, according to a recent report by the Commonwealth Fund.

Health insurance costs far outpaced people's incomes in all states during that time, the report found, with workers' average share of premiums for family plans soaring 74% and deductibles more than doubling, while the median household income rose only about 10%.

Still, the mandate is a big step toward remedying the system's economic irrationality. By extending coverage to about 30 million of the 50 million people who now lack insurance, the mandate will place medical care within reach of many who previously may have sought treatment only in emergencies.

As a result, national wellness will improve and, presumably, healthcare costs will go down, or at least will be better controlled as fewer people put off medical attention until an easily treated ailment becomes an expensive catastrophe.

"The mandate is the key to making this all work," said Devon Herrick, a healthcare economist at the National Center for Policy Analysis. "Otherwise people would just wait until they got sick before buying insurance and premiums would skyrocket."

There's still much to be done. The reform law's insurance exchanges are a work in progress, and it's unclear at this point how much coverage will be offered and how much it will cost.

But the Supreme Court has kept the ball rolling by maintaining the mandate as part of the equation. It was a decision that will change all our lives, probably for the better, and move us closer to a system under which all people can obtain affordable healthcare.

David Lazarus' column runs Tuesdays and Fridays. he also can be seen daily on KTLA-TV Channel 5 and followed on Twitter @Davidlaz. Send tips or feedback to david.lazarus@latimes.com.

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