TechFlash: Seattle's Technology News

Amazon.com to 'dramatically' expand trade-in program

Economy | Video games | e-commerce | Amazon.com

Amazon.com has experimented this year with letting people swap used video games and DVDs for Amazon gift card credit. Now the online retail giant is signaling it has even bigger plans for the trade-in program. Amazon, in a new job posting, says it will "dramatically expand" the trade-in business to include other products and other countries. The company apparently sees trade-ins as a growth area during the recession -- with consumers watching their wallets and looking for deals.

How to get Microsoft to use your photo for the Bing home page

Internet search | Bing | Microsoft

The short answer: Win a contest.

In our story last week on the team behind the Bing home page images, we mentioned that Microsoft would soon be launching a contest on Facebook to give people a shot at having a picture featured there. The company launched the contest yesterday, and the winning image will be used on the site Aug. 3.

Another exec leaves Microsoft's internal startup business group

On the move | Startups | Microsoft

The group responsible for building startup businesses inside Microsoft has lost another key executive, this time to another Microsoft division -- providing more evidence that the company has been rethinking the group's role.

Xuedong "XD" Huang, a speech-technology guru, has shifted to Microsoft's Online Services Division to work on mobile search and advertising initiatives, the company confirmed. Huang had previously been general manager for Communications Innovation inside the company's Startup Business Accelerator group, overseeing areas including the Response Point small-business telephone system.

The Startup Business Accelerator, under chief research and strategy officer Craig Mundie, was among the groups hit hard by the company's latest round of cuts. The MSN Direct and .Net Micro Framework teams, other parts of the startup group, were also affected by those cuts.

Voyager, Steamboat Ventures line up behind secretive Ground Truth

Mobile communications | Startups | Technology | Venture Deals

Last week, we reported on the secretive mobile analytics startup Ground Truth, noting the involvement of some heavy hitters from the Seattle tech startup scene. At the time of that post, we reported that a venture round was nearing completion with Voyager Capital.

Well, today documents were filed with the SEC indicating that the company has raised $2.6 million. Listed in the filing as directors are Erik Benson and Tom Huseby, investment professionals at Voyager. Also listed as a director is Beau Laskey of Burbank, Calif. Laskey is listed as the managing partner of Steamboat Ventures, the venture arm of The Walt Disney Co.

Schwarzenegger muscles into Amazon sales tax debate

Economy | e-commerce | Amazon.com | Blue Nile

As Amazon.com and other online retailers retaliate against states that are trying to force them to collect sales tax, one of the big unanswered questions is how the issue will play out in California. California and a number of other states have looked at making Amazon and other web retailers collect sales tax by classifying them as physical retailers through their relationship with locally-based affiliates who link to Amazon websites. Amazon has yanked affiliate programs in other states to avoid having to collect sales tax, and warned California it will do the same there if tax legislation there gets approved. Now, prompted by Overstock.com's decision to sever ties with its California affiliates, Gov. Arnold Schwarzenegger is trying to hold the line.

WTC awards research funds

Innovation | Technology | University of Washington

The Washington Technology Center has announced its latest round of Research & Technology Development Grants, providing $376,454 to five researchers. The program -- which awards about $1 million in state funds each year -- matches academic researchers with commercial enterprises.

The five winners are posted below with descriptions from the WTC.

Welcome to Twitter, @Microsoft, now can you fix my computer?

Social Networking | Windows 7 | Microsoft | Twitter

The official @Microsoft account on Twitter stirred to life Wednesday, but so far the company's foray into microblogging is less interesting than the response to it. The move is getting lots of attention, positive and negative, and Twitter users are taking the opportunity to publicly let Microsoft know it has some glitches in its software -- you know, just in case it wasn't aware.

"Now that you're finally on here @microsoft let's talk about all my problems with Outlook. Cool?" writes Geoff Peterson.

"Live Hotmail Mobile log in site has a bug which prevents access on Cricket flashed HTC Mogul Windows Mobile 6.1 Pro smartphone," chimes in John King, apparently hoping for some sort of fix.

Um, yeah, good luck with that.

Zillow's traffic soars

Advertising | Real estate | Zillow

Is this a sign that the real estate market is bouncing back? The Seattle online real estate company Zillow.com said that its Web traffic grew by 67 percent during the first half of the year to an average of 8.3 million unique visitors per month. Meanwhile, its page views were up 44 percent.

Post updated with Zillow's comparisons to Trulia and Realtor.com.

Niftybrick attacks Loopt and Whrrl with HeyWay iPhone app

Mobile communications | Startups | Technology | iPhone

Big money has flowed to iPhone app startups that are helping people track the whereabouts of friends or find nearby restaurants, clubs or bars. The two most prominent players in the category right now are Palo Alto, Calif.-based Loopt -- backed by Sequoia Capital, NEA and others -- and Seattle-based Pelago -- backed by Kleiner Perkins Caufield & Byers, Bezos Expeditions, etc.

Those are some of the biggest names in venture capital.

But a new entrant called Niftybrick Software -- a tiny bootstrapped company led by developer Mark Aiken -- is making some early progress with a new application called Hey Where are You? or HeyWay for short.

Leaping from Windows XP to 7? Some important stuff to consider

Personal computers | Software | Windows 7 | Microsoft

Budget-conscious PC users contemplating a move to Microsoft's Windows 7 might be tempted to upgrade their existing machines, rather than spend money on new PCs that come with Windows 7 installed. With large swaths of the population avoiding Windows Vista, that means many would be making the upgrade on PCs now running the older Windows XP.

And those tech-savvy cheapskates would appear to be in luck. For a limited time (until July 11 in the U.S. and Canada) Microsoft is  offering reduced prices to people who pre-order upgrade versions of Windows 7 Home Premium ($49.99) and Windows 7 Professional ($99.99). The discounted upgrade prices are available not just to Windows Vista users but to people running Windows XP machines.

So it's a no-brainer, right? Well, maybe. There are a number of important issues to consider before making the jump to Windows 7 on an existing Windows XP machine. Here's what we've learned from questions we posed to Microsoft and independent PC experts.

Barnes & Noble matches Amazon on electronic book pricing

Digital media | e-commerce | Kindle | Amazon.com

It appears that Amazon.com's pricing model for electronic books -- just under $10 -- is on its way to becoming the norm. Barnes & Noble, on its eReader site, is now offering digital versions of New York Times bestsellers for $9.95, just a hair cheaper than Amazon's standard $9.99 for such books. The downward pressure on e-book pricing has rattled many book publishers.

With ties to Cargill and Shell, Heracles Energy lands $10 million

Clean Tech | Energy | Seattle | Startups | Venture Deals

A Redmond company with ties to two of the largest multinational corporations on the planet has reeled in $10 million. According to a filing with the Securities and Exchange Commission, Heracles Energy raised a $10 million equity financing round on June 29, with the option to bring in $10 million more if milestones are met in the next nine months.

Very little is known about Heracles, though I've been able to piece together some information that connects the company to agricultural giant Cargill and energy titan Shell. An SEC filing also suggest that the company is led by Kirt Montague, who served as CEO of Seattle liquid natural gas upstart Prometheus Energy.

It is unclear whether Heracles is a restart of Prometheus, and calls to Montague's Redmond office were not returned. But whatever they're up to, it appears that big money is lining up behind them.

Venture investors pump $102 million into iPhone app startups

Mobile communications | Money | Startups | Venture capital | iPhone

As you know, we spend a lot of our time checking out new applications for the iPhone. And while many of these apps are created by independent developers, some companies are actually raising venture capital in an effort to try to profit off Apple's mobile ecosystem.

It is a risky strategy to build on the back of another's platform, as was pointed out in my story last week by Seattle venture capitalist Bill Bryant.

Nonetheless, venture dollars are flowing into iPhone app startups at a decent clip. A new study by ChubbyBrain indicates that 17 startup companies -- whose iPhone applications are core to what they do -- have raised $102 million.

It is bleak out there

Economy | IPOs | Mergers and acquisitions | Venture capital

Here's the good news. Three venture-backed companies actually were able to complete initial public offerings during the second quarter, ending a dry spell that stretched all the way back to the summer of 2008.

But despite that positive nugget, today's Dow Jones VentureSource report was filled with more bad news for the venture industry. Take this for example: Venture-backed liquidity -- IPOs and M&A deals -- fell 57 percent to $2.8 billion during the second quarter.

Microsoft: IE8 still beats Firefox, just ignore those pesky add-ons

Chrome | Firefox | Internet Explorer | Opera | Microsoft

With Firefox 3.5 now finished and available for download, Microsoft used the occasion to tout the speed of Internet Explorer 8. Whereas previously Microsoft focused on page load times, the company today made the case that IE8's "Accelerators" make it faster to use.

Accelerators let Web users highlight text on a page and right-click to bring up a menu to automatically insert and use that text on other sites, rather than cutting and pasting. Microsoft offered up a video showing how Accelerators speed up simple tasks, but it made a point of noting that "all tests were performed using the default installation settings for each browser. No additional add-ons or extensions were added."

Why is that important? Well, it just so happens that an easily installed Firefox add-on called KallOut offers similar functionality.

New Firefox knows your location

Web | Chrome | Firefox | Internet Explorer | Opera | Microsoft

Mozilla released its Firefox 3.5 browser today, and one of the more interesting new capabilities is "location-aware browsing." The feature, which will be familiar to iPhone users, determines the computer's location and asks permission to share it with sites that use it to enhance the functionality of online applications.

The feature grew out of ongoing efforts to bring Firefox to mobile devices. Mozilla decided that it made sense to include geolocation functionality in its PC-based browser, as well. It uses the IP address and wifi signals to determine location, by default, but it also could work with GPS, which is starting to appear in more mobile computers.

Are Amazon.com and Target going the way of Jon & Kate?

Shopping | e-commerce | Amazon.com

It may not be the stuff of tabloid headlines, but Amazon.com and Target could be headed for splitsville, according to new research report. For years, Amazon.com has run Target's website, even as it's lost other big enterprise customers like Toys "R" Us and the Borders book chain. Now an analyst is questioning the long-term prospects of the Amazon-Target relationship.

Amazon dumps Hawaii affiliates as sales tax battle escalates

Economy | e-commerce | Amazon.com | Blue Nile

As states grappling with budget shortfalls try to force Amazon.com to collect sales tax, the online retail giant is systematically retaliating. The latest target is Hawaii. Amazon sent a note to its Hawaii-based affiliates informing them they will no longer earn commissions starting today. The company is cutting off affiliates in states that are trying to classify Amazon as a physical retailer -- required to collect sales tax -- based on its connection to locally based affiliates.

Comcast rolls out WiMax service in Portland with Clearwire's help

Broadband | Cable | Clearwire | Comcast

Comcast is introducing its WiMax service in Portland this week -- a new offering called High-Speed 2go that relies on the network of its Kirkland partner, Clearwire. As part of the offering, Comcast will provide a data card for laptop computer users at a trial price of $49.99 per month for the first year. For $69.99 per month, customers also will be able to access the Internet over Sprint's 3G network when they travel outside the WiMax territory.

Blue Nile drops Rhode Island affiliates over state tax law

Economy | e-commerce | Amazon.com | Blue Nile

Seattle's biggest online retailers are upping the ante in their game of chicken with cash-hungry states. Today online diamond retailer Blue Nile joined Amazon.com in ending its affiliate program in Rhode Island (both companies have cut off affiliates in North Carolina as well). Affiliates link to retailers like Blue Nile and Amazon for a sales commission, and play a role in driving ecommerce business. But as cash-strapped states across the country look to classify online retailers as physical retailers through their work with local affiliates -- and force them to pay sales tax -- Blue Nile and Amazon are pulling the plug on the affiliates.

Maveron's Somberg off to Europe

On the move | Seattle | Venture capital | Maveron

Maveron's Debra Somberg has moved to Germany where her husband has accepted a faculty position at the University of Hamburg's medicine department. The former investment banker, who joined the Seattle venture capital firm in 2000 as a managing partner, plans to continue with the firm as a venture partner. In that role, Somberg will continue to advise companies and sit on boards.

(Too bad there's not a direct flight between Hamburg and Seattle).

Timu, a social network for sports

Matt Heaton knows what it takes to build a social networking platform for a targeted audience. After all, he co-founded the popular Active Rain real estate network in 2003 -- a Bellevue network that boasts more than 150,000 real estate professionals as members.

Now, Heaton -- who left his day-to-day duties at Active Rain last summer -- is giving it another whirl in a completely different arena: amateur sports. This week, he's launching Timu, a new service that he says is designed to help baseball, basketball, soccer and other amateur athletes more effectively communicate with their teammates.

Does the world really need another social network -- especially one that is tailored to recreational sports? Heaton -- an amateur athlete himself who came up with the idea after growing frustrated trying to stay connected with his sports teams -- certainly thinks so.

Barnes & Noble takes on Amazon.com on the iPhone

e-commerce | iPhone | Amazon.com

Barnes & Noble is playing a rapid game of catch up to Amazon in the Apple App Store. The big brick-and-mortar bookseller came out with an application for the iPhone and iPod touch today that lets people browse and buy books, DVDs and CDs -- much like Amazon's shopping app for iPhone. Barnes & Noble's app also has a feature that lets people snap a photo of a book cover with their iPhone camera and quickly get product details and pricing. That's a lot like what Snaptell does -- a company that Amazon just acquired.

Blue Nile joins Amazon in cutting ties with North Carolina affiliates

Economy | e-commerce | Amazon.com | Blue Nile

Amazon.com isn't the only ecommerce company cutting ties to affiliates over state sales tax legislation. Online diamond and jewelry retailer Blue Nile has ended its North Carolina affiliate program over pending legislation there, TechFlash has learned. Blue Nile's move comes after Amazon took similar actions in North Carolina and Rhode Island. Amazon and Blue Nile are seeking to avoid efforts by states to classify them as a physical retailer -- and require them to pay sales tax -- through their relationship to locally-based affiliate websites.

AdmitOne; Zillow's iPhone app; networked VCs; and more

Philanthropy | Security | Startups | Technology | Venture capital | Zillow

Former Microsoft executive Scott Oki and former AskMe Chief Technology Officer Digvijay Chauhan have created a new non profit called SeeYourImpact, which utilizes camera phones and other technologies to get a glimpse at how their donations are helping people in need. Kristi Heim of The Seattle Times has the story, which also notes a similar effort from Microsoft Research's Adnan Mahmud who has established the Jolkona Foundation with his wife.

VentureBeat has details on the latest offering from AdmitOne -- the keystroke analysis security company formerly known as BioPassword. The Issaquah company is now touting an analytics business called Scout Analytics that indicates how and when people log on to the corporate network.

Bellevue's DreamBox Learning -- a maker of online math games for Kindergartners to second graders-- has named education experts Dr. Francis "Skip" Fennell and Dr. Catherine Fosnot to its advisory board.

Self-described Web geek Keith Vance pulls the plug on the Seattle online news publication, The Seattle, Courant, and explains why it did a "belly flop." 

TechCrunch lists the top 100 most "networked" venture capital firms and finds that Draper Fisher Jurvetson -- which has an outpost in Seattle led by Bill Bryant -- is at the top of the list. Others who have strong networks include familiar names such as Sequoia, Accel, Intel Capital and Kleiner Perkins Caufield & Byers. The first and only true Seattle firm on the list is Bezos Expeditions, the venture arm of Amazon.com founder Jeff Bezos. It ranked 73rd. Meanwhile, VentureBeat's Matt Marshall wonders if this is the best way to rank VC firms.

Web hosting provider Rackspace encountered some technical issues today, knocking some Web sites offline.

Zillow's app

Zillow.com says that more than 500,000 people -- including quite a few real estate professionals -- have downloaded its iPhone application since it was released in late April.

With news that Yahoo's Maven Networks will be shutting down, Seattle upstart Delve Networks is offering customers of the online video company a "bailout program" so that they can continue to offering online video capabilities.

Inrix, the Kirkland provider of real time traffic data, is working with GeoDecisions to assist the U.S. Military and Department of Homeland Security with logistics planning in order to ensure that sensitive materials are properly routed.

Headline of the day comes via A Smart Bear: "Sacrifice your health for your startup."