Crude oil production roars ahead in Iraq - The Global Journalism ...
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Bus<strong>in</strong>essWITH<br />
F<strong>in</strong>d<strong>in</strong>g<br />
privacy <strong>in</strong> a<br />
public arena<br />
Bits<br />
Sunday sales<br />
slip at pet<br />
U.K. paper<br />
of Murdoch<br />
JENNA WORTHAM<br />
NEW YORK Some friends were gush<strong>in</strong>g<br />
recently about a new mobile application<br />
called Pair, <strong>in</strong>tended for people <strong>in</strong> a<br />
relationship.<br />
Initially, I did not see the appeal of<br />
the app, which lets the two partners<br />
send messages and photos back and<br />
forth. First, the idea of add<strong>in</strong>g another<br />
service to the daily rout<strong>in</strong>e of Twitter,<br />
Facebook and their ilk seemed exhaust<strong>in</strong>g.<br />
And would not it be just as easy to<br />
exchange e-mails, text messages or,<br />
better yet, just flirt face to face?<br />
Curious, I tried it — even though I’m<br />
s<strong>in</strong>gle. I recruited a friend to help me<br />
test it. And after a few hours, the app<br />
started to grow on me. Someth<strong>in</strong>g was<br />
thrill<strong>in</strong>g about the secret little notes<br />
that Shaun, my temporary beau, and I<br />
sent to each other throughout the day.<br />
<strong>The</strong> secrecy was welcome. We were<br />
not clutter<strong>in</strong>g up anyone else’s feeds on<br />
Twitter and did not have to worry about<br />
random high school<br />
<strong>The</strong><br />
friends see<strong>in</strong>g and<br />
comment<strong>in</strong>g on our<br />
comb<strong>in</strong>ation<br />
exchanges on Facebook.<br />
In addition,<br />
of privacy<br />
and <strong>in</strong>timate there were gestures<br />
shar<strong>in</strong>g has dist<strong>in</strong>ct to the app. It<br />
never looked let us share <strong>in</strong>formation<br />
about our loca-<br />
so good.<br />
tions and exchange<br />
doodles, to-do lists<br />
and virtual nudges — all convey<strong>in</strong>g that<br />
‘‘I’m th<strong>in</strong>k<strong>in</strong>g about you.’’<br />
<strong>The</strong> app highlights the best elements<br />
of social network<strong>in</strong>g — the warm, fuzzy<br />
feel<strong>in</strong>g of be<strong>in</strong>g connected to people<br />
you care about when you are physically<br />
nowhere near them. And it says it elim<strong>in</strong>ates<br />
some of the worst — the worry<br />
about who can see the content you’re<br />
post<strong>in</strong>g and how they may <strong>in</strong>terpret it.<br />
Apparently, venture capitalists also<br />
see the po<strong>in</strong>t: <strong>The</strong> company that developed<br />
Pair raised $4.2 million <strong>in</strong> seed<br />
f<strong>in</strong>anc<strong>in</strong>g from a group of early <strong>in</strong>vestors<br />
last month.<br />
Pair is arriv<strong>in</strong>g as many of us are<br />
look<strong>in</strong>g to use the Web and our phones<br />
much as we always have, but outside of<br />
the very public arenas of the social<br />
Web. It is a natural evolution of social<br />
network<strong>in</strong>g, especially as Facebook<br />
and Twitter have swelled.<br />
<strong>The</strong> comb<strong>in</strong>ation of privacy and <strong>in</strong>timate<br />
shar<strong>in</strong>g has never looked so good<br />
— provided that it can be achieved. A<br />
handful of start-ups are appeal<strong>in</strong>g to<br />
users who may be tired of the social<br />
spotlight but still enjoy the whimsy of<br />
apps.<br />
‘‘We’ve spent the last decade struggl<strong>in</strong>g<br />
with this,’’ said Andrea Matwyshyn,<br />
an assistant professor of legal<br />
studies and bus<strong>in</strong>ess ethics at the<br />
Wharton School of the University of<br />
Pennsylvania. ‘‘Companies are try<strong>in</strong>g<br />
to figure out the relationship of privacy<br />
to users while also try<strong>in</strong>g to provide<br />
personalization and customization of<br />
their services.’’<br />
Even the largest social network<strong>in</strong>g<br />
sites sense a ris<strong>in</strong>g tide of awareness<br />
about the need to protect delicate and<br />
personal <strong>in</strong>formation that is shared<br />
about users onl<strong>in</strong>e. Last month, Twitter<br />
announced that it was <strong>in</strong>troduc<strong>in</strong>g a<br />
‘‘do not track’’ feature that lets users<br />
keep Twitter from collect<strong>in</strong>g personal<br />
<strong>in</strong>formation as they move around the<br />
Web. <strong>The</strong> feature is not perfect — it<br />
works only on third-party sites that<br />
agree to acknowledge it.<br />
‘‘People can’t always foresee or understand<br />
what could happen to their<br />
data,’’ Ms. Matwyshyn said. ‘‘But they<br />
know they don’t want it end<strong>in</strong>g up <strong>in</strong><br />
the wrong hands.’’<br />
Companies that do figure out how to<br />
embed privacy <strong>in</strong>to a social service<br />
could ga<strong>in</strong> a bus<strong>in</strong>ess and market<strong>in</strong>g<br />
advantage, position<strong>in</strong>g themselves as<br />
safer spaces to share and exchange <strong>in</strong>formation.<br />
‘‘We should encourage Web and mobile<br />
services to lead with their privacy<br />
practices and let users vote with their<br />
feet,’’ Fred Wilson, a venture capitalist<br />
<strong>in</strong> New York, wrote <strong>in</strong> a recent blog post.<br />
Mr. Wilson is an <strong>in</strong>vestor <strong>in</strong> Duck Duck<br />
Go, a search eng<strong>in</strong>e that says it does not<br />
keep track of a user’s search history.<br />
Gabriel We<strong>in</strong>berg, one of the creators<br />
of Duck Duck Go, says it has been able<br />
to carve out a niche audience despite<br />
thedom<strong>in</strong>ance of juggernauts like<br />
Google and B<strong>in</strong>g. Last month, the site<br />
performed 45 million searches, and Mr.<br />
We<strong>in</strong>berg predicts that next month the<br />
figure will <strong>in</strong>ch toward 50 million.<br />
‘‘It’s easy to th<strong>in</strong>k that no one cares<br />
about privacy because they still use all<br />
the services that keep track of them,’’<br />
Mr. We<strong>in</strong>berg said. Switch<strong>in</strong>g from services<br />
like Google may be hard for<br />
people who are accustomed to them, or<br />
who rely on them for functions like<br />
e-mail as well as search.<br />
‘‘If the switch<strong>in</strong>g costs are too high,<br />
users aren’t will<strong>in</strong>g to make the trade<br />
and that’s not unreasonable,’’ he said.<br />
‘‘But if there’s a viable alternative,<br />
they’re more will<strong>in</strong>g to do it.’’<br />
Many onl<strong>in</strong>e companies that have<br />
tried to build bus<strong>in</strong>esses around their<br />
BITS, PAGE 15<br />
STUART ISETT/BLOOMBERG NEWS<br />
Employees at a Microsoft Store <strong>in</strong> Seattle play<strong>in</strong>g with an Xbox K<strong>in</strong>ect, which has spawned its own commercial ecosystem for uses that go far beyond play<strong>in</strong>g video games.<br />
Leader or follower, or was it both?<br />
K<strong>in</strong>ect evolved quickly<br />
out of the game universe<br />
Microsoft had created<br />
BY ROB WALKER<br />
When the K<strong>in</strong>ect was <strong>in</strong>troduced <strong>in</strong> November<br />
2010 as a $150 motion-control<br />
add-on to Microsoft’s Xbox consoles, it<br />
drew attention from more than just<br />
video game players. A slim, black, oblong<br />
wedge perched on a base, it allowed<br />
W<strong>in</strong>n<strong>in</strong>g over the techies<br />
From <strong>The</strong> New York Times Magaz<strong>in</strong>e<br />
a player to use his body to throw virtual<br />
footballs or kick virtual opponents without<br />
a controller, but it was also seen as<br />
an important step forward <strong>in</strong> controll<strong>in</strong>g<br />
technology with natural gestures.<br />
In fact, as the company likes to note,<br />
the K<strong>in</strong>ect set ‘‘a Gu<strong>in</strong>ness World Record<br />
for the fastest-sell<strong>in</strong>g consumer<br />
device ever.’’ And at least some of the<br />
early adopters of the K<strong>in</strong>ect were not<br />
content just to play games with it. ‘‘K<strong>in</strong>ect<br />
hackers’’ were drawn to its affordably<br />
synthesiz<strong>in</strong>g an arsenal of sophisticated<br />
components — notably, a fancy<br />
video camera, a ‘‘depth sensor’’ to capture<br />
visual data <strong>in</strong> three dimensions and<br />
a multiarray microphone capable of a<br />
similar trick with audio.<br />
Comb<strong>in</strong>ed with a powerful microchip<br />
and software, these capabilities could be<br />
put to uses unrelated to the Xbox. Like:<br />
enabl<strong>in</strong>g a small drone to ‘‘see’’ its surround<strong>in</strong>gs<br />
and avoid obstacles; rigg<strong>in</strong>g<br />
a 3-D scanner to create small re<strong>production</strong>s<br />
of almost any object; direct<strong>in</strong>g the<br />
music of a computerized orchestra with<br />
PALO ALTO, CALIFORNIA<br />
BY DAVID STREITFELD<br />
Men <strong>in</strong>vented the Internet. And not just<br />
any men. Men who idolized Mr. Spock<br />
and cried when Steven P. Jobs died.<br />
Nerds. Geeks. But are these men<br />
trapped <strong>in</strong> the past even as they create<br />
the future?<br />
That’s the debate that has sprung up<br />
here s<strong>in</strong>ce Ellen Pao, a junior partner <strong>in</strong><br />
her early 40s at the dist<strong>in</strong>guished venture<br />
capital firm of Kle<strong>in</strong>er Perk<strong>in</strong>s<br />
Caufield & Byers, filed a sexual discrim<strong>in</strong>ation<br />
lawsuit aga<strong>in</strong>st the company<br />
and her co-workers.<br />
<strong>The</strong> compla<strong>in</strong>t, laced with accusations<br />
of professional retaliation after spurned<br />
sexual advances, has riveted Silicon<br />
Valley, whose venture capitalists generally<br />
prefer media attention for their<br />
bus<strong>in</strong>esses and deals, not themselves.<br />
Instead of talk<strong>in</strong>g about the New New<br />
Th<strong>in</strong>g, people are discuss<strong>in</strong>g an old, old<br />
problem. And they are tak<strong>in</strong>g sides.<br />
Although the accusations have yet to<br />
be heard <strong>in</strong> court, even some of Ms.<br />
Pao’s critics concede that she is expos<strong>in</strong>g<br />
an uncomfortable truth about Silicon<br />
Valley: start<strong>in</strong>g tech companies <strong>in</strong><br />
2012 is still a male game, and so is fi-<br />
conductorlike gestures. It has been used<br />
to make animation, to add visual effects<br />
to videos and to control a PC through the<br />
movement of a person’s hands.<br />
At the International Consumer Electronics<br />
Show this year, Steven A.<br />
Ballmer, Microsoft’s chief executive,<br />
used his keynote presentation to announce<br />
that the company would release<br />
a version specifically meant for use outside<br />
the Xbox context and to <strong>in</strong>dicate<br />
that the company would lay down formal<br />
rules permitt<strong>in</strong>g commercial uses<br />
for the device. A result has been a fresh<br />
wave of K<strong>in</strong>ect-centric experiments.<br />
An object that spawns its own commercial<br />
ecosystem is a th<strong>in</strong>g to take seriously.<br />
Patent-watch<strong>in</strong>g sites report that<br />
<strong>in</strong> recent months, Sony, Apple and<br />
Google have all registered plans for gesture-control<br />
technologies like the K<strong>in</strong>ect.<br />
But there is disagreement about exactly<br />
how the K<strong>in</strong>ect evolved <strong>in</strong>to an<br />
object with such potential. Did Microsoft<br />
<strong>in</strong>tentionally create a versatile platform<br />
analogous to Apple’s App Store? Or did<br />
outsider technology artists and hobbyists<br />
take what the company thought of as<br />
a game device and redef<strong>in</strong>e its value?<br />
This clash of theories illustrates a larger<br />
debate about the nature of <strong>in</strong>novation<br />
<strong>in</strong> the 21st century, and the even larger<br />
question of who decides what any given<br />
object is really for. Does progress flow<br />
from a corporate entity’s offer<strong>in</strong>g a whizbang<br />
breakthrough embraced by the<br />
masses? Or does success now depend on<br />
a company’s acquiesc<strong>in</strong>g to the crowd’s<br />
<strong>in</strong>put? <strong>The</strong> K<strong>in</strong>ect does not neatly conform<br />
to either theory. But <strong>in</strong> this <strong>in</strong>stance,<br />
maybe it is not about whose vision w<strong>in</strong>s;<br />
maybe it is about the contest.<br />
<strong>The</strong>odore Watson bought a K<strong>in</strong>ect as<br />
soon as the gadget was available. He<br />
soon acquired 15 more. He does not use<br />
KLEINER PERKINS CAUFIELD & BYERS<br />
Ellen Pao says she suffered from a ‘‘pattern<br />
of retaliation’’ by a colleague for five years.<br />
cause women are quiet.’’ Another male<br />
executive, Chi-Hua Chien, is quoted <strong>in</strong><br />
the suit say<strong>in</strong>g women were not be<strong>in</strong>g<br />
<strong>in</strong>vited to a big-deal d<strong>in</strong>ner because<br />
they would ‘‘kill the buzz.’’<br />
Neither Ms. Pao nor any of the parties<br />
mentioned <strong>in</strong> the lawsuit would comment<br />
on it.<br />
Kle<strong>in</strong>er is an unlikely defendant for<br />
another reason. It is particularly conscious<br />
of its image. ‘‘As Kle<strong>in</strong>er Perk<strong>in</strong>s<br />
sees it, the Florence of the Renaissance<br />
had the Medicis, the American steel <strong>in</strong>dustry<br />
had the House of Morgan, and<br />
Silicon Valley <strong>in</strong> the late 20th century<br />
has Kle<strong>in</strong>er Perk<strong>in</strong>s,’’ David A. Kaplan<br />
wrote <strong>in</strong> ‘‘<strong>The</strong> Silicon Boys’’ <strong>in</strong> 1999.<br />
That was when the firm was at its<br />
peak, the money beh<strong>in</strong>d Netscape, Genentech,<br />
Amazon and a little start-up<br />
called Google.<br />
‘‘If you believe every allegation <strong>in</strong> the<br />
compla<strong>in</strong>t, it’s appall<strong>in</strong>g and an important<br />
w<strong>in</strong>dow <strong>in</strong>to how the valley works,’’<br />
Mr. Kaplan said. ‘‘But I’m somewhat<br />
skeptical. <strong>The</strong> clichés you hear <strong>in</strong> the<br />
valley are about the pranks, the obsessiveness,<br />
the Foosball tables. You don’t<br />
really hear about rand<strong>in</strong>ess and mistreatment<br />
of women. That doesn’t prove<br />
it’s not there, but that’s not the lore.’’<br />
Of course, it depends on your perspecnanc<strong>in</strong>g<br />
them.<br />
Her compla<strong>in</strong>t goes further. It depicts<br />
venture capitalists here as a group of<br />
21st-century men who may be hard at<br />
work build<strong>in</strong>g the 22nd century but,<br />
when it comes to deal<strong>in</strong>g with women <strong>in</strong><br />
the workplace, are stuck firmly <strong>in</strong> the<br />
caveman era — or at least <strong>in</strong> the 1950s.<br />
‘‘You talk to any woman <strong>in</strong> technology<br />
and she will have a personal story or<br />
know a story where she felt conscious of<br />
her gender <strong>in</strong> subtle or significant<br />
ways,’’ said Kathy Savitt, 48, the chief<br />
executive of the social commerce startup<br />
Lockerz. Sometimes, she said, it’s as<br />
mild as realiz<strong>in</strong>g, ‘‘I’m the only chick <strong>in</strong><br />
the room.’’ Other times, ‘‘it’s a lack of<br />
any of them to play games. Mr. Watson<br />
is an artist and a designer who lives <strong>in</strong><br />
New York, and his work uses closed-circuit<br />
security cameras, graphics cards<br />
and game hardware ‘‘tweaked,’’ he<br />
notes, ‘‘for our purposes.’’<br />
To use a K<strong>in</strong>ect with a computer <strong>in</strong>stead<br />
of an Xbox, Mr. Watson needed a<br />
‘‘driver’’ (basically a bit of software)<br />
that did not exist. He jo<strong>in</strong>ed a small, farflung<br />
and technically sophisticated<br />
community effort dubbed OpenK<strong>in</strong>ect,<br />
which sprang up immediately after the<br />
K<strong>in</strong>ect was <strong>in</strong>troduced, to write the code<br />
that would make this possible. At the<br />
same time, Adafruit, a hobbyist-focused<br />
electronics company based <strong>in</strong> New<br />
Innovators outside Microsoft<br />
have learned to love one of its<br />
products. Or if not love, then<br />
at least take it seriously.<br />
York, offered $1,000 to the first person or<br />
group to write the necessary code <strong>in</strong> an<br />
open-source format.<br />
At the time, <strong>in</strong> late 2010, Microsoft’s<br />
primary K<strong>in</strong>ect focus was the ma<strong>in</strong>stream<br />
game market. Its first response<br />
to OpenK<strong>in</strong>ect seemed predictable:<br />
CNET reported an unidentified representative<br />
declar<strong>in</strong>g that the company<br />
did ‘‘not condone the modification of its<br />
products’’ and would work closely with<br />
the law enforcement authorities ‘‘to<br />
keep K<strong>in</strong>ect tamper-resistant.’’ Adafruit<br />
<strong>in</strong>creased its prize, ultimately to $3,000.<br />
With<strong>in</strong> days a developer <strong>in</strong> Spa<strong>in</strong> posted<br />
videos demonstrat<strong>in</strong>g that he had made<br />
his K<strong>in</strong>ect work with a PC.<br />
OpenK<strong>in</strong>ect ref<strong>in</strong>ed and spread the<br />
open source driver code, and a variety<br />
of ‘‘K<strong>in</strong>ect hacks,’’ as they came to be<br />
called, proliferated <strong>in</strong> YouTube videos.<br />
Soon Mr. Watson and his wife, Emily<br />
Gobeille, posted their own video, <strong>in</strong><br />
which her hand movements were captured<br />
by a K<strong>in</strong>ect and translated onto a<br />
screen display<strong>in</strong>g a computer-generated<br />
bird figure, which she controlled<br />
like a high-technology puppet.<br />
Mr. Watson told me this by telephone<br />
from Amsterdam, where he and Ms.<br />
Gobeille had just presented a polished<br />
version of their creation as an <strong>in</strong>stallation<br />
at C<strong>in</strong>eKid, an <strong>in</strong>ternational conference<br />
for professionals work<strong>in</strong>g <strong>in</strong> children’s<br />
media. <strong>The</strong> specter of a Microsoft-backed<br />
‘‘law enforcement’’ response to projects<br />
like his had obviously faded. In fact,<br />
shortly after the open-source driver was<br />
f<strong>in</strong>ished, one of Microsoft’s top K<strong>in</strong>ect<br />
people appeared on U.S. public radio and<br />
asserted that OpenK<strong>in</strong>ect participants<br />
would ‘‘absolutely not’’ be prosecuted.<br />
In December 2010, Microsoft’s partner,<br />
PrimeSense, an Israeli company<br />
that created the K<strong>in</strong>ect’s 3-D depthsens<strong>in</strong>g<br />
chip, released its own set of<br />
software drivers and code for the socalled<br />
hackers to work with. A few<br />
months later, Microsoft announced it<br />
would release its own code kit. It certa<strong>in</strong>ly<br />
seemed, as Mashable.com put it,<br />
that the company had ‘‘done a complete<br />
180 when it comes to hacks.’’<br />
<strong>The</strong> idea of a loosely knit band of outsider<br />
creative coders forc<strong>in</strong>g a huge<br />
company to reth<strong>in</strong>k a major new product<br />
is appeal<strong>in</strong>g. Especially when that company<br />
is Microsoft. Fairly or not, Microsoft<br />
is widely viewed not as an <strong>in</strong>novator<br />
but as a peddler of me-too products<br />
with ruthless bus<strong>in</strong>ess acumen. Open<br />
source zealots po<strong>in</strong>t all the way back to<br />
1976, when Bill Gates wrote an ‘‘open letter<br />
to hobbyists,’’ compla<strong>in</strong><strong>in</strong>g that dis-<br />
KINECT, PAGE 16<br />
LONDON<br />
Sun tabloid unable to fill<br />
the void left by clos<strong>in</strong>g<br />
of News of the World<br />
BY AMY CHOZICK<br />
Rupert Murdoch has endured a barrage<br />
of blows <strong>in</strong> the phone-hack<strong>in</strong>g scandal<br />
at his British tabloids. One setback,<br />
however, is not happen<strong>in</strong>g <strong>in</strong> Parliament,<br />
but on British newsstands.<br />
<strong>The</strong> Sun, a brash daily tabloid that delivers<br />
mostly splashy sports stories,<br />
topless models and scandalous<br />
celebrity gossip to work<strong>in</strong>g-class readers<br />
— all wrapped <strong>in</strong> a colorful, cheeky<br />
tone — has long been a pet of Mr. Murdoch’s.<br />
Lately, however, sales of the new<br />
Sunday edition, the one created to replace<br />
the shuttered News of the World,<br />
have slipped.<br />
Sales of the Sunday edition have<br />
fallen 28 percent, to 2.3 million <strong>in</strong> April<br />
from 3.2 million copies sold <strong>in</strong> the weeks<br />
after it first hit the stands <strong>in</strong> February,<br />
accord<strong>in</strong>g to the Audit Bureau of Circulations.<br />
<strong>The</strong> News of the World sold 2.7<br />
million copies (or one copy for every 23<br />
people <strong>in</strong> Brita<strong>in</strong>), <strong>in</strong> July, when Mr.<br />
Murdoch closed the tabloid.<br />
Analysts estimated that circulation at<br />
<strong>The</strong> Sun on Sunday would cont<strong>in</strong>ue to<br />
fall until stabiliz<strong>in</strong>g at about two million<br />
copies, below Mr. Murdoch’s hope but<br />
bigger than its closest competitor <strong>The</strong><br />
Sunday Mirror, which sold 1.1 million<br />
copies <strong>in</strong> April.<br />
Why has the Sun been unable to fill the<br />
void left by the 168-year-old News of the<br />
World? British media analysts suggest<br />
that <strong>The</strong> News, which was known for its<br />
<strong>in</strong>vestigative exclusives, transcended<br />
social class <strong>in</strong> a way <strong>The</strong> Sun has not<br />
been able to do. Readers who do not buy<br />
<strong>The</strong> Sun dur<strong>in</strong>g the week do not see it as<br />
the newspaper for them Sundays either,<br />
said Douglas McCabe, media analyst at<br />
Enders Analysis <strong>in</strong> London.<br />
‘‘<strong>The</strong> Sun brand is very much aimed<br />
at the work<strong>in</strong>g man,’’ Mr. McCabe said.<br />
ULI SEIT FOR THE NYT<br />
‘‘Hav<strong>in</strong>g a w<strong>in</strong>n<strong>in</strong>g paper is the best answer<br />
to our critics,’’ Mr. Murdoch has said.<br />
‘‘<strong>The</strong> News of the World was a one-off<br />
weekly picked up by those people but<br />
also by the educated middle class who<br />
buy <strong>The</strong> Sunday Times.’’<br />
Charlie Beckett, director of Polis, a<br />
media research organization affiliated<br />
with the London School of Economics,<br />
said, ‘‘It’s difficult to underestimate how<br />
unique <strong>The</strong> News of the World was.’’<br />
‘‘<strong>The</strong> front page would always have a<br />
sensational story that usually <strong>in</strong>volved<br />
sex, politics and crime and might have<br />
even been true,’’ he said, add<strong>in</strong>g: ‘‘<strong>The</strong><br />
Sun hasn’t been able to repeat that.’’<br />
In a recent weekday edition, <strong>The</strong> Sun<br />
led with an ‘‘exclusive’’ about an obese<br />
teenager (‘‘said to be 63 STONE,’’ or 882<br />
pounds) who had to be evacuated from<br />
her home <strong>in</strong> south Wales.<br />
In February, Mr. Murdoch traveled to<br />
London to <strong>in</strong>troduce <strong>The</strong> Sun on Sunday<br />
personally, six months after News Corp.<br />
SUN,PAGE16<br />
Suit raises questions about women’s place <strong>in</strong> Silicon Valley<br />
relevance, a feel<strong>in</strong>g you can see an end<br />
to your opportunities.’’<br />
With the number of women <strong>in</strong> Silicon<br />
Valley so meager, a prom<strong>in</strong>ent discrim<strong>in</strong>ation<br />
lawsuit does not surprise Ms.<br />
Savitt. This place runs <strong>in</strong>to trouble with<br />
women on a regular basis, most memorably<br />
<strong>in</strong> recent years when the C.E.O. of<br />
Hewlett-Packard resigned after <strong>in</strong>appropriate<br />
conduct with a former reality<br />
TV actress who was work<strong>in</strong>g for him.<br />
Still, Ms. Pao’s lawsuit has <strong>in</strong>jected<br />
talk of sexual politics <strong>in</strong>to a conversation<br />
that generally sticks to money and eyeballs<br />
and bus<strong>in</strong>ess plans, monetization<br />
and enlightenment of the masses. Men <strong>in</strong><br />
Silicon Valley may not behave any worse<br />
than men anywhere else, but people here<br />
like to th<strong>in</strong>k it’s all a meritocracy.<br />
<strong>The</strong> shock really stems from where<br />
the scandal is tak<strong>in</strong>g place. Ms. Savitt<br />
knows Kle<strong>in</strong>er well; the firm is f<strong>in</strong>anc<strong>in</strong>g<br />
Lockerz. She cannot comment on<br />
the suit but expresses her deep admiration<br />
for the Kle<strong>in</strong>er crew. <strong>The</strong> firm is one<br />
of the few exceptions to the venture<br />
world’s lack of <strong>in</strong>terest <strong>in</strong> hir<strong>in</strong>g women.<br />
A quarter of its 50 partners are female.<br />
That fact fits awkwardly with the lawsuit’s<br />
claim that one male executive,<br />
Randy Komisar, told Ms. Pao that women<br />
would never succeed at Kle<strong>in</strong>er ‘‘betive.<br />
Sandy Kurtzig was one of two female<br />
eng<strong>in</strong>eer<strong>in</strong>g students <strong>in</strong> her class at<br />
Stanford University <strong>in</strong> the late 1960s and<br />
is still <strong>in</strong> the game, with a start-up funded<br />
by Kle<strong>in</strong>er. She always tried to take the<br />
valley’s sexism <strong>in</strong> stride — ‘‘When men<br />
made passes, I just downplayed it so the<br />
guy doesn’t feel he’s be<strong>in</strong>g put down<br />
when rejected’’ — but is disappo<strong>in</strong>ted by<br />
its persistence.<br />
‘‘I am shocked there aren’t more<br />
women <strong>in</strong> high positions <strong>in</strong> Silicon Valley,’’<br />
Ms. Kurtzig said. ‘‘I always thought<br />
the world was go<strong>in</strong>g to be gender-bl<strong>in</strong>d.’’<br />
While Kle<strong>in</strong>er has seen its magic touch<br />
somewhat dimmed of late — it came<br />
very late to the money founta<strong>in</strong> that was<br />
Facebook — a lawsuit like this could permanently<br />
kill the buzz. Already, the suit<br />
has eclipsed the mid-May announcement<br />
of the firm’s 15th fund, a $525 million<br />
<strong>in</strong>vestment pot. Which, despite all<br />
those women at Kle<strong>in</strong>er, is be<strong>in</strong>g run by<br />
one woman and n<strong>in</strong>e men.<br />
Ms. Pao, who came to Kle<strong>in</strong>er with the<br />
dream of help<strong>in</strong>g direct such a fund,<br />
graduated from Pr<strong>in</strong>ceton with a degree<br />
<strong>in</strong> electrical eng<strong>in</strong>eer<strong>in</strong>g. She got a law<br />
degree from Harvard and worked for<br />
Cravath Swa<strong>in</strong>e & Moore for two years<br />
do<strong>in</strong>g <strong>in</strong>ternational deals. She returned<br />
WOMEN, PAGE 16