Transcripts For CSPAN Key Capitol Hill Hearings 20150218

Profitable Business Model and no one has really done it for financing so we set off with affirm to try and do that. What we did that and started with was pointofsale lending. When you go to the Department Store the person will say come apply for the instore credit card and you know it will be a painful process and you probably when i get approved and it is based on your fico score some magical scored no one understands and the fees will be bad and the Interest Rate horrible but it is a great boon to retailers. It increases sales and improves conversion. So they say what if we provided a great alternative. But affirm is for consumers to make purchases at pointofsale . Thats what it is today. Youre taking a one interest load, slightly high and then fairly low. Compared your credit card, if will pay 700 several hundred dollars. What would you charge me on an affirm loan . Somewhere between 60 and 17 and the average credit card, the millennial someone who is fresh of college with a psycho score probably 29. 95 is what youre looking at here in looking at. One of the things we do since we are a 21st Century Company we price every loan to the transaction to the person and these loans are not compounding interest so you know exactly what you are borrowing and what the payment will be each month. Good a want you to vet their credit when they buy so they . It takes less than half a second. How can you do that and look at me and my entire profile in less than half a second and decide the rate . That feels like a quick glance. So long as the rate i charge you is good for you we can access a bunch of databases and we have filled up good models that forecast your ability to repay and your propensity so a lot of the same math we did at paypal to figure out who is a good guy and a bad guy. Was a look for . Your algorithm sounds interesting. I dont think people will say theyre getting a fair shake from you because they dont know what youre looking at. How do they know it is useful . There are not required to take it to the can always call back with whatever form of payment they have available and make a comparison right there and then because we will disclose the Interest Rate and the charges. The way we figure out who they are and what they are is several interesting ways. The most important thing true of todays generation, the Social Security neighbor number has been replaced with their mobile number, it is a key index to databases. Anything from your social media to phone bill is a good way to figure out who you are and what income you have and what debt youre likely to take on an service and the debt to income ratio is one of the best financial metrics that we can use to figure out how likely you are. How much have you loaned out right now . Is actually growing off the charts so i am terrified to give you a number. We have been testing various forms of products and various versions of the loan and we settled on the simple installment loan with explicitly disclosed charges upfront. At this point the merchants forcing Something Like 30 to 40 on the parts site and they are promoting us aggressively. How much loan debt right now . That i cannot tell you but it is in the millions. Less than 10 million . It is less than 10 million. More than five . I will plead the fifth. Between one and 10. Thats really big. Looking ahead 12 months, do you hit 100 million . Yes. 100 million in 12 . I will hold you to that next year. What about people who dont pay you back . They have to not pass back lust roughly less than the combined Interest Rate charged because otherwise we would be unprofitable. We look at nonrepayment rates so people with super prime credit, people who choose us because of our transparency and quality of service is our prices give back 100 of the time. People that are already living in the session, go link delinquent delinquent and sometimes default in the Single Digits to doubledigit percentages and that is as it should be. Last question, what is the next affirm project . That i cant broadcast, we like to surprise. Thank you matt. [applause] what is up . Our next guest is special to me i grew up in dallas and i first learned about him and a mavericks game, he is so much more than the owner, these welcome mark cuban and our moderator. [applause] these are kind of comfy. Take up your shoes, yet comfortable. Welcome back. You are here in 2008 4 techcrunch 2008, for techcruch. You went on to tv fame and everything. Shocking. To us normal people your list of accomplishments reads like a bucket list. [laughter] i hope so. You built the company for millions, but a sports team and what a chevy chip, became a household name and you really dance with the stars. That was the best part. Now you are a privacy expert. I wouldnt call anybody a privacy expert it is important. Are you afraid that you are a public arson that your communication be hacked . The genesis was i had the fcc, after me and every message i sent they discovered it and turned it over when we went through discovery and they created their own context there was one part where i said i hate to lose talking about the mavericks and when we went to trial they brought that up and said he hates to lose and thats why he sold the stock and did not take a loss. It is crazy that anything you say can create context. From there thinking about it if you think of any email or message you send the minute you send it you lose ownership but not responsibility. We set over and again. With cyber dust when you hit send it goes to another user and never touches a hard drive and is never cashed anywhere and cannot be recovered or erased and recreated in any way. It cant be erased and recreated by the nsa or anybody. Where do you see cyber dust fitting . We are all looking for an email 3. 0. As we look forward, people are trying to find a better way to filter. You knows will involve so if you have to reference and the future and cyber dust will be there to replace a lot of your texting and emailing. When i send you a message, you look at it and 30 seconds after you are done reading it, it is gone. In my personal experiences and others, it is reduced my email productivity from 25 30 . A third application, a black feature where you got all of the words, i have 80,000 followers and like my twitter but the difference when i blast something, the only people who see it are the people who follow me. Because it is 10 lines everybody sees it. Twitter kind of default into a scenario where there are so many trolls that before we tweak anything, we have to be careful and consider how somebody might look at something for it is fun to be a troll unless you are being controlled. With cyber dust, there are no trolls. I blast Something Else and the it is a 11. I blasted out a motivational quote and i can respond to each of those personally. On twitter, i do not know anybody will see it because it is a timeline. Because there are so many people that are trolls looking for things that we say or looking for responses, people do not speak honestly and openly. You pull those things together and as a result, you shrink our digital footprints. As we go forward, cyber dust will look for ways to shrink and it will be more portend permanent there is so much out there we do not remember. And will be more important. Theres so much out there we do not remember. I have a daughter about to turn 11. I trust her. Shes more of an adult than ime a lot of times. She is going to send a very simple message to some idiot kid at some point Something Like you found my ipad and i sent a message that says i love you for that and that dumbass kid will show all of his buddies. And use it out of context. I will have her use the app and that message will be gone. It was not be something repurpose. If a kid tries to screenshot it, we know it and can deal with it. When we were prepared for this interview, you only talk to me and cyber dust which was kind of annoying because i had to remember what we had. Is not annoying. Some people are doing it wrong. You are doing it wrong. When you send a message and tap on it, it tends it and you will remember what you said. But for things that we have to remember, we use email. For stuff like well be here at this time on this day, it is ok. Whered you see it Going Forward from here . You see us do a lot of privacy commerce. Twitter announced they will do commerce and they did smart things with it. You do not want to be a position where trolls are saying you bought the this or that and why didnt you buy this . There will be a lot more privacy involved with commerce as we move forward. You will see as grow as a nice compliments for twitter. A publication, a promotion but cyber dust is for 1 1 personal communication and extended to email. Anything that another application that cause and that is called get expire. What i use it for when you post a tweet right now, theres no expiration time. Theres something about 20,000 30,000 tweets. I can tell you more about you from those tweets in your significant other can. Just because we say so much about ourselves and over the years, we leave it there. With get expired, you can set expiration time so it expires in an hour, a minute, a day. You can do the same with facebook posts and tumbler posts. Does anybody out here still have their myspace profile of . Do you want people looking . And you are still friends with what his name. The whole point is over time your digital profile is so big that it has a set we have not began to consider. We will craig tools and extending the cyber dust platform to shrink that footprint and let you gain more control of your privacy and protect you from who knows what. Mr. Cuban, switching years. I called . 50 5 0 50 cent, mr. Cent what tiger cyber dust is Company Number what for you . I do not know. 30 plus. What drives you to keep founding new companies . This is is the ultimate sport. Dylan with the mavericks, i will talk to our guys and talk about the 48 minutes of the nba game and practice in preparation. There is no sport as competitive as business. It is 24 by seven by 365 five forever. All of these young kids trying to kick your ass and i love to kick your ass. I am so competitive, i just want to win. That in a nutshell. You are not in the valid. Nobody smart is in the valley. There is a certain culture in the valley and a mini version in and a many minier version in new york. I do not have a problem attracting smart people. I can get people here. There are a lot of advantages. Theres an incredible arbitrage available. We talk about on shark tank. If you are from stanford and you have a tech degree or mba or law degree or design and you do not get an 8 million valuation on your startup, you are in idiot. Outside of these three areas that same startup may have a 1 million valuation. Theyre just as many smart people and great Business Opportunities in aggregate outside of the valley as inside. Investing outside and sell it inside to me is the best arbitrage available at has worked out very well for me. Silicon valley as got a approach whether vc or angel. Almost a fear of missing out where people throw money at everything because they want to find their unicorn. Hey, i invested in twitter and uber and facebook. What they do not tell you are the other 99 of their portfolio that has failed. That approach doesnt sit well for me. That is led to mistakes. Travis was here. I invested in one of his earlier companies. He probably brought it to me first or second over and we cannot agree on valuation and he found someone else. Thats probably the one investment i wish i could get back. I invested in a company off of an email. I got my money back and was thrilled to death. I have 20 other. If i were to approach you for investment, what is something i should know about the you . To get your money . To get my money . I am very transparent with all of my companys 30 should know the companies i invested in and why i invested in what value you can bring to me and your company will be great. A lot of people particularly in the valley they sell themselves which is fine and the idea which is ok. But then they figure getting funding is the end all, be all. I got in angel. These people agree with me so it must be a great idea. I hate that approach for your i want to know not what your exit is going to be bold why you will be a sucker a successful company. How youre going to be insanely cash positive because it makes it easier to continue. Such a great answer. Shark tank and these investments. What is something that will make your eyes glaze over instantly . That is instantly. When somebody says the market is asked billion and basically implies if i get 1 10 of 1 of that x billion, it will be huge, it means nothing. We can ill talk about pick an industry and say how big it is going to be it makes it seem so achievable if we get 1 . When in reality, it is no thought or intelligence. That is probably going to turn me off and have me say no. On the flip side, what is the best way to do it . Tell me what your core competency is and why you are great and why it is protectable and to scale. And thats it . Pretty much. Shark tank im how did you get involved . Mark burnett came to me when it was first comment on the air but thats when the fccs assuming so abc would not let me on the show. When the kids got dismissed they came to me and said, it looks like it will be behind you and we know it is fulls bullshit. I came on as a guess and did not think it will last. The show has blown up. I came on as a guest and do not think it would last. I have heard the response that the show is not the business but aspiration, inspiration, telling the whole country the American Dream is alive and well. People moved to the valley because they believe in the American Dream rim in Middle America and places where theres not a lot of money, they want to see a family from iowa who came up with a Screen Protector and is doing one million in sales. Or a number of different examples because they can project themselves. I have learned shark tank is the number one show watched by families together. Why do you think it is . If you have an eightyearold, 12 year old and they are sitting there at home on a friday night saying i like this idea or do not like this idea, i wouldnt pay as much of the evaluation, understand what equity is an approximate gross margin. Parents, you will be proud of your kid when their top by that instead of was number one on the charts and tell me about our rio grande latest hit Arianna Grandes latest hit. It is to them being an entrepreneur and being excited about business. You can call it a new age lemonade stand. And theres a theater for a number nor ship and we see that you were involved in the beginning with that, too. We affect Companies Grow up and blow up. We will wrap this up shortly. He recently talked about Companies Moving overseas to avoid u. S. Taxes. What is wrong with trying to make your company more profitable . Nothing is wrong with trying to make your company more profitable. Who owns your company . Shareholders. There is a misconception. You buy a stock and the ultimate goal is to have the stock go up. You want the company to increase your net worth right . They are not necessarily the same. If i am buying stock in a company and all of a sudden, they are moving overseas to avoid the taxes they otherwise would be paying. Would one company does this maybe not so much. When this becomes a trend and companies are buying startups in england or some other country we are losing tax revenue. Who makes up the difference . The marginal cost of our taxes goes up 1 , 2 , 3 . Because this company is trying to increase their bottom line, my net worth goes down because we have to compensate for that. On the flipside, lets work on changing the tax rate. Lets come up with solutions. The markets for improving profitability are very efficient. Accountants, cpas, and lawyers will find ways to work around things. Start off as what starts off as anecdotal, it turns into a flood. I like investing in companies. When a Company Moves overseas and takes that tax revenue with them, there is some impact on services. That negatively impacts customers. They might not have as much money available to them and that could have an impact on the business. We are in this together . We are in this together. As the owner of the mavericks, do you have any advice to the new owner of the clippers . I emailed steve. I told him he should not be so shy. He will have a lot of catching up to do to keep up with me. Like anybody else, you want to be yourself. Fans want to see an owner that eats, sleeps, and breathes the team. It is one thing to be at microsoft when you are the ceo. A whole other thing one of the big differences between running a company, there is no beat reporter who has to write about you every day. There are not 20 blogs having to come up with something every day. Everything he does will be reported. It will be easy to see how he is on the sidelines. I am hoping he is crazy. It will give me a little sidekick. I do not give a shit. It will be 15 years in january and you have not seen me mellow or slow down. Will the mavericks make it through the playoffs this year . We are undefeated and i am ready to go. Mark, thank you for your time. [applause] our next panel is really the main question of disrupt if you are an entrepreneur or investor what will we be funding . We have amazing investors that will join us. Omar from sequoia, cowboy danny, and our moderator. Clap. The mike will work eventually. I skipped over the disrupt vine thing. We are doing three competitions. How many people still use vine . It is like six of you. You have great shots that are you have really great shots at winning. Please disrupt the vine and tomorrow we will be doing another one around instagram and twitter. Lots of cool prizes. Does anyone have a question . Ok. Why is it so gold . Cold. A billion bodies are in here and if we did not make a cold, you guys would complain the other way. No. That is not true . I have been at a disrupt with a busted ac, and you guys were mad. I will spend my time negotiating and i will see what i can do for you and i will let you know where we are at with the ac. 75 sound good . 73 . 75, i think that will work. If you have a problem with that tweet to me. The ac is the most important thing, but lets focus on the investors. Do you want to hear their names again . Susan said yes. Omar from sequoia, cowboy ventures, james from greylock, danny from index ventures, and are coeditor danny. Matthew. All right. My microphone is live this time. Ok guys. Lets talk about some stuff. Welcome to the stage. I will do this. That way i can see everybody. A lot of things we could talk about. One of the things is this issue we have with hiring engineers in the valley. It is becoming so easy, i use easy in quotations. It is easy for people to get funded and the tools are there and the money is readily available. What happens when it is easier to start a company and get funding than it is to higher an engineer . I will take it. I think paradoxical, but important approach for a ceo running a company in this environment is you have to recognize the people working for you probably will want to start their own company. You have to actually be focused on how you help them accomplish their goal and be great as opposed to filling a role in your company. I have a story on this. Recently, i am on the board of a company, and the ceo asked me to give a talk at the company to his engineering and product team around how to start a company. Initial thoughts on having someone do that to your team is like having someone train your girlfriend had a meet guys in a bar, right . If you want to attract and keep awesome people who are entrepreneurial, you have to make them feel and backup that you are going to support them. If you were looking at the companies out there, a grouping of companies, what do you think the dream job . You can answer with one of your folio companies. If you had to pick one, what would it be . Portfolio companies. If you had to pick one, what would it be . I think it depends on what the engineering is looking for. A lot of the jobs of the venture capitalist is to be a recruiter and be a headhunter. In many different cases, it depends on how early and how much responsibility the engineer wants and are they going to be thinking about having more of a specific role in a more Mature Company . Or do they want a more not impactful or more defining role in terms of culture by joining an earlier company . If you are joining a company like etsy, very different from joining a company like goodx. You are going to have different priorities. A lot of the attention that comes from the press side of things right now is based on the founders of the companys acting companies acting like a tyrant. They say things that could be deemed insensitive. These boy king founders, does that matter when you are talking to an investor . Is this a problem down the road or it doesnt matter . The person you are investing in or the team you are looking to invest in is one of the key factors in making a decision. This is not you are joining the team in trying to partner with a company and trying to work with this person. Their demeanor, the way they run the business, whether they are ethical whether you think they are driven, all those things factor in a lot. Those are primary topics of conversation. There is a distinction between somebody who might be difficult to work with or somebody who is perceived as difficult than someone who is unethical. Many great entrepreneurs can be difficult to work with. This incredible conviction or force of will to make something happen and i find i am fine working with people who can be challenging. The other quality, most onchip or newers who are successful are doing it for the first time entrepreneurs who are successful are doing it for the first time. You can understand if someone is selfaware. If they are open to feedback and will have a compounded daily learning rate. That is an area where investors in the board can help. Where a lot of these companies for a long time have a head of hr. They are not really getting coaching in the first time ceos our young people. Are young people. That is an opportunity for the Investor Community to do a better job of giving input and setting expectations for some of these teams. What is the best way to run a company . You have young entrepreneurs and they have this promotion that people are difficult to work with and you can create a situation where somebody is not difficult and maybe i should be more of a jerk and more aggressive. At your first question of how difficult to work with and you hard it is to hire and retain people, it is not that hard to be a decent leader and we should all look for that. There are some people harder than others. In general, it is important. Easy to work for. That cultural front, when it comes time to invest in a company, do you consider social good components of a company . Whether it contributes to the populace or a positive impact on Carbon Footprint . Do you count that as a factor . One of your major checkpoints when considering investing in a company . I guess what we have come to realize is it is actually from a generational standpoint, we are seeing millennials expect a social commitment and are looking for businesses that have social responsibility being integral to their Business Model to actually being interested in the business. And we would say is we do not need them as being mutually exclusive but in the businesses that have social responsibility as far as the Business Model are likely to be the more successful in their space. I was mentioning etsy before and the reason it has hit a nerve is because the customer wants to be able to help that maker make their vacation vocation their career. Their passion becomes their vocation. Creators get back to my fans. I suspect this question will become less and less relevant over time and it will be part of these Business Models. If youre talking about cultural things in the valley, there is something we need to talk about. There seems to be an abundance of male founders versus female founders. I do not think we need to belabor that, it is a fact. How do you make the environment more inviting or what is responsible for that disparity and how do we change that . Not asking you to fix it on stage here, but it could be nice if you could. Do you have any ideas of how that might be fixed . There is there is a number of issues that contribute to it. It starts with Education Around Technology and engineering. I think it has to do with the framing of the problem. A lot of the times the problem is framed as we need to do this good thing by bringing more women into the industry like it is something a favor. As opposed to something that is necessary. There are business outcomes that happen and that are negative by not having more women and companies. By looking at it as a real problem as opposed to a favor, it it will change the perception of people and what they are willing to do to fix it. I think there is a pretty Broad Spectrum of stuff happening in companies from things at the extreme harassment, gender pay gap. Some people do not realize those things are actually illegal and for your company at legal risk. Softer on the spectrum around culture and people feeling like they are not supported or favoritism or things people say that are under candid that are unintended consequences of feeling uncomfortable. There is an opportunity for some type of a Training Program to go into companies that will help them audit where they are in terms of do they have a fair environment . How do they unpack some of the bias stuff that goes on every day that creates a more uncomfortable environment . I feel like we do not have the tools that we need, but i am hoping every day, there is a new article or study or example of people of bad stuff happening. The only thing i was going to say to that point, to the point of auditing. We do a regular audit of how many of our companies of the 140 companies that we have have women as leaders are founders . We are at 15 , which is surprisingly high, but it is a massive issue. It is further amplified most of my customers are women. This massive disconnect. Part of it is thinking, ok, can we find a partner that obviously could complement the work we are doing . There are a lot of characters characteristics that make a partner. The other one is using this founders to support new founders we speak to. It is clearly something that has to be addressed. One observation i have had greylock, we have been around for 50 years. If you look at the partnerships at greylock several decades ago it was mostly white protestant men in blue blazers. When you look at how the Tech Industry has evolved, most of my partners are asian indian, and jewish, which mirrors but still male. These things are inextricably linked. The point that danny touched on, having a generation of companies where there are women founders into being successful outcomes, which is coming with a higher percentage, will help contribute. I hope james is right. I feel like a power move will be for a high profile top tiered firm to announce two new female vcs and i feel like that will happen in the next two years. They will get the most attention and the most kudos. I think we fixed all of that so it should be all good for tomorrow. How do you tell somebody they are not a good founder . Somebody walks in and gives you their pitch and you hear them out and you think to yourself, they are not the right person. Maybe the idea is good. It is a sensitive situation and they come with you with hopes and dreams. How do you tell them, do not do this . I would be good at delivering the message . What i would say is that typically, what we see is the most successful founders are product oriented and very instinctual around the Market Opportunities they are going after. Think of tim from pandora playing at a piano bar while he is developing his music business on the side. We are looking for a product experience that emanates from the founders experience. There are companies that have been started by folks who do not look like they are out of central casting who are successful companies. Several folks invest in marketplace businesses. Some of the most successful marketplace businesses have founders who are not guys who have done it before. They are incredibly resilient scrappy, aggressive. The marketplace, it is hard to get liquidity. Once you do, it can be hard to kill your business. Our reflexes, this instinctual founder with the right background. But there are plenty of exceptions. I believe this person is scrappy enough, but i would tell them no about this product, but i like them so much, i want them in my fold . You can back somebody who has great domain expertise, or you see situations where somebody is not out of central casting, but what they are doing is working. They be better that it appears on the surface may be better that it appears on the surface. I would say you should be able to tell someone you are meeting with who is the founder and they are not a good founder in the meeting. You do not have to do a followup. If you cannot help them in that meeting, something is wrong. In a lot of ways, in my case and probably in other cases, there is no central casting for a founder. Youre looking for people who are crazy enough to go after their lifes mission with an entrepreneurial venture that has more chances not to succeed. It is difficult to find pattern recognition. If they are not clearly going to be successful as a founder, it is quite obvious pretty quickly. The idea is not enough to make a business succeed. All of a sudden in my head, if the person is clearly of high caliber, high intellect, but not a founder, im going back to my headhunting database of all of the companies i am thinking through and pitching them. Maybe you need a little more experience working with another company and maybe you would like to do that before you start on this because here are the five reasons why this is not a great idea or you are not ready to start the company. It is dangerous to be that categorical to think somebody is not a good founder forever. I probably was not a good founder my first, second or third, but the fifth one worked out. If someone had told me, you are not a good founder, maybe i would have stopped trying. You might want to say not now or try doing this, maybe one more job. Not a good founder forever is dangerous. I agree. Im trying to think of a founder who has not had bumps in the road. The board and the investors should have a close relationship with the founder and be able to have those conversations on a regular basis so it is not out of the blue. You walk in and they say you are doing a bad job. It has to be a constant dialogue. Do you have a good enough team to complement you on this stuff you do not want to spend time on . How are we going to help you develop . There are lots of examples of folks ive worked with who have not always been deemed to be great founders, but they end up building great companies. It does not just happen miraculously. Excellent. We have 40 seconds left. What is the top two most Interesting Companies you are not currently investigating invested in . I would say uber is one of them. Uber. I would say airbnb and doc ker. Thank you very much. [applause] i have breaking news. Super important announcement. The ac has been turned down. I know. I went back there with an iron fist. My audience is serious. The sun is coming out. We are walking a delicate line, feedback if you get too hot. There are 400 startups out there and that is just today. They are super important and they are all really cool. You have the opportunity to vote on who can be plucked from startup alley and participate today. Voting closes at 3 00 and nine courage you and i encourage you to check them out and figure out who is your favorite and vote. We will have the website up on the screen. I do not know why they gave me that to memorize. In the meantime, our next guest is elizabeth holmes. Please give her a warm welcome. Ok, i will. I am john cheaper. The woman i will be interviewing needs no introduction. We are going to have her first here for a Techcrunch Disrupt event in which i will do to my blood drawn live on stage right now so you can see what the theranos office looks like. We have a phlebotomist who will come out. If anybody is squeamish, i would urge you to look away while the magic happens, if the magic happens. If you can come out. No. Move that up here. Get that right there. I am sorry very i am sorry. We will get to the meat of the interview. What does this entail . All right. There are vials, for those of you who cannot see what is happening. A traditional process, i would be rolling up my sleeves and people would be tapping my same my vein and a process. And there would be a big, big needle. This involves no needle. There is a warming packet. I am sorry to do this, but this the best way to go about it. How many times have you had it done . Probably tens of thousands. All of the time. When was the first time you did it . I understand you are a little squeamish about blood yourself so you may be the first hemaphobe to start a bloody business. How did you prep the first time . Needles is the only thing ive ever been scared of. I figured the first time i did and i had to do it in front of a group of clients and investors so no matter what it would look painless because i would have to make it painless. And i did. It is psychological once you do it, you learn it does not hurt. And exactly what you are doing here, the process we developed replaces traditional phlebotomy or practice of getting big tubes of blood from the arm with these tiny nanos, which collect a few drops. We are ready and i am about to get poked. We will see what happens. Tell us if you think it is painless. Oh, good god. It is not started yet. There it goes and there it is. It was done quick and painless. I have had more pain her parents preparing for this interview and then getting my blood drawn right now. There we go. I appreciate it. You were in stealh mode for 11 years. How did no information leak . And how did you retain talent over the course of that time while you are doing all this development, doing all this development, and you cannot say anything . We had a lot of work to do. This is a very big mission and goal. We wanted to build out the solution before we talked about it and as a result, we do not have a website. Didnt have a website that said anything. The clients we did have were under nondisclosure so we do not have to talk about what we working on before we finished it. And so, for about 10 years there was no press release or anything in the media. And the last fall when we and so, for about 10 years there was no press release or anything in the media. And the last fall when we reached a point where we can make it accessible directly, we began to talk about it. It was very simple. Do not talk about it. The first rule of your company is do not talk about your company. When you approached customers while in stealth mode and tell them about your vision and your business, is that it . Do you want to see it . These are the amount to draw a test. We will see you later. Thank you so much. You are trying to get these customers, how do you get them to sort of commit with sight unseen to a technology that you are still developing . It is at a point now in which it is directly available to people as an alternative to having big needles stuck in their arms. And in the approach we took was to have people try it out and see how it performed and if it performed well and work with then work with us. And lots of our work was for pharmaceutical companies and there are not that many pharmaceutical companies are as pharmaceutical companies, so as we built those relationships, we had the opportunity to deploy our system and build our infrastructure. You have raised 400 million have a 9 billion valuation. How much revenue are you generating and did you start generating as the money was coming in and when did the first cash come in and where are you now with profitability and the need for additional . We have been growing for some time. We first started generating cash from operations through our work with pharmaceutical companies a year or two after i started the company. And that has been the platform on which we build the business. I have tried early to get away from what i called the equity on umbilical cord where you do not really have the business and thats been the foundation for you do not really have a business until you are generating revenue. Thats been the foundation for growth. We are a private company. So we dont really talk about what our revenues are. You can talk a little bit about it and give me a ballpark. A 9 billion valuation. We will get back to that. So Many Companies have tilted at this windmill of driving down costs of testing at making them more accessible. How have you managed to do this . My blood is just drawn and i want to get tested for different elements that i think i may have because i am paranoid about all of that stuff. What happens next in the process . Can you walk me through what my blood would go through as it gets tested . Absolutely. Weve redeveloped the laboratory from end to end to make it possible. One element is the tiny samples and another element is the cost. The infrastructure we have built, we have begun opening what we call our Wellness Centers which are our locations located inside of walgreens pharmacies. We have announced our National Partnership with walgreens and in the context of our expansion across the u. S. When somebody comes into the wellness center, we will scan their insurance card and their identification and build an electronic infrastructure to do realtime eligibility for labs. Thats on the front end. So that when you, in, you know how much that test is going to cost you and what your deductible is. How much is a typical test for a normal sword sort of array of blood test . When we announce our infrastructure last year, we began pricing our tests at 50 off of medicare reimbursement thresholds to exactly change the cost in terms of testing costs. Since then we have begun to further reduce the rate at which we make those tests available in all the way down to, in many cases, 90 off of medicare reimbursement. 90 . What does that mean for someone who in a minimal wage and job or may not have insurance or the bare minimum . It means you can get a test for 1. 99. And that is now . Today. It is pretty cool. I think that is the technical term, pretty cool. When you started off with this vision, i am sorry i jumped ahead. Thats the insurance component and pricing. On the back end with the lab what is happening with this miniscule amount of blood that is enabling you to come up with a full range of results. Exactly. So, from the time youre in the wellness center, once the price point has been identified for someone so they know that how they know that even if they have a to dr. Bulk have a deductible and noknow how much it will cost and they can decide whether they want to purchase the service as opposed to getting a bill in the mail three months later for some unknown amount, the little nanotainer tracks the simple. When they go to our labs, we redevelop all of the chemistry associated with running these past on traditional forms to make it possible to run any Laboratory Test from a tiny droplet of luck. Of blood. What will happen is it will be run through and we have built out analytical systems on which to run the chemistry and traditional instrumentation requires a much larger tubes of blood. Then that data will be electronically sent to the ordering physician and integrated into their emr systems. When we spoke you mentioned you had done work with the military on this. What are the applications there and how do you see sort of the business extending beyond Wellness Centers at walgreens . I dont think that is the end goal for you. There is a huge opportunity in decentralizing the testing infrastructure to make comprehensive Laboratory Information and information is important because it drives 70 of clinical decisions accessible at the time it matters. In the trauma context, the ability to get close to Realtime Data in the context of being able to stabilize someone in the field, for example, can make a difference in terms of lives saved something we are inspired by. And the context of remote areas where there is no Central Laboratory infrastructure, the ability to put in place a decentralized infrastructure leapfrogging over the last lack of conventional infrastructure similar to what cell phones and digital cell phones did to land lines in china is significant. If you can put a decentralized effort structure in place, you can lay the foundation for decentralizing delivery because you have what you need. You layer Remote Health care, consultations on top of a remote testing and you have an ability to provide Rudimentary Health Care globally. Exactly. And do you want to own the other piece, remote consultation . We have built in software and web been talking about one of we were talking before this about one of our favorite quotes, software will eat the world every the communication piece is there. We are a laboratory company, what we do is make it accessible and a time and place that matters. There is the opportunity to link in. Have you talked to the folks doing remote care now . We will give you five cents every time somebody says software is eating the world. That makes sense. Its only fair. Back to what we were talking about, have you been in conversation with folks doing this type of remote consultation already . We have been in contact with people attempting to provide care in rural areas and struggling because they do not have access to Laboratory Data and comprehensive data to be up able to provide the kind of care needed. Thats going to be an important area. You have what is perhaps the most accomplished board i have ever seen. Sam nunn, former senator, bill frist, former senator, a former general with the marines admiral . I dont know. You also have an admiral. You also have david boyce as your lawyer. Why stack the deck so much with so many people . And kissinger is on your board. Why do you need all of these guys . What is it about the industry that makes you collect Civil Servants of the highest caliber . We have never thought about as stacking the deck. But we do believe that technology has an incredible role to play in enabling resolution of policy issues. In health care, the ability to use technology, what we are doing and pricing, the way we are for medicare and medicaid is saving medicare and medicaid hundreds of billions of dollars on an annual basis. With the opportunity to leverage what this country does so well in terms of creativity and innovation to facilitate policy change, we have been very lucky to be able to get people who really understand what it means to be able to make a systemic change in the world and to be able to advise us as we work to do that in reducing Health Care Costs and changing outcomes. We have both spent time in china and china is very big on fiveyear plans. So, when you look out at the next five years, where do you see the company . What is the goal for the next five years . Where are you going to be . The goal is access, no matter how much money they have or where they live. For us, its hard to give examples because 40 60 of the people in our country dont get tested because they are scared of needles or they cant afford it. It also means operating in locations closest to where people live or where they get care. That is in our country and in other places around the world. Do you start selling technology to people or Licensing Centers to set up anywhere, or do you yourself man and operate centers at a low cost around the world . Right now, we are operating centers inside of walgreens inside the u. S. Outside the u. S. , it will be a different model. It depends on where you are. We are looking at where you go first and what local infrastructure is already in place or whether we need to develop that infrastructure. Are there any partners other than walgreens that you are going to partner with . We have announced our relationship with the hospital system. That is important in the context of being able to change the inpatient process. The amount of blood people have to have taken in a hospital setting, but also, as hospitals become accountable as care organizations, the need to save money and therefore keep people out of the hospital. That is something we are very focused on in our recent work. When you think about the problems that you have scaling what worries you the most . Making sure we have the right people is what it is all about. As we get the right people, we can make sure that the service we provide person by person is excellent. We have an extremely longterm mindset with the respect to realize this mission. Literally, person by person, have we created a wonderful experience, and pacing our growth around that. I think we are out of time. We appreciate it very much. Thank you. How are we feeling about the temperature . A little better . Well, now that we have solved your first world problems, we are going to bring up the entrepreneur in residence at the United Nations. You dont think those things go together but they do, and we will explain why. Please welcome to the stage Elizabeth Gore and our moderator. Hi, everyone, thank you for coming out. And thank you for deciding to make your announcement today. First off, she is not related to al gore, so stop asking her if her dad invented the internet. My dad in texas did. What have you been working on . It has been amazing. In the United Nations foundation, i have actually been working with all of year to figure out how your company can save lives. My favorite is what is going on in emerging technologies. That has become a huge area. Facebook announced they are launching in africa. It seems like there is a lot to be done. But you are going to be working on something neo. Today, elizabeth is announcing that she is the new entrepreneur in residence at dell computer. Thats right. Thats pretty cool. What does that mean . You know, i am going to have a baby and then figure that out. No we are really excited. Technology is the only force that is enhancing the Human Potential positively. The United Nations and dell are not that far apart in understanding that if we dont make Technology Accessible for all, and i mean everyone, we are not going to succeed. The other thing is, we need 500 million by 500 million jobs by 2020, and they are coming from entrepreneurs. We are collectively going to be pushing for the policies needed to support entrepreneurs. It makes sense why dell would want to have your help with those things, but why did you pick dell . We picked each other, to be honest. We developed a relationship and understood that if we dont work with entrepreneurs to give them access to capital, better technology, better relations, we are not going to get the jobs and policies we need. We got on Common Ground pretty quickly. You talk a lot about Global Solutions. That seems like a buzzword straight out of the enterprise world. What does it mean . What is an example of a Global Solution . We have more phones than people by the end of the year. The mobile phone in my mind has been a Global Solution that is changing everything. If you look at how we use it for Data Collection to reduce disease, for example. With a bola there is no way we could compartmentalize to try to ebola, theres no way we could compartmentalize to try to stop it. Drone is a bad name, but we are using them for dissemination of vaccines and very positive things in the world. Solutions can be profitable and save lives. The Silicon Valley tech ecosystem sometimes gets a bad rap about people making money to make money or making money to make themselves rich. What have you learned during your time at the u. N. To the about what we can do to contribute question mark what about the average tech worker, well off but not superrich like the people in our audience . What should we be expecting these workers to do to donate and volunteer and help . All of you can quickly look at your triple bottom line. Thats something i talk about a lot. The day you start your company, you can talk about how it is going to be profitable, but also talk about how it is going to affect people and the planet. For most entrepreneurs, its going to be a long time before they can write a check, and thats ok. But they have an opportunity to affect the world around them with their technology. You would be surprised about all the solutions that everyone is looking for. Theyre in these startup communities. Its not just about writing checks. Its about how technology will save lives. Sometimes its about a tradeoff. Where are you allocating your resources . If you are public, you must answer to shareholders who constantly want more profit. How do you find that balance as an entrepreneur . A lot of entrepreneurs are looking at that from the day they open their business. Its part of their business plan. They are looking at that from day one. Dell is arriving but has dell is public but is always looking at social entrepreneurship. That type of thinking that we really need to support everyones work, job creation thats what going to fuel all of these businesses to be successful. Personally, i really hope that the investors step up and say hey, this is something that matters to us. Its not just about our companies maximizing profit. Its social good as well as profit. I would love to see more venture capitalists come forward like that. I think you would have a better time building your portfolio if you are trying to make a better impact in the world. When it comes to dell, they have a lot of humanitarian efforts. But when is it ok to make money saving a life . And how does dell handle that . How do they decide what their margins are . Do we save more money or do we say save more lives . You can be a Profitable Company and look at the technology you are using with lifesaving applications. Look what dell is doing with translational economics. There are thousands of units of data. They are looking at kids with cancer and trying to make tough decisions. Dell goes in and looks at everything in their analytics and shortens that decisionmaking from years two minutes. I am ok if they are profitable if my little girls life is saved, right . Another area is most entrepreneurs, 90 or so, are solving problems with profitable companies. They are going to be around a lot longer than charitable donations would allow them to be. I think it is ok to be profitable and save a life. Companies can simultaneously make money in one part of the world while investing in others. There is one that will educate families in india about how to care for people that would normally need to be in the hospital about how to give them home medical care. They fund that by selling that same service in the bay area and teaching richer western families how to do that care at home. They are taking that money and then giving the service away for free in the developing world. I think thats a great example. Entrepreneurial liaison sounds like a cushy job to me. What are you going to try to accomplish . I have a lot of pressure. I am actually do this afternoon, so we have to wrap this up. Dell is an incredible company. Michael dell and the whole company have made a huge commitment to entrepreneurs. They are providing technology, but they are also working on Technology Objectives that help create 500 million jobs through the entrepreneurs they work with. Thats a lot of work to do. I dont think there is any cushion and not at all. But they are committed to it. I am committed to it. We are excited about it. Technology is the fabric that binds all of us. I think it is a good company to thank you for your commitment for th did. President obama talks to reporters about his executive order on administration. That is followed by discussion of Government Policies on the internet. Later, a conversation with boris johnson. On the next washington journal, alan gomez of usa today discusses the decision of a federal judge temporarily block president obamas executive action on immigration and the president s reaction. More about the blocking of the executive action and the possibility of a dhs shutdown and a look ahead to the 2016 election. Our guest is rebecca berg. A bus tour of historically black colleges and universities continues with Brian Johnson president of tuskegee university. Washington journal is live every morning at 7 00 a. M. Eastern. Former defense secretary William Cohan sits down to discuss the future of defense wednesday looking at issues like the situation ukraine, the civil wars in yemen and libya, and pandemic diseases. We will have live coverage at 10 00 a. M. Eastern from the center for American Progress here on cspan. Cspan cities tour takes book tv and American History tv on the road, traveling to u. S. Cities to learn about their history and literary life. This weekend we have partnered with Time Warner Cable for a visit to greensboro, north carolina. After months of cleaning the house of Charles Halpern, who had been given that task went on one more walkthrough. In the attic he saw an envelope with a gray seal on it and walked over. It was in 1832 document. He removed a single mail from a panel in an upstairs attic room and discovered a trunk and books and poetry stuffed under the eaves. This was this treasure of Dolly Madisons things. We have had this store available to the public, different items from time to time, but try to include her life story from her birth in Guilford County to her death in 1849. Some of the items we currently have on display are carved ivory calling card case that has a karting closed with dollys signature, as well as that of her name, anna, a perfume bottle, and a pair of silk slippers that have tiny ribbons the tie across the arch of her foot. The two dresses are the reproduction of a silk peach down that she wore and a red velvet gown, and there is also a legend that now accompanies this dress. Want all of our events from greensboro saturday at noon eastern on cspan 2s book tv and sunday afternoon at 2 00 on American History tv on cspan 3. President obama met with secretary Ashton Carter thursday in the oval office. President obama i just had a chance to meet the first time with my new official secretary of defense, we spoke about a wide array of things around the world, to make sure were dismantling isil, not only stabilizing the situation in iraq but addressing the foreign fighters and the violent extremism that has been turbocharged through the internet. We had a chance to talk about situations like ukraine. We also had an opportunity about how to maintain the strongest and most effective military in the world. I could not be more confident. He will do an outstanding job as secretary of defense and he is hitting the ground running having already spent a lot of time in this administration. I want to thank the senate for confirming him almost unanimously. I look forward to working with him for years to come. I think america will be wellserved by mr. Ashton carter. [inaudible] president obama i disagree with the texas judges ruling and the Justice Department will appeal. This is not the first time where a lower court judge has locked blocked something or attempted to block something that ultimately was shown to be lawful. Im confident that it is well within my authority and the tradition of the executive branchs prosecutorial discretion to execute this policy which will help us make our borders safer will help us go after criminals and those we dont want in this country. It will help people get on the right side of the law. To get out of the shadows. Keep in mind this is something that we necessarily have to make choices about because we have 11 Million People here who we are not all going to deport. Many of them are our neighbors. Many of them are working in our communities. Many of their children are u. S. Citizens. As we saw with the executive action i took for the dreamers people who come here as Young Children are american by any other name except for the legal papers who want to serve this country and oftentimes to go into the military or start businesses or in other ways contribute. I think the American People overwhelmingly recognize this and to pretend like we are going to ship them off is unrealistic and not who we are. I have also said throughout this process that the only way we are going to get a broken immigration system fully fixed is by congress acting. We know there has been bipartisan support in the past for Immigration Reform. I held off on these executive actions until we had exhausted all possibility of getting congressional action done. With a new congress, my hope has been they get serious in solving the problem and instead we have had a series of votes to kick out young people who have grown up here and everybody recognizes are a part of our community and threats to defund the department of Homeland Security which would make it even harder to protect our borders. My strong advice right now to congress is if they are seriously concerned about immigration and our borders and about being able to keep criminals out of this country, what they should be doing is working together for a comprehensive immigration policy that will allow us to have a nation of laws and a nation of immigrants. Certainly they need to start funding the department of Homeland Security so they can go forward with all the functions that republicans say they want carried out, including Strong Border functions. With respect to the ruling, i disagree with it. I think the law is on our side and history is on our side. We are going to appeal it. For those who are wondering whether or not they should apply, we will defer those questions to the department of Homeland Security. They have are to become the planning process. They have already begun the planning process. We will be repaired to make sure the legal issues get resolved. [inaudible] president obama keep in mind we are not going to disregard the federal court ruling. The law is the law in this country and we take things one step at a time. We will not be taking applications in until this case is settled. But we are doing the preparatory work because this is a place of business. Is important for us to do in order for us to actually secure our borders and allocate limited resources to the most important tasks and functions that the department of Homeland Security has. We should not be telling in some be tearing some mom away from her child when the child has been born here in the mom has been living here for the last 10 years, minding her own business and being an important part of the community. We should be focusing on stopping people at the border and refocusing our effectiveness there and going after criminals and felons who are in our midst who we can deport. Strengthen our systems for Legal Immigration freedom Legal Immigration. Those are things we could be going through with a comprehensive Immigration Reform bill and we know there has been in the past bipartisan support for that. As i said before, i am not willing to stand by and do nothing but engage in a lot of political rhetoric. I am interested in actually solving problems. I would like to see Congress Take that same approach. In the meantime, the department of Homeland Security will continue with the planning because we want to make sure that as soon as these legal issues get resolved, which i anticipate will in our favor that we are ready to go. , thank you very much, everybody. [reporters shouting questions] thank you. President obama and Homeland Security secretary jeh johnson will speak wednesday on the white house summit am combating violent extremism. We will have been a 2 45 p. M. Eastern here on cspan. Later, white house Cyber Security coordinator michael dangles on and for Michael Daniels on information sharing. That will start at 3 00 p. M. Eastern on cspan 2. The cspan cities tour takes book tv in American History tv on the road, traveling to u. S. Cities to learn about their history and literary life. This weekend we have partnered with Time Warner Cable for a visit to greensboro, north carolina. After months and months of cleaning the house, Charles Halpern was making one more walkthrough. In the attic he saw an envelope with a gray seal on it. He walked over and noticed it was in 1832 document. He removed a single mail from a panel in and upstairs attic room and discovered a trunk and books and poetry stuffed under the eaves. This was this treasure of Dolly Madisons things. We have had this story available to the public. We display different items from time to time, but trying to include her life story from her birth in Guilford County to her death in 1849. Some of the items he currently have on display, a carved ivory calling card case that has a card enclosed with dollys signature, her name is anna, a small cut glass perfume bottle and a pair of silk slippers that have tiny ribbons that tie across the arch of her foot. The two dresses are the reproductions of a peach silk down that she wore early in life and a red velvet down which lasted and was part of this collection and there also is a legend that now companies this dress. Watch oliver events from greensboro saturday at noon eastern on cspan 2 and sunday on American History tv on cspan 3. Now, a discussion on government policy and the effect on the internet. Harvards institute of politics posted a discussion with representatives from google, yahoo facebook, trip advisor, ebay, and government officials. This is 90 minutes. Good morning. I feel like we should vote on something, but were not going to do that. My name is jonathan and on behalf of the Robert Kennedys school of politics and the internet association, im delighted to welcome everybody here and in the virtual world. We are live streaming. At least as far as i know. I would give you the url, but if youre on the lifestream, you party know it. If youre here, you dont need it. We are also being recorded for posterity. Our good friends and neighbors at cspan will be putting this up against the friday night battle between the house of representatives subcommittee on Veterans Affairs and a briefing at the treasury department. I think we are looking pretty good. Be aware. We are broadcasting. We are in the penthouse on the fifth floor of the kennedy school. The school is named after john f. Kennedy. The institute of politics here has been from the start designed to inspire and support the political aspirations and Public Service of young people, something president kennedy was wellknown for. Who can forget his speech . App not what you can do for yourself but app what you can do for your country. How far seeing it was to see the role of coding and the App Ecosystem for the future of the country in the world. We will unfold as two panels. I will be moderating the first one on will the government break the internet . The answer to any question in a headline is no, but we will have to investigate. Then we will have a second Panel Moderated on why internet policy matters. This is a rare and special opportunity to gather the Amazing Group of people we have around the table today. We hope in our limited time to make the most of it. Before we start the first panel, i am pleased to turn the mic over to Michael Beckerman from the internet association. Michael. Thank you. Thanks to the Harvard Institute of politics for partnering with us. We are going to ask the question will the government break the internet . I agree with you. I hope the answer is, no. The policy issues were going to talk about today, interim governance, Net Neutrality these are important to the future of the internet and the Internet Users and companies around the world. These are important issues that voters care about, were looking forward to a great conversation. Thank you for taking the time to moderate. Pleasure. I am going to take off the introducers have to put on the moderators hat. Im going to get into the middle of the well. [laughter] this is where we need to jeopardy music or something. Lets see if this will work. All right. Hello, everybody. As you may have noticed, i have called this panel. This is a roundtable that has right angles. If i do my calculations right with approximately 25 people on the panel and roughly 85 minutes to do it these introductions would not be done before the time is done. We have a special configuration. I want to use this to our advantage rather than our disadvantage. This is how i suggest we do it. To bear in mind and adopt the ideal as we proceed, we are speaking for posterity. Dont forget that cspan is recording this. Imagine that 20 years from now when people have a jet packs and swedish philosophers Nick Bostroms ai has taken over. Spoiler alert, it doesnt look good for us. They will be looking back nostalgically at 2014. Maybe the names of the companies will have changed. Maybe the configuration of the network will have changed. I urge us as we discussed to think about what we would be saying to somebody in the future about the issues we are facing now. I think that will keep us at the right level of importance for what we want to say and it gives you license to explain a little bit the issue that among many people here dealing with governments all the time on this , who may represent government we have shorthands for all sorts of things. Two unpack those shorthands so that there is a little bit of a translation for others, i think it would be quiet good. That also means that since we are not doing introductions around the table, when you first speak up, feel free to introduce yourself and do an extra beat. Dont just say, i am from ebay say as you may remember as. As or maybe not. Technically, it was echo bay. We have already learned something today. [laughter] an extra beat on the introduction. The one other guideline i would give is often and especially in government affairs, our points are usually three in number. I like to adjust that to one. [laughter] give or take. How about just one thing with an elaboration and we can keep the conversation flowing rather than and there being three different reasons. That will make it harder to follow. Sound good . Yes . As michael hinted, we have a mclaughlin groupesque set of issues. How is that for dating the panel . I wont keep them hidden. We will talk about liability and surveillance public and private, and Net Neutrality, this is in the news recently. Finally, that governance. The thicket from which there is no return. We want to touch and integrate on all of them. I want to think a little bit about the category of socalled intermediary liability. Which i understand to mean that governments regulate people, but at other times, they realize dont regulate people, regulate any institution in between the government and the people and put mandates there and then you can still effectuate regulation in a more subtle and powerful way. We see examples of that in Copyright Infringement defamation. As the internet has grown in the american context, weve seen some balance struck, good or bad in what the government may , require of intermediaries. One example is coming from europe with a newly recognized right to be forgotten. Adam, where are you . Here. I dont know why it occurred to me that adam should be asked first to weigh in on the right to be forgotten. Tell us what company you are from and how it is going . I am adam and i lead googles u. S. Public policy efforts. Google is a Search Engine company was a Search Engine company that did a lot of great things. [laughter] humble. The right to be forgotten is an interesting issue that a lot of us in the u. S. Look at the ruling of this European Court of justice and think this is outside the bounds and not something that would gain traction here due to our First Amendment and strong intermediary liability principles. I think its important to acknowledge some of the feelings that motivate the desire for a right to be forgotten. The fact is there is more information about all of us online than ever before. That is true. A lot of the search costs for finding information that used to be hard to find have been obliterated. It used to be you could find a criminal record in the basement of city hall. The internet has obliterated that. In a lot of positive ways. The fact is that people are concerned about the impact. What concerns me about the right to be forgotten is it has not been balanced with some of the other competing values such as the values of Free Expression and the benefit of the consumers right to know, particularly about things like whether a vendor has had bad reviews against them, whether a potential babysitter has had criminal offenses. These are things that people could request to be removed from search results and i think thats very anticonsumerist. Adam, does this represent a shift in thinking with google from a stance that used to say we index the internet. If you have a problem with that, please consult the internet. Right. To a stance that says, there are a lot of tricky things that need to be balance, and may have quibbles with a privately activated process where a person comes to google, gets a form, and maybe a link goes down between a person and the information. This is a new reality. Thats right. The reality is and why the court case in europe has been heavily dissected is it hinges on whether google is a Data Processor, which the court ruled it is, or a newspaper or journalistic organization. We are showing some prioritization, which we are. That is the value of search results. The reality is that googles search results do both. They believe that these results are more important to the user than others. Last question. On the mechanics of it, how is it going . Give us a sense of the flow coming after the opinion came down. Are there plans to open it up voluntarily to other citizens, because i have a small list in my pocket we have received 100,000 requests. We have a backlog of requests. We have to go through these one by one. Are their jobs posted for google right to be forgotten processors . There arent, as far as im aware. Unfortunately some of the cases , we have seen have been former politicians asking to have news of their criminal convictions removed. In our view, these are not in the public interest. One of the things we are monitoring is there is some interest on the part of regulators and policymakers in parts of latin america and asia, looking at that and saying, is this something we should consider. So far, you are limiting this right to where it is required of you to implement. Only to european citizens and only within our european domain. Only in localized portals. That does mean that if i am in britain and i am alert enough to say i can perform a search in england. And that has been an area of contention. I can imagine. Are there other companies at the table that are watching this very closely . If youre not a Search Engine is right to be forgotten implicating what you do, either now or in the future . Its remarkably quiet. Is this a google and Search Engine specific thing . Wow. Brad . I thought i saw a hand go up . No you didnt. , fair enough. Brad young. I am a senior counsel at trip advisor. We were once the Worlds Largest travel site. That point in time is now. It will be disingenuous to say were not watching with interest how this unfolds. We have looked at the European Court justice decision and we have seen how google has reacted to it. There is also a proposed directive before the eu that we dont know whether it will be enacted or not. We dont know what form it will take. And if it is, how they each country will implement that directive. In our view and speaking just for trip advisor, the decision raises more questions than it answers. Who is the Data Processor . Who falls into the exception . What is a relevant and who decides that . Should google not allow the intervention . Matters of public interest. Right. Where is that line drawn . A politician is one thing. A b b owner providing poor service to paying customers where does that fall in the line , it . I think there are a lot of open questions. Adam was saying its 2014. Its not as simple as let the internet deal with it. There are lots of equities to be balanced. There is plenty to quibble with. This is the new reality. Is there a similar thing going in that class of sites like trip advisor that solicit reviews and other information from people that might make institutions it might make or break a hotel if it gets a certain ranking or review. Is it your view that this generally gets sorted out in trip advisors commitment to its users will have the right things happen . Are there ways in which this could go awry . I think each individual platform has the algorithm, the rules and ethos that users come , to expect. Those are always evolving. I dont know at what point in time that you want the government determining whats irrelevant. Take them down. We got rid of the cockroaches. The prior owners are in jail. Trip advisor, though should all be cleansed. How would i do that through a contact form . At trip advisor, there are situations where we will remove a large amount of reviews. Change of ownership is the most common one. Major renovations, you just put on three new wings and hired new management. It will be a different experience for the consumer. There are judgments. Are those judgments made according to your conscience and what makes for a Good Business . Or is there a shadow of Government Intervention should you do that wrong . Not at all. I know that your lawyer is at the table. He is sitting right here. [laughter] those are made for what is best for the community. The larger the volume, the more experiences you are able to offer up to someone who is trying to figure out what to expect when they take time off and spend their hardearned money and take their kids somewhere, the quantity is very helpful. We have determined that there are certain things that are irrelevant. Maybe they should be forgotten. In certain situations, you put new linens on your beds, we are going to leave all the reviews up about the restaurant downstairs. That does not everything. Anything else on the right to be forgotten before we move along . I cant tell its because its uncontroversial or because its totally controversial. [applause] i just want to add one thing. This wont go away as an issue. Yes. The debate about the european protections will be the next arena where this takes place. We have precedent under the fair credit reporting act where we say that information should be used like bankruptcy or foreclosure, negative financial information, but it cant be used to get somebody past 10 years. Weve made a judgment through legislation in this country that type of information has an expiration date. If it is in the hands of a big credit reporting firm. Right. We acknowledge that there is value in the meantime. We dont want it to be held against a person forever. We will have to weigh a lot of these things legislatively about how we feel a persons history ought to follow them prefer that for certain types of information. We require sex offenders to register forever. If you look at france, they believe any crime should be expunged from your record once you have done your time. They want people to have a clean slate. We will have to make these judgments legislatively. Its easier when the information is in the hands of the government deciding when and how to release it. Once its in the Public Domain its much harder to effectuate putting the genie back in the bottle. Your prediction, five to 10 years from now, will there be an american right to be forgotten recognize legislatively or as a matter of Customer Service . I dont think there will be a right to be forgotten on the same scale. It will be miniature laws and other steps taken to it dress address certain types of information. Are some of the accordance is with american law, before the modern web and many of the companies here were up and running, are those holding up well . I think i have in mind defamation and other state law claims that might involve an intermediary, those tend to be off the table through the Communications Decency act. We see section 512 of the copyright act which encourages and immunizes intermediaries in many circumstances against Copyright Infringement claims, even if the site is the way in which the infringement is happening, so long as they take things down when asked. Is that holding up well . Is there any ask anyone at this table would have to tweak that in america one way or the other . This is the most wonderfully [laughter] todd, tell us where youre from. I am with ebay. We do payments through paypal and we have a Small Company called a stub hub for ticket sales. It goes to your point, jonathan, about the Communications Decency act and whether the government will break the internet. If you look at section 230, we would have said today that the internet had been broken. The irony of section 230 is a law meant to limit speech on the web ended up being one of the greatest proponents. Part of this is the government acting in ways that doesnt come out the way they expected it to come out. I do the two did get anywhere close to passing