Forbes has an interesting article about the web 2.0 situation in China.

Forbes: Facebook and Twitter have been blocked here in China since the unrest this year in Xinjiang, and some Chinese Twitter clones are blocked as well. Why is this the case, and do you see the controls loosening up in the near future?

Anti: Web 2.0 Web sites like Facebook and Twitter can offer the public firsthand information, even faster than a government news agency like Xinhua. In fact, the July 5 Urumqi riots news was spreading first on Twitter hours before the first Xinhua English news piece. The Chinese government believes that the situation in Urumqi and other cities would be out of control if they can’t control the information flow. That’s the basic logic behind their decision to block Twitter and other Web 2.0 Web sites.

But this wide-scale blocking costs a lot. Discontentment in cyberspace could lead more common Chinese netizens to try to protest if all of their favorite social networking, photo sharing, video and microblogging services are blocked in the long term. And this crazy-wild blocking also harms the investment environment, which now almost makes China a Web 2.0 hell for investors. So China may loosen up the blocking in some sense.

The political reasons behind this policy are fairly clear given the recent events in Iran. Yet the risks are huge for China’s social media and tech industries as mentioned above. Can China really expect to compete in a world where Americans and others use social media to revolutionize business, news and education? The Chinese run the risk of falling way behind.

This one sounds interesting.

The “limited beta” has become a right of passage for budding Web companies. In the case of Seattle-based Gist.com, an e-mail in-box management service, it’s a business strategy.

Gist launched on Tuesday, concluding an almost two-year period of controlled growth. During that time, thousands of potential users signed up for an invitation and dutifully filled out a survey for potential users. In exchange for the mere chance to be invited to test the service, chief executive T.A. McCann got from users behavioral data, feature ideas and marketing leads–all for free.

The relationship management service scours some 60,000 news sources, 20 million blogs and 600,000 Twitter handles and matches up the information they find to a contact list generated from a user’s e-mail correspondence. The result is that Gist is an advanced Web communication tool that helps you keep tabs on the people and companies that matter most. Some of the company’s success, however, comes from one the Web’s most primitive of communication tools: online forms.

We’ll see how this does, but there’s a clear need for this service, as we all struggle to manage all sorts of online accounts. Anything that can centralize one’s networking strategy is worth trying.

Here’s a strange story.

The founders of Skype are escalating their legal battle with eBay.

Niklas Zennstrom and Janus Friis, who became billionaires after selling Skype to eBay in 2005, filed a copyright lawsuit on Wednesday against Skype in the United States District Court of Northern California. The suit comes a little more than two weeks after eBay announced it would sell most of Skype for $1.9 billion to a consortium of investors led by the private equity firm Silver Lake Partners.

In the court filing, Joltid, a company owned by the Skype founders, claims that eBay violated copyright law by altering and sharing the peer-to-peer source code behind the free Internet calling service. The Skype founders maintained ownership of that source code after selling Skype to eBay in 2005, and licensed it to eBay.

Joltid seeks an injunction and statutory damages, which it says could total more than $75 million a day. The lawsuit also names as defendants Silver Lake Partners and its partners in the buyout, Index Ventures, Andreessen Horowitz and the Canada Pension Plan Investment Board.

Perhaps I’m missing something, but eBay spent $1.9 billion $2.6 billion to acquire Skype, yet somehow structured a deal that permitted the founders to retain the copyright to the source code?!?! This sounds absurd.

UPDATE: BusinessWeek is reporting that the lawsuit might complicate eBay’s proposed sale of Skype. Dumbasses!

Mint.com offers free online tools to manage your money, and it’s been a huge success. Intuit decided to pull the trigger and buy it.

Intuit is buying Mint.com for $170 million in cash, in a deal that gives it control of a startup that had disrupted its dominance in personal money management software with a free online alternative. Intuit, which sells Quicken, and Mint had been in a tight race in the online personal finance market, with both companies claiming more than one million active users of their online products. Last fall, Intuit dropped the $2.99 a month subscription fee that it was charging for Quicken Online, partly in order to better compete with Mint. Intuit says it will now offer both services separately, although it says Mint will be the “primary online personal finance management service” it will offer to consumers.

Both sites make money by referring users to financial services like credit cards. I guess the free service model still works!

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