LexisNexis Sues Data Mining Wizard
April 6, 2009
LexisNexis is a unit of Reed Elsevier, the Anglo Dutch professional publishing outfit. In case you have been in a more remote area than Harrod’s Creek, you know that professional publishing companies, like their newspaper counterparts, are not in tall cotton. Publishing and its 16th century business model are out of step with the iPod equipped trophy generation cohorts. In short, there’s financial trouble in what once was a cash carnival.
I found the article “LexisNexis Sues Data-Mining Pioneer Henry Asher” here quite fascinating. Henry Asher sold a company called Seisint Technologies to the LexisNexis business mavens. The price? A reasonable pre crash, MBA crazed $775 million.
Flash forward from 2004 to 2009 and the Anglo Dutch giant is allegedly taking legal action against the data mining wizard for violating a non compete agreement which seems to be have been part of the deal terms.
The Law.com write up digs into some details that make lawyers salivate, but the addled goose finds the tidbits tasteless. What the addled goose does find worth pondering are these questions:
- Hasn’t technology in data mining advanced in four or five years? If not, what’s the difference? If it has, why the fuss about old technology?
- Why hasn’t a company with Reed Elsevier’s resources dominated the data mining market? Perhaps implementation and sales ability are an issue so customers want newer methods from those individuals who have been able deliver in the past?
- What’s the benefit to Henry Asher, a pretty savvy innovator, to take actions that would anger a multi billion dollar outfit that seems unable to generate sufficient new revenue to offset losses in the dead tree side of the firm’s business?
I wonder if there is more to this story than a spat over a non compete. I recall a number of conversations about non compete agreements. I am confused about some aspects of such agreements. In a lousy economy, a person must have sufficient latitude to innovate, commercialize, and build a successful business. The entity demanding a non compete probably sees financial trouble ahead and fears the consequences of a wizard who can deliver. Who is right? Who is wrong?
The addled goose will have to wait and see what the legal process spits outs. What this matter tells me is that tension and pressure are increasing at Reed Elsevier. Will some other problem burst to the surface? If I had more interest in the problems of professional publishing, I would poke into it. But in my view, these are ships modeled after the Titantics of the newspaper business. I will watch from the dock, thank you very much.
Stephen Arnold, April 6, 2009
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