Lands a Venture Capitalist in court on whether he is illegally keeping the public off the beach. First, a check of your Bloomberg Top headlines. Is helpingle traffic ciscos bottom line. A 5. 5 drop from a year earlier. Increased data usage from smart phones and tablets fueled the demand for networking products as businesses upgraded equipment to accommodate traffic. The New York Times unexpectedly replaced executive editor Jill Abramson after just three years on the job. The Company Named former managing editor dean baquet as her replacement. He is the first africanamerican. Xecutive at the paper said the change should help improve management in the newsroom. Samsung issued a rare public compensate will workers that say they got cancer after working in a semiconductor plant. Dozens of workers say they contracted leukemia and other blood related cancers after being exposed to chemicals that several samsung plans and south korea. However, samsung fell short of technology a connection between the cancers and the chemicals used at its plant. Our lead story of the day. Google is opening its glass doors. After opening sales of google glass to the public for one day last month, the company is now letting anyone by google glass as long as theyre willing to shell out 1500 a pair and while supplies last. They are moving to a more open beta, and it comes as google is making other ventures into hardware. The self driving car is being tested in urban areas. There is the question of what google plans to do with all the Robot Companies it has purchased. Joining me now in new york i actually have a pair of glass of my own. Anyone, anyone can buy them. Why is google doing it this way today . It is not the full on consumer launch that is supposed to happen later this year, but now anyone can buy them. It is part of what they started last month with having it available for just one day. Google is seeking better ambassadors for the product. Up until now, the main people with glass have been marketers, people who basically have a big interest in selfpromotion. Google really wants more regular people, people who wants to lifelog events, get pictures of the kids, share them, help wordofmouth to the product in that way. You are wearing glass. I am wearing glass. It certainly has cool features, but i do not find myself reaching for it all the time. It is like a new habit that has to be developed, and it is not natural. How would you feel about it . I know what you mean. I was wearing glass once and asked someone for the time, and they looked at me you are wearing google class and you do not know the time . There is a habit you need to get into in using the product. Once you do, it does have a lot to offer, particularly when you want to take photos, share them quickly on twitter, facebook. Glass is ideal for that. When other apps come, instagram will probably happen at some point, though nothing has been announced. It will be much more natural. Very quick shareable moments you can capture with glass and share out. After you do them once or twice, it becomes a very why wouldnt i want this on my face . I wonder, though. I had people tell me, i do not think this will ever go mainstream. Will this be for a select group of tech hobbyists, use in the enterprise, or will regular Consumers Want to buy this . Enterprise is a very strong interest in the product. Having the instant access to crucial information in a handsfree environment is sort of a proven thing. That is very helpful for many professions. For the mainstream, google has bigger designs. They wanted to go mainstream. Or the mainstream, i think google needs to do a rethink on the design. , a of the things about glass kind of looks like and im hesitant to even say it a segway on your face. It attracts attention, based on on the way here, two or three people stopped me to ask about it. Polite, but itd is a telegraph you are wearing technology. In subsequent generations, google will want to dial back the ostentatious design. Then you might have something that is mainstream. In its current form, probably not. I have to say, im hesitant to wear these in public. Bryan womack is joining us on the phone from palo alto. Injust took a test drive googles driverless car. Obviously they have been testing the cars for years. I have driven in one of them myself, three years ago. What is it like today . How smooth is the right . It is very smooth. They wanted to show them off in particular to reporters yesterday, because they have really been tackling this issue of getting them to work on surface streets. Not just on freeways, but on surface streets. Navigating the yellow lights, red lights, pedestrians, bicyclists, all those things. When i was in there, he did a pretty good job. It was more gentle than i might have expected. So that is interesting. I remember when i rode in the car three years ago, it was a little bumpy. The breaking was a little abrupt. I mean, would you say this is closer to being ready for prime time . There is good and bad. There was one stop in particular, where it was such a nice, soft stop. It was very well done. Teacher woulded be proud of you. On the flip side, there was a time when it gave a lot of following distance to the car in front of us because of some other issues going on around a railroad track, and most of us would not do that much space. There is a lot of progress here. It is not perfectly analogous to a human driver yet. How does this all add up . Driverless cars, google glass, the Robot Companies. Is google becoming more of a Hardware Company . I should mention before i into the foray into smartphone hardware did not work out so well. I think the hardware is kind of secondary to the Bigger Picture that theyre a page sees. Larry page is a 10x guy. Wants things that will improve your life 10x. Big, ambitious projects. These all reflect that. By the nature, you will be getting into more hardware. Motorola was a competition thing because it had to do a patents and licensing ip, and they did not want to become just a focus on cell phones. That kind of thing will still drive google, hardware will be part of what they do, not the whole picture. One last question for you, brian. I know google is speaking with automakers about self driving cars. Can you give us an update on those discussions . , they were not forthcoming with a lot of details, but they did they say yesterday that they are having talks about Driverless Cars with a lot of manufacturers. This is still a ways off. We were talking about four or horizonsixyear time yesterday. A lot to be talked about and worked through before these is really hit the mainstream. Bryan womack, who covers google for bloomberg news, and pete pachel, thank you both for joining us. She has become the face of justice in silicon valley. Hasral judge lucy koh presided over cases involving the biggest tech titans, but who is she really . That is next on bloomberg west. This is bloomberg west on Bloomberg Television and streaming on your phone, tablet, bloomberg. Com, apple tv, and amazon fire tv. Online advertising and cyberattacks, and what Companies Like google and yahoo should be doing about it. The complexity of Online Ad Networks makes it hard to stop malware attacks. Industry selfregulation has not been enough to ensure security. Megan hughes is with us now. What can you tell us about todays report . The name of the game, the word of the day, malvertising. That is what this report was all about. It points to growth in the newam sites, like york times, major league baseball, San Francisco chronicle, hosting ads with links to malware. That is the big problem. Sometimes not even requiring additional clicks. Right now, the consumer largely pays the price. The report recommends shifting responsibility to the industry. Report released by a subcommittee of the Homeland Security committee. Very interested in cyber attacks. Here is senator mccain they need to know who is on their websites. Hoopseed to know the theyre going through, and who can take advantage of an opening to provide malware. The report concludes that new efforts at selfregulation should be the first step. Selfregulation would be the ideal, but if that doesnt work it also looks at actions by the ftc, by congress. This is coming on the heels of the president ial review that also recommended congressional action. We are hearing the drumbeat for regulation coming from first the white house, now also congress. Is the report blaming the industry for allowing these attacks . It is not blaming them. Saying the industry may be more capable of dealing with this than your average consumer. Mccain specifically pointed to google and yahoo , saying right now they do not have direct control when delivering ads from third parties. He pointed to an attack on yahoo s ad network during christmas that involved using peoples computers to generate bitcoins. The Industry Needs to take more responsibility, not necessarily blaming them for the attacks. This is in advance of a hearing tomorrow on the subject. What are we expecting . How does this parsley out . Hearmorrow we are going to the industry perspective on all of this. We will hear from the chief Information Officer at yahoo , alex stamos. Also the senior files manager at google, george salem. We will also hear from the federal trade commission, and different advertising and self policing groups. Witnesses including big tech, including regulators, and also be selfregulating body. The big question we will be addressing tomorrow, can the industry really police itself and deal with this problem, or does the government need to step in. Ok. Megan hughes, in washington. Thank you. Now, to the woman who could be called the face of justice in silicon valley. Judge lucy koh has overseen some of techs most controversial trials. Suitsing over privacy against google, linkedin, and yahoo , and has overseen the threeyear patent battle between apple and samsung. But who is she . Joe rosenblatt covers u. S. Federal district courts. He joins me now. You have been inside her courtroom many days over the last years. What is it like to be in her courtroom . It is interesting. These trials are sometimes very dull. They go for a great length of time, covering great technical details. Then there comes a time when judge koh issues a ruling or indicates which way shes going to go. And those moments are very interesting. Candid a very kind of way of expressing herself. Tommie about the time she told an attorney that it sounded like she was smoke he was smoking crack . This reflect a lot about lucy koh. She was tired, it was toward the end of the first applesamsung trial. She had the impression lawyers were adding work to her and her staff, adding paperwork for her to get to. And she told him, you got to be smoking crack if you think im going to do this. That is an interesting thing for a judge to say in a courtroom. Not what you would expect. It also reflects something about lucy koh, she speaks her mind. She is in many ways very plainspoken. Shes a brilliant judge, dealing with very sophisticated legal technology, but she speaks about it and addresses it in a very plainspoken way. Are the attorneys quite deferential . They are. That is another interesting point. While many there are many women on both sides of the applesamsung case in very senior positions. The trial lawyers are men. The ones doing closing arguments and opening arguments. There are more men on those women, and it is interesting to see a woman handle those outsized legal lawyer personalities, almost all of them men. They treat her with the utmost respect. They know who they are dealing with. Judge lucy koh, who was appointed by president obama. We are waiting for more from her as the applesamsung case develops. They have both been found to infringe. The biggest, the main objective, what apple in particular has sought in both cases. We are waiting on that ruling. Joe rosenblatt, thanks so much for sharing that great profile today on bloomberg. Com. Thank you. Speaking of samsung, the company has sent out invitations for a healthrelated event later this month. The event says it will be a new conversation around the future of health but does not give any other details. Of bloomberge west. Do you hate Grocery Shopping . Neware in luck, thanks to a startup promising to deliver your groceries in as little as one hour. That is next. We turn now to our wiring the world series. Looking at how technology is changing retail. A batch of companies are angling to disrupt the business of food shopping. We spent the day with an ambitious startup looking to outsource your trip to the local supermarket. He used to be an engineer at amazon. Now he is going head to head with amazons grocery business with his own fresh approach. We do not have our own warehouses. We do not have our own trucks. We do not use fedex and ups. We do that all inhouse. Isthe service, instacart, simple. Customers order, and they get the incoming orders on the smartphones and hustled groceries to you in as little as one hour area today, a shopper is filling an order at the Rainbow Grocery coop. Organic apples, carbonated water, and pretzels. Online grocery delivery is not new. Van waswas what web one of the darlings of the first online bubble. Now it is a punchline. To keep costs low, they rely on independent contractors to pick and deliver orders directly from existing grocery stores. Today the order is heading to a local startup. We use it at work pretty regularly forgetting things for the team, getting different beverages, teas, yogurt. Delivery ranges from about four dollars to 15 if you need your groceries in one hour. Drivers can earn up to 25 an hour depending on the workload. It is a really flexible job. You get to choose your own hours. It is more independent than most jobs. Insta card has raised more than 11 million from bigname venture firms, including sequoia capital. It currently delivers in big cities like San Francisco, new york, and l. A. , but the company has even bigger ambitions. We plan to be in every major city in the United States by the end of this year. Ceo says he sent created the service because he did not have a car and self, and needed a way to get his own groceries delivered. Alibaba could become one of the largest tech ipos in history. We speak to one of the companys First Investors, next. You can watch a streaming a streaming. Lets get you caught up on where stocks traded today. We are seeing a decline across the board that accelerated toward the end of the session. Basically coming off record highs we have seen the previous day. Not any big catalyst triggering that. You are watching bloomberg recover innovation, technology, and the future of business. s first Cloud Data Center opened in hong kong. It comes just after ali baba publicor its u. S. Offering, expected to be one of the largest tech ipos in history. Tookf the First Investors an early bet on alibaba in 2002. Its managing partner, jeff richards, joins me in the studio. What was it in 2002 that you saw in ali baba . Was it jack ma who said personally, you should make a bet on us . Jack had a relationship with one of our founders. It was less than a 20 million revenue company, but he had a very good vision of what he wanted to create. If you read the prospectus, they have a 100year vision for the company. A great entrepreneur, jack and his team. It has not been smooth sailing. He took the company public, it did not work out, he made it private again, and they are bringing it out again. Are those bumps in the road behind them . Every entrepreneur has cycles. They went public. Now you you have the Ali Baba Group going public, and that is a much bigger, broader story that alibaba. Com. It did have a 10 billion market cap. It was a successful company. They brought it back in, and now the group is going public. Bumps in the road made them stronger, and they are a much bigger company. The filing does not write down how each of the businesses are doing. Overall sales and net income are strong, but we do not know how individual components are doing. Growth could be slowing down at one of the other. They do not break it out. A lot of companies do not break out underlying subsidiaries. Both are very successful forms. Platforms. It is a large, successful platform. Alibaba has 60 of the ecommerce market in china, which is now the Worlds Largest ecommerce market. It is an ecommerce market that is growing. Mobile commerce, mobile payments are growing. When investors get excited about the ipo, theyre looking at the sum of parts and not as concerned about underlying divisions. Just betting on the strength of the brand, the management team, the overall opportunity in china and the rest of the world. How much are they concerned with going global . How much do they really want to go global, move beyond china, expand to the United States . Every Company Wants to be a global company. They certainly have the resources. China is the Worlds Largest ecommerce market, so the primary focus is in china, but recently they made investments in the u. S. And other parts of the world. Part of a longterm plan for alibaba, just like other chinese companies. They have made a number of Strategic Investments and acquisitions around the world and in the United States. How likely are they to succeed in the u. S. Market . U. S. Companies, on the flipside, have not succeeded in breaking into china. We have invested with them in a number of opportunities, so we think they are making the right approach with local partners. Betting on companies that are reinventing categories with logistics and payments and search. So i think a High Percentage chance of success, given the resources of the brand and the strength of the team. Alibaba has one of the greatest management teams in tech. Baidu,e amazon, google, iconic leaders of the Tech Community they have a fantastic. Management community. You just raise your