By Paul Jay, CBCNews.ca.

I just sat down for half an hour with Mike Masnick to talk about social media business models and everything from Second Life to Twitter, which I'll be writing in tommorow's CBCnews.ca technology section as a Q&A. But I wanted to mention his reaction to the Wolverine controversy from yesterday's blog post - would Fox's reaction lead to their doom or is there really no such thing as bad publicity?

A little bit of both, he says. On the one hand, there is no denying Fox has gotten its film into the news weeks before it opens, he said. But another resource that is scarce for businesses is reputation, he said, and here is where Fox may come off as being anti-fan.

"They should have come out and said 'look, we know this is out there and we just want you to know it's not the final version, and we know many of you will download it and that's OK - but we think you'd be better off waiting."

"If you look at the case of the Dark Knight, that was one of the most pirated movies of all time, but it was also the biggest moneymaker. Studios need to realize there is no correlation between movie sales and downloads ... unless the film is terrible."

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