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ArchivesVivendi's Universal Music to Buy DreamWorks Records for $100 MillionAuthored by Mark Hefflinger on October 31, 2003 - 9:01am.
New York -- Vivendi's Universal Music Group has reached an agreement in principle to buy DreamWorks Records for about $100 million, Billboard.com reported. The label, founded by the team of Steven Spielberg, Jeffrey Katzenberg and David Geffen, is home to artists including Rufus Wainwright, Eels, Q-Tip and the late Elliott Smith. Under the terms of the agreement, DreamWorks would operate under Jimmy Iovine at Universal's Interscope/Geffen/A&M label group, although it remains unclear whether DreamWorks will retain its identity as a separate label. DreamWorks is also reportedly seeking to sell off its music publishing business for between $200-$300 million.
U.K. Ratifies New Tougher Copyright LawAuthored by Mark Hefflinger on October 31, 2003 - 9:00am.
London -- The Copyright and Related Rights Regulations 2003, a new set of copyright laws that parallel the U.S. Digital Millennium Copyright Act and European Union Copyright Directive, went into effect in the U.K. on Friday. The new legislation was passed by the U.K. Patent Office, which told Reuters that law would not enable the fining or imprisonment of individual users of file-sharing networks -- although civil suits are still a course of action. "This law is aimed at the most dangerous activity: the organized crime gangs with warehouses of pirated materials," patent office spokesman Jeremy Philpott told Reuters. "It is not meant to bring criminal charges to individual downloaders." Along with the U.K., Austria, Denmark, Germany, Greece and Italy have also adopted versions of the EU Copyright Directive; 10 member states have yet to pass their version of the law as mandated by the EU.
SightSound Dispute Over Paid Music Download Patent Goes to TrialAuthored by Mark Hefflinger on October 31, 2003 - 8:59am.
Mount Lebanon, Pa. -- SightSound Technologies, a distributor of downloadable music and movies on behalf of providers like Comedy Central and Destination Films, announced that a federal court has ruled in its favor in a long-running patent dispute with several subsidiaries of German media conglomerate Bertelsmann. SightSound owns a patent the company says covers the process of selling downloadable music and video over the Internet. The company said that the court granted its request for summary judgment, denying one of Bertelsmann's counterclaims. The decision also rejected Bertelsmann's summary judgment motion attacking the validity of SightSound patents. The lawsuit, originally filed in 1998, will now go to a full trial. "We are very pleased with the Court's thorough and well-reasoned opinion and we look forward to taking this case to trial," said lead counsel William Wells of Kenyon & Kenyon.
L.A. Times: MIT Music Service Asked to Remove Universal's SongsAuthored by Mark Hefflinger on October 31, 2003 - 8:58am.
Los Angeles -- A new MIT campus music service, which looked to sidestep added royalty payments by distributing music over the school's analog cable TV network, has had to remove one major label's music, The Los Angeles Times reported. MIT's Library Access to Music Project (LAMP), invented by two students at the university, lets users trade-off playing DJ by choosing songs from 3,500 CDs, provided in digital form by Seattle-based Loudeye Technologies. It was Loudeye which did not have permission to distribute the tracks to MIT, said Universal Music Group, when it asked the school to remove UMG songs from the LAMP service. While MIT said it thought Loudeye had the appropriate licenses, Loudeye said it simply provided MIT with files and the school was then responsible for securing necessary licenses. "It is unfortunate that MIT launched a service in an attempt to avoid paying recording artists, union musicians and record labels. Loudeye recognized that they had no right to deliver Universal's music to the MIT service, and MIT acted responsibly by removing the music," Kelly Mullens, a spokeswoman for Universal Music, told The Times.
Yahoo Drops European Paid Search Partner Espotting for OvertureAuthored by Mark Hefflinger on October 31, 2003 - 8:51am.
London -- Yahoo announced on Friday that it has replaced Espotting Media with Overture Services for the provision of ad-sponsored search links on its sites in the U.K. and other European countries. In a statement, Yahoo said that Overture's search results would be available on Yahoo's sites in the U.K., Ireland, France, Spain, Italy and Germany, effective immediately. Overture already enjoys similar partnerships with Wanadoo, Tiscali and Time Warner's AOL Europe division. Industry experts have expected the move since Yahoo's $1.6-billion acquisition of Overture three weeks ago.
Controversial Online Ad Firm Gator Changes Name to ClariaAuthored by Mark Hefflinger on October 31, 2003 - 8:51am.
Redwood City, Calif. -- Gator, the controversial online advertising firm that has been sued by publishers over its software that imposes competitors' pop-up ads over existing online ads, announced that it has changed its corporate name to Claria. The move comes in part to distance the company from the negative connotations associated with Gator, which will remain as the name for the company's e-wallet software that allows users to store passwords in a single place. The company's other business delivers targeted ads to 38 million subscribers who signed up to receive them as a condition of receiving free software, such as Sharman Networks' popular Kazaa file-sharing application. Claria also provides online research and Web analytics data. "Today, the [Gator] digital wallet is only one component within just one of our company's three business units. We feel that the Claria Corporation name will allow us to better communicate the expanding breadth of offerings that we provide to consumers and advertisers," said Claria CEO Jeff McFadden.
RIAA Sues 80 Additional Alleged File-Sharing Copyright InfringersAuthored by Mark Hefflinger on October 30, 2003 - 9:07am.
Washington -- The Recording Industry Association of America (RIAA) said on Thursday that it has filed copyright infringement lawsuits against 80 more individual users of file-sharing software. The 80 persons were part of a larger group of 204 alleged file-sharers to whom the RIAA sent letters earlier this month, urging them to contact the RIAA and settle the matter or else face litigation. The RIAA said that 124 of these letter recipients settled, and that overall a total of 156 people have agreed to settle file-sharing lawsuits with the group. "We are pleased that our efforts to extend illegal file sharers an additional chance to come clean and work out settlements are proving successful," said RIAA president Cary Sherman. "The fact that the overwhelming majority of those who received the notification letter contacted us and were eager to resolve the claims is another clear signal that the music community's education and enforcement campaign is getting the message out." The RIAA also said that 1,000 people not targeted at all by the group have come forward to apply for amnesty from litigation under its "Clean Slate" program, which includes signing an affidavit saying you have erased downloaded files, destroyed burned CDs containing the tracks, and promise not to use illicit file-sharing programs again.
Activision Buys Remaining 70% Stake in Game Developer Infinity WardAuthored by Mark Hefflinger on October 30, 2003 - 9:07am.
Santa Monica, Calif. -- Video game developer and publisher Activision announced on Thursday that it has exercised its option to purchase the remaining 70% of game developer Infinity Ward it does not already own. Financial terms of the transaction were not disclosed. Santa Monica-based Activision acquired a 30% stake in Encino, Calif.-based Infinity Ward in May 2002. Infinity Ward's staff includes many of the developers responsible for the popular PC title, "Medal of Honor: Allied Assault;" yesterday, the company released "Call of Duty," another military-themed video game. Under the terms, Infinity Ward will become a wholly owned subsidiary of Activision.
Microsoft Launches Xbox Live Service in KoreaAuthored by Mark Hefflinger on October 30, 2003 - 9:05am.
Seoul, South Korea -- Microsoft on Thursday launched its Xbox Live online gaming service in Korea, arguably the top market for online gaming in the world and the country in which broadband penetration is most prevalent. The company is offering a $50 starter kit in Korea that includes a USB headset and a trial subscription for the monthly service. Microsoft has also launched Xbox Live in Japan, Australia, Austria, Denmark, Finland, Ireland, Norway and Switzerland. Microsoft currently claims 500,000 worldwide subscribers to Xbox Live and said it hopes to reach 1 million subscribers by June 2004.
Sohu.com, Disney Partner to Bring Disney Online Content to ChinaAuthored by Mark Hefflinger on October 30, 2003 - 9:05am.
Beijing, China -- Chinese Internet portal Sohu.com announced on Thursday that it has partnered with Walt Disney Internet Group to bring Disney online and wireless content and services to China. The deal follows a trial during which Sohu built the official Chinese website for Disney/Pixar's "Finding Nemo." Under the terms, Sohu.com will provide design, production and hosting services for Disney's Disney.com.cn website. Sohu has also licensed Disney Mobile Short Messaging Services (SMS) and Multimedia Messaging Services (MMS) content for distribution via Disney.com.cn and the Sohu.com portal.
Digital Video Delivery System Firm Harmonic Prices $66.6 Million OfferingAuthored by Mark Hefflinger on October 30, 2003 - 9:02am.
Sunnyvale, Calif. -- Harmonic, a provider of digital video, broadband optical networking and IP delivery systems to cable, satellite, telecom and broadcast network operators, said on Wednesday priced its $66.6 million public offering, agreeing to sell 9 million of its shares at $7.40 each. The company increased the size of the offering after originally filing to sell 7.5 million shares. The company's stock jumped 8% in Wednesday's trading.
Digital Photo Firm Pixology to Raise $17 Million on London ExchangeAuthored by Mark Hefflinger on October 30, 2003 - 9:01am.
Surrey, England -- U.K. digital photography software developer Pixology has announced plans to raise $17 million through a floatation on the London Stock Exchange. The company provides digital imaging software that lets users to print their images at vendors including Jessops and Dixons, and share and manage their photos on the Internet. The company's technology has been licensed by camera makers including Canon, Konica and Nikon. Lord Young of Graffham, former prime minister Margaret Thatcher's trade and industry secretary, owns a 40% stake in and is chairman of Pixology. The company plans to use the new funds for further product development.
Four Exemptions to Anti-Circumvention Clause of Copyright Act AllowedAuthored by Mark Hefflinger on October 29, 2003 - 9:13am.
Washington -- The Librarian of Congress has delivered his triennial ruling of what, if any, exemptions should be made to the portion of the Digital Millennium Copyright Act (DMCA) that prohibits the circumvention of copyright protections on a digital device. Advocates had argued that it should not be illegal to defeat copy-protected CDs, DVD regional coding, or the encryption on DVDs that prevent owners from making back-up copies. However, the Librarian took the recommendations of the Register of Copyrights, and allowed the following exemptions, in which cases copyright protections may be legally defeated: when accessing lists of websites blocked by commercial filters; for programs protected by "dongles" that prevent access due to malfunction or damage and which are obsolete; for computer software or video games for which the original media or hardware is "no longer manufactured or is no longer reasonably available in the commercial marketplace;" and for encrypted e-books for the purpose of enabling read-aloud software. "Consumers are the real losers in today's ruling, because the Librarian of Congress is ignoring the rights of nearly everyone who has purchased CDs and DVDs," said Electronic Frontier Foundation staff attorney Gwen Hinze.
Napster Re-Launches As Paid Download ServiceAuthored by Mark Hefflinger on October 29, 2003 - 9:13am.
Los Angeles -- Napster, a division of CD and DVD burning software developer Roxio, on Wednesday announced its official re-launch as a paid downloadable music service. The company is hosting a launch party in Los Angeles Wednesday evening at which artists including Ludacris, Interpol, Metric and Dashboard Confessional are slated to perform. The new service will initially offer over 500,000 tracks from all five major labels and many independents, all available for $0.99 each or $9.95 per album. Napster will also regularly offer tracks from live sessions recorded in its Los Angeles studio, having already released tracks from artists including Guided By Voices and MxPx. The company is also offering a $9.95 premium monthly service that includes unlimited online and offline listening, over 40 commercial-free, interactive radio stations and additional community features. Beginning next month, Napster will begin selling $14.85 prepaid download cards at a range of retailers.
Sony, Toshiba Sued by Researchers Over PlayStation 2 ChipAuthored by Mark Hefflinger on October 29, 2003 - 9:12am.
Madison, Wisc. -- A group of researchers in Wisconsin have sued Sony and Toshiba for patent infringement, in a case that concerns the chip used in Sony's PlayStation 2 video game console that Sony co-developed with Toshiba. The Wisconsin Alumni Research Foundation (WARF) sued the companies last week in federal court in Madison. A WARF representative told CNET News.com the patent in question relates to the PlayStation 2's "Emotion Engine," that several companies have already licensed the WARF technology, and that the group hopes the lawsuit "will encourage [Sony and Toshiba] to bargain in good faith."
Universal Pictures to Promote Films Using TiVo Long-Form Ad FormatAuthored by Mark Hefflinger on October 29, 2003 - 9:09am.
San Jose, Calif. -- TiVo, a provider of digital video recorder services, announced on Wednesday that it has signed a multi-film promotional agreement with Universal Pictures. Universal Pictures will promote over 20 films and DVD titles using TiVo Showcases, a promotional platform that allows advertisers to distribute long-form branded content to TiVo subscribers. Universal previously used the format to promote films including "Bruce Almighty," an ad San Jose, Calif.-based TiVo says was viewed by over 65% of its subscribers. The deal will also see TiVo promoted on DVD releases of major Universal films.
Web-Accessible Digital Video Developer LiveWave Raises $4 MillionAuthored by Mark Hefflinger on October 29, 2003 - 9:09am.
Newport, R.I. -- LiveWave, a developer of digital video and camera control systems, announced that it has raised $4 million in its fourth round of venture capital, led by Zero Stage Capital. Rhode Island-based LiveWave has recently added some key government customers including the U.S. Department of Homeland Security, the U.S. Navy and the New York Police Department. The company's technology allows users to view video and control cameras on standard PCs and wireless mobile handheld devices. Its customers also include commercial broadcasters such as Fox Sports, NBC News, Time Warner and Discovery.
Court Sides With FCC: All New Digital TVs to Include Over-the-Air TunerAuthored by Mark Hefflinger on October 28, 2003 - 10:03am.
Washington -- The U.S. Court of Appeals in Washington has upheld an order from the Federal Communications Commission (FCC), which will require consumer electronics firms to include an over-the-air digital TV tuner in all new television sets. The tuners will enable consumers to continue to receive all broadcast signals though the transition to digital television broadcasting. The Consumer Electronics Association (CEA) sued the FCC over the order, which it said the FCC lacked the statutory authority to make, and was not a reasonable request on the industry. "We obviously are disappointed by the DC Circuit Court of Appeals ruling," said CEA CEO Gary Shapiro. "We will be reviewing the full opinion and consulting with our member companies, but of course will be compliant with any final court order." The National Association of Broadcasters, which urged the FCC to mandate over-the-air tuners, called the ruling "a milestone towards completing the DTV transition." "Consumers buying TV sets will know that the receivers they buy will continue to receive all broadcast signals, even as broadcasting changes to digital," said NAB president Edward Fritts.
Sony to Cut 13% of Worldwide Staff, Eliminating 20,000 JobsAuthored by Mark Hefflinger on October 28, 2003 - 10:00am.
Tokyo -- Consumer electronics giant Sony Corp. announced on Thursday that it plans to cut 20,000 jobs, or 13% of its worldwide workforce, over the next three years in an attempt to increase weakening profit margins. Sony said the restructuring, which will cost some $3.09 billion, will save the company $2.8 billion annually. The company, which employs around 154,000 worldwide, did not elaborate on the layoffs other than to say 7,000 jobs will be eliminated in Japan. Sony plans to boost profits by eliminating redundancies in its U.S. electronics and marketing divisions, and promoting collaboration between its developers of home and mobile consumer electronics products.
RealNetworks Claims 250,000 Subscribers for Digital Music ServicesAuthored by Mark Hefflinger on October 28, 2003 - 9:59am.
Seattle -- RealNetworks, a provider of media delivery technologies, announced on Tuesday that it now counts over 250,000 paying customers for its digital music subscription services, which include the Rhapsody on-demand streaming service and RealOne RadioPass Internet radio service. The company said the figure represents a 46% increase in subscribers over the past three months. Seattle-based RealNetworks' Rhapsody service, acquired from Listen.com, offers 400,000 tracks for listening and burning to CD for $9.95 per month.
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