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ArchivesAD.C. Appeals Court Says RIAA Subpoenas for File-Swapper Identities IllegalAuthored by Mark Hefflinger on December 19, 2003 - 4:40am.
Washington -- In a major setback for the recording industry's legal campaign against music file-swappers, the U.S. Court of Appeals for the District of Columbia has ruled that the streamlined subpoena process currently being used to compel alleged file-swappers' Internet service providers to reveal their identities is illegal. The Recording Industry Association of America (RIAA) has filed thousands of such subpoenas with a number of ISPs -- including Verizon -- which sued the RIAA saying the subpoenas violated their users' privacy. A lower court agreed with the RIAA's argument that the subpoena process, which doesn't require a judge's approval, was justified under the Digital Millennium Copyright Act. The appeals court ruling will mean that the RIAA now must file a more cumbersome "John Doe" lawsuit against alleged file-swappers to get their identity from an ISP. "We are not unsympathetic either to the RIAA's concern regarding the widespread infringement of its members' copyrights, or to the need for legal tools to protect those rights," the court wrote in its ruling. "It is not the province of the courts, however, to rewrite [copyright law] in order to make it fit a new and unforeseen Internet architecture, no matter how damaging that development has been to the music industry." At this point, it is unclear what effect if any the ruling will have on the hundreds of lawsuits that the RIAA has already filed -- and in some cases reached settlement agreements -- against individual file-swappers using the now illegal subpoena process. "Today's ruling is an important victory for Internet users and all consumers," said Verizon vice president and associate general counsel Sarah Deutsch. "Copyright holders seeking personal information about Internet subscribers will now have to file a traditional lawsuit. These requests will undergo scrutiny by a judge, thus preserving the privacy, safety and legal rights of every Internet subscriber."
RealNetworks Files $1 Billion Antitrust Suit Against MicrosoftAuthored by Mark Hefflinger on December 19, 2003 - 4:39am.
Seattle -- RealNetworks announced late on Thursday that it has filed a $1 billion antitrust lawsuit against Microsoft, alleging the company illegally used its monopoly power to restrict competition, limit consumer choice and attempt to monopolize the growing field of digital media. In its suit, RealNetworks says Microsoft used its influence to "restrict how PC makers install competing media players while forcing every Windows user to take Microsoft's media player, whether they want it or not." By tying its Windows Media Player into its Windows operating system, which comes pre-installed on the majority of the world's PCs, the company has been able to achieve near universal distribution for the Media Player, while using its influence to pressure PC makers and others to ignore its competitors. "While we much prefer competing in the market -- as we are doing and have done for 9 years -- our Board has made a carefully considered business decision to take this action to end Microsoft's illegal conduct and recover substantial damages on behalf of our shareholders," said RealNetworks chairman and CEO Rob Glaser. In addition to an estimated $1 billion in damages, RealNetworks will seek an injunction to prevent Microsoft from further anti-competitive behavior. The company also said it will cooperate with the European Commission's ongoing antitrust investigation of Microsoft. In a statement, Microsoft called RealNetworks' lawsuit "a case where a leading firm is seeking to use the antitrust laws to protect and increase its marketplace share and to limit the competition it must face." http://biz.yahoo.com/prnews/031218/sfth074_1.html http://biz.yahoo.com/prnews/031218/sfth095_1.html
Dutch Supreme Court Rules Kazaa File-Sharing Software Is LegalAuthored by Mark Hefflinger on December 19, 2003 - 4:38am.
Amsterdam -- The Netherlands' Supreme Court on Friday upheld a lower court's ruling that said the Kazaa file-sharing application is legal and may be freely distributed on the Internet. Dutch music copyright agency Buma Sterma brought the legal action against Kazaa founders Niklas Zennstrom and Janus Friis, who called the ruling in their favor, "an historic victory for the evolution of the Internet and for consumers." Although the court's ruling does not address individuals who use the file-sharing network, it does absolve the developers of the software that individuals use. Little surprise, the International Federation of the Phonographic Industry (IFPI), which has waged an all-out war on file-sharing networks, attacked the ruling, saying that it was one-sided and flawed. It also vowed to continue its legal battle in other countries.
Wal-Mart Launches Test of $0.88 Digital Music Download StoreAuthored by Mark Hefflinger on December 19, 2003 - 4:37am.
Bentonville, Ark. -- Retail giant Wal-Mart has launched a test version of a digital music download store on its website, which will undercut the current $0.99 industry pricing standard by offering individual tracks for $0.88 each. The company said the service was developed with Anderson Merchandisers, which supplies music to Wal-Mart and Walmart.com, and will feature "hundreds of thousands" of songs provided by Liquid Digital Media (formerly Liquid Audio), a provider of digital media fulfillment services acquired by Anderson in January. Tracks on the Walmart.com service will be available to PC users in Windows Media Audio (WMA) format, and will be burnable to CD and transferable to compatible portable devices. "With 64 percent of our customers online, we see digital music downloads as a natural extension of the music selection offered in Wal-Mart stores," said Kevin Swint, Walmart.com's senior category manager of entertainment media. http://biz.yahoo.com/rc/031218/retail_walmart_music_update_1.html http://www.liquidaudio.com
Game Publisher Take-Two May Face SEC Lawsuit Over AccountingAuthored by Mark Hefflinger on December 19, 2003 - 4:36am.
New York -- Video game publisher Take-Two Interactive has announced that it received notice the U.S. Securities and Exchange Commission (SEC) may file civil charges against the company related to its accounting practices. The lawsuit would seek an injunction and monetary damages against the company, alleging violations of certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC's staff informed Take-Two through a Wells Notice of its intention to recommend that the SEC file charges. The company said it has "initiated discussions" with the SEC on the matter. Separately, New York-based Take-Two said that it will close its Gotham Games publishing label. The company's Gathering label will take over publishing duties for all of its mid-priced and premium priced products on the PC, console and handheld platforms not published by its Rockstar Games label.
Web Search Advertising Firm Kanoodle Raises FundsAuthored by Mark Hefflinger on December 19, 2003 - 4:28am.
San Francisco -- Kanoodle, a provider of Internet search advertising, announced that it has raised an undisclosed amount in its first round of funding from Insight Venture Partners. The company also said that it hired a number of key executives from Sprinks, a Web search ad firm recently acquired by Google. San Francisco-based Kanoodle provides a commerce-oriented search engine for consumers, whose search results are populated by companies that have bid for placement on Kanoodle. The company said it will use the funds to launch a new business serving ads based on Internet content, and to expand its existing keyword advertising service.
AOL Enables Members to Purchase Songs from Apple iTunes Download StoreAuthored by Mark Hefflinger on December 19, 2003 - 4:27am.
Dulles, Va. -- America Online has announced that it has partnered with Apple Computer to allow its members to purchase song downloads from its AOL Music service through Apple's iTunes Digital Music Store. A button will be placed next to songs available on AOL's streaming music stations, which will automatically launch Apple's iTunes so that users may preview and purchase the songs as $0.99 downloads. AOL also said that it will release tracks recorded as part of its Sessions@AOL and Broadband Rocks programs -- from artists including 50 Cent, R.E.M. and Iggy Pop -- for sale through the iTunes Music Store. http://media.aoltimewarner.com/media/press_view.cfm?release_num=55253685 http://www.apple.com/itunes/store
Adobe Launches Its Own Online Store for E-BooksAuthored by Mark Hefflinger on December 18, 2003 - 4:45am.
San Jose, Calif. -- In a surprise boost for the struggling e-book industry, Adobe Systems, a developer of desktop and Web publishing, has launched its own online store for e-books. The company partnered with Cleveland-based e-library creator OverDrive to develop the Adobe Digital Media Store, which will sell e-books as well as digital magazines and newspapers, maps and other documents in Adobe's proprietary PDF format. The store will also be accessible through direct purchase links embedded in Adobe's Reader and Acrobat 6.0 applications. Available titles will come from existing OverDrive partners including HarperCollins, Simon & Schuster, Random House, Time Warner, John Wiley and McGraw-Hill, as well as many independent authors and small publishers. The decision by Adobe to become an e-book retailer comes three months after Barnes & Noble decided to stop selling titles in e-book format due to sluggish sales.
Netflix Ups 2003 Subscriber Projections; Shares Jump 13%Authored by Mark Hefflinger on December 18, 2003 - 4:44am.
Los Gatos, Calif. -- Online DVD rental service Netflix on Wednesday raised its guidance for the number of subscribers it expects to count by the end of the year from between 1,425,000 to 1,475,000, to between 1,470,000 and 1,495,000. The company now also expects revenue of $80 million to $82 million, up from its earlier projection of from $77 million to $81 million. Shares of Los Gatos, Calif.-based Neflix leapt nearly 13% Wednesday on the news.
Unsigned Pearl Jam to Release New Single on Amazon.comAuthored by Mark Hefflinger on December 18, 2003 - 4:43am.
Seattle -- Rock band Pearl Jam announced that it will release its new single, "Man of the Hour," through online retailer Amazon.com's Advantage for Music service, which provides worldwide distribution and order fulfillment to independent musicians and labels. "Pearl Jam is exploring a number of different ways to get music directly to its fans, following the recent fulfillment of its contract with Epic Records, with whom the band has not yet decided to resign," said Kelly Curtis, Pearl Jam's manager. "We have the opportunity right now to test the waters with a variety of progressive companies that are working to expand options for music fans and artists alike." Amazon said that since launching in 1995, tens of thousands of independent artists have enrolled in its Advantage for Music service. Pearl Jam's CD single for "Man of the Hour," written for Tim Burton's film "Big Fish," will sell for $5 on Amazon.com.
Warner Sues DVD Copying Firm 321 Under New Euro Copyright DirectiveAuthored by Mark Hefflinger on December 18, 2003 - 4:42am.
London -- The movie industry last week redoubled its legal campaign against 321 Studios, a distributor of software that lets users make exact backup copies of DVDs, when Warner Home Video U.K. sued the company for copyright infringement under the recently-enacted European Union Copyright Directive (EUCD), U.K. news site TheRegister reported. Unlike the previous suit Warner filed against 321 under a different statute, this action falls under a new law similar to the U.S. Digital Millennium Copyright Act, which makes it a crime to circumvent the copyright security on devices like DVD players. St. Louis-based 321 Studios also faces a multi-party lawsuit in the U.S. filed by the Motion Picture Association of America (MPAA) and its member studios. For its part, 321 countersued the U.S. studios, asking a court to declare its software a "fair use" of copyrighted materials.
Video Game and Media Distributor Navarre Corp. Raises $12.5 MillionAuthored by Mark Hefflinger on December 18, 2003 - 4:41am.
Minneapolis, Minn. -- Navarre Corporation, a distributor and publisher of media products including video games, PC software, CDs and DVDs, announced that it has raised $12.5 million through a private placement of its stock with institutional investors. Minnesota-based Navarre's Encore game publishing unit has released titles including "Fugitive Hunter: War on Terror" for PlayStation 2; the company's other interests include niche DVD and video distributor BCI Eclipse, and an entertainment media division that distributes on behalf of record labels including Equity Music Group. Net proceeds from the transaction will be used for discharging the company's debt to Hilco Capital, and for general working capital needs.
IFPI Vows to Sue Individual File-Swappers in EuropeAuthored by Mark Hefflinger on December 17, 2003 - 4:51am.
Brussels -- The head of the International Federation of the Phonographic Industry (IFPI) on Tuesday issued a warning that his organization plans to file lawsuits against individual file-swappers in Europe. CEO Jay Berman said that the IFPI could begin to send out subpoenas as early as next year. "Lawsuits on a large scale have so far been restricted to the U.S.," he said. "This 'fight back' will almost inevitably have to take place internationally as well." Berman made the announcement during a speech in which he outlined the IFPI's global Internet strategy for next year. The news follows an announcement from the Canadian Record Industry Association, which this week announced that it will file copyright infringement lawsuits against individual Canadian file-swappers beginning early next year.
Report: Video Game Sales Up 7.2% During NovemberAuthored by Mark Hefflinger on December 17, 2003 - 4:51am.
Port Washington, N.Y. -- According to sales data from New York-based NPD Funworld, video game sales rose 7.2% during the month of November, which along with December traditionally account for half of the industry's annual sales. Posting the largest sales increases were game developers Activision (up 46%) and Electronic Arts (up 29%). However, U.S. Bancorp Piper Jaffray analyst Tony Gikas said the 7.2% increase was lower than his earlier projection of 12.5%. NPD data also indicated that sales of Nintendo's GameCube console continued to prosper from a price drop from $149 to $99, as November sales were up 61% over a year ago.
Intel Expected to Introduce Digital TV Chip at CESAuthored by Mark Hefflinger on December 17, 2003 - 4:50am.
New York -- Chipmaker Intel is expected to enter the digital TV market with the introduction of a digital TV chip that will reduce device costs for consumers, The New York Times reported on Wednesday. Currently, traditional consumer electronics firms like Sony and Philips sell digital TVs, but PC firms like Gateway, Dell and H-P are also entering the lucrative market, where models currently sell for between $3,000 and $10,000. Industry analyst Richard Doherty of Envisioneering told The Times that Intel's digital TV chip has the potential to produce "lightweight 50-inch screens only 7 inches thick for about $1,000, perhaps as early as the 2004 holiday season." Intel is expected to announce the new chip at the Consumer Electronics Show (CES), which begins Jan. 8 in Las Vegas.
Report: Set-top Box Sales to Jump 39% to 50.3 Million Units in 2004Authored by Mark Hefflinger on December 17, 2003 - 4:49am.
London -- Sales of digital TV set-top boxes are projected to jump 39% to a record 50.3 million units in 2004, according to research from Massachusetts-based analyst firm Strategy Analytics. This follows a strong year in 2003, with sales rising 28% over 2002's figures and a total of 36 million set-tops will be sold. Currently, set-tops for satellite TV account for 61% of total sales -- a figure that is expected to flop by 2008 when cable TV set-tops will have a 47% market share, and satellite share will fall to 37%. Prices continue to fall at around 12% each year, with the average set-top box now costing just over $200 at retail level. While strong demand for satellite set-tops in the U.S. and Europe were credited with the market's rebound in 2003, to achieve success in 2004 Strategy Analytics says manufacturers must target key growth areas such as satellite in Europe and cable in Asia-Pacific.
Nokia to Send TV Programs to Mobile Phones by 2004Authored by Mark Hefflinger on December 17, 2003 - 4:48am.
Helsinki -- Mobile phone maker Nokia announced this week that it plans to work with Finnish broadcasters and mobile service providers to begin sending commercial TV shows to mobile phones by 2004. The Finnish company, currently the No. 1 handset maker in the world, said that by next fall it would employ the Internet protocol datacast (IPDC) to offer an initial 500 users in the Helsinki region trial TV shows. Nokia Ventures' Timo Teimonen said the pilot program was "a world class example of cooperation between telecommunications and media industry to further research the opportunities of broadcast services to mobile phones."
Survey: 40% of U.S. Households Own DVD Player, 62% Have PCAuthored by Mark Hefflinger on December 17, 2003 - 4:47am.
Alexandria, Va. -- A recent survey on home entertainment behavior found that 40% of U.S. households now own a DVD player, up from 16% in 2001, and that 62% of U.S. households now own a personal computer. The report from the Virginia-based Cable & Telecommunications Association for Marketing (CTAM) also found that 54% of U.S. adults report having surfed the Internet from home in 2003, up from 38% in 1999. CTAM data also indicates that more than one third (38%) of U.S. households have a PC and a television located in the same room, up from 31% in 2000, and that 13% of adults have watched a DVD on their PC.
DG2L Technologies Releases MPEG-4 Digital Cinema SystemAuthored by Mark Hefflinger on December 17, 2003 - 4:45am.
New York -- DG2L Technologies, a developer of digital cinema and other digital media technologies, announced that it has created what it says is the first MPEG-4 based, end-to-end digital cinema distribution and presentation system. New York-based DG2L said that Entertainment Cinema Networks (ECN), a service provider to theatrical distributors of film, will use the DG2L Digital Cinema System to launch its digital film distribution service in India. The company said its digital cinema system incorporates an encryption engine as well as the industry's High Definition Content Protection (HDCP) security technology.
President Bush Signs "Can Spam" Bill into LawAuthored by Mark Hefflinger on December 16, 2003 - 5:04am.
Washington, D.C. -- With unwanted email or "spam" threatening to undermine the Internet's most popular form of communication, President George W. Bush signed a new law on Tuesday imposing stricter fines and jail time for offenders. The so-called "can spam" bill was passed by Congress earlier this month and is one of the most far-reaching efforts to curb the plague of spam, which is generally estimated to account for about one-half of all email messages. The new federal law will nullify various tough anti-spam laws passed by states. Some skeptics of the law say it will do little to improve the situation. "Unfortunately, this law will have no effect on the worst spammers," said Brian Niles, CEO TargetX, an email marketing firm based in Pennsylvania. "Estimates are that 90% of all spam comes from about 200 groups around the world. They operate outside the jurisdiction of the U.S."
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