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ArchivesWSJ: Red Herring, "New Economy" Magazine Holdout, to Cease PublicationAuthored by Mark Hefflinger on February 28, 2003 - 2:17am.
New York -- The Wall Street Journal reported on Friday that RHC Media, publisher of ten-year-old "new economy" magazine Red Herring, has decided to shutter the publication. A "person familiar with the matter" told The Journal that RHC had unsuccessfully hired a firm to look into selling the magazine, and will now look to sell assets including its subscriber list. The magazine's March issue will be its last. http://biz.yahoo.com/djus/030228/1458000622_1.html
Report: Sony Music Takes 4% Stake in Rival Subscription Service MusicNetAuthored by Mark Hefflinger on February 28, 2003 - 2:16am.
Los Angeles -- Sony Music has taken a 4 percent stake in MusicNet, a digital music subscription service joint venture that competes with its own Pressplay joint venture with Universal Music Group, sources close to the company told Reuters on Friday. MusicNet is a joint venture between AOL, RealNetworks and record labels Warner Music, BMG and EMI that sells music downloads and lets users stream music to their PCs. Sony Music also licensed its songs to MusicNet in November. The U.S. Department of Justice began an ongoing probe into antitrust issues between MusicNet and Pressplay in 2001. The two ventures were formed through negotiations and licensing agreements between the five major record labels, which control the majority of the world's recorded music. http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=2302257
Acquitted DVD-Cracking Code Creator Johansen Faces New TrialAuthored by Mark Hefflinger on February 28, 2003 - 2:15am.
Oslo -- The Norwegian teenager recently acquitted on piracy charges for creating a program that can crack the security technology on DVDs will face a new trial in an appeals court, Reuters reported on Friday. The initial ruling was a blow to the Hollywood studios that urged the original prosecution of nineteen-year-old DeCSS computer code creator Jon Johansen. The studios are also backing the appeal, which objects to the application of the law and the presentation of evidence. "This case is about important principles, and we are very pleased that it will be tried again," Rune Floisbonn, acting chief of the Economic Crime Unit's data department, told Reuters. Several publishers have been successfully prosecuted under the U.S. Digital Millennium Copyright Act for publishing Johansen's code here; Norway has no similar law. http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=2306383
Sega Laying Off 20% of U.S. Staff As Merger Looms With Pinball FirmAuthored by Mark Hefflinger on February 28, 2003 - 2:13am.
Tokyo -- Japanese game developer Sega said on Friday that it will lay off 20 percent of the staff, or 90 employees, at San Francisco-based Sega of America as it looks toward a merger with Japanese pinball game manufacturer Sammy Corp. Several outlets reported that both Electronic Arts and Microsoft may also possibly bid for Sega, but both companies have denied such reports. The unlikely merger between Sega and Sammy is currently scheduled to close in October.
Electronic Arts, Nintendo Win Lion's Share of Video Game AwardsAuthored by Mark Hefflinger on February 28, 2003 - 2:08am.
Las Vegas -- The Academy of Interactive Arts and Sciences (AIAS) on Thursday night presented its annual Interactive Achievement Awards in Las Vegas, where independent game developer Electronic Arts and Japanese gaming giant Nintendo walked away with the lion's share of the awards. Redwood City, Calif.-based Electronic Arts' "Battlefield 1942," developed by Digital Illusions, was named Game of the Year and also won in three other categories; EA took home a record 13 awards. Nintendo's "Animal Crossing" won for Outstanding Achievement in Game Design and in two other categories; Nintendo was honored with a total of seven awards. "These awards are important because they represent the industry's picks of the top video games from an amazing field of innovation and creativity," said Paul Provenzano, president of the Academy of Interactive Arts and Sciences.
Justice Dept. Seizes iSONEWS.com Under DMCA for Illegal "Mod Chip" SalesAuthored by Mark Hefflinger on February 27, 2003 - 2:23am.
Washington -- The U.S. Department of Justice (DOJ) announced that it has "seized" the website www.iSONEWS.com as part of a criminal Digital Millennium Copyright Act (DMCA) prosecution, for its role in the sales of "mod" chips that enable video game systems to play pirated games. Site owner David M. Rocci, 22, of Blacksburg, Va., pleaded guilty in Dec. 2002 to conspiring to import, market and sell mod chips in violation of the DMCA. According to the DOJ, the iSONEWS site had over 100,000 registered users and provided information about copyright infringement and piracy, including up-to-date listings of all of the latest pirated games that were available. "This case is another example of our dedication to enforcing the intellectual property laws of this nation online," said Paul J. McNulty, U.S. Attorney for the Eastern District of Virginia. "Whether you are engaged in conduct like David Rocci or you are purchasing mod chips to play pirated games, you should stop." Rocci is due for sentencing on March 7, and faces a maximum sentence of five years in prison and a $500,000 fine. http://www.usdoj.gov/opa/pr/2003/February/03_crm_118.htm
321 Studios Files Motion Against Movie Studios In DVD Copy Software CaseAuthored by Mark Hefflinger on February 27, 2003 - 2:21am.
St. Louis -- 321 Studios, provider of the controversial DVD X Copy software that has been sued by Hollywood movie studios for facilitating piracy, said on Thursday that it has filed a motion to counter the studios' motion for summary judgment in the case. 321 says its software lets users make perfect copies of DVDs they have purchased as backups. The company initially sued the movie studios in April 2002, and then was countersued under the Digital Millennium Copyright Act by the studios in December 2002. "This is a lawsuit about rights; First Amendment and consumers' fair use rights," said 321 Studios' attorney, Daralyn Durie. Studios that have filed suit against 321 include MGM, TriStar Pictures, Columbia, Time Warner Entertainment, Disney Enterprises, Universal City Studios and Saul Zaentz Company. http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/230585049&ticker=
Butterfly.net, IBM to Run PlayStation 2 Online Gaming "Grid"Authored by Mark Hefflinger on February 27, 2003 - 2:19am.
San Jose, Calif. -- Butterfly.net, a developer of online gaming technology, said on Thursday that it has teamed with IBM to create a first-of-its-kind "computing grid" for the online component of Sony's PlayStation 2. The grid consists of clusters of game servers using common standards that are connected to one another via the Internet; online games created to these open standards will be able to draw resources-on-demand from the Butterfly Grid. Traditionally, online games have segmented players onto separate servers, limiting the number that could interact and halting game play when a server was down. West Virginia-based Butterfly.net and IBM will demonstrate the PS 2 grid at the Game Developers Conference next week in San Jose, Calif.
Infogrames Sells Film/TV Rights for "Driver" Game to German ProducersAuthored by Mark Hefflinger on February 27, 2003 - 2:18am.
New York -- French video game publisher Infogrames said on Thursday that it has optioned the film and television rights to its "Driver" video game franchise to Constantin Film, a German independent production and distribution company. "Driver" has sold 12 million units worldwide, and "Driver 3" is due for release in the fall. Impact Pictures, a subsidiary of Constantin, is slated to begin production in 2003; the film is being developed for Paul W.S. Anderson (Resident Evil) to direct from a screenplay by James DeMonaco, Todd Harthan and James Roday (The Negotiator). Constatin Film's credits also include "The Neverending Story" and "The Name of the Rose." http://biz.yahoo.com/prnews/030226/nyw031_1.html
AOL Launches Music Downloading ServiceAuthored by Mark Hefflinger on February 26, 2003 - 2:28am.
Dulles, Va. -- In the latest bid to get Internet users to pay for downloaded music, Virginia-based America Online said on Wednesday that it has launched a new online music subscription service that will let users legally download, listen to and burn digital music. The service -- called MusicNet -- ranges in price from $3.95 to $17.95 per month, and is available to both broadband and dial-up members. The move is part of AOL's strategy to offer enhanced revenue-producing services to its 25 million members. Subscribers to the service will have access to more than 250,000 songs, with titles from all five major record labels and major independents.
RealNetworks Invests Undisclosed Amount in Listen.comAuthored by Mark Hefflinger on February 26, 2003 - 2:27am.
San Francisco -- Seattle-based RealNetworks, one of the largest providers of digital media software, said on Wednesday that it has made an investment in San Francisco-based Listen.com, an online music company whose Rhapsody service is one of the country's largest online pay-for-music services. The amount of the investment was not disclosed. RealNetworks owns a 40% stake in MusicNet, another online service that competes against Rhapsody. Reuters reported that Listen.com, which recently laid off about 20 employees, is widely viewed as a possible takeover candidate.
Microsoft To Test Peer-to-Peer Applications in Windows XPAuthored by Mark Hefflinger on February 26, 2003 - 2:27am.
Redmond, Wash.-- In a significant development for the peer-to-peer market, Redmond-based Microsoft is testing additions to its Windows XP system designed to make the operating system better tuned to peer-to-peer applications. Microsoft unveiled on Wednesday a test version of its Windows XP Peer-to-Peer Software Development Kit. The programming tools are designed to allow software developers to more easily build peer-to-peer applications for Windows XP. Peer-to-peer applications, which have included Napster and KaZaA, allow individual computer users to share information directly with one another without going through a centralized computer.
SportsLine.com Exits Gaming Information Business, Signs NCAA DealAuthored by Mark Hefflinger on February 26, 2003 - 2:25am.
Fort Lauderdale, Fla. -- Fort Lauderdale-based SportsLine.com, a provider of online sports content, said on Wednesday that it has divested its two gaming information operations -- VegasInsider.com and Las Vegas Sports Consultants. Separately, the company said that it has sublicensed the rights from CBS Sports to offer the official NCAA Championship web site through 2006. As part of the deal with CBS, SportsLine.com will handle site production, hosting and advertising sales for NCAASports.com. The company also will hold exclusive rights to provide Internet broadcasts of certain NCAA championship games including the Division 1 men's basketball championship. http://www.newsalert.com/bin/story?StoryId=CpLXj0bWbrKXxmdeW
LIPSinc Founder Acquires Technology Rights, Launches New BusinessAuthored by Mark Hefflinger on February 26, 2003 - 2:24am.
Research Triangle Park, N.C. -- Donovan Moxey, the founder of the now-defunct LIPSinc, a developer of software for creating interactive animated talking characters, has acquired licensing rights to his previous company's technology and launched a new firm built around the software. LIPSinc shut down last August, after raising more than $11 million from investors including Mellon Ventures Inc. and Flanders Language Valley Fund. While LIPSinc targeted the entertainment and gaming industries, Moxey's new company, called Interactive Multimedia Solutions, is targeting the corporate presentation and multimedia developer markets.
Overture To Acquire Web Search Unit Of Norway's FASTAuthored by Mark Hefflinger on February 25, 2003 - 2:33am.
Pasadena, Calif. -- Overture Services, a provider of pay-for-performance searches for websites, said on Tuesday that it will acquire the Web search unit of Norway-based Fast Search & Transfer (FAST), for $70 million in cash, as well as a performance-based cash incentive payment of up to $30 million over three years. The deal, combined with Overture's previously announced plans to purchase AltaVista, bolsters Overture's position in the commercial search market.
ComScore Increases Some Web Traffic FiguresAuthored by Mark Hefflinger on February 25, 2003 - 2:32am.
San Bruno, Calif. -- ComScore, a provider of Internet measurement services, is reissuing its web measurement figures for the past three months after underestimating the amount of people using the Internet at their places of work in the U.S., the Associated Press reported on Tuesday. The numbers, used for various purposes, including to sell advertising, were reportedly off by several million in some cases, due primarily to a change in how the company estimates workplace Internet usage. Among the most prominent changes, search engine Google will see its December numbers increase 14% to 49 million.
Eidos Adds Insane Clown Posse Songs, Characters to Wrestling GameAuthored by Mark Hefflinger on February 25, 2003 - 2:31am.
San Francisco -- Game developer Eidos Interactive announced on Tuesday that it has signed an agreement with Psychopathic Records, the self-run label of the group Insane Clown Posse, to include songs from the group and other label artists on its upcoming "Backyard Wrestling: Don't Try This At Home" video games. The agreement also includes multiple marketing co-opportunities at ICP concerts and Juggalo Championship Wrestling events, the wrestling franchise also founded by the band. The video games, due for release this summer on PlayStation 2 and Xbox, are based on the "Best of Backyard Wrestling" home video series advertised on television. http://biz.yahoo.com/prnews/030224/sfm102_1.html
OpenTV Gets Nasdaq Delist Notice, Launches iTV Services in TaiwanAuthored by Mark Hefflinger on February 25, 2003 - 2:29am.
Mountain View, Calif. -- OpenTV, a provider of interactive TV software and services, announced on Tuesday that the Nasdaq has notified the company its shares may be delisted from the exchange. Mountain View, Calif.-based OpenTV will appeal the determination, which came as a result of its not having held an annual stockholder meeting in 2002 due to delays with its proposed merger with fellow iTV firm ACTV. Separately, OpenTV announced that it launched interactive TV services with Taiwanese cable TV operator Eastern Multimedia Ltd. The company said its iTV software has been deployed on over 27 million set-top boxes worldwide.
San Jose-Based Bam Entertainment Applies for SmallCap ListingAuthored by Mark Hefflinger on February 25, 2003 - 2:29am.
San Jose, Calif. -- With its stock in danger of being delisted from the Nasdaq National Market, San Jose-based Bam Entertainment, a developer of interactive entertainment software, said on Tuesday that it has applied to transfer its stock to the Nasdaq SmallCap Market. A move to the SmallCap would give the company until at least May 19 to meet the market's listing requirements, including its $1 minimum bid price. Bam's stock price has not been above the $1 mark since last October.
Roxio Hires Napster Founder Shawn Fanning, Will Re-Launch Service In '03Authored by Mark Hefflinger on February 24, 2003 - 2:38am.
Santa Clara, Calif. -- Roxio, the maker of CD and DVD burning software that purchased Napster's assets for $5 million at a bankruptcy auction last November, confirmed on Monday that Napster founder Sean Fanning will be brought on with the company, which plans to launch a licensed, fully-legal version of Napster by the end of the year. Initially, the service will not be based around a peer-to-peer network, the protocol on which the original Napster worked that allowed free-range copying of music files from anyone logged onto the network. "We're looking to put a legal service up by year end," Roxio spokeswoman Kathryn Kelly told CNET News.com. "Our CEO, Chris Gorog, is in talks with all the major labels now." "We won't launch until we've got agreements with all the labels to include a significant proportion of their catalogues," a source at the company told U.K. news site The Guardian. "And we won't just be a subscription service, which asks users to make a commitment of at least $15 a month, but will also sell music on a track by track basis."
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