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Handheld Device Maker Palm Sued Over Wireless Multiplayer Gaming Patent

Authored by Mark Hefflinger on March 31, 2003 - 3:47am.
Milpitas, Calif. -- Handheld device maker Palm has been sued for patent infringement, by a company that claims Palm is infringing by letting users of its PDAs connect wirelessly to one another over a network to play multiplayer games. The broadly worded patent, granted in 1997 to Peer-to-Peer Systems LLC, covers devices "communicating over an ad-hoc, wireless, all-to-all broadcast network." In addition to Palm, Peer-to-Peer Systems has sued Cybiko, a maker of handheld games that can connect wirelessly to one another. A representative from Palm told U.K. news site TheRegister that the company intends to "vigorously contest" the suit. http://www.theregister.co.uk/content/54/30006.html

CBS Drops Gateway Digital Music Ad Over Political "Advocacy"

Authored by Mark Hefflinger on March 31, 2003 - 3:47am.
Boston -- The Boston Globe reported on Monday that the CBS television network has refused to air an ad from PC maker Gateway, which points viewers to a website expressing views on copyright legislation contrary to those held by the network. "We don't accept advocacy advertising and this particular ad fell under that umbrella," CBS spokesman Dana McClintock told The Globe. CBS says the "advocacy" it objects to is presented on a website advertised during the commercial, on which Gateway urges visitors to contact their Congressmen to argue against federal legislation that would put government-mandated copy-protection technology into consumer electronics, such as the CD burners it sells. Major TV networks such as CBS and its parent company Viacom have lobbied in favor of such legislation. Gateway responded by saying that 15 networks, including NBC, Fox, MSNBC and VH1, have agreed to run the ad. http://www.boston.com/dailyglobe2/089/business/CBS_refuses_Gateway _ad_over_Web_address+.shtml

Hacker Gets Linux to Run on Xbox; Lays Claim to $100,000 Prize

Authored by Mark Hefflinger on March 31, 2003 - 3:45am.
San Francisco -- A hacker has successfully been able to enable Linux software to run on an unmodified Microsoft Xbox video game console, making him eligible for a $100,000 prize offered by MP3.com founder and current Lindows CEO Michael Robertson, CNET News.com reported. A group of programmers calling itself the Xbox Linux project organized the challenge, which was met by a hacker using the name "Habibi-Xbox." The hacker discovered a bug in the popular game "007: Agent Under Fire" that allows the Linux operating system to be uploaded onto the Xbox. Microsoft has targeted companies selling "mod chips," or aftermarket devices that allow Linux, or possibly pirated games, to run on Xbox by altering the device's hardware; the contest's winner was successful in finding a way to run Linux on the Xbox without altering any hardware. http://news.com.com/2100-1043-994794.html?tag=cd_mh
tags: Xbox | Hacker | Linux |

In-Room Ad Insertion Provider Hotelevision Raises $15 Million

Authored by Mark Hefflinger on March 31, 2003 - 3:45am.
New York -- Hotelevision, a provider of ad sales for premium products delivered to TVs located in upscale hotel guest rooms, announced that it has raised $15 million in its first round of venture capital financing, led by WS Investment. New York-based Hotelevision has secured agreements with both cable networks and hotels to insert ads for premium products using its own satellite delivery system into cable TV programming delivered to hotel guests. Network partners include Fox News, MSNBC, Starz and The Weather Channel; the company delivers its ads to hotels owned by Hyatt, Omni, Wyndham and others.
tags: VC | Hotelevision | In-Room |

Video Game Developer Sega Forms European Game Publishing Division

Authored by Mark Hefflinger on March 31, 2003 - 3:44am.
London -- Japanese video game developer Sega announced that it will begin publishing its own titles in Europe, forming a new division within Sega Europe to handle the operations. The company will now publish its own titles in the U.K. and France, while continuing to rely on third-party publishers in other regions. The first titles published by Sega Europe will be "Phantasy Star Online" for Xbox, due for release in May. "Sonic Adventure DX: The Director's Cut" for GameCube and "Virtua Fighter 4 Evolution" for PlayStation 2 will be published by Sega Europe in June.
tags: Games | Sega | Video Game | European |

Nasdaq to Delist Shares of Bankrupt Consumer Electronics Firm Sonicblue

Authored by Mark Hefflinger on March 31, 2003 - 3:38am.
Santa Clara, Calif. -- Consumer electronics firm Sonicblue, which makes the ReplayTV line of digital video recorders and Rio line of MP3 players, said on Friday it received notice that the Nasdaq will delist its shares on April 2 as a result of the company's filing for Ch. 11 bankruptcy protection. Santa Clara, Calif.-based Sonicblue said it will not appeal the decision. The company announced last week that it would declare bankruptcy and is seeking to sell off its ReplayTV, Rio and GoVideo businesses. Sonicblue said then it had buyers willing to acquire the assets for a combined $52.5 million.

Google to Provide Search Engine, Sponsored Links on SportsLine.com

Authored by Mark Hefflinger on March 31, 2003 - 3:37am.
Fort Lauderdale, Fla. -- Online sports news site SportsLine.com announced on Monday a multi-year agreement with search engine technology firm Google to integrate the company's search technology and sponsored links on CBS.SportsLine.com. Mountain View, Calif.-based Google competes with Overture Services in the market for pay-for-performance sponsored link advertisements. http://biz.yahoo.com/prnews/030331/flm007_1.html

House Passes Ban on Misleading Porn Domains, "Morphed" Child Porn

Authored by Mark Hefflinger on March 28, 2003 - 3:54am.
Washington -- The House of Representatives has passed a bill that contains an amendment banning the use of misleading domain names that draw children to pornographic websites, as well as computer-generated child pornography. The Child Abduction Prevention Act, which contains the amendment, passed the House on Thursday by a vote of 410-14. The ban on "morphed" child porn follows a similar ban struck down by the Supreme Court last year on First Amendment issues. "At its worst, the Internet can be used to deceive children into viewing inappropriate material," said Rep. Mike Pence (R-Ind.), who introduced the amendment on domain names. "These websites use legitimate-sounding domain names to lure children to sites with sexually explicit material." Those found guilty of registering such domain names would face a penalty of up to 2-4 years in prison.

Arista Records to Release SunnComm Copy-Protected CDs in U.S. Market

Authored by Mark Hefflinger on March 28, 2003 - 3:53am.
San Francisco -- A number of outlets reported on Friday that, according to a research note published by a J.P. Morgan analyst, major label BMG's Arista Records label plans to release copy-protected CDs into the consumer market as early as May. According to the note, Arista will use Phoenix-based SunnComm's CD copy-protection technology. "We expect volume shipments of protected CDs to ship commercially in the U.S. as early as the May-June time frame using the SunnComm solution," wrote J.P. Morgan analyst Sterling Auty, in the note. "This will be the first major step in the growth of the CD audio protection market." SunnComm currently provides copy-protection on Arista's promotional and other CDs released in advance of an album's street date.
tags: U.S | CDs | SunnComm | Arista |

Online Magazine Salon.com Raises $800,000 in New Financing

Authored by Mark Hefflinger on March 28, 2003 - 3:52am.
San Francisco -- Salon Media Group, which operates the struggling Salon.com online magazine, announced on Friday that it has raised $800,000 in new financing, led by existing investors Bill Hambrecht and John Warnock. The site recently began offering its content only through a paid premium subscription, or else to visitors willing to click through an interactive ad in exchange for a "day pass" to the site. San Francisco-based Salon, which also announced that its subscription service has surpassed 60,000 subscribers, said the funds were necessary to continue operations. "We hope this funding gives current and prospective subscribers renewed confidence," said Salon president and CEO Michael O'Donnell. "We also believe this will boost our advertising sales as agencies and clients evaluate major media campaigns to run on Salon."

IBM to Introduce Broadcast Encryption Technology for Home Networks

Authored by Mark Hefflinger on March 28, 2003 - 3:49am.
Southbury, Conn. -- IBM said on Friday it plans to introduce new broadcast encryption technology for home networks at the National Association of Broadcasters (NAB) convention in Las Vegas next month. The technology works by allowing all of the devices within a "home" network to establish common media keys. The unique IDs distinguish each device in the network from other devices, preventing viewing or listening of the content by devices outside the network.

Sirius Satellite Radio Hits Subscriber Target for 2002

Authored by Mark Hefflinger on March 28, 2003 - 3:49am.
New York -- Sirius Satellite Radio, operator of a nationwide satellite-delivered radio service, announced that it met its subscriber target for the year 2002, reporting a total of 29,947 subscribers. The company reported a loss of $134.1 million for 2002, up from $83.6 million last year, and revenues of $685,000. New York-based Sirius, which earlier this month completed a $1.2 billion recapitalization plan, also said that it expects to reach its subscriber goal of 300,000 by the end of 2003.

Bill Would Create "Copyright Judge" to Arbitrate Web Music Royalties

Authored by Mark Hefflinger on March 27, 2003 - 4:00am.
Washington -- A bill has been introduced into Congress that aims to streamline the convoluted process of determining the royalties webcasters should pay artists and record labels for the rights to stream their music over the Internet. Rep. Lamar Smith (R-Texas) says the Copyright Royalty and Distribution Reform Act "will streamline the process and help reduce its unpredictability and inconsistency." The bill would effectively eliminate the oft-criticized CARP (Copyright Arbitration Royalty Panel) proceedings that previously served as the arbitration entity between webcasters and the music industry, as well as take the U.S. Copyright Office out of its role as the final decision maker in the process. Instead, responsibilities for hearing arguments on royalties would be handed over to a new "Copyright Judge," who would have a minimum 10 years of experience as a copyright lawyer. The Copyright Judge would be granted the power to decide both the law and royalty rates. A hearing on the bill scheduled for Thursday was postponed indefinitely.

Music Industry Pamphlets Overseas Schools With Anti-Piracy Messages

Authored by Mark Hefflinger on March 27, 2003 - 3:59am.
Brussels -- An international music industry trade group has begun disseminating anti-piracy pamphlets at colleges and universities in Europe, South America, Asia and Australia, advising them on how to identify and stop copyright theft of music on their computer networks. The International Federation of the Phonographic Industry (IFPI) launched the program -- which will send pamphlets in eight languages to schools in 20 countries -- to try to address the rampant unauthorized file-sharing it says occurs on campus networks worldwide and is a major cause of slumping album sales. "We hope that the launch of this awareness brochure is another positive step towards making sure that all academic institutions know the risks of piracy and the benefits of responsible management of their computer systems," said IFPI chairman and CEO Jay Berman. The Recording Industry Association of America (RIAA) also recently targeted 2,000 U.S. universities and Fortune 1,000 companies with similar anti-piracy information.

AOL to End Free Online Versions of People, Entertainment Weekly

Authored by Mark Hefflinger on March 27, 2003 - 3:57am.
New York -- AOL Time Warner will end its practice of offering free online versions of Time Inc. magazines like People and Entertainment Weekly, instead offering them only to AOL members and those subscribed to the print editions of the titles. Twelve other free sites, including those for InStyle, Parenting and Sports Illustrated for Kids, will also soon be offered exclusively to AOL members. "If the content is really great, we should be getting paid for it," John Squires, an executive vice president at Time Inc., told the Financial Times. "By shutting off free access, we can use the sites as marketing vehicles."

TVGateway Joint Venture Gets New Investment, Management Team

Authored by Mark Hefflinger on March 27, 2003 - 3:55am.
Trevose, Pa. -- TVGateway, a joint venture of cable TV operators and others developing an interactive program guide for advanced cable services, said on Thursday that its backers have provided an additional, undisclosed investment in the company, and that its board has elected a new management team. Television industry veteran Bill McCall was named as CEO; several other new appointments were also announced. Pennsylvania-based TVGateway said that version 2.0 of its interactive program guide will launch in the spring, featuring enhancements to support HDTV, video-on-demand and digital video recording. Members of the joint venture include Adelphia, Charter, Comcast, Cox and WorldGate.

XM Satellite Radio Adds Subscribers, Revenue

Authored by Mark Hefflinger on March 27, 2003 - 3:55am.
Washington, D.C. -- Buoyed by a surge of new subscribers in the fourth quarter, DC-based XM Satellite Radio, the operator of a nationwide subscription satellite radio service, on Thursday reported significantly higher revenue than a year ago, though it still remains far from a profit. For the three months that ended on December 31, XM reported revenue of $9.0 million, compared with $532,00 in the fourth quarter of 2001, thanks to a subscriber base that grew by nearly 146,000 to 347,000. However, the company still reported a net loss of $161 million, up from $149.8 million, though the company said that it remains on track to reach cash-flow breakeven without additional outside funding. http://biz.yahoo.com/prnews/030327/dcth022_1.html

Proposed Law Would Label All Copy-Protected CDs, Other Media

Authored by Mark Hefflinger on March 26, 2003 - 4:07am.
Washington -- A new bill introduced into Congress this week would put labels on all copy-protected media and devices notifying consumers of the limitations placed on their ability to freely make copies of digital media. Sen. Ron Wyden's (D-Ore.) Digital Consumer Right-to-Know Act would place the burden of devising a labeling scheme on the Federal Trade Commission, so that consumers buying CDs, DVDs, software and other digital media and the devices that play them would be informed if technology has been embedded in them that would prevent making back-up copies or personal use copies. "My bill says that if digital content is released in a form that prevents or limits reasonable consumer use, consumers have a right to be told in advance," Wyden said in a statement. The Digital Consumer Right-To-Know Act is expected to be referred to the Senate Commerce Committee, on which Wyden sits.

Movielink Adds Films from Artisan to Video-on-Demand Service

Authored by Mark Hefflinger on March 26, 2003 - 4:07am.
Santa Monica, Calif. -- Movielink, an Internet-based video-on-demand service joint venture between five Hollywood movie studios, announced on Wednesday the first signing of a license agreement from a studio outside its founding members. Artisan Entertainment has licensed movies from its library for delivery on Movielink, with Roman Polanski's "The Ninth Gate" being the first title available for download. Santa Monica, Calif.-based Movielink also announced that it will now offer films in Microsoft Media 9 Series and RealNetworks RealVideo 9 formats. The founding studio members of Movielink, which also provide films for the service are MGM, Paramount, Sony, Universal and Warner Bros. http://www.movielink.com

Telecom Heavyweights Discuss Broadband Entertainment Model

Authored by Mark Hefflinger on March 26, 2003 - 4:06am.
London -- Some of the world's biggest broadband DSL providers and consumer electronics vendors this week announced their aim to create an open, standardized model for broadband interactive entertainment. The group is composed of such well-known telecommunications groups as Alcatel, Belgacom, Philips Consumer Electronics, Bluewin/Swisscom, Telecom Italia, Telefonica, Telekom Austria and Thomson. The group is currently developing a model for the profitable provision of broadband entertainment services for each member.