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RIAA Reaches Settlements With 52 of 261 Sued for Copyright Infringement

Authored by Mark Hefflinger on September 30, 2003 - 9:46am.
Washington -- The Recording Industry Association of America (RIAA) has settled 52 of the 261 lawsuits it filed against users of file-sharing networks for copyright infringement. Defense lawyers familiar with some cases told the Associated Press that settlement payments varied from around $2,500, to up to $10,000 in one instance. "It's a small enough number that it doesn't make economic sense to hire an attorney to litigate these," attorney Daniel N. Ballard, whose firm is representing several of the defendants, told AP. "I'm not surprised that ... people have been intimidated into signing this." The RIAA has said it intends to file "hundreds" more lawsuits against alleged file-swappers, but told a Senate Governmental Affairs subcommittee hearing held by Sen. Norm Coleman (R-Minn.) on Tuesday that it will now send notification letters to the file-swappers whose identities it subpoenas, encouraging settlements before it files a lawsuit.
tags: RIAA | Raise | Infringement | Sued |

ACLU Files to Block RIAA Subpoena for Identity of Boston College Student

Authored by Mark Hefflinger on September 30, 2003 - 9:43am.
Boston -- The American Civil Liberties Union (ACLU) has filed motions in federal court that aim to counter the recording industry's current subpoena and lawsuit campaign against alleged music file-swappers. On Monday, the ACLU and a Boston law firm asked a federal court to quash a recording industry subpoena filed to obtain the identity of a Boston College student from the school, in connection with alleged copyright infringement. The ACLU said in court papers that the provision of the Digital Millennium Copyright Act that allows the streamlined subpoena process currently being used by the RIAA in its anti-piracy legal campaign is "totally lacking in procedural protections," making it "an invitation to mistake and misuse." "We're not saying the recording industry shouldn't go after file sharers, only that they must do so in a way that's fair," said ACLU staff attorney Christopher Hansen.
tags: College | RIAA | Student | Boston | ACLU |

Studios' Indie Film Units Oppose End to Academy "Screener" Copies

Authored by Mark Hefflinger on September 30, 2003 - 9:41am.
Los Angeles -- The Motion Picture Association of America (MPAA), a trade group representing the major Hollywood movie studios, is currently debating a plan to help thwart piracy by ending the long-running practice of distributing "screener" copies of films up for Academy Awards on VHS and DVD to Academy members who vote on the Oscars. Although the studios were reportedly close to ratifying the notion on Monday, the independent film units at these studios and others are against the idea, proposed by MPAA CEO Jack Valenti, IndieWire.com reported. Specialty film companies within the major film studios include Miramax, Sony Pictures Classics, United Artists, Paramount Classics, Fox Searchlight, Focus Features, Warner Independent Pictures, New Line Cinema and Fine Line Features. "Obviously, it's a savage blow to any non-wide release film with Academy aspirations," Magnolia Pictures chief Eamonn Bowles told IndieWire. "If a film is not readily available to Academy voters, it will suffer greatly. Since the complex, higher-quality films are rarely the ones given saturated releases, obviously they'll be the ones hurt the most, regardless of their worthiness."

Microsoft Updates Media Center PC Software; Dell, Sony to Offer PCs

Authored by Mark Hefflinger on September 30, 2003 - 9:39am.
Redmond, Wash. -- Microsoft on Tuesday released its Windows XP Media Center Edition 2004 software, aimed at turning PCs into home entertainment centers, and announced that PC makers Dell and Sony will join existing partners Gateway, HP and Toshiba in creating media center PCs that utilize the software. The company also announced that content providers including Movielink, CinemaNow and the re-launched Napster service will offer customized versions of their services using the software to distribute movies and music online.

Google Buys Personalized Web Search Technology Developer Kaltix

Authored by Mark Hefflinger on September 30, 2003 - 9:37am.
Mountain View, Calif. -- Search engine firm Google announced on Tuesday that it has acquired Kaltix, a Palo Alto, Calif.-based start-up developing personalized and context-sensitive search technologies that make it faster and easier for people to find information on the Web. Financial terms of the deal were not disclosed. "Google and Kaltix share a common commitment to developing innovative search technologies that make finding information faster, easier and more relevant," said Google co-founder and president of products Larry Page. "Kaltix is working on a number of compelling search technologies, and Google is the ideal vehicle for the continued development of these advancements."

Game Developer Bam's Future Murky; Plans $1.78 Million Stock Sale

Authored by Mark Hefflinger on September 30, 2003 - 9:34am.
San Jose, Calif. -- Bam Entertainment, a developer and publisher of video games based on children's TV properties including "Wallace & Gromit," "The Powerpuff Girls" and "Dexter's Laboratory," on Tuesday saw its stock price drop after its auditors gave doubts as to the company's ability to continue operating to due heavy losses and a shortage of cash. Separately, San Jose, Calif.-based Bam said it plans to raise $1.78 million in a private offering of its shares to institutional and accredited investors. The company said it would sell 1,850,000 shares of its common stock at $0.96 per share, and warrants to purchase another 1,665,000 shares with a five-year term exercisable at $1.87 per share.
tags: Games | Raise | Stock Sale | Murky |

Online Game Ad Software Developer Massive Inc. Raises $2.1 Million

Authored by Mark Hefflinger on September 30, 2003 - 9:32am.
New York -- Massive Incorporated, a developer of online video gaming software, announced on Tuesday that it has raised $2.1 million, in a round of venture capital financing led by Tobat Capital and Newlight Associates. The company's software allows video game publishers and developers to create new revenue streams and reduce game development costs by offering in-game advertising for online games developed for the PC, and other online-capable platforms like the Xbox and PlayStation 2. New York-based Massive will use the capital to expand research and development of its ad server that enables real-time rendering of advertisements in online games, and to market its latest game development tool, the Massive Test Box. 
tags: Games | Software | Massive | Raise |

Report: Mobile Phone Users to Surpass 1.75 Billion in 2007

Authored by Mark Hefflinger on September 30, 2003 - 9:27am.
London -- According to a new study conducted by research firm the Yankee Group, there will be more than 1.75 billion mobile-phone users worldwide in 2007. However, (average revenue per user) ARPU will decline sharply over the same time period, the group predicted in its report, entitled "Data ARPUs Save the Day for Wireless Operators." Global subscribers will grow by nearly 9% from 2002 to 2007, while revenue will grow by roughly the same percentage over the same time frame, the report predicted.

America Online Launches New Kids Services

Authored by Mark Hefflinger on September 30, 2003 - 9:23am.

Dulles, Va. -- In another bid to keep and attract subscribers, America Online has launched new services designed exclusively for kids. The company's KOL service is aimed at children aged 6-12, while KOL Jr. is targeted at pre-schoolers and parents. The services, available through AOL's 9.0 Optimized software, allow kids to customize their welcome screen, toolbar and buddy list features with special desktop themes and navigation effects. It features exclusive content from brands such as Cartoon Network, Looney Tunes, Kids' WB, DC Comics, Mary-Kate and Ashley, TIME For Kids and Sports Illustrated For Kids. AOL said that according to its new survey, nearly half (46%) of kids go online at least four times a week and nearly 20% go online every day.
http://biz.yahoo.com/bw/030929/295582_1.html 

"Hulk" Movie Pirate Sentenced to Six Months House Arrest, $7,000 Fine

Authored by Mark Hefflinger on September 29, 2003 - 10:48am.
Universal City, Calif. -- Vivendi Universal Entertainment announced that a federal court in New York has handed down a sentence for a man convicted of felony copyright infringement for uploading an unfinished version of the Universal Studios film "The Hulk" onto file-sharing networks before the film's theatrical release. Judge Gerard E. Lynch sentenced Kerry Gonzalez to six months home confinement and three years probation, and fined him $2,000 and ordered him to pay $5,000 in restitution to Universal. "This sentencing makes clear that there are serious and permanent consequences for those who steal motion pictures," said Motion Picture Association president and CEO Jack Valenti. "This should also puncture the myth that illegal activity on the Internet is 'safe' because it is untraceable."
tags: Movie | Fine | Pirate | Arrestation | Hulk |

Disney Launches MovieBeam Video-on-Demand Service in 3 Cities

Authored by Mark Hefflinger on September 29, 2003 - 10:05am.
Burbank, Calif. -- The Walt Disney Company on Monday announced the launch of its MovieBeam video-on-demand service, which features a Samsung wireless receiver and hard drive that will pull movies into subscribers' homes utilizing unused portions of the broadcast spectrum. The digital rental service will first be tested in Jacksonville, Fla.; Salt Lake City, Utah; and Spokane, Wash., and offer 100 films with 10 new movies swapped in each week. Receivers will be available at retailers including Best Buy, Circuit City and Sears for a $6.99 monthly equipment rental fee, and movies will cost $3.99 for new releases and $2.49 for library titles. Subscribers will also pay a one-time $30 activation fee. Movies will be sent using encryption technology and will include Disney's films and others licensed from studios including Sony, Universal, Warner, MGM and 20th Century Fox.

P2P Trade Group Issues "Code of Conduct" On Privacy, Copyrights

Authored by Mark Hefflinger on September 29, 2003 - 10:03am.
Washington -- P2P United, a trade group made up of file-sharing networks Morpheus, Limewire, Grokster, Blubster, BearShare and eDonkey 2000, on Monday announced a "Code of Conduct" on matters including piracy, pornography and "spyware." The group pledged that it would help law enforcement crack down on child pornography on their networks and do more to inform users of copyright laws, but came short of banning trading of copyrighted music and movies. They also promised to no longer install "spyware" on users' computers without proper consent, and post clear privacy policies on their websites. P2P United also called for meetings with music and movie firms to discuss how to compensate artists and copyright holders for works distributed through their networks. Kazaa, the largest peer-to-peer network, is not a member of P2P United.

Copyright Royalty Payment Process Reform Bill Passes House Judiciary

Authored by Mark Hefflinger on September 29, 2003 - 10:01am.
Washington -- A bill designed to reform the controversial royalty arbitration process for deciding how much webcasters and others should pay to artists and copyright holders to distribute music online has passed a vote in the House Judiciary Committee. The Copyright Royalty and Distribution Reform Act of 2003 (H.R. 1417) would replace the current CARP (Copyright Arbitration Royalty Panel) system, an occasional three-member panel of random copyright expert,s with a full-time, independent Copyright Royalty Judge, to be appointed by the Librarian of Congress. The bill would also make sure that, unlike with the current system, royalty rates are firmly set before they actually go into effect.

Jukebox Software Firm MusicMatch Launches $0.99 Digital Song Store

Authored by Mark Hefflinger on September 29, 2003 - 9:59am.
San Diego -- MusicMatch, a provider of music jukebox software and a subscription music service, announced on Monday the launch of a new digital music store, which is similar to and will compete with Apple's iTunes Store and BuyMusic.com. Initially, the store will offer U.S. residents 200,000 songs from all five major labels and 30 independents for $0.99 each or $9.99 for full albums; the company plans to offer over 500,000 by year's end. CNET News.com reported that sources say PC maker Dell, which last week announced that it would also open a digital music store, will promote and distribute the MusicMatch offering. Songs will be delivered at 160 kbps in Microsoft's Windows Media Audio format, and may be played on up to three PCs and transferred to any Windows-compatible portable player. Buyers may also burn both songs and playlists created using MusicMatch software to CD. San Diego-based MusicMatch's new digital song store will be fully integrated into the 8.1 version of its popular jukebox software, also enabling users to instantly purchase songs they hear on the company's streaming radio service.

Interplay May Sue Vivendi Over Soured "Lionheart" Game Distribution Deal

Authored by Mark Hefflinger on September 29, 2003 - 9:57am.
Irvine, Calif. -- Video game developer Interplay Entertainment has said it may sue Vivendi Universal Games, over monies it said it is owed over a terminated distribution agreement for its "Lionheart" game. Interplay terminated the agreement with Vivendi on Friday; Vivendi sued Interplay last Tuesday for allegedly making claims for payments it was not owed and for breach of contract. Irvine, Calif.-based Interplay and Vivendi Universal Games released "Lionheart: Legacy of the Crusader" on August 20.

Micropayments Firm Peppercoin Raises $4.25 Million in First Round

Authored by Mark Hefflinger on September 29, 2003 - 9:55am.
Waltham, Mass. -- Looking to establish a new, lower cost form of "micropayments" for the purchase of digital content, Massachusetts-based Peppercoin has raised $4.25 million in its first round of venture capital, led by POD Holding. The funding follows a seed investment for Peppercoin of about $1.7 million from a group of individual investors that was announced earlier this year. Peppercoin's technology is based on research conducted at the MIT Laboratory for Computer Science. The company said it can cut the transaction fee on a $0.99 sale from the typical $0.27 to "well below $0.10." Peppercoin is initially targeting music companies, online game providers, newspaper and magazine publishers, and other digital content providers.

Shareholders File Class Action Suits Against Game Developer Midway

Authored by Mark Hefflinger on September 29, 2003 - 9:53am.
Chicago -- A number of shareholder class action lawsuits have been filed against video game developer Midway Games, alleging the company's share price was inflated due to misleading statements made by the company. The charges include not informing shareholders of "material disruptions" at Midway that made the company miss product release dates, which led to decreased revenue and inaccurate revenue projections being provided to shareholders. Chicago-based Midway reported earnings of $5 million for the third quarter, far below its earlier projections of between $7-$11 million, and at the same time announced the departure of CEO Neil D. Nicastro -- two events that resulted in a considerable drop in the company's share price.

Reports: Reuters and Microsoft to Connect IM Services

Authored by Mark Hefflinger on September 29, 2003 - 9:50am.
London -- According to media reports, Reuters and Microsoft will announce on Tuesday a deal to connect their instant messaging services. This is the first time that Microsoft has connected its MSN network, which has more than 100 million users, to another messaging network. Reuters Messaging, which is based on Microsoft's Live Communications Server, has about 50,000 active users, mostly in the financial services industry. The change will take effect early next year, the reports said.

Vivendi Universal Predicts 20% Surge in Operating Profits

Authored by Mark Hefflinger on September 29, 2003 - 9:48am.

Paris -- French media conglomerate Vivendi Universal announced on Monday that it expects to report a 20% increase in underlying operating profits this year. Thanks largely to an ambitious restructuring program, Vivendi was able to report sharply reduced losses for the first half of 2003. Furthermore, the company said that a resumption of dividend payments in 2005 looks increasingly likely. The company has not paid dividends since it fired former CEO Jean-Marie Messier last year.
http://www.vivendiuniversal.com/vu/en/home/index.cfm

Report: Spain Has Highest Broadband Penetration in Europe

Authored by Mark Hefflinger on September 26, 2003 - 11:00am.

Madrid -- According to Jupiter Research's latest findings, Spain boasts the highest percentage of households in Europe with broadband Internet connections -- 37% in 2002. The report may be something of a surprise for many analysts since Spain currently has the highest basic monthly fee in the region. Moreover, Jupiter Research predicts that Spain's current 1 million broadband households will increase to 4 million -- a whopping 67% of the country's total population -- by 2008. By contrast, only 8% of Italy's households enjoy broadband Internet connections. http://www.jup.com