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RIAA Sues Another 754 Music File-Swappers for Copyright Infringement

Authored by Mark Hefflinger on December 17, 2004 - 10:45am.
Washington -- The Recording Industry Association of America (RIAA) announced on Friday that it has sued another 754 alleged Internet song-swappers for copyright infringement, bringing the total number of individuals sued by the group to over 7,000. The "John Doe" suits, which will seek to obtain the identities of the peer-to-peer users from their Internet service providers, were served against individuals in seven states and the District of Columbia, including students at Columbia University, the University of Pennsylvania and four other schools. "With legal online retailers still forced to compete against illegal free networks, the playing field remains decidedly unbalanced," said RIAA president Cary Sherman. "That's why continued enforcement against individuals stealing and distributing music illegally is essential, as is holding accountable the businesses that intentionally promote and profit from this theft." The RIAA is currently embroiled in an Australian copyright case against Sharman Networks, operator of the Kazaa file-sharing exchange, and recently received word that the U.S. Supreme Court will hear its appeal of a federal court ruling that found file-sharing networks are not liable for any copyright infringement committed by users of their software.

Apple Shuts Out RealNetworks' Songs From Playback on iPods

Authored by Mark Hefflinger on December 17, 2004 - 10:43am.
Cupertino, Calif. -- Apple has made changes to the firmware installed on its iPod digital music players to make them incompatible with songs purchased from rival RealNetworks' Rhapsody online music service. The move trumps Real's release of software called Harmony, which it said reverse-engineered Apple's FairPlay digital rights management scheme so that its songs could play on iPods -- causing Apple to claim it was "stunned" that its technology had been "hacked." Apple also said it would examine a legal case against Seattle-based RealNetworks over Harmony, but has so far not taken any action. RealNetworks spokesman Matt Graves told MacCentral the company is working to restore compatibility between Harmony and the iPod.

Shareholders Reject Electronic Arts' Buyout Offer for "Battlefield" Developer

Authored by Mark Hefflinger on December 17, 2004 - 9:16am.
Stockholm, Sweden -- Video game publisher Electronic Arts, which last month offered to purchase Swedish "Battlefield" developer Digital Illusions CE (DICE), saw its plans stymied this week when 29% of DICE shareholders voted against the deal. The vote came despite the recommendation from DICE's board of directors to approve it; 90% must agree to the deal for it to proceed. Redwood City, Calif.-based Electronic Arts currently owns 19% of DICE, which it purchased in 2003 when it signed a 15-year publishing deal with the company. In addition to DICE's 4 million unit-selling "Battlefield" titles, it also is responsible for the "Rallisport Challenge" game franchise. The deadline for EA to reach a deal to purchase Digital Illusions is Dec. 27.

Report: Canadian Teens More Active File-Swappers Than U.S. Counterparts

Authored by Mark Hefflinger on December 17, 2004 - 9:11am.
Vancouver, B.C. -- Canadian teenagers are more voracious music downloaders than their American counterparts, as only one-in-three Canadian teens said they had never downloaded a music file compared with 60% of U.S. teens polled in a recent survey conducted by Ipsos-Reid. Canada's teens download an average of 15 songs per month, with 29% saying they download music at least a few times a week, and 53% reporting they do so at least a few times a month. By contrast, only 24% of Canadian adults polled said they download music a few times a month. "Our research with Canadian adults indicates that many have decreased their music downloading activities," said Ipsos-Reid vice president Chris Ferneyhough. "However, it looks like teenagers are picking up the slack. These teens have come of age during the peer-to-peer phenomenon so convincing them not to download free music is likely going to be a difficult task for the recording industry." The survey also found that 42% of the teens who said they didn't download music were not allowed to by their parents, 19% "don't feel it is right" and 17% were worried about downloading viruses.

U.K. Proposes Radical Overhaul of Commercial Radio

Authored by Mark Hefflinger on December 17, 2004 - 9:07am.
London -- Ofcom, the U.K. communications and media regulator, has proposed a radical expansion of the country's commercial radio framework. Analysts say the proposal, the first of a two-part industry review, could lead to the launch of more than 100 digital radio stations and eventually the offering of services such as music downloads. Industry experts say the most radical proposal will see two blocks of spectrum -- tantamount to 20 new digital stations -- sold in an auction. Ofcom said the spectrum would be open to all bidders, including telecommunications operators wanting launch new mobile phone services. "Radio is a dynamic medium at an interesting point of development," said Ofcom CEO Stephen Carter. "These proposals seek responses to the prospect of more digital spectrum and a new approach to content regulation." The closing date for comments on the "Radio: Preparing for the Future" report is March 7, Ofcom said.

U.K.'s Tandberg to Acquire VOD Firm N2 Broadband for $110 Million

Authored by Mark Hefflinger on December 17, 2004 - 9:04am.
Southampton, England -- Tandberg Television, a U.K.-based provider of professional video compression and TV delivery systems, announced on Friday that it has agreed to acquire Atlanta-based N2 Broadband, a provider of video-on-demand (VOD) delivery technology. Tandberg will tender between $110 million and $130 million in cash and shares for N2 Broadband in a deal that is expected to close in the first quarter of 2005. Tandberg is the primary supplier of video compression technology for European cable TV operators, while N2 Broadband's VOD systems are employed in the U.S. by cable TV providers and producers including Comcast, Charter, Cox, Adelphia, Time Warner, HBO and Starz-Encore. The deal is expected to help expand Tandberg's video compression technologies into the North American market while adding N2 Broadband's video-on-demand systems as an option for Tandberg's European and Asian cable TV and IPTV customers.

China's TOM Online Pays $17 Million for Stake in Mobile Firm Indiagames

Authored by Mark Hefflinger on December 17, 2004 - 9:00am.
Hong Kong -- Chinese wireless Internet provider TOM Online announced on Friday that it has acquired an 81% stake in mobile game developer Indiagames for $17.7 million. The company purchased shares from Infinity Ventures, IL&FS Investment Managers, and Indiagames' management team -- which will remain intact and retain the remaining 19% stake in the company. Founded in 1999, India-based Indiagames has developed mobile games based on Hollywood properties including "Spider-Man," "Predator," "Buffy the Vampire Slayer," "Jurassic Park" and "The Mummy." The company distributes its games through over 100 mobile operators globally. TOM Online said the deal will establish its presence in the mobile games markets in India and China.

Report: European Mobile Operators Must Change Pricing to Spur Content

Authored by Mark Hefflinger on December 17, 2004 - 8:54am.
Paris -- According to a report by market research firm Analysys, European mobile operators must change their pricing strategies to "kick-start the lagging mobile content market" for services such as ringtones, logos, games, music and videos. The report found that the Western European mobile content market grew much more slowly last year than predicted, generating just $3.1 billion in revenue. "A key short-term priority is addressing the inadequacy of pricing structures," report author Alex Zadvorny said. "The prevailing approaches to pricing are far too complex and difficult for the customer to understand." The report recommended that European operators follow the lead of Japanese operators, or develop affordable flat-rate content packages similar to those in the satellite TV industry.

Wireless Entertainment Firm Digital Orchid Gets Investment from Qualcomm

Authored by Mark Hefflinger on December 17, 2004 - 8:50am.
San Diego -- Digital Orchid, a developer of branded real-time wireless applications, announced that it has received a strategic investment from wireless developer Qualcomm. San Diego-based Digital Orchid has developed programs for Qualcomm's BREW platform including Nascar.com To Go's PitCommand, which offers fans access to real-time pit crew information using telemetry and GPS technology. The company also delivers Nascar-branded wallpapers, ringtones and news. Digital Orchid has an established presence in Latin America, where it distributes in Mexico, Ecuador, Puerto Rico, Nicaragua, and Guatemala, and plans to expand into Chile, Argentina and Brazil next year.

Online Classifieds E-Commerce Software Firm AdPay Secures Funding

Authored by Mark Hefflinger on December 17, 2004 - 8:15am.
Denver -- AdPay, a provider of e-commerce software for online newspaper classified ads, announced that it has raised a first round of venture capital financing, through the sale of shares to Appian Ventures and FFP Holdings. Colorado-based AdPay's Click and Buy Classifieds software enables newspapers to offer their online advertisers expanded text, photos and multimedia options when placing ads. The company's customers include the St. Petersburg Times, the Denver Newspaper Agency, the San Diego Union-Tribune, the Sacramento Bee and the Houston Chronicle. "Based on our success in the marketplace we had already accelerated our staffing activities, and with this investment we're now fully-funded to pursue this exciting market opportunity," said AdPay president and CEO Mike Heene.

"Janet Jackson" Top Search Term on Lycos During 2004

Authored by Mark Hefflinger on December 16, 2004 - 11:13am.
Waltham, Mass. -- "Janet Jackson," "Paris Hilton," "Nick Berg" and "Kazaa" were among the top search terms listed on Web portal Lycos during 2004, according to the company's annual list of top 50 search terms released on Wednesday. "Janet Jackson held the number one spot on The Lycos 50 for only two weeks this year, but she generated more search activity in those two weeks than any other search topic, making her the most searched topic in the history of The Lycos 50, and easily the top search of 2004," said Dean Tsouvalas, writer of The Lycos 50. Tsouvalas added that the war in Iraq was the most-searched news event of 2004, just as it was in 2003.

FCC: Satellite Broadcasters Shielded from Indecency Rules

Authored by Mark Hefflinger on December 16, 2004 - 11:10am.
Washington, D.C. -- Subscription satellite radio services like D.C.-based XM Satellite Radio and New York-based rival Sirius do not have to abide by the same on-air decency standards as traditional broadcast stations, the Federal Communications Commission said. The FCC denied a request from Los Angeles-based radio broadcaster Mt. Wilson FM Broadcasters, which had sought to prohibit satellite stations from airing profanity and other graphic content. The ruling is important, since Sirius recently signed a pact with radio shock jock Howard Stern, who will join the service in 2006.

Illinois Gov. Proposes Ban on Sale of Violent, Sexually Explicit Games to Minors

Authored by Mark Hefflinger on December 16, 2004 - 11:07am.
Naperville, Ill. -- Illinois Gov. Rod Blagojevich on Thursday proposed legislation that would ban the distribution, sale, rental and availability of violent and sexually explicit video games to children under 18 in the state. While similar efforts to ban video game sales to minors by the State of Washington, City of Indianapolis and St. Louis County have been thwarted in the courts, Blagojevich said his legislation will narrowly define what constitutes a violent or sexually explicit game in order to pass federal court scrutiny. "There's a reason why we don't let kids smoke or drink alcohol or drive a car until they reach a certain age and level of maturity. That's just common sense," said Blagojevich. "And that same common sense should be applied to excessively violent and sexually explicit video games." Under the proposed laws, retailers would have to label such games themselves, and post signs explaining the ratings system. Failure to post such warnings would be punishable by a $1,000 fine, while violating the ban on sales to minors would be a Class A misdemeanor, carrying a penalty of up to one year in prison and a $5,000 fine.

Acacia Research Pays Over $7 Million for 27 New Patents

Authored by Mark Hefflinger on December 16, 2004 - 10:58am.
Newport Beach, Calif. -- Acacia Research, a company that has aggressively licensed a "digital media transmission" patent, licensing firms including Disney and Playboy and suing the country's major satellite and cable TV providers for infringement, announced on Thursday that it plans to acquire rights to 27 new patent portfolios. Acacia will pay $7 million in cash and 3.9 million shares for the assets of Illinois-based Global Patent Holdings, which owns 11 patent licensing companies. The patents describe technologies including video noise reduction and audio/video synchronization; interstitial Internet advertising; peer-to-peer network communications; broadcast equipment and credit card receipt processing. "We look forward to working closely with Anthony O. Brown, Global's CEO, and his team including inventors of these patented technologies and the leading law firms that Tony has assembled," said Acacia CEO Paul Ryan. "Acacia's licensing, engineering and legal teams would further enhance and optimize the revenue potential of these patent portfolios."

ObjectVideo Raises $11 Million in Third Round

Authored by Mark Hefflinger on December 16, 2004 - 10:55am.
Reston, Va. -- ObjectVideo, a developer of intelligent video surveillance software, said on Thursday that it has raised $11 million in its third round of funding, led by Novak Biddle Venture Partners. Previous investors ABS Ventures, Updata Venture Partners and CMGI, as well as new investors including several partners from General Atlantic Partners and Rick Kay, Ted Leonsis, Jeong Kim, Jim Kimsey and Mark Ein also participated. The company, founded by Proxicom founder Raul Fernandez, plans to use the capital to further fuel the adoption of its software, including a joint offering with partner Texas Instruments that will embed intelligent video surveillance technology on devices such as video cameras and digital video recorders. ObjectVideo has also added several new individuals to its board of directors, including Jack Kemp, the 1996 Republican Vice Presidential candidate, Mario Morino, special partner at General Atlantic Partners, and E. Scott Beattie, the CEO of Elizabeth Arden, Inc.
tags: Deals | VC | ObjectVideo |

Blinkx Launches Search Engine for Online TV, Radio Content

Authored by Mark Hefflinger on December 16, 2004 - 10:52am.
San Francisco -- A San Francisco-based start-up launched a service on Thursday that lets users search for audio and video from streams provided by radio and TV stations, and access clips over the Internet. The beta version of Blinkx TV culls multimedia content from sources including HBO, Bloomberg, Fox News, NPR and the BBC, and lets users create Video Smart Folders that will populate themselves with content based on parameters set by users. Instead of typical Boolean keyword search, the blinkx service features a patented "Context Clustering Technology," which utilizes automatic transcription technology and advanced phonetic matching speech recognition technology to index audio and video content. "Using smart, contextual search, blinkx links users to relevant clips anywhere in the video stream, delivering video content straight from the television to the consumer's PC," said blinkx CEO Mark Opzoomer.

Wireless Carrier Sprint to Acquire Rival Nextel in $35 Billion Deal

Authored by Mark Hefflinger on December 16, 2004 - 10:50am.
Overland Park, Kansas -- In a deal that will create the nation's No. 3 wireless carrier and stronger competition for market leaders Cingular and Verizon Wireless, Kansas-based Sprint on Wednesday said that it will buy Virginia-based Nextel Communications in a deal worth about $35.2 billion. The resulting company, to be called Sprint Nextel, will be based in Reston, Va. and serve nearly 39 million subscribers. The companies, which have a combined market capitalization of about $70 billion and had combined revenue of $40 billion last fiscal year, said that they hope to save about $12 billion through synergies as a result of the deal. Sprint also now plans to spin off its local phone business, which will be based out of Kansas. Gary Forsee, the current chairman and CEO of Sprint, will become president and CEO of the new company, while Timothy Donahue, the president and CEO of Nextel, will become chairman. Sprint Nextel's board will consist of six members from each company. "This merger positions Sprint Nextel for greater success than either company could have achieved alone," said Forsee. The deal is expected to close in the second half of 2005.

Time Warner to Pay $510 Million to Settle Federal AOL Charges

Authored by Mark Hefflinger on December 15, 2004 - 11:33am.
Dulles, Va. -- Media giant Time Warner will likely pay more than $500 million to settle charges that its America Online unit fraudulently inflated its revenue figures, the company said on Wednesday. Time Warner has agreed to pay $210 million to the Justice Department and has proposed paying another $300 million to the Securities and Exchange Commission, though the latter deal still must be approved by the SEC Commissioners. Also under the deal with the Justice Department, AOL has accepted responsibility for the conduct of its employees that were allegedly involved and agreed to cooperate fully in their investigation. The Justice Department complaint involved AOL's business dealings with a now defunct software company called PurchasePro.com. Through questionable deals, AOL was able to report approximately $20 million of additional revenue from PurchasePro in the fourth quarter of 2000 and $15 million more in the first quarter of 2001, the complaint said. The SEC investigation has focused primarily on $400 million in advertising revenues that AOL derived in 2001 and 2002 through deals with German media giant Bertelsmann. Time Warner had previously set aside $500 million to cover the possible penalties.

FCC Approves In-Flight Wi-Fi, Will Examine Lifting Airplane Cell Phone Ban

Authored by Mark Hefflinger on December 15, 2004 - 11:31am.
Washington -- The Federal Communications Commission (FCC) announced on Wednesday that it has voted unanimously to allow airlines to offer in-flight wireless high-speed Internet access. The agency will also examine current rules with an eye towards eliminating the ban on in-flight cell phone use. While the FCC said that in-flight wireless Internet access could launch in the U.S. as soon as 2006, German airline Lufthansa began offering broadband Internet on some flights in May through a deal with Boeing's Connexion service. The FCC is seeking public comment with regard to lifting the in-flight cell phone use ban, and will collaborate with the Federal Aviation Administration (FAA) on ensuring that calls do not disrupt a plane's electrical systems or cell phone use on the ground. It's unclear what steps airlines will take to ensure etiquette is observed by cell phone users in the cramped quarters of an airplane.

Judge: Google Keyword Ads Do Not Infringe Geico's Trademarks

Authored by Mark Hefflinger on December 15, 2004 - 11:30am.
Alexandria, Va. -- A federal judge ruled on Wednesday that search engine giant Google did not violate car insurance vendor Geico's trademarks when it displayed ads for rival insurance providers when users search for "Geico" on Google. U.S. District Judge Leonie Brinkema of the Eastern District of Virginia did not agree with Geico's assertion that the practice diluted its trademarks and caused confusion among consumers. "It confirms that our policy complies with the law, particularly the use of trademarks as keywords," said Google general counsel David Drummond. "This is a clear signal to other litigants that our keyword policy is lawful." At least one other pending lawsuit makes similar claims that Google's lucrative keyword advertising service has infringed on its trademarks.
tags: Google | Judge | Geico | Trademarks |