Archives

Napster Investors Bertelsmann, Hummer Winblad Still Face Copyright Suit

Authored by Mark Hefflinger on April 21, 2004 - 4:11am.
San Francisco -- One-time Napster investors Bertelsmann and venture capital firm Hummer Winblad will be in federal court next week, facing charges from the major record labels and music publishers that the companies' investments in Napster facilitated copyright infringement and lead to $17 billion in lost sales, Reuters reported. Bertelsmann provided $90 million to Napster in 2000, earmarked for the company to develop a copyright-friendly service. The record labels contend that these funds and those from Hummer Winblad allowed Napster to maintain its illegal service in the interim, making the investors liable for third-party copyright infringement. U.S. District Judge Marilyn Patel, who also delivered the initial ruling that shut down Napster's peer-to-peer service in 2000, will begin hearing arguments against the Napster investors in San Francisco on April 27.
tags: Bertelsmann | Napster | Hummer Winblad | Copyright Suit |

Better Business Bureau Warns on 321 Studios' DVD Copying Software

Authored by Mark Hefflinger on April 21, 2004 - 4:09am.
St. Louis -- The Better Business Bureau (BBB) has issued a warning to consumers regarding St. Louis-based 321 Studios, distributors of the controversial DVD X Copy software that can defeat encryption on DVD movies to make perfect copies. However, several movie studio lawsuits have resulted in federal court rulings stripping the company's product of its ability to defeat movie encryption. The Better Business Bureau has warned consumers to use caution when purchasing 321's products, advising that it has received over 70 complaints about 321, mostly pertaining to problems with rebates and customer service. In its defense, 321 said that the complaints represent "only 0.05 percent of the rebates 321 has sent to customers," which have totaled over 150,000 since January 2002.
tags: DVD | Software | Studios | Business Bureau |

Garageband.com Offers New Free Sites for 250,000 Former MP3.com Artists

Authored by Mark Hefflinger on April 21, 2004 - 4:07am.
San Francisco -- Garageband.com, a site that allows bands to post their MP3s and create their own Web pages, announced on Wednesday that it has reached an agreement with Trusonic, which currently holds the mass library of digital songs once housed at MP3.com, to allow those artists to create their own pages easily on Garageband's network. Trusonic, which also distributes background music for businesses, will offer its 250,000 artists the ability to create a new home for their 1.7 million songs with a few clicks, on a site free to the public. The first three songs will be free to post, with the company charging bands $6.99 per track thereafter or $99 for unlimited uploads. "Thanks to Trusonic's ingenuity and cooperation, it's a bright day for independent music around the world," said GarageBand CEO Ali Partovi. "Now musicians can have the best of both worlds: free exposure to consumers and royalties from business users."
tags: MP3 | Offers | Garageband | Free Site |

Napster Casts Doubt on Late Summer U.K. Launch

Authored by Mark Hefflinger on April 21, 2004 - 4:05am.
San Jose, Calif. -- A day after rival Apple reaffirmed its intention to launch a European version of its iTunes music service in Europe by the end of this year, San Jose, Calif.-based Roxio cast some doubt on whether it will be able to launch its Napster service in the U.K. by the end of this summer, as originally planned. Reuters reports that red tape and licensing-negotiations may cause a delay in the launch. "I am ever-hopeful [the U.K. launch] will happen, but it has been very challenging to get the rights together," Christopher Gorog, the CEO of Roxio, told Reuters. Gorog said that the company has yet to secure the necessary licenses it needs from music companies to begin selling song downloads. A launch throughout the rest of Europe could be even further away, he said, with licensing talks reportedly only in the beginning stages.
tags: Napster | U.K. | Casts | Doubt | Late Summer |

Intel Invests in Secure Games and Software Delivery Provider Trymedia

Authored by Mark Hefflinger on April 21, 2004 - 4:03am.
San Francisco -- Trymedia Systems, a provider of secure software and video game distribution technology, announced on Wednesday that it has raised an undisclosed amount of funding in its second round, which was led by the Intel Digital Home Fund. San Francisco-based Trymedia said that currently over 3,000 portals, websites and peer-to-peer networks offer its catalog of protected games and software titles to consumers. "The investment from the Intel Digital Home Fund and others comes at a time when piracy and file-sharing issues have raised awareness for secure distribution solutions to an all-time high," said Trymedia co-founder and CEO Alex Torrubia. "We plan to use these resources to help meet the explosive increase in demand for our solution by developing new verticals and territories."
tags: Games | VC | Software | Intel | Trymedia | Deal |

Consumer Electronics Networking Firm Digital 5 Raises $8.4 Million

Authored by Mark Hefflinger on April 21, 2004 - 4:00am.
Lawrenceville, N.J. -- Digital 5, a developer of consumer electronics networking technology, announced on Wednesday that it has raised $8.4 million in a recent round of venture capital financing. Blue Chip Venture led the investment round; 3i Group, Philips Venture Capital Fund and SpaceVest also participated. New Jersey-based Digital 5's technology enables consumer electronics devices, like DVD players, to play content from PCs and other devices across home networks to the television or entertainment center. The company's technology is used by firms including DVD maker Apex, home networking firm Netgear, AOL and Napster 2.0. Digital 5 said the funds should bring the company to profitability by 2005.
tags: VC | Deal | Consumer Electronics Networking Firm Digital 5 |

DiStream Sues Phantom Game Console Developer Infinium Labs

Authored by Mark Hefflinger on April 21, 2004 - 3:58am.
Jacksonville, Fla. -- Digital Interactive Systems (DiStream), a developer of digital content delivery technology, announced on Wednesday that it has filed suit against Infinium Labs, developer of a PC-based broadband gaming console, over alleged breaches of agreements allowing Infinium use of DiStream technology and expertise. In its suit, DiStream says that Infinium used its servers and encryption technology in the development of its gaming device, and then failed to compensate DiStream with promised company shares or cash consideration. DiStream seeks an injunction against the upcoming launch of the Phantom console. Infinium, which plans to display its device publicly at the E3 Expo next month, has also recently been involved with lawsuits from a former executive over compensation, and with an online journalist over allegedly libelous statements made against the company.
tags: Games | DiStream | Laws | Labs |

DirectTV Selling Space Satellite Operator PanAmSat for $4.3 Billion

Authored by Mark Hefflinger on April 21, 2004 - 3:54am.

Wilton, Conn. -- DirecTV, a provider of satellite TV and Internet services, has agreed to sell its New York-based PanAmSat subsidiary, the owner and operator of a fleet of 24 satellites, to private equity firm Kohlberg Kravis Roberts & Co., for about $3.55 billion in cash, plus the assumption of about $750 million in cash. The deal will allow DirecTV to focus on its core business as a provider of entertainment and information, the company said. As part of the transaction, DirecTV agreed to extend and enhance certain agreements between itself and PanAmSat, at market rates, in order to assure future revenue flows.
http://biz.yahoo.com/bw/040420/205658_1.html 
http://www.panamsat.com 
http://www.directv.com
tags: PanAmSat | DirectTV | Deal | Space Satellite |