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U.S. Justice Dept. Conducts Intl. Raids on "Warez" Internet Piracy Groups

Authored by Mark Hefflinger on April 22, 2004 - 3:52am.
Washington -- The U.S. Justice Dept. on Thursday announced that yesterday it launched its most far-reaching enforcement action ever against Internet piracy groups, coordinating with law enforcement in 10 countries to conduct 120 raids targeting "warez" groups that distribute pirated software, music, movies and video games. "Operation Fastlink" seized 200 computers and 30 servers that housed an estimated $50 million in pirated goods. As part of the investigation, the FBI on Thursday served six search warrants in San Diego County as part of the ongoing investigation, the Associated Press reported. The raids also targeted individuals in Belgium, Denmark, France, Germany, Hungary, Israel, the Netherlands, Singapore, Sweden, Great Britain and Northern Ireland. The Justice Dept. said it investigated video game warez groups including Fairlight, Kalisto, Echelon, Class and Project X, and a music piracy group called APC. The ongoing investigations are being aided by U.S. trade groups including the Business Software Alliance, the Entertainment Software Association, the Motion Picture Association of America and the Recording Industry Association of America.
tags: U.S. | Raids | Laws | Warez |

Report: Online Advertising Industry Grew 21% in 2003 to $7.3 Billion

Authored by Mark Hefflinger on April 22, 2004 - 3:50am.
New York -- The online advertising industry experienced healthy growth during 2003, as overall industry revenues rose nearly 21% from 2002's total of $6 billion to $7.3 billion, according to a report from the New York-based Interactive Advertising Bureau (IAB). "In light of a seeming malaise in the advertising industry at large, we are gratified that the dynamism that our industry continues to demonstrate is clearly not being lost on marketers and advertising agencies," said IAB president Greg Stuart. Strong growth of keyword advertising -- offered by firms such as Google and Yahoo's Overture Services -- were credited in part for the increase, as the format accounted for 35% of all online advertising in 2003, up from 15% in 2002. Keyword ads were trailed by display (banner) ads, which accounted for 21% of the market, online classifieds (17%) and paid sponsorships (10%).
tags: Raise | Online Advertising | Industry |

Eminem Wins U.K. Cybersquatting Case Against EmimemMobile.com

Authored by Mark Hefflinger on April 22, 2004 - 3:48am.
Geneva -- Rapper Eminem has won a cybersquatting case in the U.K. against a firm selling mobile phone entertainment at the domain EminemMobile.com. The World Intellectual Property Organization's domain name arbitration and mediation center found that U.K. resident Tim Mcintosh and his Visitair Ltd. registered the domain in bad faith, and was using it to sell unauthorized ringtones of Eminem recordings. The domain will be automatically turned over to the musician in 10 days.
tags: U.K. | Cybersquatting | Eminem | EmimemMobile |

Microsoft Outlines Arguments Against European Antitrust Ruling

Authored by Mark Hefflinger on April 22, 2004 - 3:46am.
Redmond, Washington -- Microsoft has issued a blunt seven-page response to the European Commission's finding against the company, arguing that last month's ruling creates new laws that will damage intellectual property rights and curtail innovation. The document outlines the legal arguments Microsoft will make as it begins a lengthy appeals process. "The Commission is seeking to make new laws that will have an adverse impact on intellectual property rights and the ability of dominant firms to innovate," Microsoft said in the document. "This adverse impact will not be confined to the software industry or to Europe." Last month, the European Commission fined Microsoft over $600 million and required the company to make a version of its Windows operating system that does not include Media Player software.
tags: Microsoft | European | Antitrust Ruling |

Vivendi Universal Reaches Agreement With InterActiveCorp on Sale

Authored by Mark Hefflinger on April 22, 2004 - 3:45am.
Paris -- Paris-based Vivendi Universal said it has reached an agreement with New York-based InterActiveCorp that removes a major obstacle to the sale of its U.S. entertainment assets to NBC. In a complicated partnership arrangement, InterActiveCorp owns a 5.4% stake in Vivendi Universal Entertainment and has various control mechanisms over strategic decisions of the U.S. entertainment assets. Vivendi said on Wednesday that it will issue letters of credit to InterActiveCorp that would allow the transaction to go through. Earlier this week, the U.S. Federal Trade Commission also gave its approval to the transaction.
tags: Vivendi Universal | Deal | nterActiveCorp |

Bankrupt Cable TV Firm Adelphia to Seek Possible Sale of Company

Authored by Mark Hefflinger on April 22, 2004 - 3:42am.
New York -- Bankrupt cable TV operator Adelphia Communications announced on Thursday that it will explore a sale of the company in addition to a planned bankruptcy reorganization, after many shareholders voiced their opinion that creditors would gain more money through an outright sale of the company. Adelphia filed for bankruptcy in 2002 after an accounting scandal that resulted in the departure of founder and CEO John Rigas, who is now on trial on federal fraud charges. In addition to the sale and bankruptcy auction plans, Colorado-based Adelphia will also pursue approval of an $8.8 billion exit financing package, which supports a proposed plan for emergence as an independent company.
tags: Cable TV | Adelphia | Deal | Bankrupt |

Norwegian Wireless Content Firm Telitas Launches in U.S., Acquires Proteus

Authored by Mark Hefflinger on April 22, 2004 - 3:40am.
New York -- Telitas, a Norwegian mobile content distributor, announced on Thursday its expansion into the U.S. and acquisition of D.C.-based mobile entertainment publisher Proteus. Financial terms of the acquisition were not disclosed. Telitas said it will hold offices in New York and Los Angeles, and named Greger Larson chairman of Telitas US. The company also announced the hiring of Kenneth Krushel as CEO, as well as Russell Kagan and David L. Simon, who will focus on developing wireless content applications. The company said it will leave the management team at Proteus in place, with Krushel holding the additional title of Proteus' CEO. Protues has created wireless entertainment applications for companies including Fox Sports, HBO, ABC Enhanced TV and Discovery Communications.
tags: U.S. | Norwegian Wireless | Telitas |

Game Console Developer LInfinium Labs Gets $44 Million

Authored by Mark Hefflinger on April 22, 2004 - 3:38am.
Sarasota, Fla. -- Infinium Labs, developer of a PC-based broadband gaming console, announced on Thursday that it landed a $44 million stock purchase agreement, replacing a previously announced placement valued at $15 million. New investor HaDavar HaNachon joined SBI-USA and Infinium Investment Partners, an affiliate of Trilogy Capital Partners, in the increased commitments. Florida-based Infinium, which yesterday was sued by partner DiStream over payments for using that company's technology, said that it expects the new funds to be sufficient to launch its Phantom game console during the 2004 holiday season.
tags: Infinium | Raise | Game Developer | Labs |

Report: Venture Capital Returns Positive for First Time in Three Years

Authored by Mark Hefflinger on April 22, 2004 - 3:35am.
New York -- One-year returns on venture capital investments were positive during the fourth quarter of 2003 for the first time in three years, posting an aggregate 8% growth, according to a new report from Thomson Venture Economics and the National Venture Capital Association. The total private equity asset class -- including venture capital, buyouts and mezzanine funds -- posted an 18.3% performance in the fourth quarter, representing the second consecutive positive quarter, the survey found. "There is reason to think that continued increases are sustainable especially if the IPO and M&A exit markets continue to improve this year," said Jesse Reyes, vice president at Thomson Venture Economics.
tags: Raise | Venture | Capital | Positive |