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ArchivesFTC Gives Antitrust Approval to Sony BMG Record Label MergerAuthored by Mark Hefflinger on July 29, 2004 - 4:14am.
Washington -- The Federal Trade Commission (FTC) has concluded its antitrust investigation into the proposed merger of two of the world's five major record labels -- Sony Music and BMG -- and given the merger the green-light. The FTC also worked with the European Commission on that regulatory body's antitrust investigation into the merger; the EC granted its approval of the deal last week. The merger of Sony's and Bertelsmann's music businesses will create a joint venture, Sony BMG, which will become the world's second-largest record company, behind Universal. Opponents argued further consolidation in the music industry, which in the past two decades has seen a multitude of formerly independent labels swallowed by what will now be the "big four," would harm artists in the long run. "We now look forward to creating a global recorded music company comprising many of the world's most successful artists as well as a vast catalog of recordings," BMG said in a statement.
French ISPs to Unplug File-Swappers Under Government Anti-Piracy PlanAuthored by Mark Hefflinger on July 29, 2004 - 4:13am.
Paris -- French Internet service providers Club-Internet, Free, Noos, Tiscali France and Wanadoo have signed an agreement with the French government that will allow the ISPs to pull the plug on people who illegally download music. Under the terms of the agreement, which enjoys the full support of several record labels and musician's groups, the ISPs will begin to employ termination or suspension clauses to cancel subscriptions of pirates caught in flagrante delicto. The government's charter also calls on music copyright holders to publicize by year's end targeted civil and criminal court action against pirates. Hoping to head off criticism of the agreement, Christine Levet, head of the local Association of Internet Service Providers, told French news agency AFP that members of her organization would send warning messages to customers upon request from rights holders, emphasizing that Internet service would be cut off "only upon the decision of a judge."
Apple "Stunned" Over RealNetworks "Hack," Investigating Legal OptionsAuthored by Mark Hefflinger on July 29, 2004 - 4:12am.
Cupertino, Calif. -- In what could portend another lawsuit testing controversial provisions of the Digital Millennium Copyright Act (DMCA), Apple released a terse statement late Wednesday decrying rival RealNetworks' recent release of software that makes its music service compatible with Apple's iPod. On Tuesday, RealNetworks released "Harmony," which in the process of making songs purchased from Real's online store compatible with the iPod, may circumvent Apple's security technology in a potential violation of the DMCA. "We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions under the DMCA and other laws," the company said in a statement. "We strongly caution Real and their customers that when we update our iPod software from time to time it is highly likely that Real's Harmony technology will cease to work with current and future iPods." In a response to Apple's statement, RealNetworks said Harmony "does not remove or disable any digital rights management system," and in fact "follows in a well-established tradition of fully legal, independently developed paths to achieve compatibility," citing as precedent the first IBM compatible PCs manufactured by Compaq.
U.K. Retailer Pulls Violent "Manhunt" Video Game After Teen's MurderAuthored by Mark Hefflinger on July 29, 2004 - 4:10am.
London -- U.K. electronics retail chain Dixons has pulled video game publisher Take-Two Interactive's violent "Manhunt" title from shelves, after parents of a 14-year-old murdered by a 17-year-old blamed the act on the game. Developed by Take-Two's Rockstar Games unit -- which also created the violent top-seller "Grand Theft Auto" -- "Manhunt" takes place in a prison where players must kill people in growingly more gruesome manners in order to progress in the game. The title does feature an 18-plus label, and is not intended for sale to minors. Warren Leblanc, 17, has pleaded guilty to murdering Stefan Pakeerah, 14, via repeated blows with a claw hammer and knife. "Stefan's murder compares to how the game is set out, using weapons like hammers and knives. If games like this influence kids, they should be taken off the shelves," Stefan's father Patrick told Reuters. However, prosecutors in the case say that Leblanc lured Pakeerah into a park in order to rob him over an unpaid drug-related debt. A trade group of European video game publishers denied any connection between the game and the murder. "We reject any suggestion or association between the tragic events in the Midlands and the sale of the video game Manhunt," the Entertainment and Leisure Software Publishers' Association (ELSPA) said, in a statement.
Contest Seeks Real-Life Battleground Stories for Online War GameAuthored by Mark Hefflinger on July 29, 2004 - 4:09am.
New York -- Online game developer Kuma Reality Games on Thursday announced its "Stories From The Front" contest, which aims to find the most compelling real battle story from a U.S. soldier, which will then be re-created for the company's "Kuma\War" online game. The company uses real world headlines as fodder for its military PC game, which has recently featured levels such as "Uday and Qusay Hussein's Last Stand in Mosul"; "Operation Anaconda in Afghanistan"; "Fallujah Abizaid Attack" and "Battle in Sadr City." "It's our intention to create an interactive record of this war, and gaining the personal involvement of soldiers who participated is essential," said Kuma CEO Keith Halper. The contest's winner and three buddies will appear in the playable episode as 3D game characters. New York-based Kuma Reality Games also said it is donating $1 of all paid subscriptions from "Kuma\War" to The Intrepid Fallen Heroes Fund, created to assist families of soldiers killed in the line of duty. "We've already received a wide array of contest submissions ranging from entries from soldiers fighting on the frontlines today, to entries from soldiers who fought in wars from years past such as Vietnam, who want their stories to be told," said Sarah Anderson, Kuma's vice president of marketing.
Mobile Entertainment Publisher Sorrent Raises $20 MillionAuthored by Mark Hefflinger on July 29, 2004 - 4:06am.
San Mateo, Calif. -- Mobile entertainment publisher Sorrent announced on Thursday that it has raised $20 million in its third round of venture capital financing. BA Venture Partners led the investment round; previous investors New Enterprise Associates, Globespan Capital Partners and Sienna Ventures also participated. San Mateo, Calif.-based Sorrent develops games for cell phones, and has partnerships with companies including Atari, Fox Sports Interactive Media and Viacom. The company will use the funds to expand its global reach and distribution. Separately, Sorrent announced that it has signed a direct publishing agreement with Korean telco SK Telecom.
Search Engine Marketing Firm Fathom Online Raises $6 MillionAuthored by Mark Hefflinger on July 29, 2004 - 3:59am.
San Francisco -- Fathom Online, a San Francisco-based provider of search engine marketing services, said that it has secured $6 million in its first round of private equity financing from Constellation Ventures, a Bear Stearns Asset Management Venture Capital Fund and private investors. Launched in 2002, Fathom partners with brands such as Google, Yahoo, FindWhat, Business.com, DoubleClick and Quigo Technologies to provide keyword marketing services to online advertising clients. The company, which recently opened additional offices in New York, said that it expects its 2004 sales to be about 450% higher than those a year ago.
Time Warner Launches Internal Probe into Accounting at AOL EuropeAuthored by Mark Hefflinger on July 28, 2004 - 4:23am.
Dulles, Va. -- Amid ongoing federal probes into the accounting practices of America Online, parent Time Warner on Wednesday said that it recently has launched an internal investigation into the accounting of its AOL Europe unit. In a filing with the Securities and Exchange Commission, Time Warner disclosed that it has begun a "review of the accounting related to the consolidation of, and equity accounting for, its interest in AOL Europe prior to January 2002." Depending on the outcome, Time Warner said that further restatement of the company's financial statements "may be necessary." The SEC and Department of Justice continue to conduct investigations into AOL's advertising arrangements and the methods used by the company to report its subscriber numbers.
Electronic Arts Acquires U.K. Game Developer Criterion SoftwareAuthored by Mark Hefflinger on July 28, 2004 - 4:22am.
Redwood City, Calif. -- Video game developer Electronic Arts announced on Wednesday that it has acquired U.K.-based Criterion Software, developer of games including "Burnout" and "Black," as well as middleware called RenderWare, from Canon Europe. Financial terms of the transaction, expected to close within 30-45 days, were not disclosed. "Criterion offers us studio talent and a proven management team, globally recognized intellectual property and technology infrastructure that will accelerate our readiness on the next generation of consoles," said EA chairman and CEO Larry Probst. Electronic Arts said it will integrate Criterion's RenderWare into its own game development business, as well as continue to license the middleware to third parties.
Nintendo Unveils Redesign, Features for New DS Handheld ConsoleAuthored by Mark Hefflinger on July 28, 2004 - 4:21am.
Redmond, Wash. -- Nintendo of America announced on Wednesday that its new handheld game console -- codenamed Nintendo DS to this point -- will officially be called the Nintendo DS when it launches in North America and Japan later this year. The company also announced some design changes for the dual-screened device, such as a thinner base, larger face and shoulder buttons, and stereo sound for its embedded speakers. "The Nintendo DS will change the future of hand-held gaming," said Nintendo president Satoru Iwata. "Dual screens, chat functions, a touch screen, wireless capabilities, voice recognition -- these abilities surpass anything attempted before, and consumers will benefit from the creativity and innovation the new features bring to the world of video games." Nintendo added that there are currently 120 game titles in development for the DS, including 20 in-house at Nintendo. Over 100 developers have said they will create games for the new system. The company has yet to announce a firm launch date or pricing for the device.
Report: Online Advertising Market to Hit $16.1 Billion by 2009Authored by Mark Hefflinger on July 28, 2004 - 4:20am.
Darien, Conn. -- Technology market research firm JuipiterResearch said that the online ad market will grow from $6.6 billion in 2003 to $16.1 billion in 2009. While paid search will grow 30% compounded annually over the next two years, it is no longer the sole driver of online ad spending, according to the report. The firm estimates that display ads and online classifieds will each grow more than 25% compounded annually over the same period. "The growth in online advertising is the product of all the progress that web sites and technology providers have made in the last two years," said Gary Stein, a senior analyst at JupiterResearch. "We've seen companies very actively working to make the Internet a more attractive advertising medium," he said.
Mobile Entertainment Publisher Airborne Raises $22 MillionAuthored by Mark Hefflinger on July 28, 2004 - 4:19am.
Montreal -- Mobile entertainment publisher Airborne Entertainment announced on Wednesday that it has raised $22 million in a recent round of venture capital financing, led by Insight Venture Partners. Montreal-based Airborne develops wireless games, ringtones and other mobile entertainment for partners including Maxim and YM magazines, the National Hockey League, Fox Filmed Entertainment, The Food Network and Dr. Deepak Chopra. The company also claims distribution agreements with all major wireless carriers. Airborne will use the funds to expand its mobile entertainment products and services, as well as to support international distribution efforts and strategic acquisition opportunities.
U.K. Launches Forum to Protect "Creative" Intellectual PropertyAuthored by Mark Hefflinger on July 28, 2004 - 4:18am.
London -- The U.K. government has launched the so-called Creative Industries Forum, an initiative designed to further protect intellectual property in the "creative industries." The group brings together the government, non-government organizations and representatives from the film, music, publishing, design and computer games industries. Representatives from Internet service providers (ISPs), telecommunications companies, hardware manufacturers and consumer groups will also participate in the forum, organizers said. The Creative Industries Forum, jointly chaired by U.K. Arts Minister Estelle Morris and Innovation Minister Lord Sainsbury, will look into how the U.K. should approach the "opportunities and threats" presented by rapid technological developments in the so-called the creative industries, which, according to forum officials, contribute more than $100 million annually to the U.K. economy.
Report: World Cable Broadband Subscribers to Hit 69.4 Million by 2008Authored by Mark Hefflinger on July 28, 2004 - 4:17am.
Paris -- Cable modem service subscriptions worldwide are set to boom from 32.9 million to 69.4 million by 2008, according to a new report released by market analysis firm IDC. Although cable Internet is making considerable gains on other Internet connections, DSL remains the connection of choice everywhere in the world except the U.S., where cable is still the most popular connection. To maintain such steady growth, cable operators must continue to bundle video and voice services with other cable modem Internet access products, IDC said. "The push is on, and operators are aggressively marketing broadband services to both residential and business customers," said Amy Harris, manager of IDC's Broadband Markets and Technologies service.
Gaming Tournament Developer Game Trust Raises $1.5 MillionAuthored by Mark Hefflinger on July 28, 2004 - 4:16am.
New York -- Game Trust, a developer of online game tournament technology, announced on Wednesday that it has raised $1.5 million in its first round of warrant financing. Investors in the round included Topspin Partners, Silicon Alley Venture Partners, and CSK Ventures, in addition to angel investors including PayPal co-founder Elon Musk and Timothy Draper of Draper Fisher Jurvetson. The company also named former 24/7 Media and LivePerson executive Scott Cohen as president. New York-based Game Trust's platform supports over two dozen titles across online, wireless, PC and console games, and is licensed to gaming and entertainment firms. The company will use the funds to hire new staff in U.S. and Europe and expand its relationships with video game developers.
Microsoft and EU to Square Off at End of SeptemberAuthored by Mark Hefflinger on July 27, 2004 - 4:32am.
Brussels -- The European Court of First Instance in Luxembourg on Tuesday set for the date for the long-awaited battle between the EU and Microsoft. The court said it would hear the software giant's request for a suspension of sanctions against it on Sept. 30 and Oct. 1. More than four months ago, the European Commission ruled that Microsoft violated antitrust law and ordered the company to offer a version of the Windows operating system without its Media Player. Microsoft was also ordered to provide rivals with more information and pay a $612 million fine. Microsoft says the sanctions will cause irreparable damage to the company and requests the court suspend them until the case runs its course -- a process that could take more than three years. The Commission, along with many of Microsoft's competitors in Europe, argue that, by the time the case is over, the remedies would be irrelevant. Microsoft said it looked forward to making its case before the court. "We believe we have a strong case for suspension," a spokesperson said.
Anonymous Kazaa Owner May Be Revealed in Aussie Copyright CaseAuthored by Mark Hefflinger on July 27, 2004 - 4:31am.
Sydney -- Legal motions filed by the major record labels may force the silent partner who owns Kazaa file-sharing network parent company Sharman Networks to reveal his or her identity, ZDNet Australia reported. Sharman is facing a copyright infringement suit in Australia that was filed in conjunction a raid on Sharman's offices and the homes of some of its executives. For tax purposes, and some would say to make such copyright suits more difficult to prosecute, Sharman maintains offices in Australia but is legally registered on the island nation of Vanuatu. The notice submitted to Justice Murray Wilcox from Universal's lawyers requests specific details about Sharman's corporate structure, including the identity of its anonymous owner. "It is not an unreasonable thing for the applicants to know who it is that's controlling the system," said Justice Wilcox. The judge ordered both parties to resubmit their arguments for another hearing scheduled for Nov. 29.
Judge Denies Free Speech Defense for Music File-SwappersAuthored by Mark Hefflinger on July 27, 2004 - 4:30am.
New York -- In a victory for the recording industry, a federal judge has ruled that cable TV operator Cablevision must reveal the identities of its subscribers whom record labels believe are using their high-speed connections to pirate music on file-sharing networks, CNET News.com reported. U.S. District Judge Denny Chin said that while file-swapping does qualify as "speech," Cablevision subscribers sued via "John Doe" lawsuits are not entitled to First Amendment protections, in the first ruling to directly address the issue with regard to copyright infringement on Internet file-sharing networks. The copyright suits were filed in February against 40 "John Doe" Cablevision subscribers; to date, Recording Industry Association of America (RIAA) member labels have sued nearly 3,000 individuals for copyright infringement on peer-to-peer networks.
House Judiciary Passes Bill Protecting Movie Filtering TechnologiesAuthored by Mark Hefflinger on July 27, 2004 - 4:29am.
Washington -- The House Judiciary Committee last week voted in favor of a bill to legalize technology that edits foul language, sexual and violent content from DVD movies. The "Family Movie Act" is intended to protect companies like ClearPlay and Nissim, which have developed technology that can be embedded into DVD players to mute or skip past potentially offensive material on DVD discs. The Directors Guild of America sued a number of companies distributing movie filtering technologies, saying that they alter a director's vision and amount to trademark infringement. The bill, which now moves on to a vote in the full House, would trump such lawsuits. "This pro-family legislation ensures that unnecessary litigation will not prevent parents from having available a valuable tool to protect young kids from objectionable content such as obscenity, sex, and violence," said House Judiciary Committee chairman James Sensenbrenner (R-Wis.). "This targeted legislation allows neither a copy of the movie to be made nor sold, but rather provides parents with a little more control over what is viewed in their homes."
New Motorola Phones to Feature Apple iTunes SoftwareAuthored by Mark Hefflinger on July 27, 2004 - 4:28am.
Cupertino, Calif. -- Apple announced on Tuesday that it has partnered with Motorola to develop a new iTunes mobile music player to be incorporated into Motorola cell phones. The technology, expected to be available on phones released in the first half of 2005, will allow users to transfer iTunes songs from their Mac or PC to the phone via a USB or Bluetooth wireless connection. "Being able to transfer songs you've purchased from iTunes to Motorola mobile handsets expands the market reach for both of us and drives new revenue for customers, delivering an amazing music experience to millions of wireless users," said Motorola chairman and CEO Ed Zander. The companies did not release details on specific features of either the stripped-down version of iTunes or the new handsets, including how many songs the phones will be able to store.
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