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FTC Gives Antitrust Approval to Sony BMG Record Label Merger

Authored 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.
tags: Sony | FTC | BMG | Merger | Antitrust Approval | Record Label |

French ISPs to Unplug File-Swappers Under Government Anti-Piracy Plan

Authored 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."
tags: Law | ISP | Anti-Piracy | French | File-Swappers |

Apple "Stunned" Over RealNetworks "Hack," Investigating Legal Options

Authored 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.
tags: Apple | RealNetworks | Stunned | Hack | Legal Options |

U.K. Retailer Pulls Violent "Manhunt" Video Game After Teen's Murder

Authored 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.
tags: U.K | Video Games | Manhunt | Teen's Murder |

Contest Seeks Real-Life Battleground Stories for Online War Game

Authored 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.
tags: Internet | War Games | Real-Life | Battleground |

Mobile Entertainment Publisher Sorrent Raises $20 Million

Authored 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.
tags: VC | Mobile Entertainment | Sorrent |

Search Engine Marketing Firm Fathom Online Raises $6 Million

Authored 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.
tags: Internet | VC | Search Engine | Fathom |