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Justice Dept. Conducts First Criminal Copyright Action on File-Swappers

Authored by Mark Hefflinger on August 25, 2004 - 1:58am.
Washington -- Federal agents raided the homes of five suspects and one Internet service provider early Wednesday, in the first federal enforcement action against criminal copyright infringement on peer-to-peer file-sharing networks. U.S. Attorney General John Ashcroft said agents seized computers and software at locations in Texas, New York and Wisconsin as part of "Operation Digital Gridlock," an ongoing investigation into illegal mass-scale distribution of movies, software, music and games on file-sharing networks. Ashcroft said the Justice Department's actions Wednesday targeted members of a group called "The Underground Network," who used the Direct Connect P2P network to share a minimum of 100GB each of copyrighted files with other users. "The execution of today's warrants disrupted an extensive peer-to-peer network suspected of enabling users to traffic illegally in music, films, software and published works," Ashcroft said. "The Department of Justice is committed to enforcing intellectual property laws, and we will pursue those who steal copyrighted materials even when they try to hide behind the false anonymity of peer-to-peer networks." If convicted, the five suspects would face a maximum penalty of five years in prison and fine of $250,000 for a first offense.
tags: Law | Justice Dept | File-Swappers | Copyright Action |

RIAA Sues Another 744 File-Swappers for Copyright Infringement

Authored by Mark Hefflinger on August 25, 2004 - 1:57am.
Washington -- As the federal government conducted its first criminal copyright enforcement against file-swappers on Wednesday, The Recording Industry Association of America (RIAA) announced that it has filed another round of lawsuits against individual users of peer-to-peer networks, this time charging 744 people with copyright infringement. Many suits were filed against "John Doe" defendants, who the record labels will seek to identify through their Internet service providers, while others were identified by name and sued after not accepting an out-of-court settlement. The RIAA has now sued a total of over 4,000 individuals for copyright infringement on file-sharing networks since last September. The new lawsuits come the week after a blow was dealt to the entertainment industry's legal campaign against file-sharing, when a federal appeals court ruled that providers of file-sharing software like Grokster and Morpheus are not liable for any copyright infringement committed by users of the applications.
tags: RIAA | Copyright | Infringement | File-Swappers |

Europe Launches Antitrust Probe of Microsoft, ContentGuard Merger

Authored by Mark Hefflinger on August 25, 2004 - 1:56am.
Brussels -- The European Commission on Wednesday announced the launch of a formal antitrust investigation into the proposed joint acquisition of digital rights management firm ContentGuard by Microsoft and Time Warner, Reuters reported. The Commission will examine the possibility that the deal could give Microsoft a dominant position in the market for technology that prevents unauthorized copying of music, movies, games and other digital data. It will also examine the potential for the deal to lead to vertical integration of Microsoft in other markets.
tags: Europe | Microsoft | Antitrust | ContentGuard |

"This Land Is Your Land" Web Parody Creators Victors in Copyright Spat

Authored by Mark Hefflinger on August 25, 2004 - 1:54am.
San Francisco -- JibJab.com, creators of a popular Web cartoon called "This Land Is Your Land" that parodied the presidential candidates, announced on Wednesday that it has settled a copyright dispute with a music publisher claiming ownership of the Woody Guthrie song used in the cartoon. JibJab's attorneys from the Electronic Frontier Foundation (EFF) sued Ludlow Music, which claims ownership of the song, after Ludlow threatened copyright litigation against AtomFilms and Speedera Networks, who distributed the cartoon online. The EFF said it found evidence that the song was already in the public domain -- meaning that copyrights had expired and it could be used without permission or paying royalties -- on top of what it said was JibJab's "fair use" right to use the song for the purpose of a parody. JibJab dismissed its suit against Ludlow after the company agreed to allow the site to distribute the cartoon without interference. "The idea of copyright law is that, after a time, every work comes back into the hands of the public, where it can be reused, recycled, made part of new creativity without having to pay a fee or call in the lawyers," said EFF attorney Fred von Lohmann.
tags: JibJab | This Land Is Your Land | Parody | Victors | Copyright Spat |

French Consumer Group Sues EMI, Retailer Over Copy-Protected CDs

Authored by Mark Hefflinger on August 25, 2004 - 1:53am.
Paris -- A French consumer advocacy group has sued major record label EMI and record store chain Fnac over copy-protected CDs sold in the country, accusing them of "deception over the material qualities of a product," the Associated Press reported. A French judge has launched an investigation based on a complaint from French consumer group UFC-Que Choisir, which says the CDs aren't playable in many CD players and computers, and further that they violate a 1985 law ensuring French consumers can make personal copies of CDs. The lawsuit could impose a maximum fine of $227,000 on EMI and Fnac, aside from unspecified damages that UFC-Que Choisir is seeking in the case. The group said it is also considering a lawsuit against Warner Music Group over that label's copy-protected CDs.
tags: EMI | CDs | Retailer | French | Consumer Group | Copy-Protectes |

3D Online Community Developer There Changes Name, Raises $14 Million

Authored by Mark Hefflinger on August 25, 2004 - 1:50am.
Menlo Park, Calif. -- Hoping to expand its business into new markets, There Inc., a developer of technology that enables thousands of Internet users to communicate and interact in a 3D virtual environment, said on Tuesday that it has changed its name to Forterra Systems and raised $14 million in new funding. Jerusalem Venture Partners led the round, with previous investors Sutter Hill Ventures and Chichen-Itza Ventures also participating. Forterra now plans to expand its focus from operating consumer online services to providing virtual technologies to government, industry, education and consumer entertainment companies. Forterra currently has a contract with the U.S. Army to develop a new training application based on the technology. The company has appointed Robert Gehorsam, the vice president of strategic initiatives at There, as its new CEO.
tags: Internet | VC | 3D | Developer | Community |

Report: U.S. Video Game Players Outnumber PC Gamers for First Time

Authored by Mark Hefflinger on August 25, 2004 - 1:50am.
New York -- Players of games on consoles and cell phones in the U.S. for the first time outnumber PC games, according to a survey from Ziff Davis Media, which found there to be 54.5 million video game playing households and 52.3 million PC gaming households in 2004. The survey found that games are detracting attention from television, as 26% of households reported that their TV viewing had decreased in the last year and 20% said they expect their TV viewing to decrease in the next year. It also found a dramatic rise in the number of households playing mobile games, with 16.3 million reporting having played a cell phone game in 2004 versus 8.1 million a year ago.
tags: Games | Reports | PC | U.S | Video Game | Outnumber |