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Michael Powell to Step Down as FCC Chairman

Authored by Mark Hefflinger on January 21, 2005 - 7:36am.
Washington -- Michael Powell, the chairman of the Federal Communications Commission (FCC) for the past four years, said on Friday that he will step down from his post in March. "Having completed a bold and aggressive agenda, it is time for me to pursue other opportunities and let someone else take the reins of the agency," said Powell, the son of outgoing Secretary of State Colin Powell. The FCC chairman has been lauded for his hands-off approach to regulating new technologies, such as broadband, VoIP and Wi-Fi. "The use of cell phones, digital televisions, personal video recorders, and digital music players, is exploding. These devices are increasingly connected anytime, anywhere by a wide variety of broadband networks enabling a host of competitive services and new applications," said Powell. But Powell was also criticized for the Commission's controversial loosening of rules on media consolidation, decision to mandate an anti-piracy "broadcast flag" in new television technologies, and levying of record indecency fines against broadcasters -- over issues including partial nudity during a Super Bowl broadcast and the subject matter covered on Howard Stern's radio show. Powell was appointed to the FCC by President Clinton in 1997 and promoted to chairman by President Bush in 2000. The Washington Post reported that Kevin Martin, a Republican FCC member whose wife previously worked for Vice President Dick Cheney, is the likely successor.
tags: Step Down | Michael Powell | FCC Chairman |

EchoStar Buys Cablevision's Voom HD Satellite TV Service for $200 Million

Authored by Mark Hefflinger on January 21, 2005 - 7:33am.
Englewood, Colo. -- EchoStar Communications, a provider of satellite TV programming through its DISH Network service, announced on Friday that it has purchased cable TV provider Cablevision's Rainbow DBS, which operates the Voom satellite TV programming service, for $200 million. Founded in 2003, Voom has touted itself as offering the largest amount of high-definition programming, but so far has lost $76 million and claims only 26,000 subscribers. Under the terms of the deal, EchoStar will receive Cablevision's Rainbow 1 satellite, in addition to the company's facilities in Black Hawk, S.D. Colorado-based EchoStar said it is "assessing how the Rainbow satellite's flexibility can best be utilized to enhance DISH Network's existing service," but will maintain the service for Voom customers at least during a transition period.
tags: EchoStar | Buys | Cablevision's Voom HD Satellite TV |

Google Loses Keyword Ad Trademark Suit in France

Authored by Mark Hefflinger on January 21, 2005 - 7:32am.
Nanterre, France -- In a ruling that may affect Google's successful keyword advertising business in the region, a French court has ruled the company's AdWord service infringed on the trademarks of French luxury hotel Le Meridien when it sold ads to competitors triggered by Le Meridien's trademark. The company must remove text ads placed by Le Meridien competitors that are launched when users type "Le Meridien" into its search engine within 72 hours, or face a daily fine of $195. Google must also pay a fine of $2,500 and cover Le Meridien's court fees. The French ruling is at odds with a recent U.S. case, where last month a federal judge in Virginia ruled that Google did not infringe on insurance company Geico's trademarks with its keyword ads. Google plans to appeal the French court's ruling. "We will continue to defend against this suit, which we believe is without merit," Google said in a statement.
tags: Law | Google | France | Loses | Keyword Ad Trademark Suit |

Napster Raises $52.2 Million in Private Share Placement

Authored by Mark Hefflinger on January 21, 2005 - 7:31am.
Los Angeles -- Napster announced on Friday that it will raise $52.2 million through the sale of 7.1 million of its shares to undisclosed institutional investors. Los Angeles-based Napster was formerly a unit of Roxio, a successful developer of CD and DVD burning software. Owners sold that part of the business to Sonic Solutions in August 2004 for $80 million, in a bid to focus on the nascent digital music service. Napster said the proceeds from the share sale will be used for the launch of its upcoming Napster To Go portable subscription service, and for potential acquisitions.
tags: VC | Napster | Private Share Placement |

Sirius Satellite Radio Extends NBA Broadcast Deal

Authored by Mark Hefflinger on January 21, 2005 - 7:28am.
New York -- Sirius Satellite Radio, a provider of satellite-delivered digital radio programming, announced on Friday that it has extended a non-exclusive, multi-year agreement with the National Basketball Association (NBA) to broadcast games on its service. Financial terms of the deal were not disclosed. New York-based Sirius offers up to 40 NBA game broadcasts each week at no additional charge over its $12.95 per month programming fee. The NBA agreement includes the rights to broadcast the NBA playoffs and finals.
tags: Sirius Satellite Radio | NBA Broadcast Deal |