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Microsoft Pays $761 Million to Settle RealNetworks Antitrust Lawsuit

Authored by Mark Hefflinger on October 11, 2005 - 7:18am.
Seattle - RealNetworks announced on Tuesday that Microsoft has agreed to pay $761 million to settle the $1 billion antitrust lawsuit it brought against the company in 2003, which alleged Microsoft used its market dominance to undermine Real's status in the media player market. Under the settlement, Real will receive an up-front $460 million cash payment and long-term licenses of Microsoft technologies, as well as assurances of fair competition and access to Windows and the Windows Media Player. The two companies also entered into new agreements on digital music and video games. "Today we're closing one chapter and opening a new one in our relationship with Microsoft," said RealNetworks CEO Rob Glaser. "The legal chapter is being closed with an appropriate and fair outcome that sets the stage for a very productive and collaborative relationship between our companies." The music agreement will see Microsoft promote Real's Rhapsody digital music service on MSN, MSN Search and MSN Messenger, with Microsoft receiving credits toward the remaining $301 million of its settlement payout for delivering new Rhapsody subscribers. Additionally, Microsoft will offer Real's library of casual games through its MSN Games and Xbox Live Arcade online gaming service. "This agreement ensures that Microsoft can innovate and that other media players can compete in a broad marketplace," said Brad Smith, senior vice president and general counsel at Microsoft.

Lawsuit to Challenge New Calif. Law Banning Violent Game Sales to Minors

Authored by Mark Hefflinger on October 11, 2005 - 7:16am.
Sacramento, Calif. - California Gov. Arnold Schwarzenegger has signed into law a ban on the sale of violent video games to minors in the state, which the video game industry says it will challenge in court. The bill restricts the sale of violent games to those under 18, penalizing retailers who do with a $1,000 fine, and requires retailers to place more prominent game rating information in stores and a two-inch square "18" sticker on video game packaging. "Today I signed legislation to ensure parent involvement in determining which video games are appropriate for their children," said Gov. Schwarzenegger. Many of these games are made for adults and choosing games that are appropriate for kids should be a decision made by their parents." The Entertainment Software Association (ESA), a video game industry trade group, said it plans to file a lawsuit to have the law overturned; similar bans on violent video game sales to minors have been struck down by courts in Washington state, St. Louis and Indianapolis. "We are disappointed that politicians of both parties chose to toss overboard the First Amendment and free artistic and creative expression in favor of political expediency," said ESA president Doug Lowenstein.

Apple Quadruples Quarterly Profit, but Stock Falls

Authored by Mark Hefflinger on October 11, 2005 - 7:13am.
Cupertino, Calif. - Shares of Apple fell more than 11% in Tuesday's after-hours trading, after the company posted quarterly net income that quadrupled its total of a year ago, but fell short of analysts' expectations in terms of revenue. Buoyed by continued strong sales of its iPod digital music players, the company posted net income of $430 million, or $0.50 a share, up from $106 million, or $0.13 a share, a year ago. Revenue rose 56% to $3.5 billion, but still fell short of Wall Street estimates of $3.74 billion, according to Thomson First Call. The company shipped 6.45 million iPods during the quarter, a 220% increase over the same period a year ago. For the current, quarter Apple said that it expects net earnings per share of about $0.46 on revenue of $4.7 billion.
tags: Apple | Profit | Stock Falls |

Operator of Iraq Battlefield/Porn Website Arrested on Obscenity Charge

Authored by Mark Hefflinger on October 11, 2005 - 7:07am.
Miami - The operator of a website that purported to offer U.S. soldiers free pornography in exchange for gory battlefield photos from Iraq and Afghanistan has been arrested on obscenity charges in Florida, Reuters reported. Christopher Michael Wilson, operator of NowThatsFuckedUp.com, has been charged with one count of wholesale distribution of obscene material, in addition to 300 misdemeanor charges in connection with his adult website. While the battlefield photos on Wilson's site sparked a Pentagon investigation --that was quickly concluded and found no evidence to charge U.S. soldiers -- they are apparently not part of the current charges against him. "In my 33 years of law enforcement experience, this is one of the most horrific examples of filthy, obscene materials we have ever seized," Polk County Sheriff Grady Judd said in a statement. Judd told Reuters the investigation was ongoing, and that relevant information would be handed to the U.S. Army Criminal Investigations Division.

Satellite TV Firm EchoStar Launches PocketDISH Portable Media Players

Authored by Mark Hefflinger on October 11, 2005 - 7:05am.
Englewood, Colo. - EchoStar Communications, operator of the DISH Network satellite TV service, on Tuesday introduced the PocketDISH, a new line of portable media players that let subscribers download and store TV programs, MP3 files, photos and other digital media content. EchoStar will offer three PocketDISH models: a 20GB model with 2.2-inch LCD screen for $329; a 30GB model with 4-inch screen ($499); and a 40GB, 7-inch screen version ($599). The two larger models will also be able to record audio and video from outside sources, while the smallest model can record only audio. "With PocketDISH, we are again changing the way people watch television. More versatile than ordinary portable DVD or MP3 players, PocketDISH makes it convenient for users to watch popular TV shows or listen to the latest music downloads anywhere," said Mark Jackson, president of EchoStar Technologies Corporation.

Wi-Fi Companies to Work Together on New, Faster Standard

Authored by Mark Hefflinger on October 11, 2005 - 7:03am.
London - Twenty-seven Wi-Fi companies announced that they have agreed to work together on a new Wi-Fi standard that will make the technology go faster and further. The standard -- which follows the 802.11a, b and g standards -- is known as 802.11n. It will have superior reach and be two to 10 times faster than current standards. The companies that support the standard have formed a group call the Enhanced Wireless Consortium, which includes wireless chipmakers Broadcom and Intel, laptop makers Lenovo, Sony Corp. and Toshiba Corp. and network equipment maker Cisco. Not everyone has embraced the new standard, however; Airgo, a U.S.-based Wi-Fi technology vendor, and Nokia, a Finland-based mobile giant, have complained that the group is simply trying to force through the standard they are already planning to build.

Japanese Record Industry Seeks "iPod Tax"

Authored by Mark Hefflinger on October 11, 2005 - 7:00am.
New York - Record companies in Japan are lobbying the government to impose an added fee on the sale of iPods and other digital music players sold in the country, with the proceeds compensating labels, songwriters and artists to compensate for lost revenue from piracy, The New York Times reported. The companies hope for a fee of between 2 and 5% of the retail price of the devices, but consumer groups and the Japanese media have pressured lawmakers to the point that the proposal remains stalled in a government committee. "This is typical of how industry groups try to manipulate government at the expense of consumers," Hiroko Mizuhara, head of the Consumers Union of Japan, told The Times. Japan already imposes a 2% fee on sales of minidisc recorders, while similar digital media levees have been floated in Canada. "Now everyone who used to be using CDs and MDs are using iPods," Koichi Numamura, head of the recording rights department at the Japanese Society for Rights of Authors, Composers and Publishers, told The Times. "We can't just sit by silently while we lose money."

Yahoo Launches Blog Search, Podcast Portal

Authored by Mark Hefflinger on October 11, 2005 - 6:59am.
Sunnyvale, Calif. - Yahoo on Tuesday launched a test of a new blog search tool, which will integrate blog content with traditional media outlet results when users search on Yahoo News. The new feature separates blog results from other news headlines, and also adds results from Yahoo's Flickr photo sharing service, as well as user-generated My Web links to other relevant content. "Our expanded news search dramatically increases the consumer's ability to find events that matter to them, from major news stories, citizen reporting, commentary, and pictures that might not be covered by the mainstream media," said Yahoo News general manager Neil Budde. Separately, Yahoo also announced the beta release of Yahoo Podcasts, a portal that lets users search, subscribe to, rate and review podcast programs. The indexed podcasts include programs from National Public Radio, and the weekly Presidential address.

MTV Launches First Broadband-Only Distribution Channel

Authored by Mark Hefflinger on October 11, 2005 - 6:57am.
New York - MTV Networks has announced the launch of its first channel to be distributed entirely over broadband, "mtvU Uber." In addition to making the company's campus mtvU channel content available to all online, the broadband site will feature original programming like student-produced short films, music, videos, animation and webisodes. MTV and Cisco Systems have partnered to offer ten $25,000 grants to college students who develop original content for mtvU Uber. The "broadband incubator"-developed content will debut on the channel in the spring of 2006. The site will let students upload MP3s and videos from their own bands, as well as amateur music videos produced for their favorite bands. "With today's announcement, we are handing over an entire channel online to college students and everyone who wants new music," said mtvU general manager Stephen Friedman. "mtvU Uber gives them the power to create and program their own channel, and will remain in perpetual beta mode as they experiment and pioneer the digital future."

Egami Media, OverDrive to Offer VOD to Library Patrons

Authored by Mark Hefflinger on October 11, 2005 - 6:56am.
Chatsworth, Calif. - Egami Media, a unit of DVD and CD distributor Image Entertainment, has signed an agreement with OverDrive, a provider of e-book and audiobook lending services for libraries, which will see Image titles distributed to public library patrons via video-on-demand. Image titles covered by the agreement include "Birth of a Nation," Charlie Chaplin short films and live concerts from artists like Chick Corea.

Sprint Launches NFL Mobile Service for Cell Phones

Authored by Mark Hefflinger on October 11, 2005 - 6:54am.
Overland Park, Kan. - Mobile network operator Sprint on Tuesday launched NFL Mobile, offering video content from NFL Network and NFL Films, and exclusive ringtones and other content for $5.99 a month. The service will offer continually-updated scores, and video highlights updated at the end of each quarter, but stops short of providing live mobile TV football broadcasts.

Verizon Offers $149 Samsung SCH-a950 Music Phone

Authored by Mark Hefflinger on October 11, 2005 - 6:52am.
Bedminster, N.J. - Mobile network operator Verizon Wireless on Tuesday launched Samsung's SCH-a950 music phone for its subscribers. Available for $149 after rebate, the phone includes an MP3 player, 1.3-megapixel camera and camcorder, and Bluetooth connectivity. The phone supports TransFlash memory cards for song storage, currently available in capacities up to 4GB.

LodgeNet Signs First HD In-Room VOD Deal With Paramount

Authored by Mark Hefflinger on October 11, 2005 - 6:49am.
Sioux Falls, S.D. - LodgeNet, a provider of interactive TV and broadband access services to hoteliers, announced on Tuesday that it has signed an agreement with Paramount Pictures to offer high-definition movies on LodgeNet's in-room video-on-demand service. Under the agreement -- the first high-definition contract with a major studio for South Dakota-based LodgeNet -- the company will immediately offer movies including "War of the Worlds" and "The Longest Yard" in HD.

Gracenote Signs Deals With Car Audio Equipment Makers

Authored by Mark Hefflinger on October 11, 2005 - 6:47am.
Berkeley, Calif. - Gracenote, a provider of CD and digital music identification technologies, announced on Tuesday that has signed new or extended agreements with a number of manufacturers of car audio equipment to integrate its technology that can automatically display album, artist and track title information for CDs. Berkeley, Calif.-based Gracenote said it signed a new agreement with Harman International, and extended contracts with Alpine, Clarion, Kenwood, Mitsubishi and Pioneer to provide digital music technology and services for factory/dealer options and aftermarket car audio devices. Gracenote's database indexes over 4 million CDs and 50 million tracks.

Sirius Hires Infinity's Tim Sabean to Head Howard Stern Channels

Authored by Mark Hefflinger on October 11, 2005 - 6:45am.
New York - Sirius Satellite Radio, a provider of subscription radio programming, announced that it has hired Infinity Broadcasting veteran Tim Sabean as program director for the forthcoming Sirius radio channels featuring shock jock Howard Stern. Stern is scheduled to make the switch from traditional radio to a new show on Sirius in January.

Nickelodeon, m-Qube Partner on Nick Mobile Portal

Authored by Mark Hefflinger on October 11, 2005 - 6:43am.
New York - Viacom's Nickelodeon children's cable TV network said on Tuesday that it has partnered with Boston-based m-Qube to launch Nick Mobile, a portal that will offer ringtones, wallpapers and text messaging services featuring Nickelodeon properties. Launching this month, Nick Mobile will offer features such as text alerts from characters like SpongeBob SquarePants and Dora the Explorer

Digeo Deploys 100K Moxi Media Centers With Charter Subscribers

Authored by Mark Hefflinger on October 11, 2005 - 6:41am.
Kirkland, Wash. - Digeo, a maker of networked digital video recorders, announced that its Moxi Media Center devices have now been deployed to more than 100,000 Charter digital cable subscribers. Kirkland, Wash.-based Digeo's Moxi set-top is now available to 85% of Charter's 2.7 million digital cable TV subscribers.

Russian Site LegalSounds.com Offers 14-Cent Song Downloads

Authored by Mark Hefflinger on October 11, 2005 - 6:37am.
Moscow - Russia-based music download store LegalSounds.com announced its launch on Tuesday, offering song downloads for 14 cents -- a massive discount on the current 99 cent standard digital song prices in the U.S. It is not clear that the site has gained proper licensing from the world's record labels and music publishers, as it claims to offer songs from the Beatles and other artists who have so far refused to license their songs to legitimate download stores.

DiscLive Signs License Agreement with Harry Fox Agency

Authored by Mark Hefflinger on October 11, 2005 - 6:34am.
New York - The Harry Fox Agency, a provider of music mechanical rights licensing, announced on Tuesday that Immediatek's DiscLive service has entered into HFA's "Express Live" mechanical licensing agreement for CDs and permanent digital downloads. The agreement covers DiscLive's service that offers concertgoers CDs and digital downloads of performances at the venue and online immediately after the show. DiscLive has recorded performances for the Pixies, Devo and the Billboard Latin Music Awards.

Cdigix to Launch Download Service on 3 Calif. Campuses

Authored by Mark Hefflinger on October 11, 2005 - 6:31am.
Englewood, Colo. - Cdigix, a provider of legal campus download services, announced on Tuesday that the University of California Irvine, the University of California Riverside and University of California San Diego will offer its services to 66,000 students beginning this month. The launches follow Cdigix's signing of a master agreement with the University of California and the California State University systems, to provide music and video downloading, and social networking services on campuses.