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Sony Planning iTunes-Like Download Store for Movies

Authored by Mark Hefflinger on March 31, 2005 - 7:31am.
Santa Monica, Calif. -- Sony Pictures Digital Entertainment plans to digitize its top 500 films and make them available from digital online stores similar to iTunes within the next year, CNET News.com reported. Speaking at the Digital Hollywood conference in Los Angeles, Sony Pictures senior vice president Michael Arrieta said Sony will develop its own digital store from which consumers can purchase and download films on their PCs that they will permanently own, and will also make movies available on flash memory cards for mobile phones. "We want to set business models, pricing models, distribution models like (Apple CEO Steve) Jobs did for music, but for the film industry," said Arrieta. "I'm trying to create the new 'anti-Napster.'"

Chinese Gamer Stabbed to Death Over Sale of Borrowed Virtual Sword

Authored by Mark Hefflinger on March 31, 2005 - 7:29am.
Beijing -- A Chinese man has stabbed another man to death over the sale of a virtual sword used in the massively multiplayer online game "Legend of Mir 3," Reuters reported, citing a report in the newspaper China Daily. Qiu Chengwei, 41, stabbed Zhu Caoyuan to death after learning that Zhu had sold the "dragon saber" that Qiu had loaned him -- pocketing about $870 on the deal. Qiu initially went to police when he learned of the sale of the sword, but was told it was not real property and thus not protected under the law. "Zhu promised to hand over the cash but an angry Qui lost patience and attacked Zhu at his home, stabbing him in the left chest with great force and killing him," police told the court.

TiVo Launches New Interactive TV Ad Feature

Authored by Mark Hefflinger on March 31, 2005 - 7:27am.
Alviso, Calif. -- TiVo, a provider of digital video recorder software and services, has recently begun testing a new advertising feature with a limited number of its subscribers. The ads appear for just a half-second, when users fast-forward through TV commercials; if interested in the ad -- which covers about a quarter of the screen -- viewers can press a button on their TV remotes and be taken to additional marketing materials. TiVo said the new ad format will eventually be available on all of its set-tops, including those deployed by partner DirecTV. CEO Mike Ramsay also recently said the company plans to launch a digital video recorder service in Japan next year, with the establishment of a Japanese division and offices.
tags: TiVo | TV Ad Feature |

Survey: Americans Want New Technologies Like HDTV, but for Right Price

Authored by Mark Hefflinger on March 31, 2005 - 7:24am.
Rochester, N.Y. -- About 27% of adults say that they are likely to buy a high-definition television set within the next year, the highest percentage among seven electronic devices tested in a new survey by Harris Interactive. And although next-generation DVD players have not yet been marketed in the U.S., 24% of American adults surveyed indicate interest in buying one within the next year. "While considerable proportions of American adults are attracted to these technologies, the survey also shows that their interest may be tempered by the reality of the affordability of those products," said Harris' Greg Durkin.

Internet Audience Measurement Firm comScore Expands Into Europe

Authored by Mark Hefflinger on March 31, 2005 - 7:17am.
Reston, Va. -- comScore Networks, a provider of Internet audience measurement services, on Thursday unveiled plans for a major multinational expansion through a newly consolidated comScore Europe business unit. The company has named Bob Ivins, a veteran of the marketing and media research industries, as the managing director of comScore Europe, based in London. Most recently, Ivins was the director of research for Yahoo Europe. "Client demand for our services in Europe has grown rapidly in recent years, and the time is right to offer an expanded set of capabilities," said Magid Abraham, the president and CEO of comScore. The new unit will deliver consumer research and analysis services to Europe-based clients, as well as serve the European interests of clients based in North America and elsewhere.

SmartVideo Raises $5 Million in Private Placement of Stock

Authored by Mark Hefflinger on March 31, 2005 - 7:12am.
Atlanta -- SmartVideo Technologies, a provider of live, on-demand and downloadable content for consumers, has raised $5 million in a private placement of stock with a group of institutional and individual investors. The company sold 2.4 million shares at a price of $2.25 a share. SmartVideo said that it plans to use the investment proceeds to support the roll-out of its mobile TV service platform for cellular telephones, Wi-Fi PDAs and other related devices, marketing the company's products and services and for general working capital.
tags: Deals | VC | SmartVideo | Stock |

Freelance Writers Get $18 Million Settlement for Works Published Online

Authored by Mark Hefflinger on March 30, 2005 - 7:48am.
New York -- Several groups representing freelance writers have announced a settlement of up to $18 million with The New York Times Co. and other publishers, ending a copyright infringement case over the republishing of their works in online archives without approval. The case was originally filed by the American Society of Journalists and Authors, the Authors Guild and the National Writers Union; defendants also included Time, Knight Ridder, Dow Jones and Lexis-Nexis. "This is a substantial settlement, and, if approved, it will vindicate freelance writers who deserve compensation and control for their work in the electronic marketplace," said Authors Guild president Nick Taylor. "It proves our contention all along that access and online advertising revenues shouldn't all go into the pockets of big media, but should be shared with the creators." Under terms of the settlement, writers published between August 1977 and December 2002 who copyrighted their stories can claim up to $1,500 per article, while those who didn't can claim up to $60 per article. "There will be some freelancers who registered their copyrights who will make six figures under this settlement," Jim Morrison, a past president of the American Society of Journalists and Authors who helped negotiate the settlement, told Wired News. A site called FreelanceRights.com has been set up to help authors understand the terms and make claims.

Welsh Community First in U.K. to Switch Off Analog TV Signal

Authored by Mark Hefflinger on March 30, 2005 - 7:46am.
Cardiff, Wales -- Television viewers in Wales became the first in the U.K. to lose their analog TV signal after about 450 households in Ferryside and Llanstephan were switched to digital on Wednesday. About 98% of area residents voted to switch to digital-only after taking part in a three-month pilot scheme. Wales as a whole is scheduled to make the same switch by 2008, four years ahead of the 2012 deadline for the U.K. Separately, U.K. telecommunications watchdog Ofcom announced on Wednesday that, as of Dec. 31, 2004, more than 59% of U.K. households were receiving digital TV, a 3% increase compared to the period ended Sept. 30, 2004. Ofcom's quarterly Digital Television Update also found that about 5 million U.K. homes were using the Freeview set-top boxes in the fourth quarter of 2004. That said, households that already had access to digital TV bought a quarter of the boxes sold over the same period.

Intel, Bertelsmann to Collaborate on Media Download, Sharing Service

Authored by Mark Hefflinger on March 30, 2005 - 7:42am.
Berlin -- Chipmaker Intel and German media conglomerate Bertelsmann have announced they will collaborate on the design of devices that will be compatible with a planned Bertelsmann downloading and media-sharing service for music, movies and games, Reuters reported on Wednesday. Intel said it will design chips for computers and cell phones that will support the Bertelsmann service. "One of the major environmental changes in the electronics industry is this convergence -- a combination of computing, communications and content," Intel CEO Craig Barrett told Reuters.

Independent Game Developers The Collective, Backbone Agree to Merger

Authored by Mark Hefflinger on March 30, 2005 - 7:40am.
Los Angeles -- Independent video game developers The Collective and Backbone Entertainment on Wednesday announced their plans to merge, creating Foundation 9 Entertainment, a company that will figure as the largest independent game developer in North America. Founded in 1997, Newport Beach, Calif.-based The Collective has developed titles based on media properties such as "Men in Black," "Indiana Jones" and "Star Wars Episode III: Revenge of the Sith." Emeryville, Calif.-based Backbone Entertainment was formed in 2003, from the merger of developers Digital Eclipse and ImaginEngine. The companies have collectively developed more than 250 titles, and together employ over 300 staff in North America. Foundation 9 Entertainment's first original title will be "Death Jr., to be published for the Sony PSP by Konami later this year.

Search Developer Convera Secures $5 Million Equipment Loan

Authored by Mark Hefflinger on March 30, 2005 - 7:37am.
Vienna, Va. -- Convera, a maker of search and categorization software, said that it has secured a $5 million equipment loan from Silicon Valley Bank. The Virginia-based company -- which in December announced a corporate restructuring aimed at saving it $10 million a year -- said that the four-year, term facility will provide financing for capital purchases, including those for its web indexing initiative. Under that project, the company is looking to add structure to the web by providing users with more relevant search results. In October, it created its initial search platform for open-source web content, and expects to launch a related service later this year. Convera's software can search across more than 200 forms of text, video, image and audio information in more than 45 languages. The company has more than 900 clients.

French Media Services Group Thomson Acquires Inventel

Authored by Mark Hefflinger on March 30, 2005 - 7:35am.
Paris -- Thomson, a France-based electronics and media services group, announced that it has acquired Inventel, a Paris-based, privately held specialist in broadband and wireless communications. Under the terms of the acquisition, Inventel will be incorporated into Thomson's access platforms and gateways business unit, which provides services for satellite, cable and terrestrial operators. "Increasing our already substantial business with telecom operators is one of our important areas of development, as highlighted in our Two-Year Plan," said Thomson CEO Frank Dangeard. "This acquisition, which is likely to be followed by others, will further Thomson's objective of strengthening its role as a strategic supplier and partner to this important customer base." While Thomson did not disclose financial details, it did say the cost was in line with its acquisition criteria.
tags: Deals | Thomson | Inventel |

Supreme Court Hears Arguments in Landmark File-Sharing Copyright Case

Authored by Mark Hefflinger on March 29, 2005 - 8:10am.
Washington -- Oral arguments were presented to the Supreme Court on Tuesday in MGM v. Grokster, the landmark copyright infringement case pitting the entertainment industry against makers of peer-to-peer file-sharing software. CNET News.com reported that while the justices "were critical of the entertainment industry's proposal, which would hold companies 'predominantly' supported by piracy liable for copyright infringement," they also "showed little sympathy for the file-swapping companies' business model." The Associated Press reported that justices "wondered aloud whether such lawsuits might have discouraged past inventions like copy machines, videocassette recorders and iPod portable music players," while also asking "whether profits from trafficking in stolen property can rightfully be used to help finance a young technology business." The Los Angeles Times reported that Justice Sandra Day O'Connor "suggested a software firm could be sued and put out of business if it drew customers by touting its system as a way to obtain free copies of copyrighted music," a compromise short of allowing lawsuits against any peer-to-peer software company. Outside the court, a group of Nashville musicians protested on behalf of the entertainment industry, while file-sharing advocates carried signs with messages such as "Save Betamax."

Internet Entrepreneur Takes Apple to High Court Over iTunes.co.uk

Authored by Mark Hefflinger on March 29, 2005 - 8:08am.
London -- Benjamin Cohen, a 22-year-old Internet entrepreneur, announced on Tuesday that he has applied to the U.K. High Court for a judicial review of a case concerning the iTunes domain name. Earlier this month, Nominet, the U.K. domain name registry service, awarded the itunes.co.uk domain name to computer giant Apple, despite the fact Cohen registered it three years before Apple launched its online music shop. The registry said that, by offering to sell the domain name and continuing to re-direct people from itunes.co.uk, Cohen had abused his registration. "The domain name, in the hands of the respondent (Cohen), is an abusive registration on the grounds of its use in a manner taking unfair advantage of, and being unfairly detrimental to, the rights of the complainant (Apple)," Nominet said. Cohen, however, accused Nominet of being biased against small businesses. "The procedure that Nominet utilizes to settle disputes is unfair and biased towards big business at the expense of legitimate small British companies," he said.

Blockbuster Settles With States Over "No Late Fees" Consumer Confusion

Authored by Mark Hefflinger on March 29, 2005 - 8:06am.
Lemoyne, Penn. -- Blockbuster has agreed to pay 47 states and the District of Columbia a total of $630,000, and refund customers who claim they were misled by the company's recently implemented "No Late Fees" rental policy. Blockbuster announced its "No Late Fees" program last year in a national promotional campaign, in part to counter competition from online services like Netflix that do not charge late fees for rentals; some consumers said they were misled because Blockbuster's program does in fact charge a restocking fee, or the full price of a movie, if it is returned seven days after the due date. Terms of the settlement also call for Blockbuster to alter the way it advertises its "No Late Fees" policy in the future. Blockbuster said it will not drop the fees, but will change its marketing to explain the terms more clearly. "We think it was pretty well communicated from the beginning, but we are happy to make it even clearer," said Blockbuster CEO John Antioco.

EU Approves Name for Stripped-Down Version of Windows

Authored by Mark Hefflinger on March 29, 2005 - 8:04am.
Brussels -- Microsoft announced this week that it has reached an agreement with the European Commission that will allow the software giant to sell a stripped-down version of its Windows operating system in the EU under the name "Windows XP Home Edition N". The Commission recommended the name after rejecting 10 suggestions by Microsoft. The "Windows XP Home Edition N" or "Windows XP Professional Edition N" editions will be sold in a matter of weeks, Microsoft said. In a landmark ruling last year, the Commission ordered Microsoft to offer customers a version of Windows without its multimedia player. The two have been butting heads ever since over a name for the operating system that would not put off consumers.

Google Acquires Web Analytics Firm Urchin Software

Authored by Mark Hefflinger on March 29, 2005 - 8:00am.
Mountain View, Calif. -- Search engine giant Google announced that it has acquired Urchin Software, a San Diego-based Web analytics company. Financial terms of the transaction were not disclosed. Urchin provides services to website owners and marketers that help them better understand their users' experiences, optimize content and track marketing performance. "We want to provide website owners and marketers with the information they need to optimize their users' experience and generate a higher return-on-investment from their advertising spending," said Jonathan Rosenberg, Google's vice president of product management. Google expects the acquisition will close before the end of April.

Atari, Parsons School of Design Hold Retro Game Development Content

Authored by Mark Hefflinger on March 29, 2005 - 7:56am.
New York -- Video game publisher Atari announced on Tuesday that it is collaborating with the Parsons School of Design in New York City on the school's first 24-hour game design event, "Retro Redux." The event will pit teams of students from New York-area colleges in a challenge to design a game for the original Atari 2600 game console, for which such classic titles as "Asteroids," "Pong" and "Missile Command" were developed. The top overall game will be featured in an upcoming version of Atari's Flashback game console, a plug-and-play TV system that includes a suite of embedded game titles. "At Parsons, students learn to think critically about the role technology plays in the design, production, dissemination, and use of games," said Colleen Macklin, chair of the Design and Technology Program at Parsons. The school added that it plans to launch a game design concentration at the BFA level, to complement its MFA-level concentration, during the coming fall semester.

META Group Shareholders Approve Acquisition by Gartner

Authored by Mark Hefflinger on March 29, 2005 - 7:53am.
Stamford, Conn. -- META Group, a provider of IT research and advisory services, announced that its shareholders have approved the proposed acquisition of the company by Gartner Inc., a technology market research firm, for $10 a share. The deal is still subject to certain other customer conditions. It is expected to close in April.

U.K.-Based Caspian Learning Limited Secures VC Financing

Authored by Mark Hefflinger on March 29, 2005 - 7:51am.
London -- Caspian Learning Ltd., a U.K.-based 3D games-based learning firm, recently announced that it has raised an undisclosed amount of venture capital financing from Enterprise Ventures. Caspian Learning said the investment package from the RisingStars Growth Fund and the Coalfields Enterprise Fund, both managed by Enterprise Ventures, would allow it to develop and market its suite of 3D learning-based applications aimed at the education and corporate training markets. Caspian Learning said the investment would also allow it to move its software and content development division to larger premises in Sunderland and open its sales headquarters in the Manchester Business Park.