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U.S. Justice Dept. Raids Internet Piracy Sites in 11 Countries

Authored by Mark Hefflinger on June 30, 2005 - 7:10am.
Washington -- The U.S. Justice Dept. announced on Thursday that it has launched "Operation Site Down," conducting some 90 searches in 11 countries and arresting several people suspected of running Internet piracy sites where users could download movies, music and software for free. The government said its actions targeted "warez" piracy groups including RiSCISO, Myth, TDA, LND, Goodfellaz, Hoodlum, Vengeance, Centropy, Wasted Time, Paranoid, Corrupt, Gamerz, AdmitONE, Hellbound, KGS, BBX, KHG, NOX, NFR, CDZ, TUN and BHP -- resulting in seizure of hundreds of computers and the shut down of at least eight major file-sharing servers. The Justice Dept. estimated the sites offered movies, software and other content valued at over $50 million, including the recently released Star Wars film. "Our objective in this operation was to find and dismantle large-scale criminal enterprises that illegally obtain, copy, distribute, and trade in copyrighted software, music, movies, and video games," said U.S. Atty. General Alberto Gonzales.
tags: Internet | Website | U.S | Justice Dept |

RIAA Sues Another 784 Suspected Internet Song-Swappers

Authored by Mark Hefflinger on June 30, 2005 - 7:09am.
Washington -- Just days after a Supreme Court victory over the makers of file-sharing software, the Recording Industry Association of America (RIAA) announced that it has filed a new round of lawsuits against 784 individual suspected Internet song-swappers. The "John Doe" lawsuits were filed against users of file-sharing networks including Grokster, LimeWire and Kazaa. "On Monday, the Supreme Court provided a real shot in the arm to legitimate online music services and unanimously injected moral clarity into this debate," said RIAA chairman and CEO Mitch Bainwol. "If there was any doubt left, there should now be none -- individuals who download music without permission are breaking the law. Our efforts to defend the rights of record labels, musicians, songwriters and others in the music community from theft will certainly continue and likely be strengthened in the weeks and months ahead." The RIAA has now filed in the neighborhood of 8,000 lawsuits against suspected file-swappers, the vast majority of whom end up settling the litigation and paying the RIAA an average of $3,000 each.
tags: Internet | RIAA | Song-Swappers |

Report: Microsoft Pondering Acquisition of Adware Firm Claria

Authored by Mark Hefflinger on June 30, 2005 - 7:07am.
New York -- Microsoft has been in talks over the last two weeks to purchase Claria, a provider of adware that has been sued by publishers in the past over its pop-up ads, The New York Times reported. Microsoft was reportedly willing to offer as much as $500 million for Claria (formerly Gator), although a person close to Microsoft told The Times that the deal may still fall through. Microsoft may see Claria, which offers software that monitors Web surfing habits in order to serve more relevant ads to users, as a means of enhancing its search advertising capabilities in the face of rival Google. Claria's BehaviorLink software is currently installed on some 40 million PCs. Critics of the deal within Microsoft say the purchase could provoke a negative reaction from privacy advocates, who see Claria's software as intrusive.
tags: Reports | Microsoft | Adware | Claria |

EU Considering Pan-European Music Licensing Scheme

Authored by Mark Hefflinger on June 30, 2005 - 7:06am.
Brussels -- The European Union will next month launch an initiative to make it easier to license music for online delivery across its 25 member countries, Reuters reported on Thursday, citing a source close to the situation. A study commissioned by the EU and seen by the source favors a pan-European license for music -- instead of the maze of individual licenses from each country that are currently required -- in addition to a single license for commercial uses of music. A multitude of licenses are currently needed in order to launch digital music services like iTunes in each EU member nation. "The single European license for online music use requires the Commission to rethink existing models for copyright licensing," the source told Reuters. A formal proposal on the EU music licensing scheme is expected to come in the fall.
tags: Music | EU | Pan-European |

Gates: Microsoft May License Xbox Software to Third Parties

Authored by Mark Hefflinger on June 30, 2005 - 7:05am.
Tokyo -- Microsoft chairman Bill Gates "hinted" that the company may license the software powering its Xbox video game console to third parties in a bid to expand its video game market share, the Associated Press reported. Gates did not specify if the software would be licensed to companies making game consoles, or for other consumer electronics that would enable gaming. Microsoft Japan spokesman Kazushi Okabe confirmed Gates' comments for AP. Microsoft plans to release its next-generation video game console, the Xbox 360, later this year.
tags: Xbox | Microsoft | Software | Gates | Third Parties |

Verizon Plans Full-Track Mobile Music Download Service

Authored by Mark Hefflinger on June 30, 2005 - 7:03am.
Los Angeles -- Verizon Wireless president and CEO Denny Strigl told a conference this week that his company is planning to launch a mobile music download service within the next six to eight months, NewsFactor reported. Verizon spokesman Jeffrey Nelson confirmed Strigl's comments: "We intend and are working toward the launch of a service that would allow for full music on a mobile phone," Nelson told NewsFactor. Verizon plans to begin offering a phone capable of receiving full-track music downloads in the next couple of months, although the planned download service will not be ready for launch until some time later.
tags: Verizon | Music | Download | Full-Track | Mobiles |

Developer PopCap Games Acquires Sprout Games

Authored by Mark Hefflinger on June 30, 2005 - 7:02am.
Seattle -- Video game developer PopCap Games announced on Thursday that it has acquired fellow developer Sprout Games. Financial terms of the transaction were not disclosed. Both Seattle-based companies develop mainly casual online and downloadable games; PopCap's titles, including "Bejeweled" and "Zuma," have been downloaded over 50 million times; Sprout Games' "Feeding Frenzy" claims more than 10 million downloads. Following the acquisition, Sprout's development team will move into PopCap's Seattle offices.
tags: Games | PopCap | Sprout |

Report: Two-Thirds of College Students See No Problem With File-Sharing

Authored by Mark Hefflinger on June 29, 2005 - 8:33am.
Washington -- Two-thirds of university students see nothing unethical about downloading copyrighted media for free, and 52% believe the practice is also acceptable workplace behavior, according to a survey conducted by Ipsos Public Affairs on behalf of the Business Software Alliance (BSA). Forty-five per cent of students said they used campus networks for peer-to-peer downloads, with 36% reporting an increase in their downloading behavior. A minority of 32% of students said it's not okay to swap files, up from 23% in 2003. The survey also found that 27% of admitted music downloaders also reported downloading pirated software programs; however, 70% of students said that media reports about unlicensed software or industry actions against downloaders have made them less likely to download. While nearly three-quarters of academics also surveyed for the report said they believe campus downloading policies are effective, only 45% of students surveyed agreed.
tags: Internet | File Sharing | Download | Students | Peer to Peer | statistics |

Mashboxx Licenses Sony BMG Songs for Legal File-Sharing Service

Authored by Mark Hefflinger on June 29, 2005 - 7:20am.
Virginia Beach, Va. -- Mashboxx, an authorized peer-to-peer music file-sharing service being developed by the former head of Grokster, announced on Wednesday that it has licensed major label Sony BMG's songs for inclusion on the service. "Sony BMG has done the heretofore unthinkable: embrace file sharing," said Wayne Rosso, CEO of Mashboxx and former head of Grokster -- which lost its landmark Supreme Court copyright infringement case earlier this week. Mashboxx said that negotiations are currently under way with other labels to license songs for its service, which will place protected versions of their songs for sale on major existing file-sharing networks. Users will pay 99 cents per track, and will be able to listen to several full-track previews before purchasing a song. Mashboxx is using Napster founder Shawn Fanning's Snocap "acoustic fingerprinting" song ID service to ensure that only authorized tracks are made available. Snocap has already signed additional deals with Universal, EMI and Warner to include their songs in its authorized database. Virginia-based Mashboxx said it plans to soon begin beta testing of its legal peer-to-peer service.
tags: Law | Sony BMG | File-Sharing | Musics | Mashboxx |

Court Says WhenU Can Serve Pop-Up Ads on Competitors' Websites

Authored by Mark Hefflinger on June 29, 2005 - 7:16am.
New York -- A federal appeals court has ruled that Internet adware developer WhenU did not violate companies' trademarks when using them to serve pop-up ads for their competitors. WhenU's software is often bundled with file-sharing programs or other applications, and once installed then monitors Web surfing and overlays its clients' ads when users visit a competitor's site. Contact lens retailer 1-800-Contacts sued WhenU for trademark violations in 2002; when a lower court sided with 1-800-Contacts, WhenU appealed the ruling, which was overturned on Monday by the 2nd U.S. Court of Appeals. "A trademark owner is not entitled to control your desktop just because you happen to be visiting its website," said Fred von Lohmann, a senior staff attorney with the Electronic Frontier Foundation, which filed an amicus brief on behalf of WhenU in the case. "This decision is good news for consumers who want the freedom to install tools that help them customize their web-surfing."
tags: Law | Websites | Pop-Up | Competitors |

German Prosecutors Target Online Buyers of Pirated Movies, Software

Authored by Mark Hefflinger on June 29, 2005 - 7:14am.
London -- Prosecutors in Germany have begun criminal proceedings against the first of some 15,000 users who allegedly knowingly paid to download pirated movies and software on the Internet, The Register reported. Authorities last year arrested two brothers operating a download service called Ftpwelt.com, alleging the men had profited more than $1.2 million from sales of pirated movies, games and software on the site. In addition to pressing charges against the operators of Ftpwelt.com, German prosecutors have also narrowed a list of consumers who purchased pirated content from the site from 45,000 to 15,000; those consumers now face potential lawsuits, fines and even prison time.
tags: Internet | Software | Pirated Movies | German | Prosecutors |

Report: New Consoles to Spur Video Game Sales to $26 Billion in 2010

Authored by Mark Hefflinger on June 29, 2005 - 7:12am.
San Diego -- The release of next-generation video game consoles will spur interactive entertainment software sales from $18 billion in 2004 to $26 billion in 2010, according to a forecast from San Diego-based market research firm DFC Intelligence. While the firm believes Sony's PlayStation 3 will maintain the company's lead in the market, DFC predicts that Microsoft's Xbox 360 and Nintendo's "Revolution" will increase the companies' respective market shares. "The next generation of console systems will connect to broadband networks right out of the box and this should significantly expand revenue possibilities," said DFC president David Cole. "With a true worldwide marketplace and increasing ownership of multiple systems, this is not a winner take all situation. Instead it is about how profits can be maximized across the unique installed base of different console, portable, PC and location-based platforms."
tags: Reports | Video Game | Spur |

Apple Adds Podcast Support, Updates iPods With Color Screens

Authored by Mark Hefflinger on June 28, 2005 - 7:38am.
Cupertino, Calif. -- Apple on Tuesday introduced a new version of its iTunes music player software, which for the first time incorporates podcasting, an audio format whose name was coined for its ability to be automatically downloaded to Apple's iPod portable player. Apple's iTunes 4.9 lets users subscribe to over 3,000 free podcasts, from providers including ABC, Adam Curry, the BBC, Clear Channel, Disney and NPR. The release also includes a software update for iPods, which will now include a "Podcast" menu, as well as the ability to bookmark podcasts and display color podcast artwork. The company also announced that all future iPods will come with a color screen, and shrank its iPod offering to a 20GB ($299) and 60GB ($399) model, while also lowering the price of its 1GB iPod Shuffle to $129. Apple said that it has sold over 15 million iPods, as of March 31, while its iTunes Music Stores have now sold a combined 430 million songs worldwide.
tags: Apple | iPods | Podcast | Color Screens |

Sharman Networks: Grokster Ruling Will "Vindicate" the Company

Authored by Mark Hefflinger on June 28, 2005 - 7:37am.
Sydney -- Following yesterday's Supreme Court ruling that found file-sharing software providers like Grokster and StreamCast Networks can be sued for copyright infringement, fellow file-sharing company Sharman Networks released a statement saying the decision will ultimately vindicate the company from copyright infringement charges. "While the Supreme Court apparently found 'substantial evidence... on all elements of inducement' by other P2P providers Grokster and Morpheus, Sharman has never encouraged or assisted users of Kazaa software to share copyrighted material in violation of copyright law," said Sharman Networks executive vice president Alan Morris, who also pointed to the Kazaa end user license agreement -- which directs users to respect national copyright laws -- and its alliance with licensed peer-to-peer distributor Altnet. "We believe that further legal review of this case will also show that Sharman was diligent and aggressive in its lawful efforts to distribute copyrighted music and movies through peer-to-peer distribution, and was thwarted in its efforts to do so by the music and motion picture industries," said Morris. Sharman is currently awaiting a verdict in the copyright infringement and other actions brought against the company in Australia by the recording industry.
tags: Grokster | Sharman Networks | Vindicate |

Disney, Dolby Labs to Equip 100 Theaters With Digital Projectors

Authored by Mark Hefflinger on June 28, 2005 - 7:34am.
Burbank, Calif. -- The Walt Disney Studios announced that it has partnered with Dolby Laboratories, to install Dolby digital cinema projection systems in 100 theaters in 25 top U.S. markets. The installations will be done in part to promote Disney Digital 3D -- a new 3D format developed by effects firm Industrial Light & Magic -- that Disney is using for the release of its "Chicken Little" animated feature, due in theaters on Nov. 4. "We are pleased that Chicken Little is the first animated movie to use our new process using Disney's actual 3D models, animation, and camera data," said ILM president Chrissie England. "This process allows us to provide a richer, more nuanced viewing experience for moviegoers than any existing postproduction techniques."
tags: Disney | Theaters | Dolby | Digital Projectors |

Google Launches Video Search Service

Authored by Mark Hefflinger on June 28, 2005 - 7:32am.
Mountain View, Calif. -- Google has launched a new video search service, which lets users search closed-captioned texts and view indexed video on a Google-branded video viewer. The service includes video provided by CNN, PBS, Unicef, Greenpeace and CNET Networks, among others. For now, the service is free to use and does not display advertisements, although Google aims to eventually offer hosting of independently produced video and allow producers to charge viewers, taking a cut for itself.
tags: Video | Google | Search Service |

U.K. Telco BT to Trial Microsoft's IPTV Software

Authored by Mark Hefflinger on June 28, 2005 - 7:28am.
Redmond, Wash. -- Microsoft announced on Tuesday that U.K. telecommunications giant BT will use its Microsoft TV IPTV software to deliver TV over broadband to its subscribers. BT will trial Microsoft's IPTV software in early 2006, with plans to launch a commercial service next summer for its 20 million consumer and business customers. The announcement comes a week after Australia's largest telecommunications provider, Telstra, decided not to advance its lab trials with Microsoft IPTV software into its customers' homes. Microsoft is also testing its IPTV software in the U.S. with providers including SBC, which recently signed a ten-year, $400 million deal to use the software.
tags: Microsoft | U.K | Telco BT | IPTV Software |

Fox Developing Film Version of "Max Payne" Video Game

Authored by Mark Hefflinger on June 28, 2005 - 7:25am.
Los Angeles -- Film studio Twentieth Century Fox is working on a film version of developer Remedy and publisher Take-Two Interactive's "Max Payne" video game franchise, according to The Hollywood Reporter. Collision Entertainment's Scott Faye will co-produce the film, along with Julie Yorn and Firm Films, who so far have not attached a director or any actors to the project. "I think this is a real actor's part because although the story will have action and intrigue, at its core it's a story about a man who loses everything in life that's dear to him," Faye told THR.
tags: Fox | Video Game | Max Payne |

Bob Dylan to Release Album Exclusively Through Starbucks

Authored by Mark Hefflinger on June 28, 2005 - 7:23am.
Seattle -- Legendary folk singer Bob Dylan will exclusively distribute a new live album in Starbucks cafes, label Sony BMG announced on Tuesday. "Bob Dylan: Live at the Gaslight 1962" will for 18 months only be available for purchase at Starbucks stores in the U.S. and Canada, as well as on the Starbucks website. The album goes on sale on August 30, alongside a two-CD soundtrack album for director Martin Scorsese's new feature-length film biography, "No Direction Home: Bob Dylan." The Starbucks deal with Dylan and Sony BMG follows the successful Starbucks-exclusive release of a Ray Charles album that went on to win a Grammy.
tags: Bob Dylan | Album | Starbucks |

Entertainment Industry Wins Piracy Battle Against File-Sharing Firms

Authored by Mark Hefflinger on June 27, 2005 - 8:05am.
Washington -- In a major victory for the entertainment industry, the Supreme Court on Monday unanimously ruled in favor of the industry in its suit against Internet file-sharing companies Grokster and StreamCast Networks. "We hold that one who distributes a device with the object of promoting its use to infringe copyright. is liable for the resulting acts of infringement by third parties," wrote Justice David Souter. Twenty-eight entertainment companies, including Metro-Goldwyn-Mayer, Disney and Time Warner, had asked the court to find peer-to-peer software firms like Grokster and StreamCast liable when people use them to illegally download copyrighted music and video. The court said that the entertainment industry had "substantial evidence" to back up its case. While the entertainment industry had claimed that illegal downloading costs it billions of dollars a year in lost revenue, technology companies have argued that holding companies liable for the illegal actions of their individual users would set a dangerous precedent.
tags: File-Sharing | Entertainment Industry | Piracy Battle |
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