Justice Dept

Justice Dept. Launches Digital Music Pricing Probe, Following Spitzer's Lead

Authored by Mark Hefflinger on March 3, 2006 - 7:16am.

Washington - Likely spurred by a similar probe launched by New York Attorney General Eliot Spitzer, the U.S. Justice Department announced that it has opened an investigation into possible collusion between the major record labels on digital music pricing. "The Antitrust Division is looking at the possibility of anti-competitive practices in the music download industry," Justice Department spokeswoman Gina Talamona told Reuters. The investigations from Spitzer and the Justice Dept. both relate to the possible fixing of wholesale prices for digital music, industry sources told Reuters. Currently, the industry standard price for a digital song is 99 cents on services like iTunes and Napster, although label executives have said publicly they would like to initiate variable pricing for song downloads. Billboard reported that sources said Spitzer was investigating alleged "most favored nation" status that labels have with digital music services, such that no label can receive a deal worse than its competitors, effectively fixing prices. Record labels declined comment to both Billboard and Reuters, but sources close to the labels told Billboard that Justice Dept. subpoenas are expected to be forthcoming.

tags: Spitzer | Musics | Justice Dept | Digital Music Pricing Probe |

Justice Dept. Proposes Stricter Penalties for Piracy, Counterfeiting

Authored by Mark Hefflinger on November 14, 2005 - 7:47am.

Washington - The Bush administration is lobbying Congress to enact stricter penalties for copyright infringement, CNET News.com reported. A proposal being circulated would create the new crime of "attempting to infringe a copyright," as well as empower law enforcement to seize and destroy pirated and counterfeit goods, as well as materials used to produce the goods, and any property obtained through the sale of pirated or counterfeit goods. Offenders would also be compelled to pay compensation to copyright holders for losses, in addition to existing prison time penalties. U.S. Attorney General Alberto Gonzales told an anti-piracy summit hosted by the U.S. Chamber of Commerce that proceeds from pirated and counterfeit goods are being used, "quite frankly, to fund terrorism activities," News.com reported.

tags: Piracy | Justice Dept | Penalties | Counterfeiting |

Justice Dept. Makes First Indictment Under Camcorder Piracy Law

Authored by Mark Hefflinger on August 5, 2005 - 5:12am.

San Jose, Calif. -- The U.S. Justice Dept. this week made its first indictment under a new law that makes it a crime to bring a camcorder into a movie theater to make a pirate recording. Nineteen-year-old Curtis Salisbury, of St. Charles, Missouri, faces up to 17 years in prison for allegedly bringing a camcorder into screenings of "The Perfect Man" and "Bewitched," later posting copies of the pirate recordings he made on file-sharing networks. In addition to the charges under the camcorder law, which took effect in April, the Justice Dept. has also leveled conspiracy and copyright infringement charges against Salisbury, who allegedly also downloaded a number of pirated films and software programs from the networks. The Justice Dept. said Salisbury's indictment was a result of Operation Copycat -- a local version of its larger Operation Site Down online piracy investigations -- that have so far indicted five individuals and conducted more than 40 searches nationwide. Salisbury is scheduled to appear in court in federal court San Jose, Calif. on Aug. 18.

tags: Law | Justice Dept | First Indictment | Camcorder Piracy Law |

Justice Dept. Seeks More Information on Adobe-Macromedia Merger

Authored by Mark Hefflinger on July 11, 2005 - 10:50am.

San Jose, Calif. -- Adobe Systems, a developer of print and online publishing software, announced on Monday that the U.S. Justice Dept. has made a second request for additional information regarding its proposed $3.4 billion acquisition of Macromedia, developer of the Flash multimedia web format. Adobe said the second inquiry is limited to information about the companies' products in the areas of web authoring/design and vector graphics illustration. The inquiry will further delay antitrust approval for the deal, until 30 days after the companies comply with the government's request. Adobe and Macromedia still expect the deal to close in the fall of 2005.

tags: Justice Dept | Adobe-Macromedia Merger | Information |

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 |

Justice Dept. Raids 3 D.C. Video Game Retailers Selling Modified Consoles

Authored by Mark Hefflinger on December 8, 2004 - 4:09am.

Washington -- The U.S. Justice Dept. last week raided three D.C.-area video game retailers, arresting two people on charges of copyright infringement and violation of the Digital Millennium Copyright Act (DMCA). The Dec. 1 raids targeted Pandora's Cube retail stores, which authorities say sold modified PlayStation 2 and Xbox video game consoles with larger hard drives and the capacity to play pirated game titles. It is a violation of the DMCA to circumvent the copyright security technology on devices like video game consoles. "They were burning games onto the hard drive and equipping the hard drive with copying software so that the average consumer could just go ahead and copy the software themselves," Chunnie Wright, anti-piracy counsel to video game industry trade group the Entertainment Software Association, told Reuters.

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 |

Justice Dept. Official "Skeptical" of Govt. Civil Suits Against File-Swappers

Authored by Mark Hefflinger on August 23, 2004 - 2:09am.

Washington -- CNET News.com reports that a high-ranking official in the Justice Department has expressed skepticism towards the Pirate Act, a bill that would give the government the power to file civil actions against peer-to-peer file-swappers. R. Hewitt Pate, assistant attorney general for antitrust, said in a speech delivered on Monday that, while "the Justice Department is there to enforce the law, there's something to be said for those who help themselves," adding that the notion of the Justice Dept. filing civil suits was "something that people should take with a grain of salt." The Pirate Act would expand the powers of the government, which has to date never prosecuted an individual file-swapper on criminal counts, to allow civil lawsuits as well. The Pirate Act has already passed in the Senate, with Sen. Orrin Hatch (R-Utah) noting that, "Tens of thousands of continuing civil enforcement actions might be needed to generate the necessary deterrence." The Justice Dept. is due to deliver a review on the Pirate Act and other proposed legislation to the Attorney General in the fall.

tags: Law | Justice Dept | File-Swappers | Skeptical |

Justice Dept. Closes Antitrust Investigation of Movielink VOD Service

Authored by Mark Hefflinger on June 9, 2004 - 10:44am.

Washington -- The antitrust division of the U.S. Department of Justice announced on Wednesday that it has closed its investigation into Movielink, an Internet video-on-demand joint venture between Hollywood movie studios Sony, Warner Bros., MGM, Paramount and Universal. The Justice Dept. said that it investigated the service to see if it "facilitated collusion among the studios or decreased their incentives to license movie content to competing video-on-demand providers," but ultimately determined that "the evidence does not support a conclusion that the structure of the joint venture increased prices or otherwise reduced competition in the retail markets in which Movielink competes." However, the antitrust division said it will continue to monitor the emerging video-on-demand market.

tags: Justice Dept | Antitrust Investigation | Movielink VOD |

Bill Would Allow Justice Dept. to File Civil Copyright Infringement Claims

Authored by Mark Hefflinger on March 26, 2004 - 4:13am.

Washington -- A new bill has been introduced in Congress that would grant the U.S. Justice Dept., which currently only has the authority to file criminal copyright infringement claims, the additional power to bring civil copyright infringement claims against U.S. citizens and companies. The proposed legislation from Senate Judiciary Committee chairman Orrin Hatch (R-Utah) and ranking member Patrick Leahy (D-Vt.) would allow the government to target copyright infringers with charges that would bring only monetary fines, rather than potential jail time and a criminal record necessary under criminal cases. The Recording Industry Association of America (RIAA), which has targeted hundreds of Americans with civil copyright infringement actions for offering music for download on the Internet, applauded the Leahy-Hatch legislation. "As the recent announcement of the FBI's new anti-piracy warning attests, copyright infringement is a serious crime damaging the thousands of hardworking artists, songwriters and everyone else who help bring music to the public," said RIAA chairman and CEO Mitch Bainwol. "This legislation provides federal prosecutors with the flexibility and discretion to bring copyright infringement cases that best correspond to the nature of the crime."

tags: Bill | Infringement | Justice Dept | Civil Copyright |

Justice Dept. Prompts Microsoft to Alter Web Music Link in Windows XP

Authored by Mark Hefflinger on January 16, 2004 - 3:15am.

Washington -- The U.S. Justice Department has announced that Microsoft will make changes to its Windows XP operating system that affect how music can be purchased online using the software, as a means of addressing anticompetitive issues raised by the government. The software will be altered so that when users click the "Shop for Music Online" link within Windows XP, they will not be prohibited from opening a Web browser other than Microsoft's own Internet Explorer. Competitors had complained that the tying of Internet Explorer to the feature violated the company's 2002 antitrust settlement agreement with the government. Microsoft said it will post an update to Windows XP that alters the feature in question in February or March.

tags: Microsoft | Musics | Justice Dept | Windows XP |

Justice Dept. Ends Antitrust Probe of Major Labels' Pressplay, MusicNet

Authored by Mark Hefflinger on January 5, 2004 - 4:26am.

Washington -- The U.S. Department of Justice has closed its antitrust investigation into Pressplay and MusicNet -- two joint ventures between a number of major record labels that were created to distribute music on the Internet. The Justice Dept. began investigating both services in the summer of 2001, six months before Pressplay -- a joint venture between Sony Music and Universal Music -- and MusicNet (Warner, BMG, EMI, AOL) would launch in December. The investigation examined whether the joint ventures affected the licensing terms offered to other digital music services not owned by the major labels, and whether or not the joint ventures impeded the growth of the digital music market, solidifying the major labels' central roles in the existing music market. The Justice Dept. pointed to the loosening of restrictions within Pressplay and MusicNet that hampered CD burning and transfer to portable devices, emerging competition from Apple's iTunes, BuyMusic.com, Dell and MTV, and the sale of Pressplay to Napster parent Roxio in October as signs of a healthy market. "The concerns that led [the Justice Dept.] to open its investigation have now diminished or disappeared," the Justice Dept. said in a statement.

Justice Dept. Seizes iSONEWS.com Under DMCA for Illegal "Mod Chip" Sales

Authored by Mark Hefflinger on February 27, 2003 - 2:23am.

Washington -- The U.S. Department of Justice (DOJ) announced that it has "seized" the website www.iSONEWS.com as part of a criminal Digital Millennium Copyright Act (DMCA) prosecution, for its role in the sales of "mod" chips that enable video game systems to play pirated games. Site owner David M. Rocci, 22, of Blacksburg, Va., pleaded guilty in Dec. 2002 to conspiring to import, market and sell mod chips in violation of the DMCA. According to the DOJ, the iSONEWS site had over 100,000 registered users and provided information about copyright infringement and piracy, including up-to-date listings of all of the latest pirated games that were available. "This case is another example of our dedication to enforcing the intellectual property laws of this nation online," said Paul J. McNulty, U.S. Attorney for the Eastern District of Virginia. "Whether you are engaged in conduct like David Rocci or you are purchasing mod chips to play pirated games, you should stop." Rocci is due for sentencing on March 7, and faces a maximum sentence of five years in prison and a $500,000 fine. http://www.usdoj.gov/opa/pr/2003/February/03_crm_118.htm

tags: DMCA | Justice Dept | Mod Chip | iSONEWS.com |