MediaMorphosis: A Multimedia Leadership Retreat

* March 10-12, 2004, at the Four Seasons Newport Beach, CA
* Join the leaders and thinkers shaping the digital future at this international, inter-industry brainshare on media, technology and society. 
* More information

Main Stories
o Report: File-Sharing Sees First Increase Since RIAA Lawsuits Began
o Justice Dept. Prompts Microsoft to Alter Web Music Link in Windows XP
o Court Reinstates Playboy Trademark Suit Against Netscape
o UIEvolution Raises $6 Million; Game Developer Square Enix Lead Investor  
o Napster Hires Former MP3.com Exec. to Head European Expansion
o Shareholders File $54-Million Lawsuit against Vivendi Managers

o Note to Readers: Martin Luther King, Jr. Day Holiday

o Briefly Noted: Texas Instruments - new CEO, Microsoft - Sundance Film Festival, mtvU, "Tomb Raider" developers - Circle Studio, PlayLouder MSP, Cirrus Logic - Gibson, Warp Records - DRM-free download store

Port Washington, N.Y. -- Following a sharp drop-off in music file-sharing that coincided with the industry's legal crackdown on users of services like Kazaa, new data indicates that file-sharing is once again on the rise. New York-based analyst firm NPD Group reported on Friday that the number of those surveyed who said they downloaded music from a file-sharing service increased 14% between September and November 2003. Shortly after the Recording Industry Association of America's (RIAA) legal campaign began in April, 20 million users said they used file-sharing services (May 2003); this number declined to 11 million by September, but then rose again to 12 million in November. NPD reasoned that factors including less media coverage of the RIAA campaign, more free time enjoyed by college students, and the fact that November and December are traditionally the biggest months for purchasing music could have contributed to the increase. "It's important to keep in mind that file-sharing is occurring less frequently than before the RIAA began its legal efforts to stem the tide of P2P file-sharing," said NPD Group vice president Russ Crupnick. "We're just seeing the first increase in these numbers. NPD will continue to monitor whether it's a temporary seasonal blip, or a trend that suggests that the industry should be more aggressive in capping the use of illegal methods to acquire digital music."
http://www.npd.com
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o Justice Dept. Prompts Microsoft to Alter Web Music Link in Windows XP

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.
http://biz.yahoo.com/rb/040115/microsoft_compliance_1.html
http://biz.yahoo.com/ap/040115/na_fin_us_microsoft_antitrust_4.html
http://news.com.com/2100-1027-5141410.html
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o Court Reinstates Playboy Trademark Suit Against Netscape

Mountain View, Calif. -- In a case with major potential implications for search engines, a federal appeals court has reinstated a lawsuit against Netscape Communications by adult entertainment company Playboy Enterprises, which claims that the America Online unit infringed on trademarks when it used works like "playboy" and "playmate" in search results to link to ads for Playboy's rivals, the AP reported. The suit, originally filed in 1999, seeks financial damages, reportedly in the range of seven figures. Legal experts say that the outcome could have ramifications on a practice known as "keying," in which search engine users type in keywords and receive results that include banner ads specifically targeted to those users. Netscape reportedly used about 400 words, including "playboy" and "playmate," to target people interested in adult-themed material.
http://makeashorterlink.com/?B24B52317 
http://news.com.com/2100-1024_3-5142058.html 
http://www.netscape.com 
http://www.playboy.com
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o UIEvolution Raises $6 Million; Game Developer Square Enix Lead Investor

Bellevue, Wash. -- UIEvolution, a developer of wireless application delivery technology, announced on Friday that it has closed on $6 million of a planned $10 million second round of financing, led by video game developer Square Enix U.S.A. The U.S. arm of the Japanese game developer has partnered with Bellevue, Wash.-based UIEvolution to expand its mobile games business through technology that delivers applications and community features that connect users together, regardless of device type or wireless network. UIEvolution's technology supports BREW, J2ME/MIDP, J2ME/DOJA, MS Smart Phone, MS Pocket PC, PalmOS, MS Windows, i-Tron, VxWorks, Symbian, SPOT, Danger and Gameboy platforms. The company's other customers include Disney, ESPN and Moviso. UIEvolution will use the funds for increased sales and marketing efforts in North America, Europe, and Asia as well as for further product development.
http://www.square-enix-usa.com 
http://www.uievolution.com
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o Napster Hires Former MP3.com Exec. to Head European Expansion

Santa Clara, Caif. -- Napster, a unit of CD burning software provider Roxio that sells music downloads on the Internet, has hired a former vice president of sales and marketing at MP3.com to head a new European operation, CNET News.com reported on Friday. Leanne Sharman was hired to create partnerships with European firms in response to what the company called "tremendous demand" for Napster in Europe.
http://news.com.com/2100-1027_3-5142250.html 
http://www.napster.com
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o Shareholders File $54 Million Lawsuit Against Vivendi Managers

Paris -- Local shareholders in French media and entertainment conglomerate Vivendi Universal this week filed a lawsuit against current and former Vivendi managers aiming to force them to pay $54 million for legal costs incurred in the U.S. New media reported on Friday that shareholders are seeking payment for the $50-million civil fine imposed on the company last month by the U.S. Securities and Exchange Commission (SEC). They are also asking that managers pay for the legal expenses -- totaling more than $4 million -- of former CEO Jean-Marie Messier.
http://www.vivendiuniversal.com/vu/en/home/index.cfm?f=true
http://www.iht.com/articles/125302.html

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o Note to Readers

In observance of the Martin Luther King, Jr. Day holiday, Digital Media Wire will not be published on Monday, Jan. 19. The next edition will arrive on Tuesday, Jan. 20.

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> Complete Information for Department of Homeland Security

Small businesses wanting to do business with the government face unique challenges when entering the federal marketplace. The 2003- 2004 Directory of Homeland Security includes a detailed list of procurement information and small business government contacts for the various federal departments and agencies. Contact names, titles, phone and fax numbers and descriptions are included in the listings. The Department of Homeland Security portion of the directory has entire section titled, "Doing Business with the Department of Homeland Security." To order the 2003-2004 edition, go to: http://www.tech-directories.com/dmw.htm
 

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(Dallas) Chipmaker and electronics firm Texas Instruments announced that CEO Tom Engibous will step down from his position, to be succeeded by current chief operating officer Rich Templeton. Engibous will retain his role as company chairman. Dallas-based Texas Instruments focuses on developing digital signal processors (DSP) used in cell phones and communications equipment, and also manufactures digital cinema projection equipment used for both movie theaters and home theater systems.
http://biz.yahoo.com/prnews/040115/dath040_1.html 
http://www.ti.com

(Park City, Utah) Microsoft has announced that five feature-length films will screen digitally at the 2004 Sundance Film Festival using Microsoft Windows Media 9 Series technology. The films to be screened digitally are director Mario van Peebles' "BAADASSSSS!," "Carandiru," "Open Water," "Sky Blue" and "Speak." In addition, Microsoft announced the creation of an independent film website on its WindowsMedia.com content destination, which will be dedicated to showcasing indie films and filmmakers.
http://biz.yahoo.com/prnews/040115/sfth052a_1.html
http://www.windowsmedia.com/mediaguide/indiefilms
http://www.sundance.org

(New York) MTV Networks announced on Friday plans to re-launch the college campus cable TV network it acquired -- CTN: College Television Network -- as "mtvU" on Jan. 20. The mtvU network will reach 720 colleges and universities. Part of the network's online component will offer free downloads of tracks from emerging college artists -- including Dizzie Rascal, Death Cab for Cutie and Butterfly Boucher -- that will be featured on a new program called "The Cut."
http://www.mtvu.com

(Derby, England) Two game developers credited with creating the "Tomb Raider" video game franchise announced on Friday the launch of their own independent game development firm, Circle Studio. Jeremy Heath-Smith and Adrian Smith said they have recruited 35 employees and are currently working on two new game prototypes, which will be developed for current and next-generation game consoles. "We've enjoyed working with Lara [Croft, heroine of the "Tomb Raider" games] these past seven years but are looking forward to creating something or someone new," said Heath-Smith.
http://www.circle-studio.com

(London) PlayLouder MSP, developer of an Internet access service that legitimizes file-sharing by offering a share of fees to artists and copyright holders, said this week that it plans to launch its service around Easter 2004. The company said it has signed independent labels including Cooking Vinyl, Gut Records, The Echo Label, Wall of Sound and Tummy Touch to provide tracks for the service, and that it is in negotiations with major labels, with deals "expected to be announced shortly."
http://www.playloudermsp.com

(Anaheim, Calif.) Cirrus Logic, a chipmaker for consumer electronics devices, announced on Friday that it will partner with musical instrument manufacturer Gibson on a line of digital networking products for use in musical instrument, professional audio and consumer electronics markets. Gibson will use Cirrus Logic chips and technology for the development of networking products like gigabit Ethernet-based devices designed to provide high-bandwidth, ultra-low-latency audio and video transport for use in such fields as recording and live music distribution.
http://biz.yahoo.com/bw/040116/165264_1.html 
http://www.gibson.com 
http://www.cirrus.com

(London) British electronic music record label Warp Records, home to acts including Aphex Twin, Autechre and Broadcast, has announced that it has made its entire back catalog available for download in high-bitrate MP3 format, without any added digital rights management technology to prevent copying or file-sharing. The songs will come encoded at 205kbps and will cost $1.39 each -- higher than the current $0.99 industry standard -- but will arrive free of any restrictions on usage.
http://www.theregister.co.uk/content/6/34896.html
http://www.warprecords.com/bleep

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