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DIGITAL MEDIA WIRE -- January 29, 2002
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To Subscribe For Free: http://www.digitalmediawire.com

o Studios' Video-on-Demand Joint Venture Appoints CEO
o Elcomsoft Says Digital Copyright Act Too Vague, Asks Court for Dismissal
o Digital Music Distribution Provider OD2 Raises $5.7 Million
o Australian Copyright Agency Looking Into Purchase of Kazaa
o 3G Phone Software Developer Symbian Gets Additional $29 Million
o Interplay Chairman and CEO Resigns; Company May Take Legal Action
o Wireless Video Codec Developer Hantro Products Raises $7 Million
o Spoken Word Audio Provider Audible, Inc. Raises $3.5 Million
o Digital Video Systems Firm SeaChange Raises $87 Million
o Briefly Noted: State of the Union webcast, Digital Club Network - AOL
Music, CD Baby - Disc Makers, SINA.com, Sonicblue - Netgear, Radio Free
Virgin - Just Plain Folks Music Organization, SealedMedia, NXN Software -
Electronic Arts
_____________________________________________

o Studios' Video-on-Demand Joint Venture Appoints CEO

Los Angeles -- Movielink (formerly known as Moviefly), an Internet-based
video-on-demand joint venture between Metro-Goldwyn-Mayer Studios,
Paramount Pictures, Sony Pictures Entertainment, Universal Studios and
Warner Bros., announced on Tuesday the appointment of Jim Ramo as CEO.
Ramo has previously served on the management teams of DirecTV, TVN
Entertainment, Geocast Network Systems and Hughes Communications.
Announced in August 2001 as Moviefly, the re-named Movielink has not
provided additional details on a launch date. The studios will supply
movies to the online service on a non-exclusive basis, with each
independently determining its own release windows and pricing strategies.
Movielink will also be available as a distribution outlet for video and
film producers other than the service's shareholders. The service will
initially be available only over the Internet, and only in the U.S., but
the company said in a statement that it will explore other distribution
options.
http://www.movielink.com/movielink_press_january29.html
_____________________________________________

o Elcomsoft Says Digital Copyright Act Too Vague, Asks Court for Dismissal

San Francisco -- The lawyers for Russian software firm Elcomsoft, accused
of violating the Digital Millennium Copyright Act (DMCA) with its software
that can break the security technology on Adobe's eBook Reader, filed
motions on Monday to have the U.S. government's case against it dropped,
Reuters reported. The San Francisco-based law firm of Duane and Morris
argued that the DMCA is too vague in its definition, not setting out rules
that would allow for the "fair use" of copyrighted material by consumers.
The lawyers also claimed that the law inhibits First Amendment rights, and
that it should not apply to a foreign company, as Russia has no law
similar to the DMCA and the software it created is considered legal there.
Moscow-based Elcomsoft was originally charged alongside programmer Dmitry
Sklyarov, whose was arrested and held in connection with his role as
creator of the software. Sklyarov's charges were set aside in exchange for
his cooperation in the government's prosecution of Elcomsoft. He would
have faced jail time as well as fines if convicted; Elcomsoft now faces
$2.25 million in fines.
http://www.latimes.com/business/la-000007252jan29.story
http://www.elcomsoft.com
http://www.duanemorris.com
_____________________________________________

o Digital Music Distribution Provider OD2 Raises $5.7 Million

Bristol, England -- On Demand Distribution (OD2), a provider of digital
music distribution services co-founded by musician and producer Peter
Gabriel, has raised $5.7 million in its latest round of financing.
Existing investor Quester led the round; previous investors including
Japanese firm NIF also participated. Bristol-based OD2 recently launched a
digital music subscription service with MSN in the U.K. as well as with
European ISP Tiscali. The company is also developing subscription services
for Telewest, BTOpenworld, The Ministry of Sound and FNAC. OD2 said that
the new funds will allow it continue its expansion plans for the next two
years, forging extended partnerships with major ISPs and portals across
Europe.
http://www.ondemanddistribution.com/eng/press/pressdetails.asp?id=171
_____________________________________________

o Australian Copyright Agency Looking Into Purchase of Kazaa

Surry Hills, Australia -- The Australasian Performing Rights Association
(APRA), an Australia-based music copyright agency, said that it is
examining the Australian firm, Sharman Networks, which recently acquired
the website and software of the Kazaa file-sharing service, Australian IT
reported on Tuesday. "We're investigating to see what remedies there may
be in Australia; whether they may be infringing copyright," said Richard
Mallett, broadcast and online licensing director at the APRA. Kazaa faced
shutdown in the Netherlands resulting from lawsuits brought by Dutch
copyright agency Buma/Sterma, and still faces copyright suits brought by
the recording and motion picture industries in the U.S. Kazaa temporarily
suspended new downloads of its file-sharing application while awaiting the
Dutch court's ruling; Sharman Networks resumed downloads when its
acquisition of the Kazaa site and software were announced.
http://australianit.news.com.au/articles/0,7204,3669977%5E15306%5E%5Enbv%5E,00.html
http://www.apra.com.au
http://www.kazaa.com
_____________________________________________

o 3G Phone Software Developer Symbian Gets Additional $29 Million

London -- Symbian, a software licensing company owned by major wireless
operators that develops the Symbian operating system for high-speed data
phones, announced on Tuesday that it has raised $29 million in new
funding. Existing shareholders Matsushita, Motorola, Nokia and Psion made
additional investments, while the Sony Ericsson joint venture bought out
Ericsson's stake and has become a new shareholder. London-based Symbian's
software is used to create phones capable of handling video and data on
2.5G and 3G wireless networks. Licensees include Fujitsu, Ericsson,
Panasonic, Motorola, Nokia, Psion, Kenwood, Sanyo, Siemens and Sony. The
first 2.5G Symbian OS phone -- the Nokia 7650 -- is due to ship to
retailers in the second quarter of 2002.
http://www.symbian.com/press-office/2002/pr020129.html
http://www.nokia.com/phones/7650
_____________________________________________

o Interplay Chairman and CEO Resigns; Company May Take Legal Action

Irvine, Calif. -- Game developer Interplay has announced that chairman and
CEO Brian Fargo resigned from both positions last Monday. The company said
in its quarterly SEC filing that it may file suit against Fargo, alleging
that he "improperly engaged in competition with the company by, among
other things, soliciting company employees." An attorney for Mr. Fargo
denied the allegations in an interview with Reuters. "He hasn't hired
anyone from the company, he hasn't been competing with the company," said
Tom Salinger of the law firm of Rutan and Tucker. Fargo says in his
resignation letter that his role at the company was minimal after its
acquisition in September 2001 by French game publisher Titus Interactive.
Irvine-based Interplay said that current Interplay president Herve Caen
will serve as interim CEO.
http://biz.yahoo.com/prnews/020128/lam153_1.html
http://biz.yahoo.com/rf/020128/n28166567_2.html
_____________________________________________

o Wireless Video Codec Developer Hantro Products Raises $7 Million

Oulu, Finland -- Hantro Products, a developer of wireless video
compression technology, has raised $7 million in its second round of
venture capital financing. Investors participating in the round included
2M Invest, CapMan Capital Management, Menire, Nexit Ventures and
Startupfactory. In addition to video compression technology, Finland-based
Hantro also develops wireless video software that will allow users to
capture and send, as well as receive real-time video from cell phones and
other devices on 2.5G, 3G and other next-generation wireless networks.
"Today, we have a product that has already been shipped to customers,"
said Hantro CEO Eero Kaikkonen. "Our business model is working and already
generating revenues for us. New funding enables us to grow into a globally
leading position in this segment."
http://www.hantro.com/jan28.html
_____________________________________________

o Spoken Word Audio Provider Audible, Inc. Raises $3.5 Million

Wayne, N.J. -- Audible, Inc., a provider of online spoken word audio
content, has raised $3.5 million through a private equity investment from
New York-based Special Situations Funds. New Jersey-based Audible provides
downloadable audio editions of books, newspapers, magazines, radio
programs and original shows. The company also said that it decreased its
cash burn rate by 64 percent to $2 million in the fourth quarter of 2001,
down from $5.6 million in the third quarter. "The cash cushion provided by
this investment -- in concert with increased operating efficiencies and
growth levels that have allowed Audible to so dramatically decrease our
cash burn -- are important elements of our determined march to
profitability," said Audible CEO Donald Katz.
http://biz.yahoo.com/bw/020128/282066_1.html
http://www.audible.com
_____________________________________________

o Digital Video Systems Firm SeaChange Raises $87 Million

Maynard, Mass. -- Increasing the size of its secondary public offering to
about 3.6 million shares from the original plan for 3 million, SeaChange
International Inc., a developer of digital video systems, has raised about
$87 million. The company said it plans to use the proceeds for working
capital and for possible acquisitions. Massachusetts-based SeaChange's
server and software systems enable television operators to provide new
on-demand services and to gain greater efficiencies in advertising and
content delivery.
http://biz.yahoo.com/bw/020129/292368_1.html
http://www.schange.com
_____________________________________________

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_____________________________________________

o Briefly Noted:

(Washington, D.C.) The White House website will offer the first live
streaming video webcast of a State of the Union address Tuesday night when
President Bush's speech is simulcast on the Internet. The President also
penned a "State of the Union Letter to Children," which is currently
available from the same page on the site.
http://www.whitehouse.gov/stateoftheunion/
http://www.whitehouse.gov/kids/stateoftheunion/children-letter.html

(New York) Digital Club Network, a provider of concert webcasts from clubs
around the country, announced on Tuesday that it has partnered with AOL
Music to offer a new concert series to AOL High-Speed Broadband
subscribers. The videotaped performances will feature both major label and
unsigned artists from New York-based Digital Club Network's archive of
3,500 concerts, including artists like Groove Collective, Spoon, Dispatch
and Wellwater Conspiracy.
http://www.dcn.com

(Portland, Ore.) CD Baby, an online retailer of CDs exclusively from
independent artists, said on Tuesday that it has reached an agreement to
provide free distribution to customers of Disc Makers, a provider of CD
manufacturing for independent artists. New Jersey-based Disc Makers
produces 10,000 independent titles annually, and also provides mastering,
post-production, packaging and promotional materials for artists.
Oregon-based CD Baby gets CDs directly from musicians and sells them
online, paying $6-$12 from the sale of each CD to artists.
http://www.discmakers.com/
http://www.cdbaby.com

(Sunnyvale, Calif.) Chinese media and Internet services provider SINA.com
announced on Tuesday the launch of an all-in-one ISP and content service
for subscribers in Taiwan and North America. In Taiwan, SINA will provide
free Internet access through U2 Online Free Access, where users will only
pay per-minute charges to phone companies and will also receive SINA
partner content by downloading its proprietary browser. In North America,
SINA Online will provide Internet access for $9.95 per month, including
its exclusive Chinese-language news, entertainment, online shopping and
community services.
http://biz.yahoo.com/prnews/020129/sftu077_1.html
http://www.sina.com

(Santa Clara, Calif.) Consumer electronics manufacturer Sonicblue
announced on Tuesday a technology and marketing alliance with Netgear, a
developer of home networking equipment. Under the terms of the agreement,
Santa Clara-based Sonicblue will integrate and promote Netgear's equipment
that lets users connect their PCs and home entertainment devices via
wireless 802.11b technology, ordinary phone lines and the company's home
power outlet networking, currently in development. Sonicblue's ReplayTV
4000 digital video recorder allows recorded TV programs to be shared among
devices in the home. The company also makes a range of digital audio
players.
http://biz.yahoo.com/bw/020129/290104_1.html
http://www.sonicblue.com
http://www.netgear.com

(Los Angeles) Radio Free Virgin, a network of online radio stations owned
by Virgin Audio Holdings, said on Tuesday that it has partnered with the
Just Plain Folks Music Organization to launch a music channel featuring
unsigned and independent label artists. Just Plain Folks is a Web-based
community of 13,000 amateur musicians that is free to join. Artists can
submit music that will be considered for inclusion on its website, and
learn from record industry-focused educational materials on the site.
http://www.radiofreevirgin.com
http://www.jpfolks.com

(Beaconsfield, U.K.) SealedMedia, a provider of digital rights management
technology, has appointed Alan Cornwell as its new CEO. Cornwell replaces
co-founder and former CEO Martin Lambert, who will now pursue research and
development with the company. Prior to joining U.K.-based SealedMedia,
Cornwell was vice president and general manager of international
operations for Open Market, a provider of e-business applications
software.
http://www.sealedmedia.com/news_events/newsItem.asp?pageID=39

(Los Angeles) NXN Software, a developer of video game creation software,
said on Tuesday that game developer Electronic Arts will use its software
to manage their game development projects at studios worldwide. Los
Angeles-based NXN also provides its software to Sony Online, Infogrames
and Kalisto.
http://biz.yahoo.com/prnews/020129/latu012_1.html
http://www.nxn-software.com
http://www.ea.com
______________________

> Digital Media Wire Directory Launched

Digital Media Wire just launched the Digital Media Directory, an online
directory and RFP engine that facilitates the search and negotiation
process between buyers and sellers.

Register as a provider in the Digital Media Directory at
http://digitalmediawire.newmediary.com/dmw111301nl
______________________

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Copyright 2002 Digital Media Wire