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Main Stories
o Report: Jackson Super Bowl Incident Tops Sept. 11 Attacks for Web Searches
o Hollywood Argues P2P Services Aren't "Non-Infringing," Can Filter Songs
o Microdrive Developer Cornice Raises $51 Million in Second Round
o Eidos Options "Fear Effect" Game to German Film Producer Uwe Boll  
o CD Copy-Protection Firm Quiet Tiger to Acquire DarkNoise Technologies
o Targeted News Provider YellowBrix Merges with FluentMedia

o Briefly Noted: U.S. Copyright Office - eligible CARP arbitrators, Rep. Billy Tauzin - MPAA, Valve Software - "Half-Life 2," RealNetworks' Rhapsody, Francis Ford Coppola - Amazon.com, Sprint - EchoStar Communications, Macrovision - LodgeNet, Gametrac - NetLight, Take-Two Interactive - "Mafia," Sorrent - "Aliens: Unleashed," Blue Lava Wireless, Vindigo Studios, Dwango Wireless, Yahoo - music download store?

Waltham, Mass. -- Search engine firm Lycos said on Wednesday that the number of Web searches concerning Janet Jackson's "wardrobe malfunction" during the Super Bowl halftime show eclipsed the one-day totals following the Sept. 11, 2001 terrorist attacks on the U.S. "Prior to this week, the most-searched event in the history of The Lycos 50 over a one-day period was the September 11 attack on America," said Lycos' Aaron Schatz. "Jackson's halftime exposure also far surpasses the other top stories we've tracked on The Lycos 50. Over the course of one day, it received three times as many searches as the 2000 Election. It also received four times as many searches as the Iraq War on the day that Al-Jazeera broadcast video of American prisoners of war, and received five times as many searches as the day the Space Shuttle Columbia exploded." Lycos also noted that on Monday, Jackson and halftime show received 60 times as many searches as the Paris Hilton sex tape and 80 times as many searches as Britney Spears, the two most-dominating recent search topics.
http://biz.yahoo.com/prnews/040204/new006_1.html 
http://50.lycos.com
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o Hollywood Argues P2P Services Aren't "Non-Infringing," Can Filter Songs

Pasadena, Calif. -- A federal appeals court on Tuesday heard arguments in the entertainment industry's challenge to an earlier court ruling that said peer-to-peer file-sharing services are not liable for copyright infringement. The major record labels, movie studios, music publishers and others initially filed the claims against file-sharing software distributors Grokster and Morpheus, but have similar litigation pending against the more-popular Kazaa. Much of the discussion Tuesday centered on whether the landmark 1984 Supreme Court "Betamax" decision -- which said the VCR was not a copyright infringement device because of its substantial non-infringing uses -- can be applied to file-sharing services. Attorney Russell Frackman argued that the Betamax decision shouldn't apply, because 90% of content on these services is infringing, and also because Grokster and Morpheus have the ability to filter or block copyrighted content. Judge John Noonan replied that the remaining 10% of P2P traffic "sounds like a lot of non-infringing files to me," the Associated Press reported. To which Frackman responded, "If 10 percent is commercially sufficient ... then let them build their business on that 10 percent." The three-judge appellate panel is not expected to deliver its ruling for several months.
http://makeashorterlink.com/?L26112D47
http://www.wired.com/news/digiwood/0,1412,62161,00.html
http://www.latimes.com/business/la-fi-grokster4jan04.story
http://www.eff.org/IP/P2P/MGM_v_Grokster/20040203_eff_pr.php
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o Microdrive Developer Cornice Raises $51 Million in Second Round

Longmont, Colo. -- Cornice, a developer of small hard disk drives for consumer electronics like MP3 players, announced on Wednesday that it has raised $51 million in its second round of venture capital financing. Participating in the round were new investors BA Venture Partners and GIC Special Investments, as well as previous investors CIBC Capital Partners, Nokia Venture Partners and VantagePoint Venture Partners. Colorado-based Cornice offers 1.5GB and 2GB disks that are one-inch in diameter, and have been used in MP3 players and other devices from consumer electronics firms including Philips and Samsung. The company, which has raised $81 million to date, will use the new funds to support sales, development and manufacturing initiatives.
http://www.corniceco.com
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o Eidos Options "Fear Effect" Game to German Film Producer Uwe Boll

San Francisco -- U.K.-based game developer Eidos announced on Wednesday that it has optioned yet another of its video game franchises, this time to German producer/director Uwe Boll, to be made into a full-length feature film. Boll, who also produced Artisan's "House of the Dead," based on the Sega game, and Columbia's "Alone in the Dark," based on the Atari game, will now produce Eidos' "Fear Effect," an anime-style action-adventure title featuring two heroine protagonists. Eidos has also previously optioned its "Tomb Raider," which has spawned two feature films, as well as its "Deus Ex" title to Columbia Pictures and producer Laura Zisken in 2002.
http://biz.yahoo.com/prnews/040203/sftu098_1.html 
http://www.boll-kg.de 
http://www.eidosinteractive.com/games/info.html?gmid=81
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o CD Copy-Protection Firm Quiet Tiger to Acquire DarkNoise Technologies

Phoenix, Ariz. -- Quiet Tiger, an international marketing firm and vendor for anti-piracy firm SunnComm's CD copy-protection products, announced on Wednesday that it has signed a letter of intent to acquire U.K.-based DarkNoise Technologies, a developer of copy-protection technology. Financial terms of the transaction were not disclosed. DarkNoise's technology purports to plug the "analog hole" by restricting the uploading of music files to the Internet without reducing playability on all devices. A hidden audio watermark is embedded onto the CD, which is inaudible if the CD is legally copied. However, if a user attempts to illegally copy the protected audio using analog recording devices, analog-to-digital converters or conversion to MP3, the watermark becomes audible -- ruining the unauthorized copy. Arizona-based SunnComm intends to combine the technology with its own CD copy-protection technology, and said it will have beta versions available for testing by record companies within 60 days.
http://biz.yahoo.com/bw/040204/45436_1.html
http://www.darknoisetechnologies.com 
http://www.sunncomm.com 
http://www.quiettiger.com
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o Targeted News Provider YellowBrix Merges with FluentMedia

Alexandria, Va. -- YellowBrix, a provider of targeted news and information products and related technologies, said on Wednesday that it has merged with Chicago-based FluentMedia, a content licensing agency of Tribune Media Services. Financial terms of the deal were not disclosed. The combined company will keep the YellowBrix name and be based in Alexandria, Virginia. The deal will compliment both companies' offerings. Both provide clients with news, commentary and other information from a wide variety of sources, including newspapers, wire services and trade publications. YellowBrix customers distribute this information to their end users via email, web sites and wireless devices.
http://www.yellowbrix.com/pages/www/PressRelease.nsp
http://www.fluentmediainfo.com

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(Washington) The U.S. Copyright Office on Wednesday published the list of arbitrators eligible for service on a Copyright Arbitration Royalty Panel (CARP) during 2004 and 2005. This list will be used to select the arbitrators who will serve on panels initiated in 2004 and 2005 for determining the distribution of royalty fees or the adjustment of royalty rates in such areas as streaming music online or via satellite services.
http://www.copyright.gov/fedreg/2004/69fr5370.html

(Washington) Rep. Billy Tauzin (R-La.), who announced yesterday he will not seek reelection at the end of the year, is likely to take an offer to head the Pharmaceutical Research and Manufacturers of America, the Washington Post reported. Tauzin was widely expected to take a reported $1 million offer to succeed Jack Valenti as CEO of the Motion Picture Association of America, but declined that offer late last month, the Post reported.
http://makeashorterlink.com/?J13346D47

(Kirkland, Wash.) Valve Software has again delayed the release of its anticipated multiplayer title "Half-Life 2." Despite a statement from publisher Vivendi Universal that the game would go on sale in April, Valve itself this time has confirmed that "Half-Life 2" will go on sale this summer. Kirkland, Wash.-based Valve has had to deal with the theft of the game's source code from its own servers and subsequent FBI investigation.
http://makeashorterlink.com/?V25221D47
http://www.gamesindustry.biz/content/ret/2919 
http://www.valvesoftware.com

(Seattle) Media delivery technology provider RealNetworks said on Wednesday that usage of its Rhapsody digital music service rose 10% in January, with users streaming 42 million songs on-demand. The company also said its library has grown to 500,000 songs, 425,000 of which may also be downloaded for $0.79 each.
http://biz.yahoo.com/prnews/040203/sftu125_1.html
http://www.real.com/rhapsody

(Seattle) Director Francis Ford Coppola's production company American Zoetrope announced on Wednesday that it will distribute a short video exclusively for streaming on Amazon.com. The free video includes rare footage and commentary by Coppola about the making of his 1982 feature film, "One from the Heart," as well as the soundtrack composed by Tom Waits. A Special Edition DVD of the film was released on Jan. 27.
http://biz.yahoo.com/bw/040204/45104_1.html
http://www.onefromtheheartmovie.com 
http://www.amazon.com/dvd

(Overland Park, Kan.) Sprint announced on Wednesday that it has partnered with satellite TV operator EchoStar Communications, to offer its local phone service customers discounted packages that include DISH Network TV programming. Within 90 days, Sprint and EchoStar expect to offer a bundle of services with one bill and one point of contact for customers. The announcement follows shortly after a similar agreement between Verizon Communications and EchoStar rival DirecTV.
http://biz.yahoo.com/prnews/040203/cgtu030_1.html

(Santa Clara, Calif.) Macrovision, a provider of copy-protection and digital rights management technologies for CDs, DVDs and other media, announced on Wednesday that it has signed a multi-year agreement with LodgeNet, a provider of video-on-demand services to hoteliers. Under the agreement, Santa Clara, Calif.-based Macrovision will provide copy-protection for LodgeNet's digital and VHS-based in-room entertainment services in hotels, casinos and resorts throughout the U.S. and Canada.
http://biz.yahoo.com/bw/040204/45202_1.html 
http://www.lodgenet.com 
http://www.macrovision.com

(London) Gametrac Europe, developer of a multi-functional portable video gaming device, said on Wednesday that it has partnered with network services provider NetLight to incorporate targeted advertising capabilities into the Gametrac. The advertising will be optional for Gametrac purchasers, with revenue streams from Smart Adds going towards subsidizing the price of the Gametrac hardware or any other mobile device using the Gametrac marketing technology.
http://biz.yahoo.com/prnews/040204/lnw001_1.html 
http://www.gametrac.com

(New York) Video game publisher Take-Two Interactive, known for its "Grand Theft Auto" franchise, on Wednesday announced the retail release of its "Mafia" title for Sony PlayStation 2. An Xbox version is due for release in March in the U.S. and Europe.
http://biz.yahoo.com/bw/040204/45150_1.html 
http://www.take2games.com 
http://www.mafia-game.com

(San Mateo, Calif.) Mobile entertainment publisher Sorrent announced on Wednesday the launch of "Aliens: Unleashed" for subscribers to Verizon Wireless' Get It Now service. The game, available for $3.99 monthly or $6.49 for unlimited use, is based on the movie franchise "Aliens," licensed to San Mateo, Calif.-based Sorrent by Twentieth Century FOX L&M's Wireless Entertainment Group.
http://www.sorrent.com

(Honolulu) Wireless game developer and publisher Blue Lava Wireless said on Wednesday that it has now sold over one million paid game downloads. The company holds the lucrative license for the wireless version of "Tetris," and has also published games including "Blue Babel," "Blue Blocks" "Video Poker" and "Dell Magazines Crossword Puzzle."
http://www.bluelavawireless.com

(New York) Vindigo Studios, a developer of wireless entertainment applications, said on Wednesday that it has launched two new services for subscribers to Verizon Wireless' Get It Now service. Along with partner WireImage, a digital photographic press agency and wire service, New York-based Vindigo launched "CelebrityNow!" and "ReplaySports," which feature updated celebrity and sports photos and news. The services will cost $3.99 and $3.49 per month, respectively.
http://biz.yahoo.com/bw/040204/45120_1.html 
http://www.wireimage.com 
http://www.vindigostudios.com

(Houston) Mobile game publisher Dwango Wireless said on Wednesday that it has launched its "Aqua X" game for subscribers to Verizon Wireless' Get It Now service. Customers may download a free two-minute demo of "AquaX" or pay $3.25 for unlimited use access.
http://www.dwango.com

(San Francisco) CNET News.com recently reported that Yahoo is quietly looking into developing its own music download store, expanding on its previous services which have only offered streaming music. News.com cited "knowledgeable sources" who said Yahoo acquired Mediacode in December to develop its own media player, and that the company has held talks with San Diego-based download store operator Musicmatch about a possible acquisition. The sources also said Yahoo has recently received inquiries from other download retailers, including BuyMusic.com and Napster parent Roxio.
http://news.com.com/2100-1027_3-5152860.html

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