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DIGITAL MEDIA WIRE -- March 28, 2002
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Subscribe for free: http://www.digitalmediawire.com

o Dutch Court Rules Kazaa Software Can Be Legally Distributed
o Following Senate's Lead, House Drafting Electronics Copy-Protection Bill
o U.K. to Legalize, Regulate All Forms of Online Gambling
o Report: VHS Rentals Still Outpacing DVDs by Three-to-One Margin
o Peer-to-Peer File-Sharing Developer CenterSpan Receives $5 Million
o DVD Security-Cracking Code Case Appealed to Calif. Supreme Court
o Graphic Arts Collaboration Software Provider Vio Raises $4.2 Million
> Digital Media Wire Panel Series: Interactive Television | L.A., S.F., NYC
o Briefly Noted: Napster - Bertelsmann, Antex Electronics - Paramount
Pictures, "Lineage" - China, Digimarc - Washingtonpost.Newsweek
Interactive, Nissan - satellite radio, InterTrust, Ebert: "Don't Confuse
Fans With Pirates"
_____________________________________________

o Dutch Court Rules Kazaa Software Can Be Legally Distributed

London -- In a surprising ruling, a Dutch appeals court said Thursday that
the distributors of the Kazaa file-sharing software are not liable for any
copyright infringements committed by those using the software, and may
freely distribute the software. The ruling overturns an earlier verdict in
favor of Dutch performing rights organization Buma/Sterma, which sued the
creators of Kazaa and FastTrack -- the network architecture for
file-sharing services Kazaa and Grokster. "We are stunned by the verdict,"
a Buma/Stemra spokesman told Reuters. The group plans to appeal the
decision to the High Court of the Netherlands. However, the Kazaa website
and software were sold to Australia-based Sharman Networks after the lower
court's adverse ruling. Kazaa and the other file-sharing services
operating on the FastTrack network have also been sued in the U.S. by the
recording and motion picture industries.
http://www.businesswire.com/cgi-bin/f_headline.cgi?day0/220870277&ticker=
http://www.wired.com/news/mp3/0,1285,51380,00.html
http://www.kazaa.com
_____________________________________________

o Following Senate's Lead, House Drafting Electronics Copy-Protection Bill

Washington -- Wired News reported on Thursday that a California
congressman is circulating proposed legislation in the U.S. House of
Representatives that mirrors the Senate's recently-introduced Consumer
Broadband and Digital Television Promotion Act (CBDTPA) -- a law that, if
enacted, would impose government-mandated copyright controls in most
consumer electronics devices. Rep. Adam Schiff -- a freshman Democrat out
of media haven Burbank, Calif. -- is currently seeking co-sponsors for the
bill he is drafting for introduction into the House. The entertainment
industry has given enthusiastic support for such legislation, which it
argues is imperative for them to be able to safely distribute their
lucrative copyrighted movies and music online and through other digital
channels. The technology industry, however, opposes government intrusion
into its business, and consumer groups and some legislators have argued
that such copyright controls would erode traditional consumers' rights to
make copies of media they have purchased and play them using any device
they choose. Senate Republicans have also gone on record as saying they
would oppose any copyright control legislation.
http://www.wired.com/news/politics/0,1283,51400,00.html
http://216.110.42.179/docs/cbdtpa/schiff.dear.colleague.032702.html
_____________________________________________

o U.K. to Legalize, Regulate All Forms of Online Gambling

London -- Online gambling sites and Internet bookmakers will be given a
governmental stamp of approval in Great Britain, in an attempt to
liberalize and regulate the industry, The Guardian reported. Sites
operating in the U.K. will now be able to offer fixed odds -- similar to a
casino -- in addition to sports betting via the Internet and interactive
television services. All such sites will brandish a kitemark granted by a
newly formed governmental Gambling Commission. In response to an
independent review of the U.K.'s current regulations on gambling, a
government official said in a statement, "We will as the review body has
proposed, move towards legalizing the provision of the full range of
online gambling services by operators located in the U.K., including
gaming." The new law will also allow for the establishment of Las
Vegas-like locales in the U.K. dedicated to gambling.
http://www.guardian.co.uk/internetnews/story/0,7369,674471,00.html
_____________________________________________

o Report: VHS Rentals Still Outpacing DVDs by Three-to-One Margin

Encino, Calif. -- VHS tapes continue to be the leading format for home
movie renters, who spend three times as much money renting VHS than DVD
discs, according to a new report from the Video Software Dealers
Association (VSDA). The group's 2002 year-to-date figures show the
consumers have spent $542 million renting DVDs (172 million rentals) and
$1.32 billion on VHS (500 million rentals). However, the VSDA did report
that consumers spent more buying movies on DVD than VHS in 2001, with $5.4
billion spent purchasing DVDs and $4.9 billion on VHS cassettes, quoting
from figures supplied by Adams Media Research. "The excitement for DVD
product continues to grow at a rapid pace, and there is a natural
transference of VHS turns toward DVD. However, the VHS format still
remains strong in both rental turns and revenues," said VSDA director of
research Brad Hackley.
http://www.vsda.org/news/press
_____________________________________________

o Peer-to-Peer File-Sharing Developer CenterSpan Receives $5 Million

Hillsboro, Ore. -- CenterSpan Communications, a developer of secure
peer-to-peer file-sharing networks, announced on Thursday that it has
received a commitment for up to $5 million in new equity financing. The
company's largest shareholder has agreed to purchase additional shares in
private transactions that will result in proceeds of $5 million. "In the
immediate term, the additional capital provides us with ongoing liquidity
as we continue formal pilot programs of our C-Star Content Delivery
Network Services with potential customers," said CenterSpan CEO Frank G.
Hausmann. Oregon-based CenterSpan recently announced that Sony Music
licensed songs for use on services using CenterSpan's technology; the
company said it soon expects to sign two additional major record labels.
http://biz.yahoo.com/bw/020328/280049_1.html
http://www.centerspan.com
_____________________________________________

o DVD Security-Cracking Code Case Appealed to Calif. Supreme Court

San Jose, Calif. -- The DVD Copy Control Association (DVDCCA), licensor of
the controversial CSS security technology for DVD discs, has asked the
California Supreme Court to reverse a ruling that said blocking
publication of code that can break its CSS technology would impede on free
speech, Newsbytes reported. The code in question -- called DeCSS --
circumvents the security on DVDs so they may be played on computers
running Linux; it also enables them to be copied and distributed on
file-sharing services. The 6th Circuit U.S. Court of Appeals ruled that
DeCSS is "pure speech." Despite the DVDCCA's argument that CSS is a trade
secret, the court ruled that a trade secret "is not an interest that is
'more fundamental' than the First Amendment right to freedom of speech."
In its appeal, the DVDCCA said that, "no stolen trade secret can survive
if the courts are powerless to enjoin its widespread disclosure." The
California Supreme Court is expected to rule on the DVDCCA's appeal in
early 2003.
http://www.newsbytes.com/news/02/175512.html
http://www.dvdcca.org
_____________________________________________

o Graphic Arts Collaboration Software Provider Vio Raises $4.2 Million

London -- Vio, a provider of collaboration software for the print and
publishing industry, announced on Thursday that it has received a $4.2
million investment from LMS Capital. London-based Vio provides online
management information tools that help control the flow of work throughout
the creative, publishing, print and production processes, and network
management services for the transmission of their large digital files. Vio
provides its services to publishers including Reed Business Information.
http://www.vio.com/print/news.asp?news=155
_____________________________________________

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_____________________________________________

o Briefly Noted:

(Los Angeles) The Los Angeles Times on Thursday provided further insight
into the lawsuit filed by Napster board member John Fanning -- the uncle
of Sean Fanning, who created the file-sharing software -- to have former
CEO Hank Barry and venture capitalist John Hummer removed from the board
of the company. Napster shareholders told The Times that Bertelsmann, the
German firm that has already invested around $60 million in Napster, is in
talks to buy the company for between $15 and $30 million. The Times also
reported that Barry and Hummer will likely challenge the lawsuit, putting
Bertelsmann's bid on hold until the dispute is settled.
http://www.latimes.com/business/la-000022258mar28.story?coll=la%2Dheadlines%2Dbusiness

(Gardena, Calif.) Antex Electronics, a developer and manufacturer of
digital audio sound cards, satellite receivers and Internet appliances for
the broadcast and entertainment industries, announced on Thursday that
Paramount Pictures will use its "digital dailies" system. The system will
replace the traditional method of dubbing VHS tapes each day so that those
involved with production can see each day's shooting progress.
Gardena-based Antex's system instead uses TiVo-like 120GB hard drives
connected to a network.
http://www.antex.com/sales/paramount-pr-327.htm

(Seoul, South Korea) NCSoft, developer of the massively multiplayer online
roleplaying game "Lineage," announced on Thursday that it has begun a beta
test of the game for the Chinese market. South Korea-based NCSoft has to
date expanded the game from Korea into the U.S., Japan, Taiwan and Hong
Kong. "The rapid proliferation of Internet game rooms that started in
Shanghai and spread to other parts of China will provide an excellent
marketplace for the title," said NCSoft president Taek-Jin Kim.
http://www.ncsoft.co.kr/default_e.html
http://www.lineagechina.com

(Washington) Washingtonpost.Newsweek Interactive, publisher of
Washingtonpost.com, said on Thursday that it has licensed digital
watermarking technology from Digimarc that will be inserted on up to 300
images a day on its site, to monitor and prevent unauthorized use of its
online assets. By right-clicking on the watermarked images, users may find
access to copyright information, licensing and e-commerce opportunities.
http://biz.yahoo.com/iw/020328/039960.html
http://www.digimarc.com

(New York) Car maker Nissan has announced that it will offer satellite
radio systems from both XM Satellite Radio and Sirius Satellite Radio in
2003 model cars, including the Infiniti, Pathfinder and Murano. Clarion
will manufacture the receivers, which will be offered as an option on the
new Nissan automobiles.
http://biz.yahoo.com/prnews/020327/law089_1.html

(Santa Clara, Calif.) InterTrust Technologies, a developer of digital
rights management technology, announced on Thursday that company president
David Lockwood has been named to the additional post of CEO. Lockwood
replaces former CEO Victor Shear, who resigned but will remain as chairman
of the company's board.
http://biz.yahoo.com/prnews/020327/sfw083_1.html
http://www.intertrust.com

(New York) The April issue of Yahoo Internet Life magazine features an
opinion piece ("Don't Confuse Fans With Pirates") written by movie critic
Roger Ebert, which condemns the music industry's efforts to thwart piracy
through the introduction of copy-protected CDs. Ebert says the
copy-protected CD "has to be the worst marketing decision in consumer
electronics since the original DivX format. It confuses fans with pirates.
My guess is that no musician or band still actively engaged in trying to
build an audience will want to come anywhere near it."
http://www.yil.com/columns/column.asp?columnist=ebert&date=020401&page=01
______________________

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>DIGITAL MEDIA WIRE PANEL DISCUSSION SERIES:
"iTV: New Interactive Services Fuel Big Expectations
Slow Market Penetration Raises Questions: How Big is iTV Going to Be?"

Register by clicking on the links below to join leading executives and
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NYC: http://www.acteva.com/booking.cfm?bevaid=21551&Referrer_id=4074

========================================================
LOS ANGELES: Tuesday, April 16, 2002, Four Seasons Hotel, Beverly Hills
========================================================
Moderator: Ken Rutkowski, Founder and CEO, KenRadio.com
Stephen Condon, SVP and CMO, Intertainer
K.C. Hildreth, COO, GoldPocket Interactive
Steve Hoffman, CEO, Spiderdance
Mark Kapczynski, Senior Consultant, Media-Entertainment Solutions,
Microsoft
David Nathanson, Director of Broadband Strategy, Fox Cable Networks

Sponsored by: LARTA
For more information and to register for the Los Angeles event:
http://www.acteva.com/booking.cfm?bevaid=21549&Referrer_id=4074

========================================================
SAN FRANCISCO: Wednesday, April 17, 2002, City Club of San Francisco
========================================================
Moderator: Sean Badding, VP and Senior Analyst, The Carmel Group
Martijn Lopes Cardozo, VP of Product Management, GoldPocket Interactive
Bridget Steele, Business Development Manager, Microsoft TV
Bill Niemeyer, Founder, Centrimedia (former Director, Strategic Dev.,
Spiderdance)
Peter Schultz, Director of Business Development, Pop Program, Liberate

For more information and to register for the San Francisco event:
http://www.acteva.com/booking.cfm?bevaid=21550&Referrer_id=4074

=========================================================
NEW YORK: Thursday, April 25, 2002, Cornell Club of New York City
=========================================================
Moderator: Art Cohen, SVP, Advertising, ACTV
Patrick Donoghue, VP, Interactive Television, Cablevision
Gerard Kunkel, President, WorldGate
Christopher S. Lucas, VP & Exec. Producer, Digital Media Group, Showtime
Networks
Rod A. Nenner, Director, TV & Entertainment Solutions Group, America
Online
Carla Sinatra, Vice President of Business Development, NBC
Todd Krieger, Senior Manager, Business Development, Microsoft TV

Sponsored by: WorldGate
For more information and to register for the New York event:
http://www.acteva.com/booking.cfm?bevaid=21551&Referrer_id=4074

Sponsorships and Inquiries:
Ned Sherman at 323.464.0793 or esherman@digitalmediawire.com
Paul Sherman at psherman@digitalmediawire.com

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Copyright 2002 Digital Media Wire