Main Stories
o Tech Firms, ISPs, Librarians Propose Alternative to "Induce Act"
o Report: Microsoft to Launch Digital Music Store This Week
o MPAA Sues Two DVD Chipmakers Over Movie Piracy
o Game Publisher Acclaim Faces Bankruptcy, Nasdaq Delisting
o RealNetworks to Offer Digital Music Services at Two Universities
o U.S. Online Retail Sales to Top $300 Billion by 2010

o Briefly Noted: Madonna - m-Qube, Record labels - DualDisc format, Yahoo's Launch, Mean Fiddler - Universal Records, Comcast - DVR service, TVN Entertainment - NFL Network, Kaplan - online GMAT/GRE prep, Paramount Pictures - "Sky Captain" game tournament, Blizzard Entertainment - AT&T, LucasArts - EA Japan, Atari, Majesco - Strawberry Shortcake, Global Star Software - Firefly Studios, GameSpy, Crave Entertainment, Online game virtual currency - "outsourcing
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Arlington, Va. -- A group of technology firms, Internet service providers and library groups have submitted an alternative to a proposed copyright bill that would ban peer-to-peer file-sharing networks and any device that might "induce" consumers to infringe copyrights. The Consumer Electronics Association -- a large group of manufacturers -- as well as ISPs Verizon and SBC signed onto the "Don't Induce Act," meant to narrow language presented in the "Induce Act" that was debated at a Senate Judiciary Committee hearing last month. The group's proposed changes to the language of the bill "address mass, indiscriminate infringing conduct while preserving the Supreme Court's Betamax decision, the Magna Carta of the technology industry which is in no small measure responsible for our nation's preeminence in technological innovation and entrepreneurship," the group said of its Don't Induce Act, which would narrow the Induce Act from banning "any" device capable of inducing copyright infringement to those "specifically designed" to enable piracy. Responding to the rewritten legislation, Recording Industry Association of America (RIAA) vice president Mitch Glazier told CNET News.com, "I don't think that as written anyone could be found liable...But I'm glad that people are trying to draw the line between the good guys and the bad guys."
http://www.ce.org/press_Room/press_release_detail.asp?id=10536
http://makeashorterlink.com/?U29122129  
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o Report: Microsoft to Launch Digital Music Store This Week

San Jose, Calif. -- Microsoft plans to launch its own digital music download store this week, quietly adding the technology to the new version of its Windows Media 10 player software, The San Jose Mercury News reported. The report said early versions of the player closely resemble Apple's iTunes Music Store, currently the leader in the music download market, and also dispelled rumors that Microsoft's would be the first store to win the lucrative rights to sell Beatles tracks online.
http://www.mercurynews.com/mld/mercurynews/business/9471751.htm
http://www.microsoft.com/windows/windowsmedia/mp10/default.aspx 
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o MPAA Sues Two DVD Chipmakers Over Movie Piracy

Los Angeles -- The Motion Picture Association of America (MPAA) announced that it has filed suit against two manufacturers of chips used in DVD players, for selling chips that allow unauthorized copying of DVD movies. The MPAA sued Milpitas, Calif.-based Sigma Designs and Taiwan-based MediaTek for violating the license agreement they signed with the DVD Copy Control Association, by selling chips that can descramble DVD security technology to DVD player makers that have not been licensed to make such devices. The group said that in testing it found DVD players featuring the companies' chips that did not provide adequate security measures. The MPAA recently won an injunction in a similar case against DVD chipmaker ESS Technology.
http://biz.yahoo.com/rc/040823/tech_dvd_suit_1.html 
http://makeashorterlink.com/?T6E212129 
http://www.mpaa.org   
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o Game Publisher Acclaim Faces Bankruptcy, Nasdaq Delisting

Glen Cove, N.Y. -- Video game publisher Acclaim Entertainment has announced that it will be forced to declare bankruptcy if negotiations with a new proposed lender fail to replace its existing credit facility with GMAC Commercial Finance, which expired on Aug. 20. Additionally, Acclaim said that the Nasdaq has notified it that its shares are in danger of being delisted from the exchange for failing to meet the minimum market capitalization requirements. Acclaim shares will trade on the Nasdaq Small Cap Market pending an appeal process of the Nasdaq's decision. Glen Cove, N.Y.-based Acclaim, known for its "All-Star Baseball," "NBA Jam" and "Dave Mirra Freestyle BMX" franchises, has struggled recently with weak sales of its game titles, in addition to several shareholder class action lawsuits and an accounting error that compelled the company to restate results for the past three years.
http://biz.yahoo.com/prnews/040823/nym167_1.html 
http://www.acclaim.com   
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o RealNetworks to Offer Digital Music Services at Two Universities

Seattle -- RealNetworks, a provider of media delivery technology, announced on Tuesday agreements with two universities to offer its Rhapsody digital music service at a "deeply discounted" price to students. The company's first on-campus distribution deals will provide 80,000 students at the Univ. of California, Berkeley and the University of Minnesota with access to its 725,000-song catalog. Berkeley students will have access to Rhapsody for free through Oct. 31, and afterwards at a sharply reduced monthly price; Minnesota students can sign up for either the monthly renewal service or for three-month or annual subscriptions at a further discounted rate. Rhapsody's rates for general consumers are $10 per month and $0.79 per song. Seattle-based RealNetworks also announced that it sold more than one million songs last week from its RealPlayer Music Store, fueled by its Freedom of Choice $0.49 per song download promotion.
http://biz.yahoo.com/prnews/040824/sftu046_1.html
http://biz.yahoo.com/prnews/040824/sftu047_1.html 
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o U.S. Online Retail Sales to Top $300 Billion by 2010

Cambridge, Mass. -- U.S. online retail sales will more than double over the next six years -- reaching $316 billion by 2010 -- according to a new report from Massachusetts-based Forrester Research. According to the report, a growing population of online shopping households, combined with effective "multi-channel" integration and site improvements from retailers, will drive e-commerce growth to account for 12% of total retail sales in 2010, up from nearly 7% in 2004. "Significant behavioral changes by consumers and retailers will fuel online retail growth over the next six years," said Carrie Johnson, a senior analyst at Forrester Research. "While consumers continue to become more comfortable buying a variety of items online, retailers will apply what they have learned in the early days of online retailing to implement site enhancements that provide a greater return on investment and a better experience for customers."
http://biz.yahoo.com/bw/040823/235362_1.html 

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(Boston) M-Qube, a provider of mobile content delivery technology, announced on Tuesday the launch of a Web-based store for pop singer Madonna that will sell ringtones, images and other mobile content featuring the artist. Boston-based m-Qube will power the site, which allows U.S. and Canadian users to purchase and download Madonna content that will be billed directly to their cell phone accounts.
http://www.m-qube.com 
http://www.madonna.com

(San Diego) A consortium of major and independent record labels gathered at the annual National Association of Recording Merchandisers convention have announced their support for DualDisc, a new two-sided disc format that features a CD on one side and a DVD on the other. The DVD side may feature a version of the full album in enhanced sound -- such as Surround Sound, DVD-Audio or LPCM stereo -- as well as music videos, interviews, photos, lyrics and Internet links. Labels including EMI, Sony BMG, Universal, Warner and 5.1 Entertainment Group plan to release both new and catalog titles on the format beginning in October.
http://www.narm.com 
http://www.dualdisc.com

(Santa Monica, Calif.) Launch, Yahoo's online music destination, announced on Tuesday that it now accounts for nearly 50% of all time spent by consumers listening to streaming music online, according to data from comScore Media Metrix. The company saw a nearly 350% yearly increase in total usage minutes, recording a record 1.8 billion total minutes in July, as well as a 56% increase in unique users since July of last year. Launch also says it streamed over 260 million music videos to users during July.
http://biz.yahoo.com/bw/040824/245167_1.html 
http://launch.yahoo.com

(London) Mean Fiddler, a U.K. music promoter, announced that it has signed an agreement with Universal Records that will enable it to offer downloadable live tracks from Universal artists performing at its events, which include the Reading and Glastonbury music festivals in the U.K. Subject to each artist's approval, Mean Fiddler will sell live tracks for roughly between $1.77 and $2.69 each.
http://biz.yahoo.com/rc/040824/media_meanfiddler_1.html
http://www.meanfiddler.com

(Philadelphia) Comcast, the nation's largest cable TV provider, has announced the launch of a digital video recorder service for its subscribers in southeast and central Pennsylvania, New Jersey and northern Delaware. The $9.95 per month service will not include an equipment fee, and enables both standard digital and HDTV programs to be recorded. Comcast said it also plans to debut a new on-screen interactive program guide for its systems beginning next month.
http://www.comcast.com

(Burbank, Calif.) TVN Entertainment, a provider of video-on-demand programming and delivery technology, announced on Tuesday an agreement with NFL Network, the satellite TV network featuring year-round football programming. Under the terms, Burbank, Calif.-based TVN will serve as the primary provider of video-on-demand services for NFL Network, delivering its content to a range of U.S. cable TV providers.
http://www.tvn.com 
http://www.nfl.com/nflnetwork

(New York) Test preparation service Kaplan announced on Tuesday plans to launch new online courses for the GMAT and GRE business school and graduate school entrance exams. "More and more people are seeking secondary graduate degrees to enhance their career options. For these people, who are balancing incredibly busy schedules, online test prep provides terrific flexibility," said Kaplan's Justin Serrano. Kaplan also provides online test preparation services for the SAT, LSAT, MCAT and other entrance exams.
http://www.kaptest.com

(Los Angeles) Paramount Pictures on Tuesday announced details for its "Sky Captain and the World of Tomorrow Air Combat Challenge," an online tournament based on a downloadable game created to promote the upcoming film. Players of the game, "Flying Legion Air Combat Challenge," will vie during the three-week tournament for a grand prize that includes a trip to the London premiere of the film, which opens in the U.S. on Sept. 17.
http://www.skycaptain.com

(Irvine, Calif.) Blizzard Entertainment, a game development studio of Vivendi Universal Games, announced on Tuesday a partnership with AT&T to create a secure hosting location for the launch of its "World of Warcraft" massively multiplayer online roleplaying game. AT&T is currently hosting the North American portion of the beta test for the game. The terms of the deal also call for AT&T to expand the hosting services it provides Blizzard's Battle.net community.
http://www.blizzard.com

(Tokyo) LucasArts, the video game studio owned by "Star Wars" director George Lucas, announced on Tuesday that it has partnered with the Japanese unit of developer Electronic Arts to distribute and operate the massively multiplayer online game "Star Wars Galaxies: An Empire Divided" in Japan. The game was developed by Sony Online Entertainment and has gained 500,000 subscribers in North America since launching in June 2003. LucasArts will provide a localized version of the game, while EA Japan will be in charge of operations, hosting, maintenance and customer support for the service.
http://www.lucasarts.com 
http://www.japan.ea.com/swg 
http://www.starwarsgalaxies.jp

(Beverly, Mass.) Game publisher Atari on Tuesday shipped its "Test Drive: Eve of Destruction" title for PlayStation 2 and Xbox to North American retailers. Atari said the "Test Drive" franchise has generated $160 million in sales since debuting in 1987. The new releases include a soundtrack featuring Island Def Jam Music Group artists such as Hoobastank, Sum 41, Rob Zombie and Thrice.
http://biz.yahoo.com/bw/040824/245257_1.html
http://www.atari.com/us/games/test_drive_eve/playstation2

(Edison, N.J.) Game developer Majesco said on Tuesday it has signed an agreement with American Greetings Corporation and DIC Entertainment to publish "Strawberry Shortcake: Summertime Adventure" for Nintendo Game Boy Advance in the fall. Developed by Gorilla Games, the game features the Strawberry Shortcake character created and owned by American Greetings.
http://biz.yahoo.com/bw/040824/245180_1.html 
http://www.majescogames.com 
http://www.strawberryshortcake.com

(New York) Global Star Software, a game publishing label of Take-Two Interactive, said on Tuesday it plans to release London-based developer Firefly Studios' "Stronghold 2" title for PC in early 2005. Global Star said the two previous installments in the "Stronghold" game franchise have sold a combined 1.5 million units.
http://biz.yahoo.com/bw/040824/245119_1.html 
http://www.fireflyworlds.com

(Brisbane, Cailf.) GameSpy, a provider of technology for online video games, on Tuesday announced the release of a new software development kit (SDK), aimed at aiding developers create multiplayer games for the PC or PlayStation 2 that include voice communication features. The new voice development kit will be included in the company's premium suite of online tools for developers.
http://www.gamespy.com

(Los Angeles) Video game developer Crave Entertainment, creator of titles including "Tokyo Xtreme Racer" and "UFC Throwdown," announced on Tuesday that it has named former Eidos president Rob Dyer as its president and chief operating officer.
http://www.cravegames.com

(San Francisco) Wired News on Tuesday reported on a new form of "outsourcing," wherein workers in foreign countries are paid to play massively multiplayer online games and accrue online currency and virtual items, which are in turn purchased by players in the U.S. and other countries with more real-world wealth. An entrepreneur in Russia is paying workers there about $100 per week to earn in-game money, which he then sells to Internet Gaming Entertainment, an online seller of virtual goods. However, some players not paying for such services complain that the foreign workers are interfering with their enjoyment of the game, with some even going so far as to sick monsters from the game onto the workers' characters to kill them off.
http://www.wired.com/news/digiwood/0,1412,64638,00.html 

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