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===================================================
DIGITAL MEDIA WIRE -- December 20, 2002
===================================================
To Subscribe For Free: http://www.digitalmediawire.com 

o Movie Studios Sue 321 Studios, Maker of DVD-Copying Software
o Game Retailers Respond to Report On Violent Game Sales to Minors
o Liquid Audio Delays Stockholder Cash Offer to Contend Bertelsmann Suit
o Study: U.S. Market for Paid Online Content Grows Despite Economy  
> Note to Readers: Holidays Publishing Schedule

> DMW Publications: Special Rates for DMW Subscribers

o Briefly Noted: Sonicblue - networked DVD player, CableLabs -
home-networking devices, Activision - Marvel Comics' "Invincible Iron
Man," THQ - Sega, SunnComm Technologies - DCA Inc., Acacia Research -
Radio Free Virgin, Dmitry Sklyarov interview
_____________________________________________

> Events: Eventeurs

> Marketplace: Homeland Security Directory, Interest-Based Navigation

Full Classifieds located beneath "Briefly Noted" section below.

To post a Classified Ad:
http://www.digitalmediawire.com/mainpostingpage.html 
or contact Tinzar Than at tinzar@digitalmediawire.com
_____________________________________________

o Movie Studios Sue 321 Studios, Maker of DVD-Copying Software

Los Angeles -- Seven Hollywood movie studios have sued the maker of a
software program that allows users to make perfect copies of DVDs they
have purchased, alleging the software violates the Digital Millennium
Copyright Act (DMCA). At issue is Chesterfield, Mo.-based 321 Studios'
"DVD X Copy" software; the studios have asked a federal judge to order the
company to stop selling and distributing it, as well as pay damages based
on proceeds from the program's sales. Previously, 321 sued nine movie
studios, challenging the constitutionality of the DMCA and asking a judge
to declare its software legal. The company says its product falls under
the auspices of "fair use" of copyrighted content, because it allows
consumers to make backup copies of DVDs they purchased legally. In their
suit, the studios -- Columbia, Disney, MGM, Tri-Star, Warner, Universal
and The Saul Zaentz Company -- say 321 Studios is selling tools meant for
piracy. "It's like somebody selling a digital crowbar. It's like breaking
into the castle if you will," Patricia Benson, an attorney for the
studios, told the Associated Press.
http://story.news.yahoo.com/news?tmpl=story&ncid=528&e=1&
cid=528&u=/ap/20021220/ap_on_hi_te/dvd_suit 
http://news.com.com/2100-1023-978580.html?tag=fd_top 
http://www.321studios.com 
_____________________________________________

o Game Retailers Respond to Report On Violent Game Sales to Minors

Wilton, Conn. -- The Interactive Entertainment Merchants Association
(IEMA), a trade group of retailers that sell nearly 90 percent of the
video games sold in North America, has issued a response to Sen. Joe
Lieberman's (D-Conn.) recent press conference announcing that a report
from a video game violence watchdog group gave the industry a "failing
grade" for 2002. The report, released by The National Institute on Media
and the Family, specifically cited retailers' negligence in preventing the
sale of Mature-rated games to minors. In its response, the IEMA said that
it unilaterally supports the Entertainment Software Ratings Board (ESRB),
which provides video game ratings, and that its retailer members "only
stock games that are rated, move M-rated product out of reach of small
children, and provide in-store signage in an effort to educate consumers
about the ratings system." The group also said that, "the majority of IEMA
member companies currently have, or are in the process of developing,
policies regarding the sale of M-rated games." Finally, the IEMA pointed
out that the rate at which children are able to successfully purchase
'mature' games -- during government and media sting operations -- has
decreased approximately 10 percent per year over the past three years.
http://www.theiema.com/news/121902.html 
http://www.mediaandthefamily.org/research/report_vgrc_2002-1.shtml 
_____________________________________________

o Liquid Audio Delays Stockholder Cash Offer to Contend Bertelsmann Suit

Redwood City, Calif. -- Liquid Audio announced that it will temporarily
postpone its proposed cash offer of $2.50 per share to its stockholders,
part of its plan to dissolve the company, as it tries to quickly resolve a
lawsuit filed to stop the distribution. Earlier this week, BeMusic, a
subsidiary of German media conglomerate Bertelsmann, filed suit to enjoin
the cash distribution. Redwood City, Calif.-based Liquid Audio, which is
on the road to dissolution after a failed merger with Alliance
Entertainment, said it will "vigorously contend" the BeMusic suit,
scheduled to go to trial in Delaware Chancery Court on Feb. 10, 2003.
http://biz.yahoo.com/prnews/021219/sfth067_1.html 
http://www.liquidaudio.com 
_____________________________________________

o Study: U.S. Market for Paid Online Content Grows Despite Economy  

New York -- Through the first three quarters of 2002, U.S. consumer
spending for paid online content -- such as subscriptions to news,
entertainment, finance and personals sites -- totaled $975 million, versus
$670 million for the full-year 2001, according to a study conducted by
ComScore Networks that was commissioned by the Online Publishers
Association. The market for paid online content was $361.4 million during
the third quarter of 2002, a 14 percent gain over the previous quarter and
a 105.3 percent gain over the same period in 2001. The study found that
the Personals/Dating category has surpassed Business/Investing and
Entertainment/Lifestyles content to become the leading paid content
category, with $87 million in revenues for the quarter, a 387 percent gain
over the same quarter last year. "Remarkably, during a period of general
economic stagnation, the market for online paid content in the U.S.
maintained its stunning year-over-year growth rate," said Michael
Zimbalist, executive director of the Online Publishers Association.
http://www.businesswire.com/online_pub/index.shtml 
http://www.comscore.com 
http://www.online-publishers.org 
_____________________________________________

> Note to Readers: Holidays Publishing Schedule

Today's edition of Digital Media Wire will be the last for the year 2002.
We will take a break from publishing for the holidays, with the next
edition to be published on Thursday, January 2, 2003. We wish all of our
readers a Happy Holidays!
_____________________________________________

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==========================================
DMW Publications: Available for DMW Subscribers NOW!
November Law & Policy Report | Game Industry Report | iTV Chronicle
==========================================
Contact tinzar@digitalmediawire.com or call 323-464-0793 to order your
copies.
To purchase directly, go to:
http://www.digitalmediawire.com/marketplace.htm 

Digital Media Law & Policy Report  (November)
A new report every month - must-read publication on legal and policy
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**Special Reduced Rates available for a limited time**   
Price:   $19.00 Per Issue   |   $195.00 Annual Subscription  
http://www.digitalmediawire.com/marketplace.htm

Game Industry Law & Policy Report (published 11/1/02)
Special industry report covering law & policy matters impacting the game
industry. The 15-page report includes case summaries, news and analysis,
feature article and an exclusive interview with Doug Lowenstein,
President, Interactive Digital Software Association.   Price:  $19.00
http://www.digitalmediawire.com/marketplace.htm

For those who believe in ITV - "INTERACTIVE TELEVISION: The Definitive
Chronicle." Covering the period 2000 to the present, this sourcebook
presents a complete history of the news and events that have shaped the
business of iTV since the beginning of the 21st Century. Culled from
countless sources, including the Digital Media Wire database, this 175
pages PDF (on CD) covers all of the major players as well as the legal and
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http://www.digitalmediawire.com/marketplace.htm

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==================
FEATURED SECTION
==================
Featured Section posting at:
http://www.digitalmediawire.com/featuredpostingpage.htm 

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_____________________________________________

Briefly Noted:

(Santa Clara, Calif.) Consumer electronics firm Sonicblue has introduced
what it says is the industry's first networked DVD player, offering DVD
playback as well as the ability to view and play pictures, music and video
clips stored on PCs on a television. The $249 Go-Video D2730 has the
ability to wirelessly stream video and audio from a PC to a TV, using
either an included PCMCIA ethernet adapter or an optional PCMCIA 802.11b
wireless network card.
http://biz.yahoo.com/bw/021216/160465_1.html 
http://www.sonicblue.com 

(Louisville, Colo.) CableLabs, the cable TV industry's non-profit research
and development consortium, announced on Friday it has approved two
products under its CableHome standard for home networking, which allow
broadband services to be shared throughout a consumer's home. The standard
provides for a secure and managed residential gateway that can be
connected to the cable network in a plug-and-play fashion. Colorado-based
CableLabs said that residential gateway home networking devices from
manufacturers LinkSys and NETGEAR have been certified under its CableHome
initiative.
http://www.cablelabs.com/news/pr/2002/02_pr_ch_cw24_122002.html  

(Santa Monica, Calif.) Game developer Activision on Friday shipped its
"Marvel's The Invincible Iron Man" title for Nintendo Game Boy Advance,
based on the Marvel Comics superhero, to retailers. Australia-based game
studio Torus Games developed the title for Santa Monica-based Activision,
which this week announced it would not meet its projected earnings for the
year due to weaker than expected holiday game sales.
http://biz.yahoo.com/prnews/021220/laf022_1.html 
http://www.activision.com 
http://www.torus.com.au 

(Calabasas Hills, Calif.) Video game developer and publisher THQ announced
on Friday that it will publish fellow developer Sega's "Sega Arcade
Gallery" for Nintendo Game Boy Advance, as part of the companies'
multi-title exclusive publishing agreement. Scheduled to ship in early
2003, the title contains older Sega titles "After Burner," "Outrun,"
"Space Harrier" and "Super Hang On."
http://biz.yahoo.com/bw/021220/200030_1.html 
http://www.sega.com 
http://www.thq.com 

(Phoenix, Ariz.) SunnComm Technologies, a provider of CD copy-protection
technology, on Friday announced a partnership with DCA Inc., a provider of
optical disc signal processing technology. Under the agreement, CD
manufacturing plants that currently utilize DCA's Mastering Interface
System will also have the option to install the latest version of
Arizona-based SunnComm's MediaMax CD-3 disc enhancement and copy-control
system.
http://biz.yahoo.com/bw/021220/200119_1.html 
http://www.sunncomm.com 
http://www.dcainc.com  

(Newport Beach, Calif.) Acacia Research Corporation, a provider of V-chip
and digital media transmission technologies, said on Friday that it has
licensed its DMT Technology, a patented process for the transmission and
receipt of digital audio and digital video content, to Radio Free Virgin.
Terms of the deal were not disclosed. Radio Free Virgin provides
CD-quality streaming audio through over 40 genre-based music channels.
http://biz.yahoo.com/bw/021220/200014_1.html 
http://www.acaciaresearch.com 
http://www.radiofreevirgin.com 

(San Mateo, Calif.) CNET News.com on Friday published an interview with
Russian software programmer Dmitry Sklyarov, who gained notoriety after
being arrested and charged by the U.S. government for creating software
that allegedly violated the Digital Millennium Copyright Act (DMCA). The
case was the first test of the criminal provisions of the DMCA, which make
it a crime to circumvent the copyright protections on a digital device,
such as an e-book, in Sklyarov's case. The interview occurred during the
course of the U.S. trial against Sklyarov's employer, ElcomSoft, which was
acquitted of all criminal charges by a jury this week.
http://news.com.com/2100-1023-978497.html 
http://www.elcomsoft.com 
_____________________________________________

================================================
CLASSIFIEDS - HOLIDAY GIFT IDEAS & RED HOT DEALS
================================================
To Post Holiday Specials:
http://www.digitalmediawire.com/marketplacepostingpage.htm 

Digital Media Wire's Gift Suggestions for the Holidays:

-Verizon DSL:  SIGN UP ONLINE NOW AND YOU COULD WIN $50,000.
http://clickserve.cc-dt.com/link/click?lid=41000000000559414 

-Zones: Connecting Businesses & Technology.
http://clickserve.cc-dt.com/link/click?lid=41000000000568318

-The Palm Store: Free Software & Special Savings!
http://clickserve.cc-dt.com/link/click?lid=41000000000564835

-Audiobookclub.com - The World's Greatest Selection of Audiobooks!
http://clickserve.cc-dt.com/link/click?lid=41000000000555804

-Bose - Acoustic Wave Systems. Environmental Speakers. Quiet Comfort.
http://clickserve.cc-dt.com/link/click?lid=41000000000555807

-Totally Fun Toys - Toys that stimulate creativity, learning, and healthy
play! http://clickserve.cc-dt.com/link/click?lid=41000000000556187

-Watchzone - watches at great prices!!!
http://clickserve.cc-dt.com/link/click?lid=41000000000556190

Other Great Gift Ideas:

-Art Gazebo - Custom-framed prints at 40-50% off!
http://clickserve.cc-dt.com/link/click?lid=41000000000578489  

-Thompson Cigar: Since 1915! Great Value!
http://clickserve.cc-dt.com/link/click?lid=41000000000574586  

-Zany Brainy - Kids learn best when they are having fun!
http://clickserve.cc-dt.com/link/click?lid=41000000000580256

-Wine Enthusiast - Ultimate Wine Cellar, Accessory, and Unique Gift Guide
http://clickserve.cc-dt.com/link/click?lid=41000000000555777

-Nirvana Chocolates - Delicious Belgium Chocolates!
http://clickserve.cc-dt.com/link/click?lid=41000000000556080

-Eddie Bauer: Quality. Classic. Comfort.
http://clickserve.cc-dt.com/link/click?lid=41000000000554928

-Road Runner Sports - World's Largest Collection of Running Shoes
http://clickserve.cc-dt.com/link/click?lid=41000000000556083

-Jos. A Bank - Quality Men's Apparel.
http://clickserve.cc-dt.com/link/click?lid=41000000000555991
______________________________________________________

HOLIDAY PERSONAL SHOPPER
I can help anyone in any department with any gift buying needs... or offer
suggestions... be it jewelry, home, accessories, mens or ladies clothing,
etc..and can be reached at 310-550-5900 ext 2007.  GEMMI
______________________________________________________

Rock & Roll One Of A Kinds!

Hipsters Franky & Minx (www.frankyandminx.com) are getting attention with
their tattoo-designed products. There are only a few pieces left of their
hand made cami tops and undies -- which have been featured everywhere from
InStyle to Revolver.  Inquiries: Christina Ward [oranjegift@yahoo.com] or
call (414) 294-4709 for availability.  To purchase, go to
http://www.oranje.us
______________________________________________________

===================
CLASSIFIEDS - JOBS
===================
To Post Jobs: http://www.digitalmediawire.com/jobpostingpage.htm 

_____________________________________________

====================
CLASSIFIEDS - EVENTS
====================
To Post Events: http://www.digitalmediawire.com/eventpostingpage.htm 

HOLIDAY CATERING...The best staff and food in town!

Eventeurs uses the top chefs and most attractive staff in the business. We
can do an amazing holiday party for you and work within your budget.
Please call Alan Dunn at 323.466.1835 or go to http://www.eventeurs.net
_____________________________________________

==========================
CLASSIFIEDS - MARKETPLACE
==========================
To Post Marketplace:
http://www.digitalmediawire.com/marketplacepostingpage.htm 

Only 35 copies remaining of Directory of Homeland Security

This is your company's final chance to purchase the inaugural edition of
the Directory of Homeland Security: a 160-page book that lists all federal
and state agencies involved in homeland security. The directory includes
names of over 1,500 homeland security officials, profiles of 500 agencies
involved in homeland security, and a detailed list of technology companies
in this sector. The directory is sponsored by NETSEC, Greenberg Traurig,
AT&T and the Northern Virginia Technology Council.

To purchase the directory, go to: http://www.homeland-directory.com
_____________________________________________

Etronica helps you "Find the Good Stuff FAST!"

Etronica's unique software toolset enables "Interest Based Navigation" of
Digital Content. The Patent Pending software tools can be incorporated
directly into content websites and portals, installed in TV settop boxes
or integrated as OEM components. The tools drive the automatic tagging,
indexing, and categorization of text. A recommendation engine suggests
highly relevant new information to users as they interact. Personalized
advertising and commerce offerings can also be automatically served.
Contact us to learn more: info@etronica.com
http://www.etronica.com
_____________________________________________

Digital Media Wire, Inc. leverages its integrated media network to provide
exceptional value to individuals and companies determined to capitalize on
the convergence of media, entertainment and technology. Digital Media
Wire, the first in a series of business-intelligence publications,
delivers original daily briefings on the business, legal and financial
developments shaping digital media.

Digital Media Wire is part of the Tech Wire Media Group, an international
network of publications that includes Potomac Tech Wire, New England Tech
Wire, Southeast Tech Wire, Bay Area Tech Wire, Tri-state Tech Wire and
European Tech Wire. The network reaches more than 62,000 individuals from
over 70 countries worldwide each business day.

Upcoming publications, events & information at:
http://www.digitalmediawire.com 

Questions, Comments & Suggestions to:
tinzar@digitalmediawire.com 

News Tips, Scoops & Press Releases to:
editorial@digitalmediawire.com 
_____________________________________________

Editor: Mark Hefflinger
Chief Executive Officer: Ned Sherman
Marketing Director: Tinzar Than

Copyright 2002 Digital Media Wire, Inc. All Rights Reserved.