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Note to Readers:

 Holiday Publishing Schedule

Today's edition of Digital Media Wire will be the last of 2003, as we take an extended break for the holidays. The next edition will arrive on Monday, Jan. 5, 2004. Happy Holidays!


December 19, 2003 -- About Us | Advertise | Events | Publications | Subscribe

Main Stories
o D.C. Appeals Court Says RIAA Subpoenas for File-Swapper Identities Illegal
o RealNetworks Files $1 Billion Antitrust Suit Against Microsoft
o Dutch Supreme Court Rules Kazaa File-Sharing Software Is Legal
o Wal-Mart Launches Test of $0.88 Digital Music Download Store
o Game Publisher Take-Two May Face SEC Lawsuit Over Accounting
o AOL Enables Members to Purchase Songs from Apple iTunes Download Store
o Web Search Advertising Firm Kanoodle Raises Funds


 > DMW AnnouncementsDMW Publications
 --Digital Media Law Report - November Report Available Now!
 --Game Industry Quarterly

 > Featured Advertisement:
 --MIDEMNET
 --Artisan Quality Handbags and Jewelry
 

o Briefly Noted: Google - book text-search, Loudeye Technologies - Amazon.com, Activision - "Shrek 2," Konami - "Shaman King," Electronic Arts - "Harry Potter and the Prisoner of Azkaban," Atari - "Peter Pan: The Motion Picture Event," Aspyr Media - "Lara Croft Tomb Raider: The Angel of Darkness," Macrovision - Galaxy Satellite Broadcasting

 
> Job/Event/Marketplace Classifieds:
 --Sr. Sales Executive – Media, Entertainment and Aggregator
 --
President & COO - Susquehanna Technologies - Winchester, VA
 --
Senior Security Consultant
 --
Director of Engineering
 --Media Director - Greater Boston 
 --Complete Information for Department of Homeland Security
 --Get Rid of Your Old Cars - Donate To The Starlight Children’s Foundation
 


o AD.C. Appeals Court Says RIAA Subpoenas for File-Swapper Identities Illegal

Washington -- In a major setback for the recording industry's legal campaign against music file-swappers, the U.S. Court of Appeals for the District of Columbia has ruled that the streamlined subpoena process currently being used to compel alleged file-swappers' Internet service providers to reveal their identities is illegal. The Recording Industry Association of America (RIAA) has filed thousands of such subpoenas with a number of ISPs -- including Verizon -- which sued the RIAA saying the subpoenas violated their users' privacy. A lower court agreed with the RIAA's argument that the subpoena process, which doesn't require a judge's approval, was justified under the Digital Millennium Copyright Act. The appeals court ruling will mean that the RIAA now must file a more cumbersome "John Doe" lawsuit against alleged file-swappers to get their identity from an ISP. "We are not unsympathetic either to the RIAA's concern regarding the widespread infringement of its members' copyrights, or to the need for legal tools to protect those rights," the court wrote in its ruling. "It is not the province of the courts, however, to rewrite [copyright law] in order to make it fit a new and unforeseen Internet architecture, no matter how damaging that development has been to the music industry." At this point, it is unclear what effect if any the ruling will have on the hundreds of lawsuits that the RIAA has already filed -- and in some cases reached settlement agreements -- against individual file-swappers using the now illegal subpoena process. "Today's ruling is an important victory for Internet users and all consumers," said Verizon vice president and associate general counsel Sarah Deutsch. "Copyright holders seeking personal information about Internet subscribers will now have to file a traditional lawsuit. These requests will undergo scrutiny by a judge, thus preserving the privacy, safety and legal rights of every Internet subscriber."
http://biz.yahoo.com/prnews/031219/nyf048_1.html  http://pacer.cadc.uscourts.gov/docs/common/opinions/200312/03-7015a.pdf  http://news.com.com/2100-1027_3-5129687.html  http://makeashorterlink.com/?Z66023BD6  http://www.wired.com/news/technology/0,1282,61670,00.html  http://www.riaa.com
_____________________________________________

o RealNetworks Files $1 Billion Antitrust Suit Against Microsoft

Seattle -- RealNetworks announced late on Thursday that it has filed a $1 billion antitrust lawsuit against Microsoft, alleging the company illegally used its monopoly power to restrict competition, limit consumer choice and attempt to monopolize the growing field of digital media. In its suit, RealNetworks says Microsoft used its influence to "restrict how PC makers install competing media players while forcing every Windows user to take Microsoft's media player, whether they want it or not." By tying its Windows Media Player into its Windows operating system, which comes pre-installed on the majority of the world's PCs, the company has been able to achieve near universal distribution for the Media Player, while using its influence to pressure PC makers and others to ignore its competitors. "While we much prefer competing in the market -- as we are doing and have done for 9 years -- our Board has made a carefully considered business decision to take this action to end Microsoft's illegal conduct and recover substantial damages on behalf of our shareholders," said RealNetworks chairman and CEO Rob Glaser. In addition to an estimated $1 billion in damages, RealNetworks will seek an injunction to prevent Microsoft from further anti-competitive behavior. The company also said it will cooperate with the European Commission's ongoing antitrust investigation of Microsoft. In a statement, Microsoft called RealNetworks' lawsuit "a case where a leading firm is seeking to use the antitrust laws to protect and increase its marketplace share and to limit the competition it must face." http://biz.yahoo.com/prnews/031218/sfth074_1.html  http://biz.yahoo.com/prnews/031218/sfth095_1.html 
http://news.com.com/2009-1014_3-5129426.html  http://makeashorterlink.com/?P35023BD6 
http://www.latimes.com/business/la-fi-real19dec19.story
_____________________________________________

o Dutch Supreme Court Rules Kazaa File-Sharing Software Is Legal

Amsterdam -- The Netherlands' Supreme Court on Friday upheld a lower court's ruling that said the Kazaa file-sharing application is legal and may be freely distributed on the Internet. Dutch music copyright agency Buma Sterma brought the legal action against Kazaa founders Niklas Zennstrom and Janus Friis, who called the ruling in their favor, "an historic victory for the evolution of the Internet and for consumers." Although the court's ruling does not address individuals who use the file-sharing network, it does absolve the developers of the software that individuals use. Little surprise, the International Federation of the Phonographic Industry (IFPI), which has waged an all-out war on file-sharing networks, attacked the ruling, saying that it was one-sided and flawed. It also vowed to continue its legal battle in other countries.
http://news.com.com/2100-1027-5129661.html 
http://www.ifpi.org/site-content/press/20031219.html 
http://www.kazaa.com
____________________________________________

o Wal-Mart Launches Test of $0.88 Digital Music Download Store

Bentonville, Ark. -- Retail giant Wal-Mart has launched a test version of a digital music download store on its website, which will undercut the current $0.99 industry pricing standard by offering individual tracks for $0.88 each. The company said the service was developed with Anderson Merchandisers, which supplies music to Wal-Mart and Walmart.com, and will feature "hundreds of thousands" of songs provided by Liquid Digital Media (formerly Liquid Audio), a provider of digital media fulfillment services acquired by Anderson in January. Tracks on the Walmart.com service will be available to PC users in Windows Media Audio (WMA) format, and will be burnable to CD and transferable to compatible portable devices. "With 64 percent of our customers online, we see digital music downloads as a natural extension of the music selection offered in Wal-Mart stores," said Kevin Swint, Walmart.com's senior category manager of entertainment media. http://biz.yahoo.com/rc/031218/retail_walmart_music_update_1.html  http://www.liquidaudio.com 
http://musicdownloads.walmart.com
____________________________________________

o Game Publisher Take-Two May Face SEC Lawsuit Over Accounting

New York -- Video game publisher Take-Two Interactive has announced that it received notice the U.S. Securities and Exchange Commission (SEC) may file civil charges against the company related to its accounting practices. The lawsuit would seek an injunction and monetary damages against the company, alleging violations of certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The SEC's staff informed Take-Two through a Wells Notice of its intention to recommend that the SEC file charges. The company said it has "initiated discussions" with the SEC on the matter. Separately, New York-based Take-Two said that it will close its Gotham Games publishing label. The company's Gathering label will take over publishing duties for all of its mid-priced and premium priced products on the PC, console and handheld platforms not published by its Rockstar Games label.
http://biz.yahoo.com/bw/031218/185203_1.html  http://biz.yahoo.com/ap/031218/take_two_sec_3.html  http://biz.yahoo.com/rb/031218/media_taketwo_earns_3.html  http://www.take2games.com ____________________________________________

o AOL Enables Members to Purchase Songs from Apple iTunes Download Store

Dulles, Va. -- America Online has announced that it has partnered with Apple Computer to allow its members to purchase song downloads from its AOL Music service through Apple's iTunes Digital Music Store. A button will be placed next to songs available on AOL's streaming music stations, which will automatically launch Apple's iTunes so that users may preview and purchase the songs as $0.99 downloads. AOL also said that it will release tracks recorded as part of its Sessions@AOL and Broadband Rocks programs -- from artists including 50 Cent, R.E.M. and Iggy Pop -- for sale through the iTunes Music Store. http://media.aoltimewarner.com/media/press_view.cfm?release_num=55253685  http://www.apple.com/itunes/store  _____________________________________________

o Web Search Advertising Firm Kanoodle Raises Funds

San Francisco -- Kanoodle, a provider of Internet search advertising, announced that it has raised an undisclosed amount in its first round of funding from Insight Venture Partners. The company also said that it hired a number of key executives from Sprinks, a Web search ad firm recently acquired by Google. San Francisco-based Kanoodle provides a commerce-oriented search engine for consumers, whose search results are populated by companies that have bid for placement on Kanoodle. The company said it will use the funds to launch a new business serving ads based on Internet content, and to expand its existing keyword advertising service.
http://makeashorterlink.com/?S40536BD6 
http://www.kanoodle.com

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 > DMW Publications:

> Digital Media Law Report
Must-read publication on legal and policy matters related to digital media. Law Report includes case summaries, news and analysis, policy updates, court filings, and exclusive interviews with legal counsel and business leaders. Published monthly. Subscriptions - Order

Available Now - November Law Report - 32 pages - Order

> G
ame Industry Quarterly
- Subscriptions - Order
The Game Industry Quarterly features news about key business, legal and finance developments impacting the game industry. Each issue includes sections on current industry research, financings, law and policy matters, game releases, business deals and other industry events.

Available Now - Q3 Game Industry Quartertly - 105 pages - Order

Past Events | Sponsorship Materials | Partners & Clients
 

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> Featured Advertisement:


> Artisan Quality Handbags and Jewelry

Marumaru offers artisan quality handbags and jewelry for the savvy and discriminating woman. We specialize in vintage silk kimono purses and offer many elegant jewelry pieces made from bamboo and coral to semi-precious stones. All of our fine products are Asian-inspired and handcrafted in Hawaii, the gateway to Asia. We welcome you. Please visit us at marumarugirl.com . contact: cara@marumarugirl.com  or michael@marumarugirl.com
 

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o Briefly Noted:

(Mountain View, Calif.) Search engine firm Google has launched a beta test for a new feature that lets users search within the texts of books, view excerpts and in some cases view a picture of the book's cover. The listings will also provide links to a book's publisher or online retailers where users may purchase a copy. Google said that publishers including Random House, Knopf Publishing Group and Macfarlane, Walter & Ross are participating in its Google Print (BETA). A similar feature that lets users search within the texts of published works was recently launched by online bookseller Amazon.com.
http://print.google.com/print/faq.html

(Seattle) Loudeye Technologies, a provider of streaming digital song samples and other digital media services, announced that it has signed a multi-year renewal of its agreement to provide digital music song samples to online retailer Amazon.com. Seattle-based Loudeye provides online retailers and other sites with a library of 30-second samples of over 4 million tracks from over 400,000 CDs. http://biz.yahoo.com/prnews/031218/sfth032_1.html
http://www.loudeye.com

(Santa Monica, Calif.) Activision, a developer and publisher of video games, announced on Friday that it has signed an agreement with DreamWorks to develop games based on the film studio's upcoming "Shrek 2." Additionally, the company said it terminated its previously announced co-publishing and co-development agreement for Shrek-based games with TDK Mediactive, following that company's acquisition by Take-Two Interactive. Activision was also assigned all rights to any future "Shrek" films by TDK Mediactive. Activision has separate deals with DreamWorks to develop games based on three upcoming animated features: "Shark Tale," "Madagascar" and "Over the Hedge." http://biz.yahoo.com/prnews/031219/laf044_1.html 
http://www.dreamworks.com
http://www.activision.com

(Los Angeles) Konami Digital Entertainment America (KDE), the U.S. arm of the Japanese video game developer, announced that it has secured the rights to develop games based on the popular Japanese anime series, "Shaman King" in Europe and North America. Launched in 1988, the comic has sold over 20 million copies in Japan and spawned an anime TV series that began airing on Fox in the U.S. in September. Los Angeles-based KDE said it will release versions of its game for PlayStation 2 and Game Boy Advance in the summer of 2004. http://www.konami.com/usa/press/shaman121803.html  http://www.foxbox.tv/shamanking 

(Redwood City, Calif.) Game developer Electronic Arts said that it plans to release "Harry Potter and the Prisoner of Azkaban," its latest game based on the J.K. Rowling novels, in the spring of 2004. The title is currently in development at EA's U.K. Studio for PlayStation 2, Xbox, GameCube, Game Boy Advance and the PC. http://biz.yahoo.com/bw/031218/185515_1.html  http://www.ea.com 

(Beverly, Mass.) Video game developer Atari announced on Friday the release of its "Peter Pan: The Motion Picture Event" title for Nintendo Game Boy Advance, based on the Columbia Pictures film that will be released in theaters on Dec. 25. Utah-based Saffire developed the game for Atari. http://biz.yahoo.com/bw/031219/195209_1.html 
http://www.atarikids.com 
http://www.saffire.com 

(Austin) Mac game developer Aspyr Media on Friday shipped its "Lara Croft Tomb Raider: The Angel of Darkness" to retail stores. The game was developed under license from U.K.-based "Tomb Raider" creator Eidos Interactive, and converted for Apple's Mac platform by Quebec-based Beenox.
http://www.eidos.com
http://www.beenox.com 
http://www.aspyr.com 

(Santa Clara, Calif.) Macrovision, a provider of copy-protection technology for CDs, DVDs and other media, announced that it will provide its services for Hong Kong-based Galaxy Satellite Broadcasting's near-video-on-demand service. Santa Clara, Calif.-based Macrovision's technology will protect against unauthorized set-top box to DVD recorder copying and set-top box to hard drive recorder copying of Galaxy's content. The Galaxy Satellite Broadcasting service will be an all digital, multi-channel service featuring a range of Cantonese and Mandarin content programming to subscribers in Hong Kong. http://biz.yahoo.com/bw/031218/185798_1.html 
http://www.macrovision.com

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> Classifieds:

>Sr. Sales Executive – Media, Entertainment and Aggregator

Peppercoin, Inc. is a micropayments company that enables online merchants to sell low-priced digital goods profitably. Peppercoin was founded by world-renowned leaders in cryptographic technology from MIT whose previous ideas led to significant enterprises worth billions of dollars. By joining the Peppercoin team, you will help us perpetuate this record of success. We are looking for an experienced sales professional to sell our service and product offerings to the Media, Entertainment and Aggregator markets. The position demands knowledge of these markets and a proven ability to sell new products from early stage start-ups.  Send resume to careers@peppercoin.com  URL: www.peppercoin.com
___________________

> President & COO - Susquehanna Technologies - Winchester, VA

Susquehanna Media seeks COO for its SusQtech business unit (www.susqtech.com). SusQtech, a MS Gold Certified Partner, offers solutions to Association, Business, and Government clients utilizing the Microsoft.Net development platform. Core offerings are Content Management, eCommerce, Share Point Portal Server and eProcurement. Qualified applicants will lead team, secure new business, & manage a growth business in a solutions selling environment. Send resume and cover letter to corp.hr@suspfz.com
___________________

> Senior Security Consultant

Candidates should have 6+ years working experience in software development and security consulting. The following technical areas are of interest: security in the SDLC, J2EE, .NET, software security architectures, software design, security assessments, middleware products (e.g., Websphere), and smartcards. A Bachelors degree in Computer Science, Electrical Engineering, Mathematics (cryptography interest), Security Engineering or Software Engineering required. 30% travel is required. Send resumes to janej@cigital.com  Visit http://www.cigital.com
___________________

> Director of Engineering

Clareos is seeking a Director of Engineering to lead our software product development group in the development of new products to fuel the company's expansion and growth with Fortune 500 customers. This person's objective will be to expand the engineering organization and accelerate development of our innovative data analysis platform. Send resumes to dsteinhoff@clareos.com  Visit http://www.clareos.com
___________________

> Media Director - Greater Boston

Our client is a full service Advertising Agency looking for a Media Director. This person will ensure proper maintenance and quality control for media planning and buying over multiple accounts as well as establish procedures and standards for media personnel. Proven management expertise and presentation skills required. Minimum of 8 years experience leading media teams. For consideration, please email your resume to dhorvath@pilenet.com  Please put "Media Director" in the subject line when applying. Compensation: $75,000
____________________

> Making Your Way thru the Homeland Security Maze

Small businesses wanting to do business with the government face unique challenges when entering the federal marketplace. The 2003- 2004 Directory of Homeland Security includes a detailed list of procurement information and small business government contacts for the various federal departments and agencies. Contact names, titles, phone and fax numbers and descriptions are included in the listings. The Department of Homeland Security portion of the directory has entire section titled, "Doing Business with the Department of Homeland Security." To order the 2003-2004 edition, go to: http://www.tech-directories.com/dmw.htm
___________________

> Get Rid of Your Old Cars - Donate To The Starlight Children’s Foundation

Starlight has teamed up with Car Program, LLC (www.donateacar.com) and whether your car runs or not, some parts may be sold for a donation that will help seriously ill kids. Don’t worry about DMV hassles and we can help arrange for FREE towing. Your donation is tax deductible and Starlight receives 70% of the proceeds of each vehicle. Call 877.840.7827 or visit http://www.starlight.org  Have your VIN and License number available.

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About Us
Digital Media Wire, Inc. is a news organization, publisher and events company serving the digital media industry since May 2000. Our daily newsletter delivers original briefings on business, legal and financial developments shaping digital media and read by over 30,000 executives and professionals. To subscribe for free, please click here.

Digital Media Wire, Inc. is part of the Tech Wire Media Group, an international network of publications that includes Digital Media Law Report, 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 70,000 individuals from over 70 countries each business day.

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