News written by Ben Reid (October, 2006)

On May 25 back in 2005, the Federal Bureau of Investigation (FBI) along with the US Immigration and Customs Enforcement (ICE) halted what was then the largest US based BitTorrent tracker - EliteTorrents.com - in an operation known as "D-Elite."

Now, in the first criminal conviction related to BitTorrent network fileswapping, 23-year-old Administrator Grant T. Stanley will spend the next 5 months in prison followed by an additional 5 months of home detention after pleading to guilty to conspiracy to commit copyright infringement and copyright infringement charges under the Family Entertainment Copyright Act. He was also fined $3,000 for his involvement in a BitTorrent node.

At its peak, the EliteTorrents service had more than 133,000 members and was estimated to have distributed some 2 million movie files in its lifetime, according to a government statement.

EliteTorrents' other administrator, Scott McCausland, pleaded guilty in September to "conspiracy to commit copyright infringement" and "criminal copyright infringement" and will be sentenced next month.

"This is the first criminal enforcement action against copyright infringement on a P2P network using BitTorrent technology," said United States Attorney John Brownlee. "We hope this case sends the message that cyberspace will not provide a shield of anonymity for those who choose to break our copyright laws."

A short while ago, the International Federation of the Phonographic Industry (IFPI) filed a civil lawsuit against Danish ISP Tele2. Within the suit, the IFPI demanded Tele2 block access to AllofMP3.com from its customers.

A court ruling on Wednesday saw the IFPI get its own way, and Tele2 must now block AllofMP3.com from its Danish customers.

Telecommunications industry figures in Denmark are concerned over the verdict, which they feel gives the implication that ISPs are responsible for the activities of their users and also the fact that no verdict has actually been made against controversial Russian download site AllofMP3.

"I’m shocked about the verdict, and view it as censorship. Tele2 and other Internet service providers provide free access to information on the internet, but now have to sort this information," said Ib Tholstrup, Director of the Telecommunication Business Organization. "This is unknown territory for us, and it is the same as if the Post Offices should read all the letters they are handling. I deeply condemn this verdict."

Sebastian Gjerding, spokesman of The Piracy Group in Denmark - an organization that petitions for copyright reform and advocates consumer rights - shared a similar view to that of the telecom industry. "This shows clearly that the IFPI poses a threat to the concept of free communication. There obviously are no limits to how far they are willing to go in their war against piracy, even though it means a limit of free communications. In China, citizens can’t visit sites that are legal in other countries, but that the Chinese government does not approve. That policy is now being brought to Denmark." Read more...

Warner Music Group has sealed a deal with online video service Brightcove which will see the record company distribute its vast catalog of video content on its own Web sites, whilst also raking in profit from it.

The collaboration will see WMG use Brightcove's software to embed Web-based video players in the sites for its labels, as well as individual artists. Those who visit the sites will be able to view on-demand music videos as well as other related footage in a service that will be free and ad-supported.

Brightcove licenses its Internet Protocol Television (IPTV) software to content providers so they can make it available without the requirement of a third-party service. Additionally, the Cambridge, Massachusetts-based company controls the advertising areas which will reap in the profits for Warner.

Unlike sites such as YouTube, which allows users to upload allsorts of content -- a lot of which is copyrighted, this type of service allows the companies to keep tabs on intellectual property in order to profit from it.

Source:
cnet

Google Inc., one of the world's wealthiest companies and new $1.65 billion owners of video sharing phenomenon YouTube.com, has outlined its stance on copyright issues, with Google Europe's Vice President Nikesh Arora stating that the software innovator will "not tolerate copyright violations," once acquisition proceedings are fully complete.

The video-sharing website's rapid growth has been largely down to the thousands upon thousands of copyrighted videos uploaded by users and many believed that Google had aquired a bundle of legal trouble when it made the takeover in September.

It is policy to remove content by request of copyright owners - its recent takedown of 30,000 videos owned by Japanese media companies was a sign of intent. However some believe that the company should introduce a filtering technology to weed out copyrighted content - which is said to have been developed by Google, but not yet implemented.

Mr Arora said of the situation, "There is not a lot we can say about what we will do with YouTube because it is still in the process of due diligence and we haven't closed the acquisition. Read more...

Microsoft's Office software suite looks set to become subject to compulsory piracy checks.

The software maker announced today that the Office Genuine Advantage (OGA) program - similar to the company's Windows Genuine Advantage (WGA) program, which checks for counterfeit or pirated versions of the Windows Operating System - will require obligatory validation of Office software on Friday. And from then on, any Office Online templates downloaded from within the Office 2007 Suite will be subject to validation of legitimacy.

Additionally, as of January '07, those who use Office Update will be required to validate that their Office software is legit before they can proceed with the service

Microsoft, which claims the process will be "quick and simple" for users, has stepped-up efforts in recent years in attempts to prevent its products from being pirated. It has had some minimal success in places, but has angered many users - with some in the past having their legally-acquired software wrongly tagged as illegitimate due to bugs in the system.

Source:
InfoWorld

European gamers anxious to get hold of the Playstation 3 console before its offical release in early '07 may be disappointed by the news that Sony Computer Entertainment Europe (SCEE) has promised use the "full scope of the law" to prevent that from happening.

The eagerly anticipated console will begin retailing North America and Japan next month but is not sheduled for release in the European market until March 2007.

Last week a British judge ruled that Lik-Sang, a Taiwanese import/export firm, could not sell the Japanese version of Sony's handheld PSP gadget in Europe, setting a precedent for potential importers of PlayStation 3 console.

A spokesman for SCEE told BBC News, "The law is clear, and grey importing PS2, PSP or PS3 into the EU, without the express permission of SCEE is illegal. Therefore, we will utilise the full scope of the law to put a stop to any retailers who chose to do this."

The spokesman noted that Japanese or American PS3 models would not play older European-sold software for the first two PlayStations, would not play EU Blu-ray films or DVDs, and would not be covered by any sort of warranty. "Ultimately, we're trying to protect consumers from being sold hardware that does not conform to strict EU or UK consumer safety standards," he added.

Aaron Greenberg, group marketing manager for Xbox Live, has dismissed rival Sony's online service for the upcoming PS3, stating that Microsoft is flattered that they have "created a service that is breeding yet another knockoff."

Speaking to GameSpot at Sony's recent Gamers Day event, Greenberg also gave an insight as to the future of the Xbox Live subscription model, given that Sony's PS3 offering will be free to use. "We will compete with them in the same way we have for the last four years by out-innovating and focusing on community, value, and the content that gamers want," said Greenberg. "They offered basic free matchmaking on the PS2, and from what we can tell, their online story has not evolved much."

He did promise that much-anticipated details of the upcoming autumn dashboard update will be arriving "soon", whilst hinting that further updates the Xbox backwards compatibility software also be released in the near future.

One of the new features to be included in the autumn update is the ability to output in 1080p, both for games and video content, including the HD DVD add-on, according to Pro-G News.

Hardware manufacturers Asus, Planex and QNap are to embed file-sharing software BitTorrent into their product ranges which include wireless routers, media servers and network storage devices.

Two of the devices made by Asus can be configured to download digital files via BitTorrent without the use of a PC, according to Cnet News.

"These are the places where people will store their media in the future," said BitTorrent's co-founder Ashwin Navin. "People don't want files to clutter their home PCs. Our technology working with these devices allows an entire family to share a jukebox."

BitTorrent is one of the most effective methods around for downloading and distributing large files online, although it has long been considered a tool for Internet music, video & software pirates. However in May, Warner Bros. Entertainment Group. became the first studio to make moves towards embracing the technology when BitTorrent announced a groundbreaking deal with the company to distribute its movies over the Web.

Numerous consumer electronics makers are looking to stake a claim to the "digital living room" territory and BitTorrent's potential for efficient media transfer within the home network may help the companies achieve this.

Sony Computer Entertainment has unveiled details of the PlayStation 3s online service and also the list of 21 games to be available at launch.

Avid gamers have been waiting for months for Sony to release details of its online system, which will be called the PlayStation Network and give PS3 owners the opportunity challenge other gamers, chat, download extras, store images, video, or music and browse the net using the custom built version of the Opera browser included in the PlayStation 3. Sony's offering will differ from rival Microsoft's Xbox Live service in that it will be free to use, although users will have to pay for downloadable games and other extras.

The navigation system for the PlayStation Network is based on that of Sony's handheld gaming gadget, the PlayStation Portable (PSP), which includes a "Friends" area in which users manage online gameplay, as well as access to any images, music or movies stored on the device.

PS3 owners will be able to buy downloadable games, extras for games, movies and music via the Sony PlayStation store. Downloadable games are expected to cost around $15 (£8).

Meanwhile Sony also revealed the list of 21 titles that will be available for the PS3 when it launches. The games, which are expected to cost around $59.99 (£32) are:

Google Inc.-owned video-sharing site YouTube.com has removed nearly 30,000 video files from its site after after complaints of copyright infringement by Japanese media companies, an industry group said on Friday.

Many analysts and journalists accross the tech world predicted that Google had bought itself a whole heap of copyright trouble when it recently acquired YouTube for $1.65bn.

The Japan Society for Rights of Authors, Composers and Publishers found some 29,549 music video, movie and TV clips which had been posted onto the popular site without permission.

A spokesman for the Japanese group, which represents 23 media companies including TV networks and movie distributors, said it would ask YouTube to introduce a screening process to prevent illegal video files being posted onto the site.

Source:
Reuters

The Motion Picture Association of America (MPAA) has issued a press release announcing its latest battleplan in its war on movie piracy. The trade group will team up with Los Angeles Area Boy Scouts of America to educate some 52,000 young scouts about the value of copyrights in an attempt to change attitudes towards theft of intellectual property.

"One of the most important tools we have to fight piracy is education and I commend the Los Angeles area Boy Scouts for working with us to help raise awareness about piracy among their troops in Los Angeles," said MPAA CEO & Chairman Dan Glickman. "The film industry is a major contributor to the Los Angeles economy and as such, it is important to protect the economic vitality film brings to L.A. and the state of California. Working with the Boy Scouts of Los Angeles, we have a real opportunity to educate a new generation about how movies are made, why they are valuable, and hopefully change attitudes about intellectual property theft."

MPAA has already formed a curriculum with the Los Angeles Area Boy Scouts that met the approval of troop leaders in the greater Los Angeles area earlier this year. The idea of the curriculum is to teach participants about copyright theft and various forms of piracy, how to spot counterfeit CDs/DVDs, the consequences of film and music piracy, and also why protecting copyrights is important to them and the local economy.

Software-making giant Microsoft Corp. on Thursday confirmed that it is planning on delivering a 100-gigabyte hard drive add-on for its Xbox 360 console.

The current premium version of the console comes with a 20GB hard drive which clips directly onto the console, and the 100-gig model, is of a similar design.

The additional space would certainly give Xbox Live users more space to store XBL downloads, and also pave the way for possible music and video purchases in the future.

It appears that Microsoft is aiming to give its next-gen console more of an "entertainment hub", or "media center" image, rather than just a game player -- the 360's Media Center PC Extender functionality is a clear indication of this.

Although the new peripheral is anticipated to arrive in Korea next March, launch dates for North America and the European market - as well as pricing - are still yet to be revealed.

Sources:
- arstechnica
- Betanews
- engadget

Japanese electronics manufacturer Panasonic has created a 4-layer, 100GB Blu-Ray disc that it claims will last for 100 years by using Te-O-Pd, a tellurium suboxide palladium-doped phase-change recording film. The film is said to have a high transmittance and crystallization rate which allows them to layer it on without losing data quality.

The 4x25GB discs, which are not yet in production, are capable of a 2x writing speed and said to be aimed at the long-term storage market.

Although artificial ageing acceleration tests showed that the disc is readable even after 100 years, CDs were tipped to last for ages when they were first introduced, however they turned out to have invariably short (5-10 year) lifespans.

Panasonic's lab study only tests the effects of humidity and temperature on discs over time. Outside of the perfect lab environment, when people's burning, handling, and storage of the discs are taken into consideration, the claimed "100-year durability" of the discs may seem a little far-fetched.

Source:
arstechnica

Microsoft Corp.'s latest tactic against those pirating its software in the U.K. appears to be paying off, and has reduced the piracy rate sooner than expected.

The software maker's "Keep IT Real" programme, which it first launched back in February, has seen piracy rate for its Windows XP operating system drop from 16.7 percent to 12.4 percent according to its head of antipiracy for the U.K., Michala Alexander. "We were really pleased to see the rate dropping so quickly," she said.

Microsoft had originally hoped to reduce the rate to 11.7 percent within three years of starting the campaign -- in which members of the company's anti-piracy team visit computer retailers and PC building outlets accross the U.K. inquiring about piracy issues -- but now aims to hit that goal by next February.

Microsoft also credits its Windows Genuine Advantage (WGA) program for the piracy decline. The much criticized "phone home" technique, which checks with the company's servers to see if the OS copy is legitimate, appears to be working.

Microsoft will turn its sights now on pirated copies of its Office application, Alexander said. Up to 33 percent of the copies of Office are not authorized software, with copies often casually shared between friends. The company now uses a WGA-like tool which checks to see if copies of Office are legitimate. About 1 million people in the U.K. have been checked so far.

The controversial video game Bully, in which character defends himself from school bullies, has been banned from some UK shops. The game, known in Britain as Canis Canem Edit, will not retail in either Currys or PC World, with parent company DSG International claiming game was not inkeeping with its "family-friendly image".

Many in the United States have campaigned to have the Rockstar-developed game banned in some areas. Florida lawyer Jack Thompson had argued that Bully was a "Columbine simulator". However a Florida judge decided against a ban earlier this week.

"We took a view that because it touches on a sensitive issue - violence in school - that it is not a product we would stock," said DSG spokesman Hamish Thompson. "We are committed to a good working relationship with Rockstar Games and will continue to stock all of its other titles.".

The title is scheduled for release on 27 October in the UK, and will still stock in other popular retailers such as Game, HMV and Woolworths.

Source:
BBC

Apple Computer apologized earlier this week for shipping some video iPods containing the Windows virus RavMonE.exe, which made its way onto a small number of the devices at one of Apple's manufacturing plants. Around 1 percent of units shipped after September 12, 2006 are said to be affected.

RavMonE.exe is a mass storage virus that only affects Windows users. It is, according to antivirus vendors, a Trojan that opens links to Web sites and allows others access to a computer.

After installation, the Trojan contacts several remote sites to report the infection and availability of the backdoor, according to security firm Sophos. All up-to-date antivirus applications should detect and remove the low-risk infection.

"So far we have seen less than 25 reports concerning this problem. The iPod nano, iPod shuffle and Mac OS X are not affected, and all Video iPods now shipping are virus free," Apple said in a statement on its support site.

The company couldn't resist taking a dig at rival Microsoft's Windows operating system for not doing more to safeguard customers from such malware. "As you might imagine, we are upset at Windows for not being more hardy against such viruses, and even more upset with ourselves for not catching it," Apple said.

MTV, along with sister network Nickelodeon, has signed an agreement with Baidu - China's largest search engine - to distribute music videos via the Internet in China. The the service will initially offer around 15,000 videos and MTV shows like "Pimp My Ride". Some videos offered will be free whilst others will charge a small fee.

The move will boost MTV's presence in a fast-growing Chinese media market where regulation and censorship has Limited its exposure, while allowing Baidu to develop an entertainment sector to its service.

"Expanding the reach of our brands and content through Internet and mobile is integral to our China strategy, and China is critical to our global digital strategy," said Bill Roedy, vice chairman of MTV Networks, speaking at a news conference.

Source:
Tech News World

Controversial digital music download site AllofMP3.com was dealt another blow today as credit card company Visa International severed ties with the site in compliance with recent Russian legislation and international copyright law.

"It's no longer permitted to accept Visa cards," said Simon Barker, a Visa International spokesman. "The action we've taken is in line with legislation passed in Russia and international copyright law."

Low prices and ease of use have made AllofMP3 a winner with music fans, but the site has been on the wrong end of a lot of negative press from music industry representatives, many of whom claim the site is illegitimate as it doesn't pay sufficient royalties to artists. The MediaServices-owned site, however, has always maintained that it operates legally under Russian copyright law, and also claims that attempts to compensate the recording industry have been turned down.

"In six years of operation we have never been convicted by a Russian court or declared illegal," said defiant MediaServices' Director General Vadim Mamotin. "Under Russian law, we are 100 percent legal."

The site, which boasts five million subscribers and a growth rate of 5,000 a day, pays the Russian Multimedia and Internet Society (ROMS) a 15 percent cut of its sales, it claims. But various representatives of the music industry have issued a statement calling for closure of the site, whilst maintaining that both ROMS and AllofMP3 operate illegally.

Creative is reported to have succumbed to recording industry pressure by releasing a Firmware update for a couple of its players which disables the FM recording feature.

The firmware modification affects the company's Zen MicroPhoto and Zen Vision:M players. In the release notes, Creative gives no reasoning for the changes, simply noting, "this firmware removes your player's FM recording feature."

In the past, the music industry has argued that recording audio from the radio harms music sales. More recently, the Recording Industry Association of America (RIAA) dealt a lawsuit to XM Satellite Radio, alleging XM was guilty of "massive wholesale infringement" which was "fundamentally unfair to songwriters and labels."
The update does provide Zen users with some decent enhancements, such as support for Audible Type 4 tracks, the addition of a volume restriction feature, and enhancements to the user interface and usability. However, many consumers may be discouraged from updating in order to spare the FM recording feature. Read more...

Universal Music Group has filed lawsuits against online video sharing sites Grouper and Bolt.com for allowing users to swap its music videos without permission.

"Grouper and Bolt... cannot reasonably expect to build their business on the backs of our content and the hard work of our artists and songwriters without permission and without compensating the content creators," explained a spokesman for Universal.

The suits accuse both Grouper Network Inc., bought by Sony Pictures Entertainment back in August, and privately held Bolt.com of "actively participating in the infringement by copying, reformatting, distributing and creating derivative works from Universal's musicians," according to Yahoo! News.

Vivendi-owned Universal also threatened to add Sony Pictures as a defendant.

Grouper and Bolt.com are small video sharing sites similar to the extremely popular YouTube.com, acquired by software innovator Google Inc. earlier this month.

Universal, whose artist line-up includes U2, Mary J. Blige and Mariah Carey, said it is seeking damages up to as much as $150,000 for each incident of copyright infringement plus costs. It predicted that thousands of music videos were being viewed on both sites, to their benefit alone.

In a worldwide clampdown on internet piracy, the International Federation for the Phonograph Industry (IFPI) has issued a huge wave of lawsuits against peer-to-peer fileswappers. A total of 8,000 individuals in 17 countries are being sued, which includes the first cases to be filed in Brazil, Mexico and Poland.

The trade group, which represents the world's music companies, has said some 20 billion songs were illegally downloaded worldwide last year - 1 billion of those being in Brazil - the largest market in Latin America. The latest crackdown sees the total number of lawsuits soar to 31,000 worldwide, with 18,000 coming from the United States.

Those targeted for litigation were the "uploaders" -- those who put songs on filesharing networks without permission for others to download. File sharing networks targeted include BitTorrent, eDonkey, DirectConnect, Gnutella, Limewire, SoulSeek and WinMX, the IFPI said. Countries involved in the latest round of suits are Argentina, Austria, Brazil, Denmark, Finland, France, Germany, Hong Kong, Iceland, Ireland, Italy, Mexico, Netherlands, Poland, Portugal, Singapore and Switzerland.

Wal-mart, the United States' biggest retailer, wants every CD you buy to cost no more than ten dollars. The company, which moved a quarter of a trillion dollars' worth of goods last year, is used to getting its own way.

The store, which boasts 138 million shoppers per week, sells an estimated one in every five major-label albums. Insiders believe that it has so much power, that what it chooses to stock can basically decide what ends up being successful. "If you don't have a Wal-Mart account, you probably won't have a major pop artist," said one label executive.

Wal-Mart willingly loses money selling CDs for less than $10 to lure consumers into the store, hoping they might also pick up a DVD player or a boombox whilst inside.

But now, Wal-Mart is fed-up of losing money on its cheap CDs. It wants to keep selling them at the current price ($9.72), but it wants the recording industry to lower the prices at which it purchases them ($12) in the first place.

Last year, Wal-Mart asked the industry to supply it with choice albums at favorable prices. According to music-industry sources, Wal-Mart executives hinted that they could reduce Wal-Mart's CD stock in favour of more profitable DVDs and video games. "This wasn't framed as a gentle negotiation," said one label rep. "It's a line in the sand -- you don't do this, then the threat is this." (Wal-Mart strongly denies these claims.) As a result, all of the major labels agreed to supply some popular albums to Wal-Mart's $9.72 program. "We're in such a competitive world, and you can't reach consumers if you're not in Wal-Mart," admitted another label executive.

Controversy has been surrounding Take Two published video game "Bully" recently after veteran campaigner against violence in games and music Jack Thompson had brought a case calling for the banning of the game in Florida as a "public nuisance".

After viewing a copy of the game being played however, Florida Judge Ronald Friedman has said that whilst the game is of a violent nature, it is not a nuisance.

It was though that the title - in which the player becomes a new arrival who has to negotiate his way through the complex and sometimes violent world of boarding school - could have been banned in the US before its release, but the game is now expected to retail on 17th October.

Last week, much to the surprise of civil rights activists, Friedman ordered Take Two to demonstrate the game to him - despite recent legal precedent which does not support pre-publication rulings on material.

"There's a lot of violence. A whole lot. Less than we see on television every night," told Friedman, according to the Miami Herald. "Does that mean I would want my children to view it? No. But does it rise to a point that its a nuisance? The answer is no from what I saw."

As the ever-popular iPod's fifth anniversary draws nearer, Apple CEO Steve Jobs has played down Microsoft's upcoming challenger - the Zune music player - stating that the music sharing abilities of the device were too complicated and slow.

In an online interview with Newsweek, Jobs was asked if he was concerned by rival Microsoft's forthcoming Zune digital music player: "In a word, no," he said. "I've seen the demonstrations on the Internet about how you can find another person using a Zune and give them a song they can play three times. It takes forever. By the time you've gone through all that, the girl's got up and left!

"You're much better off to take one of your earbuds out and put it in her ear. Then you're connected with about two feet of headphone cable."

Jobs also played down the iPod's "cool factor", stating, "We believe that customers are smart, and want objects which are well thought through.

"We don't strive to appear cool. We just try to make the best products we can. And if they are cool, well, that's great."

On the topic of interoperability, he was asked by the interviewer, "Do you think that it's fair to the customer that the songs they buy from Apple will only work on iTunes and the iPod?"

The HD DVD Promotional Group believes that despite being at a disadvantage when it comes to content, HD DVD is continuing to gain momentum. The group also gave a stronger insight into future hardware plans.

According to data collected by market research firm Nielsen back in August, HD DVD sold three times as many discs as any other high-definition format, including Sony's Blu-ray. Additionally, the company also found that customers of the format owned on average 8.4 DVDs.

The Universal and Warner-backed format already has a bestseller in its ranks, box office hit "The Fast and the Furious: Tokyo Drift," which sold through 30% of its inventory in the first week alone.

Other titles soon to be released on the format include Warner's "V for Vendetta," which will be released on October 31, as well as "Superman Returns," "Mission: Impossible 3," "King Kong" and "Nacho Libre."

By the holdiay season, the library of titles available on the format is expected to increase by nearly 200% from 80 to 230.

A welcome boost will also be received from Microsoft, which is preparing to release its $199 HD DVD add-on for the Xbox 360 in time for Christmas, which will include a remote control and a copy of "King Kong".

Fast-food chain McDonald's joined the growing digital content revolution on Wednesday as it began beta testing its digital media content service, m-Venue, in the U.S.

Whilst tucking into their Big Macs, customers will be able to browse and download their favourite tracks from several record labels, including Sony BMG and Universal Music Group via a Wi-Fi connection. The first restaurant to offer this service is located in Schaumburg, Illinois.

The resturant is equipt with wireless Internet, and has added widescreen displays to help promote the service and its content, whilst also allowing users to send text messages to be displayed on the screen. According to McDonald's, the introduction of the service has already seen food sales increase by 17 percent.

Source:
Betanews

As Sony Corp. today announced that it will roll out five new flash-memory-based digital music players under its Walkman brand, it also added that it is developing a video-capable Walkman which it hopes will provide decent competition to Apple's ever-dominant iPod device - which currently holds more than half the global digital media player market.

"We are developing a product that handles images, but I cannot make any comment on specific plans," said Sony Senior Vice President Hiroshi Yoshioka.

Five new Walkman models will be released by the close of the year, offering capacities of up to 4GB. The players have a unique perfume-bottle design, and the high-end model will be priced at 29,000 yen ($240) in Japan.

Even though it hopes to challenge Apple at the summit of the digital audio player market, Sony acknowledges it has a long way to go to get there. "Sony has a lot of strengths that Apple doesn't have," said Yoshioka, speaking at a press conference. "This is a device that takes advantage of them." He also added that Sony aims to double Walkman's share in the global portable digital music player market from the current 20%.

After selling out its first batch of PS3 pre-orders within moments of accepting them, video gaming retailer GameStop is reported to have confirmed today that it will begin taking pre-orders in North America for Nintendo's Wii console on Friday, October 13.

Although games for the console have been available for pre-order for a number of weeks, Friday will be the first time GameStop has opened up pre-orders on the hardware. In order to stake their claim to a console, gamers will need to pop into their local GameStop or EB Games store and ask to put down a set amount of money (between $25 and $50) on a Wii. The amount of money placed on a pre-order goes towards the final price of the product.

Nintendo is expected to ship some two million Wii units to the North American market by the end of the year, with around half of that shipment anticipated at launch, although some recent reports have suggested expectation-exceeding production of the console may yet see those numbers change.

Details have yet to emerge of the pre-order status of GameStop/EB stores outside North America, nor of other retailers such as Target, Wal-Mart and Toys 'R' Us.

Australian firm Arasor International and its US partner Novalux have unveiled what they see as the next revolution in visual technology - the world's first laser television which is poised to be half the price, twice as good, and consume a fraction of the electricity of conventional plasma and LCD TVs.

Manufacturing firm Arasor produces a special chip, the unique optoelectronic chip which is central to the laser projection device being developed by Novalux.

And according to the Herald Sun, when displayed beside a conventional 50 inch plasma TV, the Mitsubishi-manufactured prototype does appear brighter and clearer than its "older" rival.

Worldwide retail of the new TV's - which will launch under well-known brands such as Samsung and Mitsubishi - is scheduled for the close of '07, with prices expected to be below $1,000 U.S.

Novalux chief exec. Jean-Michel Pelaprat boldly predicted that while LCD TVs would come to dominate the market below 40 inches, an end is in sight for the plasma televison. "If you look at any screen today, the colour content is roughly about 30-35 per cent of what the eye can see," he said. "But for the very first time with a laser TV we'll be able to see 90 per cent of what the eye can see. Read more...

After 15 minutes of viewing the ABC network premiere of Despearate Housewives - a high-quality, commercial-free cap that had appeared on filesharing networks, Disney co-chair Anne Sweeney began to recognize piracy as a business model to compete with as opposed to just an illegal threat to be fought - whether the company likes it or not.

"We understand now that piracy is a business model," said Sweeney. "It exists to serve a need in the market for consumers who want TV content on demand. Pirates compete the same way we do - through quality, price and availability. We we don't like the model but we realise it’s competitive enough to make it a major competitor going forward."

Disney has enjoyed a decent amount of success with online distribution of its motion picture. For example, 12.8 million downloads of Disney-owned shows have been made via the iTunes Store since it struck an agreement with Apple Corp. last year.

Giving the Keynote address at Mipcom, she also underlined the importance of consumer needs. Before the times of p2p networks, media distribution was controlled mainly by the motion picture studios. However, filesharing capabilities have changed this and now, she believes, Disney need to aswell. "The digital revolution has unleashed a consumer coup - we have to not only make in-demand content but make it on-demand" she said. "This power shift changes the way we think about our business, industry and our viewers. We have to build our businesses around their behaviour and their interests. Read more...

GameStop and EB Games began accepting a limited number of pre-orders for Sony Corp's forthcoming PlayStation 3 console in stores accross the United States on Tuesday morning, however most stores had sold-out within minutes.

"Due to extremely limited supply, we expect to deplete this allocation very quickly, most likely in minutes," GameStop said on its website.

It is believed that most stores were promised eight consoles each, however a few select stores will recieve double that amount. Employee pre-orders are limited to two consoles, leaving only six consoles available to customers, which are limited to one per household.

The $100 deposit that GameStop are asking secures the customer a system, however, the company added a clause into the agreement stating it doesn't guarantee the person will receive a PS3 at launch, as it has no control over shipping or production issues.

Some sources are already speculating that Sony's small pre-order offering indicates possible early problems that the PS3 could have at retail. While rival Microsoft's Xbox 360 console is anticipated to be widely available toward the close of '06, Sony's console may struggle to meet demand.

Video-sharing site YouTube has today confirmed deals with Universal Music Group, Sony BMG Music Entertainment and CBS that will allow the media groups' artists' music and videos to be included in user-submitted content to the site.

The companies will authorize the use of their intellectual property through three separate revenue deals with YouTube. As part of its deal with Universal Music Group, the privately-held company has agreed to utilize a new technology which will weed-out out any unauthorized content. It remains unclear though, whether the UMG content will be available for purchase, or how much it will cost.

Sony BMG's deal will be tied to Streaming ad revenue.

YouTube's agreement with CBS will allow consumers to view content such as the latest news, sport and prime-time offerings from its CBS brand TV channels. The deal covers technology that will allow CBS to locate any unauthorized content on YouTube and remove it, or alternatively, opt to keep the content up and stream advertising up alongside it.

Last month, Warner Music Group inked a deal with YouTube to allow thousands of its videos to be put on the site and permit user created videos to legally feature music that Warner owns. Under that deal, WMG will gain revenue from ads streaming next to the videos.

Google Inc. announced today that it has agreed a deal with major record labels Sony BMG and Warner Music Group to stream each company's library of music videos free via its Google Video service. The deal will also eventually allow the Google's AdSense partners to stream the videos as well.

The software innovator is also said to be currently working on technology which would give Google Video users the ability to legally incorporate Sony BMG and Warner content into their own content submitted to the service - which would also be free.

"Continuing to give users access to premium online content is a key strategic focus for Google," said Google's content partnership vice president David Eun. "At the same time, this agreement is a highly visible platform to highlight our continued commitment to protecting copyrights."

Although the service would be provided for free, both parties stand to generate revenue. Advertising on the music video pages would be shared, and in the case of the Warner Music Group videos, downloads would also be available for $1.99 USD each - the same price as music videos on Apple's popular iTunes Store.

AllofMP3.com, the Russian music download site selling Western pop music at extremely low prices, has vowed to continue operations, even though the US says it is affecting Russia's bid for World Trade Organisation (WTO) entry.

As the troubled WTO talks resume after breaking down back in July, US negotiators have repeatedly mentioned the same issue as one of the main problems - AllofMP3, which defended its conduct in an interview with AFP on Friday.

"Washington is using Russia's WTO aspirations as a lever to help US companies, said, Ilya Levitov, spokesman for AllofMP3's holding company, MediaServices Inc. "They're trying to help their companies in the competition with us because our prices are much lower."

"We're totally in compliance with Russian law.... It's a Russian company owned by Russian people. It's a Russian business," he added. As for foreign buyers, "we announce on our website to every user that he or she should check the laws of the country in which he lives."

In response to U.S. Trade Representative Susan Schwab taking a swipe at the site earlier last week, Kommersant newspaper quoted a representative of the site as saying, "Susan Schwab markets us so effectively -- she could already be our press secretary."

Sony Pictures Home Entertainment on Friday announced its first batch of BD-50 dual-layer Blu-ray disc releases, which includes box-office hits 'Click,' 'Black Hawk Down' and 'Talladega Nights: The Ballad of Ricky Bobby.'

Blu-ray's first dual-layer BD-50 discs have an increased 50GB storage capacity, allowing them to to deliver increased bonus features and interactivity.

'Click' will hit stores on October 10, followed by 'Black Hawk Down' on November 14, with 'Tallageda Nights' following a month later on December 12.

All three titles will include extensive high-definition bonus features, and 'Black Hawk Down' will also be the first title from Sony to include the format's proprietary Blu-Wizard authoring environment, which supports enhanced interactivity.

"As consumers make the leap to Blu-ray's incredible high-definition picture and theatre quality audio, they want access to a diverse selection of content packed with added-value features and reference titles like Ridley Scott's powerful war epic Black Hawk Down, that will add to their growing Blu-ray Disc libraries," said David Bishop, president of Sony Pictures Home Entertainment. "We're proud to be the first studio to deliver a 50GB Blu-ray Disc title to the marketplace with Click on October 10, along with two other highly entertaining titles this year that offer the expanded capacity and special features only a 50GB disc can provide."

Google Inc. is currently negotiating the possible acquisition of popular video sharing site YouTube.com for roughly $1.6 billion, according to an insider, who also added that talks are at a sensitive stage, and proceedings could well fall through.

According to company stats, videos are viewed on the site over 100 million times a day, with 65,000 new videos being added by users each day.

Purchasing Youtube would give Google the potential become the lead player in the online video sharing market. According to research company Hitwise, YouTube commanded 46% of visits to U.S. online video sites in August, way ahead of MySpace's social-networking site, which took a 23% share, with Google Video taking 10%.

Analysts believe that a move would make sense for both parties.

"It's damn cheap for a company that already has a global presence," said Trip Chowdhry, an analyst for Global Equities Research. "YouTube's brand identity is no less than Google's and is no less than Coke's.

One significant issue YouTube has had is that a large portion of videos viewable on the site contain copyrighted material, which has already caused friction with Universal Music Group. Although the site does co-operate with demands by copyright holders, analysts believe the company is still in a precarious legal position.

Coffee house chain Starbucks on Thursday announced that it has penned a deal with Apple Computer to make its Hear Music offerings available via the iTunes Store.

The firm acquired Hear Music in 1999, and the Starbucks Entertainment area within iTunes will feature a range of playlists including unique music hand-picked by the same Starbucks Hear Music content team which select the music played in Starbucks coffee shops around the globe.

Playlists and content will be updated frequently and will also include digital versions of many of Hear Music’s popular CD series and co-releases. Customers will have the option to purchase either the entire playlist or individual tracks from the Starbucks Hear Music playlists.

"We’re excited to work with iTunes to add a significant new digital experience to the innovative buying experience we’ve been offering in Starbucks locations for more than 10 years," said Ken Lombard, president of Starbucks Entertainment. Many of our customers want to listen to our music on their iPods, and now that will be easier than ever."

Apple's vice president of iTunes Eddy Cue seemed to share Lombard's delight: "Millions of people enjoy the great music featured at Starbucks locations worldwide, and ask us for it by name.. Starbucks Hear Music has been a hit with music fans and we’re thrilled to add a Starbucks area to iTunes with all this great music online for the first time," he said.

Video sharing community YouTube.Com has grown rapidly in recent times by providing users the ability to post and share videos with a worldwide audience. In fact, it's the third most viewed site on the Internet after MySpace and Yahoo!. However, with the wealth of copyrighted material available on the site, one analyst believes that imminent litigation from the entertainment industry may see YouTube go the way of Napster.

"I don't believe they can avoid a lawsuit and maintain their popularity," said Josh Bernoff of Forrester Research.

Out of the 100 million videos watched daily on the site, an estimated 90 percent are in breach copyright laws, according to analysts.

The boss of Universal Music Group, the world's biggest record company, recently hit out at YouTube, along with MySpace, claiming, "The poster child for [user-generated media] sites are MySpace and YouTube.. We believe these new businesses are copyright infringers and owe us tens of millions of dollars."

However, the company has inked a deal recently to legally distribute the music videos of music industry heavyweight Warner Music Group - the sort of company which may have the most reason to go after them in court.

Sony Computer Entertainment has announced that the US price of its Playstation Portable (PSP) handheld gaming system will not be lowered, at least not this year. It also said that the library of available games will double to around 230 by the end of the year.

"We don't necessarily see the need to cut the price," said John Koller, a product manager at Sony. "We need to offer broader value and introduce new consumers to what the PSP can do."

The PSP, which Sony began retailing last year, is currently priced at $200 without some original add-ons, or at $250 as a bundle which includes the device, a movie and a memory card.

But Koller says there will be around 110 new titles available by the end of 2006, which will bring the total roster to around the 230 mark.

He also added that the company will soon reveal details of how the PSP is to integrate with its eagerly awaited next-gen game console, the PlayStation 3, which is penned to hit stores in November.

Source:
CNET

The United States is continuing to mount the pressure on Russia to take down the controversial AllofMP3.com website, warning the nation that a possible World Trade Organization (WTO) entry is in jeopardy if action isn't taken soon.

"I have a hard time imagining Russia becoming a member of the WTO and having a Web site like that up and running that is so clearly a violation of everyone's intellectual property rights," said Susan Schwab, a U.S. Trade Representative.

For those of you that aren't aware, AllofMP3.com is a Russian-based digital music download service which offers consumers DRM-free music at extremely low prices. An album download will typically cost around £0.75 (about $1.40) from AllofMP3, which prices its downloads by file size rather than a price-per-song / subscription service offered by other online download services.

However, the legality of the site has come into question many times, and it's been alleged that it does not pay any royalties to artists which, if true, would make AllofMP3 an illegal operation.

The US and Russia are currently trying to kickstart negotiations with view to an agreement on Moscow's 13-year-old bid to join the WTO. Initial talks collapsed back in July, and one of the reasons cited was that Russia wasn't being strict enough to stop piracy and counterfeiting of American goods.

The Business Software Association of Australia (BSAA), the Australian software industry's "pirate hunters" have doubled the reward on offer to anyone willing to turn over pirates using illegitimate business applications.

The organization, which claims to be "dedicated to promoting a safe and legal digital world," has announced that there would now be $10,000 reward offered to anyone dobbing in copyright thieves.

BSAA chairman Jim Macnamara said the group realised that the previous $5000 bounty was below international standards, while also conceding that claiming the reward is not a straightforward process.

Those willing to co-operate have to do more than just identify a suspected pirate. Informants are required to sign affidavits and "be involved in a legal process," Mr Macnamara added, a process which can be time-consuming.

Mr Macnamara also believes that Australia's 31% piracy rate is still too high by world standards.

Australia has yet to see any criminal cases for software piracy, but has assisted in some US-initiated actions.

Source:
Australian IT

As part of the increased effort to make it harder to pirate its products, Microsoft has said its forthcoming Windows Vista will feature a new anti-piracy measure which locks people out of their PCs if the operating system hasn't been activated within 30 days of installation.

If Vista has not been activated with a legitimate product registration key in time, the system will run in a "reduced functionality mode", which will allow people to use a Web browser for up to an hour, after which time the system will log them out. If and when the system is eventually activated, it will return to full functionality.

The new technology is unlikely to affect consumers who purchase a PC with Vista pre-installed, but just those who buy the Operating System and install it themselves. "Everything is going to be good to go right out of the box," promised Cori Hartje, director of Microsoft's Windows Genuine Software Initiative. "This is more for those who install after the fact."

Microsoft will continually check if Vista was legitimately acquired, even after activation. For example, when downloading additional Microsoft programs such as Office, should a license key be deemed illegitimate, the user will be given another 30-day "grace period" to get a legit license key.

Creative has unveiled a new device called the Xmod, which the company claims gives MP3s and other compressed digital music files "better than CD quality" sound.

The USB-powered gadget, based upon the Creative's X-Fi Xtreme Fidelity audio platform, is expected to cost £60 in the UK and $80 in the USA when it arrives sometime this month.

The Xmod is said to up-convert the audio signal to 24-bit surround for cleaner, richer sound. There are two sides to the X-Fi Xtreme Fidelity technology - X-Fi Crystalizer and X-Fi CMSS- 3D.

The X-Fi Crystalizer identifies areas of the audio file which have been truncated or damaged during Compression. Creative says the technology can "restore" the highs and lows of the music that the listener would otherwise have not been able to hear.

Meanwhile, X-Fi CMSS-3D component creates virtual surround sound through speakers or headphones. It supposedly uses "advanced techniques" to place specific audio elements, such as the voice of a movie character, in a virtual centre channel while ambient sound is heard through virtual surround channels.

Sony Corp. announced on Tuesday that it will launch its Blu-ray high-definition optical disc recorder in Japan in December.

The cost of the device, which features a 500-gig hard disk drive, is expected to be in the region of around 300,000 yen, which translates to around £1,350 British, or $2,550 US.

All going well, the launch could really help reinforce Sony's reputation as one of the heavyweights in the world of consumer electronics - a reputation which has taken a bruising in recent weeks amid the recall of more than seven million Sony-made laptop batteries, along with the delay of the European lauch of its upcoming PlayStation 3 gaming console.

Sony, and amongst others, Panasonic-owned Matsushita, are promoting the Blu-ray format as the next-generation optical disc standard, while Toshiba Corp. is strongly in favour of the rival HD DVD format.

Sony's highly-anticipated Playstation 3 will feature BD playback, and sales of the console will likely play a key role in determining the outcome of the battle of the next-gen formats.

Source:
Reuters

According to GigaOm.Com, Jon Lech Johansen, also known as 'DVD Jon', has discovered a way to to reverse engineer Apple's FairPlay DRM technology. Johansen is now attempting to license the technology to companies that want their content (music, movies, etc) to play on Apple devices.

Along with hacking partner Monique Farantzos, Johansen has reportedly already approached Apple chief Steve Jobs about the technology. Jobs is alleged to have told the pair in response that Apple would not pursue legal action, however he is said to of warned them that other companies might not take to their motives so kindly.

The latest hack of Johansen and Farantzos, who operate under the name DoubleTwist Ventures, does not actually remove DRM from files, but instead adds another layer on top of what already exists. It is in this layer that the technology lies which enables songs from music services other than iTunes to play on an iPod.

Although this could affect sales at Apple's own iTunes Store in a negative way, it could, however, be a plus for iPod sales.

Some believe that it's for this reason that Apple hasn't reacted aggressively thus far. But Apple is no stranger to taking legal action, especially with regards to its intellectual property, so many believe that a legal response from Apple is a strong possibility in the foreseeable future.