August 2002

INTELLECTUAL PROPERTY
Movie Makeovers
Forrester Sees $2 Billion Digital Music Market By 2007

INTERNET
Yahoo Yields to Chinese Web Laws

BROADBAND
Bush Stresses Need for Broadband Deregulation
Broadband Hope for Small Towns

ANTITRUST
Dell Unhooks Windows From Desktops

INTELLECTUAL PROPERTY

MOVIE MAKEOVERS
A tiny startup company in Salt Lake City, Utah is changing the look of
movies. Using highly sophisticated software, Trilogy Studios is able to
seamlessly delete language, violent scenes and adult situations. The Movie
Mask software is customized for each film and makes changes automatically as
the movie is played back. The software is customized for four different age
groups. "A consumer can actually choose to tone down the violence in a movie
but leave the language intact or vice versa," co-founder Breck Rice
explains. For instance, in the director's version of "Titanic," Kate Winslet
poses nude for a painting. In the Movie Mask version, she is wearing a
corset. The Director's Guild of America (DGA) is appalled at the changes
Movie Mask can make. "We are going to talk to the studios and the Motion
Picture Association of America and our members and look into what we can do
about this legally," said DGA president Martha Coolidge. "Movie Mask is
censorship because it is someone deciding that certain things are
inappropriate and cutting them out and simply changing them." Lawyers say
the DGA may not have a solid case against Trilogy Studios.
[SOURCE: ABC News, AUTHOR: Bill Redeker]
(http://abcnews.go.com/sections/wnt/DailyNews/moviemask020812.html)

FORRESTER SEES $2 BILLION DIGITAL MUSIC MAKER BY 2007
Forrester Research released findings from a survey of 1,000 U.S. online
consumers that reveals no evidence linking Internet piracy to the 15 percent
drop in music sales over the last two years. "There is no denying that times
are tough for the music business, but not because of downloading." said Josh
Bernoff, principal analyst at Forrester Research. Forrester points to the
downturn in the economy and increased competition as reasons for the drop in
music profits. The research firms predicts that digital music revenues will
grow to make up 17 percent of the music business by 2007, and record labels
could increase revenues by making it easier for people to find, copy and
purchase digital music.
[SOURCE: San Jose Mercury News, AUTHOR: Reuters]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3856253.htm)

INTERNET

YAHOO YIELDS TO CHINESE WEB LAWS
On Tuesday, Yahoo agreed to voluntarily limit content in China. The
agreement, called the "Public Pledge on Self-Discipline for the China
Internet Industry," is controversial, as many critics believe it will open
the door for increased censorship. Yahoo defends its decision, saying that
the agreement simply ensures that Internet companies will abide by
pre-existing Chinese regulations. Human Rights Watch issued a pubic
statement last week condemning Yahoo's signing of the pledge. "There
doesn't seem to be a clear reason for them to be signing this pledge," said
Meg Davis, a Human Rights Watch spokesperson. "The pledge is clearly in
contradiction to international rights and to freedom of expression." Davis
added that to her knowledge, no other western company has signed the pledge.
[SOURCE: CNET News, AUTHOR: Jim Hu]
(http://news.com.com/2100-1023-949643.html?tag=fd_top)

BROADBAND

BUSH STRESSES NEED FOR BROADBAND DEREGULATION
During Tuesday's economic forum, President Bush praised federal regulators
for their efforts to deregulate the market for broadband services. "The
Federal Communications Commission is focusing on policies to encourage
high-speed Internet service for every home and every business in America,"
Bush said. "The private sector will deploy broadband. But the government at
all levels should remove hurdles that slow the pace of deployment." The FCC
will be voting on whether or not telephone-based broadband access should be
classified as an information service. If so, it could allow the major phone
companies to avoid many open-access regulations. Independent Internet
service providers and consumer groups oppose reclassifying telephone-based
broadband services.
[SOURCE: Washington Post, AUTHOR: Brian Krebs]
(http://www.washingtonpost.com/wp-dyn/articles/A13582-2002Aug13.html)

BROADBAND HOPE FOR SMALL TOWNS
British Telecom is about to start trials of a new broadband technology that
will allow the company to supply broadband to as few as 16 customers at a
fraction of the usual cost. Getting broadband to rural areas has been an
ongoing challenge. British Telecom has always insisted that the cost of
providing broadband infrastructure is only viable if an area promises at
least 200 customers. The new "broadband-in-a-box" is a scaled-down version
of a technology that allows broadband access over existing cable rather than
new fiber optic lines. The initial trial is expected to run for six months,
at which time British Telecom and trial sponsors will evaluate the
technology and the business model.
[SOURCE: BBC News]
(http://news.bbc.co.uk/1/hi/technology/2191259.stm)

ANTITRUST

DELL UNHOOKS WINDOWS FROM DESKTOPS
Dell will ship their Precision and Optiplex n-Series PCs next month without
Windows or other operating systems installed. They will include a copy of
FreeDOS that will not be pre-installed, thus enabling customers to choose
their own operating system. The new computers will not be promoted heavily,
and only the Precision n-Series will be available to individual consumers.
The n-Series PCs are primarily targeted at business customers who often end
up installing other operating systems on Windows machines. While there is
demand for the n-Series, Dell says, "the overwhelming majority of the
systems we ship will go out with a Microsoft OS on them."
[SOURCE: ZDNet.com, AUTHOR: John G. Spooner]
(http://zdnet.com.com/2100-1103-949671.html)

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INTERNET
Ashcroft Asked To Target Net Song Swappers
An IM Chat Imbroglio in India

WIRELESS
Wireless To Shake Up Telecom World
Study: Wireless Hype Way Out of Whack

INTERNET

ASHCROFT ASKED TO TARGET NET SONG SWAPPERS
A group of 19 U.S. policymakers sent a letter to U.S. Attorney General John
Ashcroft asking that the Justice Department devote more resources to
policing "peer-to-peer" networks and users who swap digital content without
permission. While the peer-to-peer service Napster was ordered to shut down
in July 2001, other services such as Kazaa and Morpheus have moved in to
fill the void. Media industry lobbyists have been pushing extremely hard up
on Capitol Hill, but the role of law enforcement officials has been minimal.
"There is no doubt, mass copying off the Internet is illegal and deserves to
be a high priority for the Department of Justice," said Hilary Rosen,
chairman of the Recording Industry Association of America. Alan Davidson,
associate director at the Center for Democracy and Technology, said the
letter from the U.S. lawmakers "implies that [the] Justice [Department]
should be going after relatively innocent behaviors that I suspect most
Americans don't think warrant the time."
[SOURCE: USA Today, AUTHOR: Reuters]
(http://www.usatoday.com/tech/news/techpolicy/2002-08-09-law-music-swap_x.ht
m)

AN IM CHAT IMBROGLIO IN INDIA
Internet service providers in India have spent a lot of effort getting
permission to offer Internet telephony. Although the quality of Internet
telephony isn't the best, comparable service by telephone costs about five
times more, giving Internet conversations a big advantage. But the advantage
is being undermined by instant messaging, which has the even bigger
advantage of being free. Faced with revenue losses to instant messaging,
ISPs are trying to stifle the competition by making the case that voice
chatting on instant messaging, which is available through Yahoo India and
MSN, is illegal. Since government policy states that Internet telephony may
only be provided by ISPs, the issue hinges on whether instant messenger is
considered Internet telephony. Part of the ISPs' claim comes from the legal
responsibilities and liabilities under the Indian IT Act. Under this act,
ISPs are legally responsible for the content passing through their networks.
If the government finds that instant messaging is Internet telephony, Indian
ISPs could face legal action for carrying illegal voice traffic of
non-licensed companies who are providing instant messaging services.
[SOURCE: Wired News, AUTHOR: Ashutosh Sinha]
(http://www.wired.com/news/business/0,1367,54184,00.html)

WIRELESS

STUDY: WIRELESS HYPE WAY OUT OF WHACK
The World Wireless Forum has released a report that refutes the wireless
industry's analysis predicting 10 billion multimedia messages a month within
two years. According to the forum, the correct figure will be closer to 200
million a month by 2004. The report claims that the largest market currently
for multimedia messaging services (MMS) is youth under 22 years old. The
youth market is about 88 percent of the current market, but the handsets are
priced well above what this group can afford. The report claims that for the
16 countries it surveyed, it has not seen a working business model for MMS.
One Australian wireless provider, Optus, defends its business model: "We've
done our research. We have provided a public forecast that 25 percent of
Optus revenue will come from data-related services by 2005, and we're on
track for that." One of the ways Optus is hoping to encourage customer
demand is to enable MMS to be sent to any mobile or email address. If the
receiving equipment is not MMS-enabled, a text message is sent directing the
addressee to a Web site where they can view the original message.
Ultimately, MMS service and handset providers remain confident that as
lower-cost handsets become available, customer use will naturally increase.
[SOURCE: ZDNet Australia, AUTHOR: James Pearce]
(http://zdnet.com.com/2100-1105-949096.htm)

WIRELESS TO SHAKE UP TELECOM WORLD
Increasingly, wireless fidelity (wi-fi) technology is being used to set up
networks outside of the control of local phone and cable companies. Using
wi-fi technology, anyone with a dedicated Internet connection and a $200
wireless access point can be an Internet service provider to neighbors who
possess a suitable wi-fi antenna card. Individuals can purchase this $70
card and use the networks when they are within 100 feet of the access
points. Coverage is limited right now, but advocates believe that the low
cost and simplicity of setting up networks will result in fast growth.
Telecom companies who have spent billions creating wired networks have begun
to send out warnings to customers who are sharing their connections with
non-paying neighbors. Sara Elder, a spokeswoman from AT&T Broadband, said,
"We believe that's theft of service."
[SOURCE: San Jose Mercury News, AUTHOR: Matthew Fordahl]
(http://www.siliconvalley.com/mld/siliconvalley/news/3843697.htm)

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INTERNET
Italy Sponsors Technology Transfer To Developing Countries
AT&T raises fees for high-speed Net access by as much as 80%

COPYRIGHT
Recording Industry Will Appeal Net Radio Ruling
Lights, Camera, Legislation

WIRELESS
Analog Phones Could Hang It Up;FCC Expected To OK System Shutdown

INTERNET

ITALY SPONSORS TECHNOLOGY TRANSFER TO DEVELOPING COUNTRIES
Italy's technology minister, Lucio Stanca, believes that having more
Internet and other information technology may go far in alleviating poverty.
Stanca, a former IBM executive, is now is spearheading Italy's Internet
program for developing countries -- as part of the Group of Eight's efforts
to reduce the so-called digital divide. One of the first projects, to be
implemented in the fall, is creating an electronic database for real estate
in Mozambique. "Of course we must solve the problem of world hunger,
disease, education," Stanca recently told The Associated Press. "But if we
want to move from a phase of assistance to creating development in these
countries, we must first help them create good governance." The idea is
that, by making their public administration more transparent and
accountable, developing countries would also become more attractive
potential recipients of traditional forms of aid, such as loans and
investments.
[SOURCE: New York Times, AUTHOR: Alessandra Rizzo (Associated Press)]
(http://www.nj.com/newsflash/business/index.ssf?/cgi-free/getstory_ssf.cgi?f
0002_BC_Italy-TechnologyTrans&&news&newsflash-financial)

AT&T RAISES FEES FOR HIGH-SPEED NET ACCESS BY AS MUCH AS 80%
Consumer advocates are criticizing AT&T Broadband for raising the price of
high-speed Internet access without explicitly informing consumers. Gene
Kimmelman from Consumer's Union said, "AT&T shortchanged its customers. It
delivered less than they had paid for without offering them a discount. This
is fundamentally a problem of an unregulated cable monopoly taking advantage
of its high-speed customers." AT&T had been charging $46-a-month for the
high-speed service but after taking over the service from Excite At Home
they cut downloading speeds in half without lowering the price. Their
message to consumers was that "the lighting-fast connection" had been
"optimized for all users through a maximum network setting for 1.5 mbps
downstream." What this really meant is that it would now take twice as long
to download files using the service. AT&T vice president of Internet
services acknowledges the rate increase but maintained that at the current
price and speed, "there's nobody close to us in offering that value of
service."
SOURCE: USA Today, AUTHOR: David Lieberman]
(http://www.usatoday.com/tech/webguide/2002-08-08-att-broadband_x.htm)

COPYRIGHT

RECORDING INDUSTRY WILL APPEAL NET RADIO RULING
The Recording Industry Association of America said today that it will appeal
a federal ruling establishing royalty rates that Internet radio stations
must pay to artists and record companies. On June 20, the Librarian of
Congress, James Billington, set Internet royalty rates at .07 cents per
song, per listener, which is half the .14 cents-per-song figure approved
last by an arbitration panel appointed by the U.S. Copyright Office. All
sides of the debate have criticized Billington's royalty rate
recommendation. Small Internet broadcasters say that the .07 cents-per-song
rate will drive them out of business, while the RIAA contends that the rate
undervalues the intellectual property of record companies and musicians.
[SOURCE: Washington Post, AUTHOR: David McGuire]
(http://www.washingtonpost.com/wp-dyn/articles/A56215-2002Aug7.html)

LIGHTS, CAMERA, LEGISLATION
CNet writer Jim Hu lays out the history of the media industry's battle to
insert copyright protections into consumer electronic devices. As high-tech
companies are focusing more and more on digital entertainment, the Hollywood
studios are focusing their efforts on controlling the use and distribution
of their work. Michael Eisner, CEO of Walt Disney said, "At least one
high-tech executive has described illegal pirate content as a 'killer
application' that will drive consumer demand for broadband...Unfortunately,
other high-tech companies have simply lectured us that they have no
obligation to help solve what they describe as 'our problem'." Several
studios and TV networks are suing Sonicblue, a manufacturer of digital
recorders for allegedly allowing consumers to pirate movies. The company's
chief technology officer Andy Wolfe, believes, "It's not our job to convince
Hollywood that it's not a threat. It's our job to convince them it's not
illegal. What we've done is try to convince Hollywood it's a new channel for
commerce and to profit from it rather than be afraid of it." The Federal
Communications Commission will be meeting today to discuss digital broadcast
copyright protections.
[SOURCE: CNET, AUTHOR, Jim Hu]
(http://news.com.com/2009-1023-948672.html)

WIRELESS

ANALOG PHONES COULD HANG IT UP FCC EXPECTED TO OK SYSTEM SHUTDOWN
The Federal Communications Commission (FCC) is expected to grant permission
to wireless carriers to shut down analog networks in the next five years.
Cingular Wireless, along with Verizon Wireless and AT&T Wireless believe
that analog networks are inefficient and are attempting to reclaim airwaves
for their digital subscribers. Of the USA's 140 million wireless customers,
fifteen percent use analog phones. Losing analog networks could result in
problems for consumers roaming outside their regions and hearing-impaired
consumers who say digital phones interfere with hearing aids. Industry
officials claim they will have built out their digital networks within 5
years and roaming will not be an issue.
[SOURCE: USA Today, AUTHOR: Paul Davidson]
(http://www.usatoday.com/usatonline/20020808/4343670s.htm)

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DIGITAL DIVIDE
HP Marks East Palo Alto Computer Initiative
Emphasizing Computer Skills and Networking in Bhutan's Rural
Districts
Keeping Women in the Tech Industry

INTERNET
Publishers Fight 'Deep Links,' Despite Popularity of Practice
Man Is Sentenced on Charges Of Using Net to Subvert Beijing
In Pakistan, Surfers Worry Anti-Terror Law May Dull Web Experience

DIGITAL DIVIDE

HP MARKS EAST PALO ALTO COMPUTER INITIATIVE
Now in its third year, the Digital Village project seeks to bring =
technology
to small businesses in California's East Palo Alto. A sub-project =
called the
Small Business Development Initiative has provided 50 local businesses =
with
computers, free email, scanners, tech support and more. The project's =
goal
is to help entrepreneurs launch and grow businesses thus increasing the
city's tax base and invigorating the local economy. Hewlett-Packard is
working with Start Up (a nonprofit business incubator), the local =
merchant's
association and the Rainbow/Push initiative.
[SOURCE: San Jose Mercury News, AUTHOR: Thaai Walker]
(http://www.siliconvalley.com/mld/siliconvalley/news/local/3807044.htm)

EMPHASIZING COMPUTER SKILLS AND NETWORKING IN BHUTAN'S RURAL DISTRICTS
In the Himalayan kingdom of Bhutan, the planning commission secretariat =
is
establishing an information network to bridge the digital divide found =
among
and within the nation's administrative districts, or dzongkhags. The
project, known as the Planning Information Network (PIN), will build
technical capacity in local dzongkhag administrations by training =
officials
in the use of computer and Internet applications. Since the project =
began
early this year, basic training has been completed in eight dzongkhags. =
The
project training package was funded through UNDP's Japan Policy and =
Human
Resources Development Fund.=20
[SOURCE: Kuensel Online, AUTHOR: Bishal Rai]
(http://www.kuenselonline.com/article.php?sid=3D1828&KUENSELONLINE_PHPSE=
SSID=3D1
578ef08bf72e8d3d9257cbd29806b30)

KEEPING WOMEN IN THE TECH INDUSTRY
The British government continues to discuss solutions to a definite =
gender
imbalance in the tech industry. While recent publicity about the lack =
of
women in the tech sector has helped recruit more women into the field,
retention continues to be a problem. As jobs become more senior, the =
gender
gap worsens. Dell reports that a scant eight percent of board-level =
tech
positions in Europe are filled by women. The situation, in comparison, =
is
slightly better in the U.S. where 18 percent of directors are women.
Familial obligations are considered the biggest hurdle to recruiting =
and
retaining women. In response, the UK government has made =A31 million
available to tech firms willing to increase job flexibility for women
returning to work after having a family.
[SOURCE: BBC News]
(http://news.bbc.co.uk/1/hi/technology/2176108.stm)

INTERNET

PUBLISHERS FIGHT 'DEEP LINKS,' DESPITE POPULARITY OF PRACTICE
One of the defining characteristics of the Web is the ability to link =
pages
and publications easily and take users directly to content. However, =
there
is a growing desire by publishers to control external links to their =
stories
and some have taken their grievances to court. In Denmark, a court =
ruled in
favor of the Danish Newspaper Publishers Association (DNPA) and forced =
the
Newsbooster Web site to stop deep-linking to DNPA news Web sites. From =
the
publisher's perspective, diminishing ad revenues and concerns around =
how
their content is used are increasing the importance of controlling =
access to
their Web sites. Despite these issues, most publishers have an open =
linking
policy and U.S. lawyers do not expect to see many lawsuits around
deep-linking. Additionally, many link-counting search engines such as
Google.com use links to rank search results. A New York Times =
spokesperson
said, "We have no problem with other news sites and Web logs linking to
NYTimes.com -- the more the better."
[SOURCE: The Wall Street Journal, AUTHOR: Stephanie Miles]
(http://online.wsj.com/article/0,,SB102807155128762520,00.html)
(Requires subscription)

MAN IS SENTENCED ON CHARGES OF USING NET TO SUBVERT BEIJING
A former Beijing policeman has been sentenced to 11 years in prison for
downloading counter-revolutionary essays and printing them out into 10
books. He was sentenced on charges of subverting state power. The
Information Center for Human Rights and Democracy also reported that =
the man
was accused of using email, the phone and letters to communicate with
overseas colleagues.
[SOURCE: The Wall Street Journal, AUTHOR: Associated Press]
(http://online.wsj.com/article/0,,SB102856652863413320,00.html?mod=3Dtec=
hnolog
y_main_whats_news)
(Requires subscription)

IN PAKISTAN, SURFERS WORRY ANTI-TERROR LAW MAY DULL WEB EXPERIENCE
Starting this month, cyber cafes in Pakistan will be required to ask =
patrons
for proof of identity and to keep records of users. The previously
unregulated Internet cafes also must start registering with the =
government.
Authorities say the new regulations will help track down terrorists by
making emails easier to trace. But patrons say reporting their names =
will
make them more cautious about visiting certain Web sites. Regulators =
may
also find tracking down Internet cafes as difficult as hunting =
terrorists.
In recent years, the popularity of Internet cafes has soared in this =
poor
country, where the average annual income is barely $400, and even
middle-class youth find computers difficult to afford. Currently, there =
is
no record of how many Internet cafes are in Pakistan because the =
government
has not kept track of them.
[SOURCE: Nando Times, AUTHOR: Martin Fackler, Associated Press]
(http://www.nando.net/technology/story/488801p-3900285c.html)

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