INTERNET
China At-Home Net Head Count No. 2 In World
The Hidden Toll Of Patents On Standards
Lawmakers Say Royalty Rates Will Kill Small Webcasters
Google Runs Into Copyright Dispute
BROADCAST
TV Stations Signal A Slow Pace To Digital Broadcasts
Battle Over Media Controls Creates A Rift In Poland
Italian Leader Warns Critics On TV To Toe The Line
ANTITRUST
Gates Says States' Remedy Will Cripple Microsoft
BROADBAND
Study: Bandwidth Glut Eats Up Profits
INTERNET
CHINA AT-HOME NET HEAD COUNT NO. 2 IN WORLD
According to new data from Nielsen/NetRatings, China now has the world's
second-largest Internet population. The future growth potential in China is
staggering when one considers that only one in three Chinese homes currently
has a phone line and that the Internet penetration rate is only slightly
more than 5 percent. Currently, the U.S. has the largest Net population (166
million). Other statistics about the Chinese Internet population reveals
that the dominant user is between 16 - 34 years old, male and likely (more
than 80 percent of users over 16) to use the Net twice a week or more. The
survey also found that 53 percent of all Internet surfing in China is done
at home, followed by Internet cafes and work.
[SOURCE: Newsbytes; AUTHOR: Dick Kelsey]
(http://www.newsbytes.com/news/02/176049.html)
THE HIDDEN TOLL OF PATENTS ON STANDARDS
David Berlind offers his views on why the esoteric issues of
standards-setting are important to every consumer. The Web applications used
everyday by millions of consumers rely on protocols such as HTTP, HTML, and
TCP/IP - all of which are available freely without the encumbrance of
royalties. But, cautions Berlind, emerging applications are likely to have
protocol stacks that are not entirely royalty-free. More and more companies
are seeking patents for protocol stacks they have developed with immense
ramifications for users across the globe. Berlind envisions royalties
reaching "into your pocketbook any number of ways." For instance, IP
(Internet Protocol) patent holders may charge for applications supported at
a Web site. Or those IP owners may charge software vendors who develop
software using patented protocols. Manufacturers of hand held wireless
devices and Net-enabled game consoles may also find a hand in their pocket
if they build products capable of supporting new protocols. All these
royalties, says Berlind, will eventually be passed on to the end consumer.
Aside from an added monetary cost, however, Berlind fears that IP patents
will close the evolution of technology and concentrate too much power in the
hands of a very few. Tracking IP royalties may be cumbersome enough to
prevent many smaller companies from using (or supporting) them, thereby
making their product less competitive. IBM and Microsoft, particularly, have
the potential to 'own' the Web due to the number of crucial IP patents they
own. Says Berlind, "If the market begins to favor the patent holders'
products...the result could be what antitrust experts call a 'foreclosure on
competition.'"
[SOURCE: ZDNet; AUTHOR: David Berlind]
(http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2861785,00.html
)
LAWMAKERS SAY ROYALTY RATES WILL KILL SMALL WEBCASTERS
Several lawmakers are urging the U.S. Copyright Office to reconsider a
music-royalties proposal that they say would force small Internet
broadcasters out of business. In a written statement, a bipartisan group of
20 House members said "We believe that a balanced approach for royalties
based on traditional compensation formulas can be created to ensure that
artists and recording companies receive compensation commensurate of their
services, while not penalizing the webcasting industry." If the proposal
were approved, Webcasters would have only one month to pay royalties
retroactive to 1998. Final decision on the proposal must be made before May
21.
[SOURCE: Newsbytes; AUTHOR: David McGuire]
(http://www.newsbytes.com/news/02/176056.html)
GOOGLE RUNS INTO COPYRIGHT DISPUTE
Last month, the Church of Scientology sent a complaint to Google, the
company behind the popular Web search engine, saying that its search results
for "Scientology" included links to copyrighted church material that appears
on a Web site critical of the church. Under the Digital Millennium Copyright
Act of 1998, which was intended to make it easier for copyright holders to
fight piracy, the complaint meant that Google was required to remove those
links quickly or risk being sued for contributing to copyright infringement.
As a result of the complaint, Google has created a new policy that requires
a copy of all such complaints to be sent to the Chilling Effects
Clearinghouse (chillingeffects.org), which is a project of a civil liberties
advocacy group called the Electronic Frontier Foundation and several law
schools. In the new procedure, Google informs its users when a link has been
removed from a set of search results and directs them to the Chilling
Effects site. With its Chilling Effects partnership, Google is subtly making
the point that the right to link is important to its business and to the
health of the Web, said David G. Post, a law professor at Temple University
who specializes in Internet issues. "This is an example where copyright law
is being used in conflict with free connectivity and free expression on the
Net," he said. Dr. Post said Google's situation highlighted the need for
more awareness of copyright issues, including pending legislation that is
more restrictive than the 1998 law.
[SOURCE: New York Times, AUTHOR: David F. Gallagher]
(http://www.nytimes.com/2002/04/22/technology/ebusiness/22NECO.html)
(requires registration)
BROADCAST
TV STATIONS SIGNAL A SLOW PACE TO DIGITAL BROADCASTS
A May 1 deadline is looming for the nation's commercial TV stations to start
broadcasting both digital TV (DTV) and analog signals, but two weeks out
only 15% of the stations have successfully rolled out the DTV service. John
Harris, director of special projects and programming for WRAL says, "It's
frustrating to us that it's not rolling out quicker. We see the potential
in it." Decisonmark, a consulting firm has reported that nearly
three-fourths of U.S. households get one DTV signal, but less than half get
four signals. Getting a clear DTV signal also depends on location with 41%
of stations broadcasting DTV in the nation's 10 largest markets and just 7%
in the smallest markets.
[SOURCE: USA Today, AUTHOR: Mike Snider and Anthony DeBarros]
(http://www.usatoday.com/life/cyber/tech/2002/04/23/digital-tv.htm)
BATTLE OVER MEDIA CONTROLS CREATES A RIFT IN POLAND
A new bill originally designed to govern the transition to digital
television has Polish private media companies up in arms. The reasons are
several provisions that would prohibit the owners of a national newspaper or
magazine from owning television or radio station. The heart of the conflict
is that the rules would not apply to the government. Adam Michnik, editor of
the newspaper Gazeta Wyborcza, sees the proposed rules as an attack on the
private press and fears they will give too much power to public media.
Government officials say the provisions will stop monopolistic activities
and claim Michnik's anger is the result of his own greed. President
Aleksander Kwasniewski has said he would veto the bill in its current form.
Michnik has responded to critics by saying, "There are two visions of the
state that are now clashing...The president thinks that Poland should be a
pluralistic democracy where all freedoms are observed. Bu Prime Minister
Leszek Miller is trying to make the state the property of his political
faction."
[SOURCE: The New York Times, AUTHOR: Ian Fisher]
(http://www.nytimes.com/2002/04/21/international/europe/21POLA.html)
ITALIAN LEADER WARNS CRITICS ON TV TO TOE THE LINE
In a recent news conference, Prime Minister Silvio Berlusconi accused two
journalists and a comedian critical of Berlusconi's government of "criminal
use of public television". The Prime Minister's family already controls
three of Italy's four national television stations and his government has
some control over three state-run channels. Management of the three
state-run channels has been divided amongst the political parties in the
legislature with the political opposition controlling one channel, RAI3. The
response to Berlusconi's attack on the journalists has been fierce and an
editorial printed in a paper historically friendly to the Berlusconi
government called the Mr. Berlusconi's remarks, "an error and an abuse of
power.... He who has potential influence over six television networks and a
lot of political and financial power concentrated in his hands must know how
to control himself and guarantee freedom of the press and opinion."
Berlusconi claims his comments were misunderstood but also said, "...the
center-right will guarantee that RAI will not be used as it was under
previous management, to attack the representatives of the opposition right
before the elections."
[SOURCE: New York Times, AUTHOR: Melinda Henneberger]
(http://www.nytimes.com/2002/04/21/international/europe/21ITAL.html)
ANTITRUST
GATES SAYS STATES' REMEDY WILL CRIPPLE MICROSOFT
In his first court appearance since the beginning of Microsoft's four-year
antitrust case, Chairman Bill Gates testified that the penalties proposed by
nine states would cripple Microsoft. California and eight other states are
arguing that an earlier settlement between Microsoft and the federal
government will not stop Microsoft from continuing monopolistic activities.
Gates is hoping to convince the judge that the state's proposed restrictions
are unrelated to the violations Microsoft has already been found liable for.
During his testimony Gates said, "If the Windows platform were to fragment,
the primary value it provides - the ability to provide compatibility across
a wide range of software and hardware - would be lost."
[SOURCE: San Jose Mercury News, AUTHOR: Heather Fleming Phillips]
(http://www.siliconvalley.com/mld/siliconvalley/news/editorial/3118220.htm)
BROADBAND
STUDY: BANDWIDTH GLUT EATS UP PROFITS
According to research firm TeleGeography, the data transmission market
remains unstable, with prices changing so quickly and varying so widely
across route and carriers that telecom companies have little concept of a
market price. The problem, according to TeleGeography, is that a bandwidth
glut on long-haul networks has pushed prices below cost. While the price
collapse is good news for Internet service providers, it has been disastrous
for telecom carriers. "The carriers and customers are trying to do business
in a hyper-deflationary environment. Some carriers have absolutely reached
the lowest price they can go," said Stephan Beckert, TeleGeography's
research director. TeleGeography believes that only market forces could
result in further price cuts.
[SOURCE: USA Today]
(http://www.usatoday.com/life/cyber/tech/2002/04/22/bandwith-glut.htm)
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