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In an effort to stave off the challenge from online retailers in a rapidly changing market, two of the world’s largest book publishers, Random House and Penguin, are engaged in talks to combine their businesses.
Pearson, the British media conglomerate that owns Penguin, said that it was discussing a potential deal with Random House’s owner, Bertelsmann of Germany. The merger, if completed, would create a combined entity that would control nearly 25 percent of the United States book market and feature an elite roster of authors like Dan Brown, Toni Morrison and John Grisham of Random House and Junot Diaz and Patricia Cornwell of Penguin. The potential consolidation comes as traditional publishers try to compete with dominant technology companies like Amazon, Apple and Google that have gained power in the e-book market. Lower prices offered by retailers like Amazon have put pressure on publishers to adjust their digital book strategy at a time when brick-and-mortar stores have been disappearing. A deal could signal a move toward further consolidation among the major publishers, much the way the music industry realigned itself as it made the painful transition to the digital marketplace.
Random House and Penguin Are Negotiating a Merger
Apple has struck another blow against Samsung in the pair’s sprawling patent battle.
A U.S. International Trade Commission judge on Oct 24 ruled that Samsung infringed four of the six patents Apple asserted against it before the ITC. In his initial determination, ITC Judge Thomas Pender found that Samsung’s products violate Apple’s ’949, ’922, ’678, and ’501 patents. The first refers to touchscreen heuristics and lists Steve Jobs as an inventor; the second describes a “method and apparatus for providing translucent images on a computer display”; the third, elements of the iPhone’s design; and the last, “audio I/O headset plug and plug detection circuitry.” This is an initial determination, so Judge Pender’s findings still need to be approved by the ITC’s full six-member commission. And he did find in Samsung’s favor on two other patents. But, make no mistake, this is bad news for the company.
ITC Judge Says Samsung Infringes Four Apple Patents Samsung infringed four Apple patents, ITC rules (Washington Post)
Access to the New York Times’ English and Chinese websites were blocked in China shortly after the newspaper published a report on the vast family fortune of the country’s premier, Wen Jiabao. The story, which suggests Wen’s family used their influence to amass assets worth at least $2.7 billion, comes at a highly sensitive time weeks before a once-a-decade leadership transition. Potentially damaging to Wen and his supporters is how the story contradicts the leader’s carefully cultivated image as a humble populist. Details about the private lives and finances of China’s leaders are strictly off limits for the state-controlled Chinese press.
New York Times website blocked in China
A group of tech trade associations and broadcast radio companies and online streaming service Pandora launched a new coalition on aimed at urging Congress to support legislation that would lower the royalty fees paid by Internet radio stations so they're more in line with the rates paid by other digital radio services.
The Internet Radio Fairness Coalition argues that the current royalty rate-setting standard for Pandora and other Internet radio services is outdated. It contends that the current music royalty rules prevent other Internet-based radio services from getting off the ground because a large chunk of their revenue goes to paying steep royalty fees for streaming songs. Instead, the coalition is calling for all digital radio services — including cable and satellite stations — to be put on the same royalty rate-setting standard. The musicFIRST Coalition slammed the launch calling it a "desperate attempt" by Pandora to build momentum for the Internet Radio Fairness Act co-sponsored by Rep. Jason Chaffetz (R-Utah) and Sen. Ron Wyden (D-OR).
New coalition for Pandora-backed royalty bill launches musicFIRST slams new coalition of Internet royalty bill supporters (The Hill – reaction) Coalition Launched to Lobby Support for Internet Radio Bill (National Journal)
The AFL-CIO is joining the music industry in opposing legislation favored by Internet radio provider Pandora and some broadcasters that would lower the royalties paid to performers by Internet radio stations.
The labor group said it opposes the legislation introduced last month by Rep. Jason Chaffetz (R-UT) and Sen. Ron Wyden (D-OR) because it is concerned it will result in much less revenues for musical artists. The bills would require the federal government's royalty rate-setting body known as the Copyright Royalty Board to use the same standard in determining rates paid by Internet radio stations as is used for satellite and cable music providers. Internet radio stations like Pandora complain that they pay much higher royalties than cable and satellite providers. The legislation "would mandate that more than eighteen hundred Internet radio stations pay recording artists and musicians far less than their recordings are worth, just because three digital services do," William Samuel, director of the AFL-CIO's government affairs department, wrote lawmakers last week in a letter released on Thursday. "This would start a race to the bottom in performers' compensation, violating the founding principle of America's labor movement: a fair day's work deserves a fair day's pay."
AFL-CIO Calls on Lawmakers to Oppose Internet Radio Legislation
Defense Secretary Leon Panetta said passing cybersecurity legislation is one of the top priorities on his congressional to-do list during the lame-duck session. Speaking to reporters at the Pentagon, Sec Panetta noted that the "full agenda" he outlined requires bipartisan cooperation. But cybersecurity legislation faces long odds of moving this year: Congress has been gridlocked on the issue since Senate Republicans blocked a sweeping cybersecurity bill in August.
Cybersecurity legislation makes Panetta's lame duck to-do list
Homeland Security Secretary Janet Napolitano said the executive branch stands ready to issue an executive order on cybersecurity if Congress fails to pass legislation that boosts the defenses of critical infrastructure against a cyberattack.
Sec Napolitano noted that Senate Majority Leader Harry Reid (D-NV) plans to revive efforts to pass cybersecurity legislation in November and said the administration will be keeping a close eye on whether Congress can make any progress. "We'll have to wait and see when the Congress comes back. They've got a long list of things that need to be dealt with," Sec Napolitano said at an event hosted by the Center for Strategic & International Studies' Women in International Security organization. "But again my hope, the ideal way to go is through Congress, but if Congress cannot act, then the executive branch is going to have to." The Homeland Security Secretary said the administration is currently reaching out to the private sector and stakeholders about the order to "look at it and get some feedback" before it's issued, "if there is ultimately that decision to go by the executive order."
Sec Napolitano: Administration will act on cybersecurity if Congress fails to pass bill
A rising Republican star has put his weight behind legislation from Senate Majority Leader Harry Reid (D-NV) that would legalize online poker.
In a letter to congressional leaders, Gov Brian Sandoval (R-NV) said he offers his “full support” to efforts by Reid and Sen. Jon Kyl (R-AZ) to craft federal legislation on Internet gaming. “As Congress considers legislation to address the uncertainty surrounding Internet gaming, I offer my full support to the efforts by Sens. Harry Reid and John Kyl [sic] to draft a federal bill that strikes a balance between consumer protection and maintaining state authority,” Gov Sandoval wrote.
Republican governor in Nevada pledges 'full support' to Reid’s online poker bill
Even though prospects for the legislation have faded this year, the nation's governors told Senate and House leaders that they oppose draft legislation that would tighten restrictions on Internet gambling while allowing for the legalization of online poker.
In a letter to House and Senate leaders, the National Governors Association called on lawmakers to include state input before moving any online-gaming legislation. States have begun taking steps to offer online gambling within their state borders after the Justice Department last fall revised its interpretation of the Wire Act, which deals with state gambling activities. The department said the 1961 law only applies to sports betting, essentially opening the door to other kinds of online gaming.
NGA Says It Opposes Draft Internet Gambling Bill
Japanese cellphone service provider SoftBank has hired the Carmen Group, a Washington lobbying firm, as it looks to persuade regulators to allow it to buy control of Sprint, according to disclosure forms. David Carmen, the founder of the Carmen group, will lobby for the Sprint-SoftBank deal, along with John Ladd, a former House Judiciary Committee aide; Bill Signer, a former aide to Rep. Charlie Rangel (D-NY); and Alyssa Ewing.
SoftBank hires lobbyists in bid to buy Sprint