Sony and Philips have developed new recording systems that let home copiers rip at least 30 music CDs to single blank disc, for playback on portable stereos.
Pegasus Communications stock rose 1.32% in midday trading on Fri. to 9-month high of $19.25 as it confirmed having entered court-ordered mediation talks with Hughes Electronics’ DirecTV aimed at settling lawsuits, but also spurring speculation about possible sale of company. It had climbed $2.34 Thurs. to $19. Pegasus spokesman said possible settlement “could take any form” ranging from resolving individual issues to “merger or acquisition.” DirecTV spokesman confirmed mediation, but declined comment on possible purchase. Pegasus, along with NRTC, sued DirecTV in U.S. Dist. Court, L.A., in 1999 alleging breach of contract and interfering with relationships with manufacturers and dealers. NRTC, of which Pegasus is member, sued to enforce contract requiring that DirecTV continue providing premium programming previously supplied by U.S. Satellite Bcstg. (USSB). DirecTV purchased USSB in 1999. As result of mediation, start of trial in case was postponed to June 3 from April 1. Pegasus has long been seen as possible acquisition target of DirecTV’s since it sells service in NRTC territories where it has about 1.3 million customers. DirecTV’s interest in resolving lawsuits involving Pegasus and NRTC comes as General Motors seeks to sell majority stake in Hughes. Hughes’ proposed $18 billion sale to EchoStar collapsed last fall after FCC rejected deal, but News Corp. and SBC Communications have since emerged as possible suitors. Pegasus’ ties to DirecTV date to launching of service. NRTC bought rights to sell DirecTV in its territories for $100 million in 1992. Pegasus emerged as largest DirecTV distributor in NRTC territories as it rolled up string of purchases capped by acquisition of rival Golden Sky in late 1990s. Not part of mediation is separate suit DirecTV filed against Pegasus in L.A. Superior Court in July 2001 for allegedly breaching terms of seamless marketing agreement signed previous year. DirecTV ceased paying commissions in NRTC territories year-ago and Pegasus has moved to strike direct sales agreements with dealers including RadioShack franchisees.
Pegasus Communications stock rose 1.32% in midday trading Fri. to 9-month high of $19.25 as it confirmed having entered court-ordered mediation talks with Hughes Electronics’ DirecTV aimed at settling lawsuits, but also spurring speculation about possible sale of company. It had climbed $2.34 Thurs. to $19. Pegasus spokesman said possible settlement “could take any form” ranging from resolving individual issues to “merger or acquisition.” DirecTV spokesman confirmed mediation, but declined comment on possible purchase. Pegasus, along with NRTC, sued DirecTV in U.S. Dist. Court, L.A., in 1999 alleging breach of contract and interfering with relationships with manufacturers and dealers. NRTC, of which Pegasus is member, sued to enforce contract requiring that DirecTV continue providing premium programming previously supplied by U.S. Satellite Bcstg. (USSB), which DirecTV bought in 1999. As result of mediation, start of trial in case was postponed to June 3 from April 1. Pegasus has long been seen as possible DirecTV acquisition target since it sells service in NRTC territories where it has 1.3 million customers. DirecTV’s interest in resolving lawsuits involving Pegasus and NRTC comes as General Motors seeks to sell majority stake in Hughes. Hughes’ proposed $18 billion sale to EchoStar collapsed last fall after FCC rejected deal, but News Corp. and SBC Communications have emerged since as possible suitors. Pegasus’ ties to DirecTV date to launching of service. NRTC bought rights to sell DirecTV in its territories for $100 million in 1992. Pegasus emerged as largest DirecTV distributor in NRTC territories as it rolled up string of purchases capped by acquisition of rival Golden Sky in late 1990s. Not part of mediation is separate suit DirecTV filed against Pegasus in L.A. Superior Court in July 2001 for allegedly breaching terms of seamless marketing agreement signed previous year. DirecTV ceased paying commissions in NRTC territories year ago and Pegasus has moved to drop direct sales agreements with dealers including RadioShack franchisees.
As expected, RIAA fought back Fri. against Verizon’s efforts to stay decision ordering it to turn over personal information about alleged infringement. Assn. filed motions in U.S. Dist. Court, D.C., opposing request, opposing declaration submitted on ISP’s behalf by Clinton Administration’s chief privacy counselor and starting public relations campaign against ISP. Verizon sought stay Jan. 31, arguing it was necessary to prevent it from having to release its subscriber’s personal information during appeal. Subpoena was issued under Sec. 512(h) of Digital Millennium Copyright Act (DMCA). Verizon has refused to comply with subpoena, saying it would violate its user’s privacy.
As expected, RIAA fought back Fri. against Verizon’s efforts to stay decision ordering it to turn over personal information about alleged infringement. Association filed motions in U.S. Dist. Court, D.C., opposing request, opposing declaration submitted on ISP’s behalf by Clinton Administration’s chief privacy counselor and starting public relations campaign against ISP. Verizon sought stay Jan. 31, arguing it was necessary to prevent it from having to release its subscriber’s personal information during appeal. Subpoena was issued under Sec. 512(h) of Digital Millennium Copyright Act (DMCA). Verizon has refused to comply with subpoena, saying it would violate its user’s privacy.
After Electronic Arts (EA) reported strong results for its core game business in 3rd quarter ended Dec. 31, most analysts maintained their bullish take on publisher despite continued losses reported by its online business. EA executives told analysts in conference call after our Wed. deadline that its game based on movie Harry Potter and the Chamber of Secrets for multiple game platforms was performing far better than at least some reports were suggesting (CED Jan 30 p6). Company said it sold more than 9 million units of game across all platforms in quarter. But EA said online version of its successful Sims franchise -- The Sims Online (TSO) -- was performing weaker than expected.
In ruling that could mark end of protracted NextWave litigation, U.S. Supreme Court Mon. upheld lower court decision that reversed FCC on cancellation of carrier’s licenses. Court ruled 8-1, with dissent by Justice Stephen Breyer, that Bankruptcy Code barred FCC from revoking licenses held by bankrupt debtor for failing to make timely payment. Writing for majority, Justice Antonin Scalia said that reading of bankruptcy law didn’t conflict with Communications Act, which he said didn’t require FCC to cancel licenses as penalty for missed payment. “What the petitioners describe as a conflict boils down to nothing more than a policy preference on the FCC’s part,” he wrote.
Independent video dealers suing Blockbuster and 5 major film studios are “manipulating” legal system by pursuing suits with same allegations of unfair trade practices in 2 different jurisdictions, Stacey Dore, attorney for Blockbuster and studios, said last week, asking L.A. Superior Court Judge Victoria Chaney to dismiss case. Suit in Cal. is “coordinated effort” with plaintiffs in Tex."to file multiple lawsuits hoping that they will eventually win,” Video Business quoted Dore as saying. As evidence, Dore pointed to Fairness Alliance of Independent Retailers (FAIR) that filed federal and state suits in Tex. in 1999 alleging revenue-sharing agreements Blockbuster had signed with studios represented unfair trade practice. FAIR also is alleged to have paid legal fees and recruited plaintiffs. Richard Frankel, attorney for rental dealers, countered that FAIR paid just $23,000 in legal fees -- less than 1% of total court costs -- and hasn’t been active in case since 2001. Independents lost case in June when U.S. Dist. Judge Edward Prado, Dallas, dismissed suit, ruling there was insufficient evidence that Blockbuster and studios had conspired to block dealers from getting revenue-sharing agreements. Case is now in 5th U.S. Appeals Court, New Orleans. Warner Home Video and MGM settled federal suit for combined $15 million before start of trial. While Cal. case will cover much of same ground as Tex. action, it has 251 plaintiffs vs. 3 in latter.
RIAA will be hard-pressed to land successor as wired on Capitol Hill as Hilary Rosen, departing as chmn.-CEO at year-end, observers said Thurs. Rep. Boucher (D-Va.), opponent on digital rights, expressed admiration for Rosen’s talents but said next Assn. chief should lead music industry into wholeheartedly embracing Internet by uploading its entire repertoire. However, others said significantly shifting strategy of industry made up of corporate heavyweights was too much to ask of trade association. executive.
In wake of Napster, peer-to-peer (P2P) networks have moved beyond trading MP3 music files into swapping content such as latest Sopranos episode and videogames. Diversity of content not only is driving creation of new P2P Web sites and applications, but also is creating bandwidth, legal and security issues for employers, report by Websense said Thurs.