European Union (EU) conditionally waived 44.6% antidumping duty on TV sets from 7 Chinese manufacturers, giving them shot at tackling European market. EU and set makers, which had been wrangling ever since EU slapped punitive import tariff on China- made TVs in 1991, agreed to drop duty with quota, provided that minimum price level wasn’t violated. If any of 7 companies -- Haier Electrical Appliances, Hisense Import & Export Co., Konka, Sichuan Changhong Electric, Skyworth Multimedia, TCL King Electrical Appliances and Xiamen Overseas -- breaks price pact, duty will be reinstalled.
Konami has become target of lawsuit by Japan Professional Baseball Players Assn. (JPBA) that charges game maker infringed on copyrights by using images of ballplayers in its games. JPBA, which represents players on Japan’s 12 pro baseball teams, also filed suit against Nippon Professional Baseball (NPB), association of pro baseball teams that has exclusive contract with Konami. Suit is attempt to stop Konami from selling its software in Jikkyo Powerful Pro Baseball series and products including Baseball Pro Yakyu Japan 2001 and Power Prokun Pocket for consoles, Kyodo News Service report said. JPBA also wants Konami and NPB to admit they have no authority to approve use of names of baseball teams and players in April 2000-March 2003 period. Report said JPBA claimed NPB had signed contract in 1999 with Konami for that period -- without prior consultation with JPBA -- giving game maker exclusive rights that prevent other game makers from developing baseball titles. JPBA said rights to images belonged to individual baseball players and it wanted Konami and NPB to start sublicensing Konami’s rights to competing game makers, report said, adding that JPBA said it had yet to receive reply from Konami or NPB. Konami comment was unavailable at our Tues. deadline, but report said game maker indicated it couldn’t comment because it had yet to see suit, although it hoped issue would be resolved quickly by JPBA and NPB. Latter disputed JPBA’s claims, saying it had right to control and use image rights of baseball players because rights had value only because of baseball games held by NPB and other organizations. Case is similar to one involving Sony Computer Entertainment (SCE) in Netherlands (CED Aug 12 p6). SCE was accused of infringing on trademarks of 3 top Dutch pro soccer clubs in game This Is Football 2002. Reuters said shares in Konami tumbled 4.72% to ?2,925 after suit was filed Mon. Its shares had been up for 5 straight trading sessions and hit 3-month high earlier that day. Merrill Lynch analyst Ken Uryu said game maker had no plan to halt selling games in question and he didn’t expect there would be negative impact on Konami’s earnings for current fiscal year, Reuters reported. But report said Uryu wrote note to clients telling them: “The question is whether Konami’s results for the fiscal year to March 2004 onwards will be affected when it will be necessary to update the contract” it now has for baseball games. Konami has been selling 1.4-1.6 million copies of baseball-related games annually for last few years, he said.
FCC should minimize regulation of orbital debris, many in satellite industry say. Led by Satellite Industry Assn., operators generally said Commission shouldn’t establish new rules to mitigate orbital debris. FCC decision to begin proceeding for new rules governing space debris is “unnecessary regulation” because satellite industry has “commercial self-interest to regulate itself,” SES Americom attorney Phil Spector told us: “There has never been a problem.” He said satellite operators “believe it’s overreaction to widely publicized problems of Iridium.”
Battle for control of Gemstar TV Guide International between major shareholder News Corp. and CEO Henry Yuen appears to be nearing climax as joint proposal is submitted to board to restructure management. Gemstar didn’t provide details of restructuring, which was announced late Wed. night, and company officials weren’t available for comment. But people familiar with talks told Wall St. Journal (WSJ) that Yuen, who founded Gemstar and guided it to merger with TV Guide 2 years ago, would become nonexecutive chairman.
Iowa Utilities Board (IUB) called for comments on 30 unfiled Qwest-CLEC agreements that Qwest recently filed after agency tentatively concluded Qwest had violated federal Telecom Act by failing to file them when they were made. Agreements will be posted on IUB’s Web site today (Aug. 9), except for any parts that parties contend are confidential trade secrets. Qwest (Case FCU-02-2 ) split unfiled agreements into 2 groups. First group of 11 unfiled agreements would constitute interconnection agreements under IUB rules. Comments on that group are due Aug. 23. Second group of 19 unfiled agreements would be something other than full interconnection agreement. Comments on that group are due Aug. 19. Case grew out of AT&T complaint in Feb. alleging Qwest had made secret preferential deals with selected CLECs in return for their dropping their opposition to Qwest long distance entry and other regulatory initiatives. IUB initially examined 3 unfiled agreements and concluded all should have been filed. Qwest said it filed latest agreements in interests of full disclosure so case could be settled promptly.
Sony Computer Entertainment (SCE) Australia said it was “considering whether to appeal the decision” against it Fri. by Justice Ronald Sackville of Federal Court, Sydney. As we reported Mon., Sackville ruled that Sony had failed to prove defendant in case -- Eddy Stevens of Sydney -- had violated Fair Trading Act or Copyright Act by distributing and installing modification chips (mod chips) in PlayStation game consoles (CED July 29 p8).
Minn. PUC hearings on allegedly secret and preferential agreements between Qwest and selected CLECs are to resume next month. PUC Administrative Law Judge Allan Klein plans hearings Aug. 6-8 to examine additional unfiled oral agreements that Minn. Dept. of Commerce in June said it had uncovered. New agreements differed from those that already were part of case record, Commerce said, and would shed further light on allegations. New discoveries caused original procedural schedule to be suspended. Commerce in Feb. filed complaint (Case P-421/C-02-197) alleging Qwest made secret deals with certain CLECs, giving them preferential rates and terms in return for CLECs’ dropping their opposition to Qwest regulatory initiatives such as its merger with U S West and its Sec. 271 interLATA long distance entry bid. Qwest denied improper conduct, saying agreements at issue didn’t have to be filed because they dealt with dispute settlements and administrative mechanics. Qwest had petition pending at FCC asking whether its interpretation of filing laws was correct. Final Minn. briefing cycle will conclude around end of Aug., with ALJ’s recommended decision expected in mid-Sept. In related matter, Minn. Dist. Court, Ramsey County, is to hold July 26 hearing on Qwest motion seeking information from Minn. Commerce Dept. about its relationships with AT&T. Qwest charges that state Commerce Dept. has been biased toward AT&T in major cases involving Qwest. It submitted data request to Commerce in March under state’s open govt. law but said agency hadnt responded fully, say many requested documents contained proprietary trade secrets, so Qwest filed suit in May to compel disclosure. Qwest said Commerce then changed grounds for withholding documents, saying they related to active investigation as well as containing trade secrets. Qwest said Commerce had taken positions that deprive carrier of its statutory right-to-know basis for Commerce’s adverse positions against Qwest in at least 2 major cases. First was 2001 case in which AT&T alleged Qwest had violated interconnection agreement by not allowing AT&T to test Qwest’s unbundled network element platforms. That case ended in May with Qwest being fined $900,000. Second case was Feb. complaint by Commerce about unfiled Qwest interconnection agreements.
Bose filed complaint with U.S. International Trade Commission (ITC) seeking investigation and ultimately ban on import of radios and clock-radios sold by promotional specialty goods marketer, alleging they were “copycat” knockoffs that infringed on Bose registered trademark (2,299,158) for uniquely configured Wave radio. Attorney for Commerce, Cal.-based marketer, Sun Coast Merchandise Corp., responded that company planned vigorous defense against Bose charges, at least partly on ground that 2 U.S. design patents it held on “Curve” radio products gave it right to continue selling them.
Microsoft is trying to get govt. to bar 2 unlicensed Xbox accessories from U.S. market. At issue are videogame system selector X-Selector and X-Connection dual shock controller from Ultimate Game Club (UGC), based in Old Saybrook, Conn. As we first reported late last month, Fish & Richardson law firm, acting on Microsoft’s behalf, filed complaint with U.S. International Trade Commission seeking investigation of UGC for alleged violations of Sec. 337 of 1930 Tariff Act (CED June 25 p2).
Blockbuster is seeking to recover up to $250,000 from video rental dealers that filed antitrust suit against it. Following U.S. Dist. Judge Edward Prado’s June 27 decision that dismissed suit and ended trial in San Antonio, Blockbuster Gen. Counsel Edward Stead said rental chain would move to recover some court costs from 49er Video, Sacramento; Lone Star Video, San Antonio; The Big Picture Video, Rome, N.Y. Fees are charged for each motion and submission filed with court and federal rules allow defendants to attempt to recover those costs from plaintiffs. Blockbuster and Hollywood studios spent several million dollars on their defense, Stead said. Chances of recovering costs may be slim. Lone Star Video and 49er Video have closed some or all of their stores since 1997, while Big Picture is operating under bankruptcy protection. Whether Blockbuster is successful in recovering costs could have impact on similar case filed by 200 independent video rental dealers in Cal. Superior Court. Trial date for Cal. case hasn’t been set. Meanwhile, some dealers are questioning VSDA Pres. Thomas Warren’s N.C.-based Video Hut chain’s revenue-sharing agreement with Universal Studios. Video Hut signed agreement with Universal in Jan. 2000, capping 5 months of negotiations, and did so in order to compete with Blockbuster in terms of VHS copy depth, trade reports quoted Warren as saying. Warren’s comments followed heated discussion on VSDA message board that questioned whether Video Hut received revenue-sharing agreement because of Warren’s position in VSDA, reports said. Warren said idea that he would use VSDA position to win gain for his chain is “abhorrent” to him.