Despite a victory last week in his company’s legal dispute with Toshiba, Lexar Media CEO told analysts in a conference call “we recognize that we need to make major changes to address our Q4 performance.” The memory card maker posted a loss for the quarter and fiscal year ending Dec. 31.
Battle against gray market CDs in U.K. has taken turn in favor of music industry. Music labels, represented by trade association. British Phonographic Industry (BPI), have been seeking injunction against Music Trading On-Line (HK) Ltd., company behind online retailer cd-wow (www.cd-wow.com) that BPI said sold parallel imports in Europe of CDs sourced from Hong Kong. Suit also seeks damages. Although CDs are legitimate, labels’ Aug. 2002 suit contends their importation violates U.K.’s 1988 Copyright, Designs and Patents Act. Since then, defendant filed motion arguing that BPI wasn’t entitled to act as representative of whole industry. But High Court in U.K. dismissed motion, and turned case back to lawyers for parties to reach agreement. Judge said he would consider case again if parties failed to resolve issue.
Verizon Internet Services used occasion of 2nd RIAA subpoena Mon. seeking subscriber information under Sec. 512(h) of Digital Millennium Copyright Act (DMCA) to shore up its argument that controversial provision was unconstitutional.
Most recording industry groups have held their fire in attacking new system from Sony that enables users to burn large quantities of compressed music to blank discs (CED March 3 p1). But U.K. trade group, British Phonographic Industry (BPI), became exception when it said Sony system was “no brainer” in that anything that encouraged more pirating of CDs was bad news for industry.
Despite rosy picture of information technology economy painted by German Chancellor Gerhard Schroeder at opening of this week’s CeBIT show in Hannover, Germany (CED March 13 p7), PC industry in that country isn’t taking proposed copyright levy on PCs sitting down.
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.