Advocates of filtering software that deletes portions of DVD movies deemed objectionable by some carried the day Wed., when the House Judiciary Committee voted 18-9 in favor of a bill legalizing such filtering. But implementation of the movie filtering remains in question in light of a patent infringement suit against ClearPlay, the leading provider, and the RCA’s discontinuation of ClearPlay-enabled DVD players.
Shares in Lexar Media tumbled about 14% Fri. after the flash memory card maker posted an $18.1 million loss (-23? per diluted share) for its 2nd quarter ended June 30 vs. a $7 million profit (9?) a year ago. But the company said sales soared 100% to $163.2 million. In a conference call with financial analysts Thurs. evening, CEO Eric Stang said the disappointing results reflected higher than expected price cuts and price protection obligations. He also said Lexar suffered from “the inability to fully recognize the benefits of lower costs achieved during the quarter due to the timing of cost reductions.” A day earlier, rival SanDisk said “the pricing moves that we initiated early in the 2nd quarter stimulated consumer demand” and competitors didn’t -- or couldn’t -- match the low pricing (CED July 16 p7). Despite his company’s falling short of goals in the “very tough” quarter, Stang said Lexar still believed that “market dynamics will become increasingly favorable for our business model over the 2nd half of the year as new flash suppliers stimulate further cost reductions.” The expected growth in MP3 capability and 3, 4 and 5 megapixel cameras in cellphones should only drive demand more but that likely won’t be significant anytime soon -- especially in the U.S., which is only now starting to see one- megapixel cameras in cellphones, Stang said. He also said the company was upbeat about “the potential created” by its recently announced multiyear deal with Kodak: Lexar will manufacture and distribute Kodak-branded memory cards globally. The company is hoping Kodak cards represent 10-20% of what it sells in the 2nd half, Stang said, noting that the Kodak-branded products were targeted at mainstream consumers. There are now 55,000 stores worldwide carrying Lexar’s cards, up from 48,000 at the end of the first quarter, Stang said. He also said the company had 76 recognized patents, up from 72 at the end of Q1, and it expected to continue “aggressively” take action against any companies that infringed on them. The company has pending patent infringement suits against companies including Fuji and Toshiba, he said. Stang also said he expected discovery to end in Lexar’s trade secret case against Toshiba this quarter and a trial was “likely” to start first quarter 2005. The company sued Toshiba in 2002, claiming Toshiba stole trade secrets from it. Stang predicted that his company will report “$175 million or more” in 3rd- quarter revenue, but a loss of 1-5? per share. He said the company expected to return to profitability in Q4. Stang didn’t discuss the class action securities lawsuit filed against Lexar earlier in the week on behalf of shareholders (CED July 16 p7).
U.S. Customs and Border Protection (CBP) has issued a set of four frequently asked questions (FAQ) and responses (dated July 8, 2004) on the "Rail" portion of its final rule on the advance electronic presentation of information pertaining to cargo (ocean, air, rail, and truck) prior to its being brought into, or sent from, the U.S.
The Office of the U.S. Trade Representative (USTR) has issued a notice stating that the U.S. has requested the establishment of a World Trade Organization (WTO) dispute settlement panel (DSP) regarding Mexico's tax measures on soft drinks and other beverages as well as on syrups, concentrates, powders, essences or extracts that can be diluted to produce such products (beverages and syrups) that use any sweetener other than cane sugar.
A federal court dismissed an appeal by the U. of Ill. that sought a shield of sovereign immunity from counterclaims filed by Fujitsu in an on-going legal battle over patents for plasma displays. The D.C. Appeals Court ruled that the university’s “entitlement” to the 11th Amendment guarantee of sovereign immunity can’t be “conclusively determined” and dismissed the appeal due to a “lack of jurisdiction.”
U.S. Customs and Border Protection (CBP) has posted a list of frequently asked questions (FAQ) and responses to its Web page regarding the January 1, 2005 full integration (elimination of quotas) for textiles and textile apparel (textiles) manufactured in countries that are members of the World Trade Organization (WTO).
The Office of the U.S. Trade Representative (USTR) has issued a fact sheet stating, among other things, that the U.S.-Morocco Free Trade Agreement (FTA) has helped lead to a comprehensive new Moroccan labor law, effective June 8, 2004, which raises the minimum employment age from 12 to 15, reduces the work week from 48 to 44 hours, calls for periodic review of the Moroccan minimum wage, etc. (USTR fact sheet, dated 06/23/04, available at http://www.ustr.gov/new/fta/Morocco/2004-06-23-morocco-factsheet-labor.pdf)
The Senate Fri. passed 2 copyright enforcement bills designed to respond to copyright infringement on P2P networks, including one that would give the Justice Dept. the authority to pursue civil cases against alleged infringing file-sharers.
CTIA and other wireless carriers launched a massive, last minute offensive Thurs. aimed at turning around the FCC’s expected decision to give Nextel 10 MHz of spectrum at 1.9 GHz. CTIA said in a filing that NextWave auction reserve prices confirm that giving Nextel 1.9 GHz as part of a rebanding scheme would constitute a “massive giveaway.” Meanwhile, an alternate public safety group held a press conference to denounce the plan.
The one thing everyone involved in the copyright debate agrees on is that it’s difficult to define fair use. That was evident on Capitol Hill late Tues., when several senators introduced a bill they claimed protects fair use within hours of a House committee chairman promoting a fair use bill that takes a dramatically different approach.