News written by Jari Ketola (April, 2004)

A Spanish judge has ruled that selling modchips and modchip installation services for PlayStation 2 and Xbox game consoles is legal in the country. A modchip allows a console user to play DVD movies and games from other countries, as well as copies of games.

A Barcelona video games shop Innovagames was charged for offering modchip installation services, but the judge ruled that thanks to a loophole in the Spanish intellectual property law, the modchips are legal by default.

According to The Register the loophole exists in article 270 of the penal code, which rules cracking computer programs illegal, but does not cover video game consoles or other home entertainment devices, such as DVD-players.

One could say that the case was won on a technicality.

Source: The Register

Plextor has introduced the first ever Serial ATA (SATA) based DVD-writer -- PX-712SA. The drive writes at 12x speed, which means that it takes less than 6 minutes to burn a full DVD, with the datarate being over 16MB/s.

The SATA-interface is the successor of the ATA-interface (also known as EIDE and Parallel ATA) -- the most common HDD and CD-ROM interface used today.

The write speeds for the PX-712SA drive are: 12x DVD+R, 8x DVD-R, 4x DVD+RW, 4x DVD-RW, 48x VD-R and 24x CD-RW. The read speed for DVD-ROM is 16x and 48x for CD-ROM.

To ensure optimal write quality the drive uses several write enhancement technologies. PoweRec (Plextor Optimised Writing Error Reduction Control) reduces errors during writing, while Buffer Underrun Proof, Lossless Linking and Zero Link prevent buffer underrun errors when writing to CD, DVD+R/RW and DVD-R/RW discs.

Plextor's VariRec (Variable Recording) technology, designed for audiophiles, is also included, enabling the user to select one of eight tone settings to obtain a more personalised sound.

The PX-712SA comes with an extensive software package:
* Ahead Nero: CD/DVD mastering software
* Ahead InCD: Packet writing software
* Nero BackItUp
* Pinnacle Studio 9: Video editing and authoring software
* Cyberlink Power DVD: DVD player software
* PlexTools Professional: CD/DVD utility software

The number of people downloading music on the Internet has increased according to a survey by Pew Internet & American Life Project. Between November 2003 and March 2004 there was a 27 percent increase in the number of downloaders, which translates to an increase from 18 to 23 million.

The survey was ran among 1371 users who were using both peer-to-peer networks, such as Kazaa and LimeWire, and online music stores, such as iTunes and Napster.

Fourteen percent of the online users surveyed had stopped downloading from the Internet. A third of those said the reason was the legal actions taken against P2P downloaders by RIAA. The number of Kazaa users dropped by five million, but most of those switched to other, smaller P2P services.

The study also had the following to say about the number of legal download service users: "While online music services like ITunes are far from trumping the popularity of file-sharing networks, 17 percent of current music downloaders say they are using these paid services. Overall, 7 percent of Internet users say they have bought music at these new services at one time or another, including 3 percent who currently use paid services."

CNET Networks launched a free digital music service on Monday. The service, hosted at CNET's Download.com website, allows people to search and download music contributed to the service by independent and unsigned artists.

While the service is similar to the old MP3.com, which was bought by CNET last year, it will be separate from the upcoming MP3.com service. CNET plans to relaunch MP3.com as a music information site soon.

CNET plans to build the service and add new technology and features to Download.com in hopes of making in the largest free-music resource over the course of the year.

Source: News.com

Apple Computer and Walt Disney Corp. have reached an agreement which brings soundtracks from classic Disney movies to iTunes music store.

"This is the next logical step in (Disney's) continuing efforts to reach the music consumer directly," Bob Cavallo, chairman of Disney's Buena Vista Music Group said in a statement. "We're happy to be in business with Apple."

The deal will be exclusive to iTunes through September 30, 2004.

Source: News.com

Even though the former P2P service Napster has long been burried, and even resurrected in the format of a legal online music store, Bertelsmann AG (BMG) is still haunted by its investment in the company four years ago.

On April 27 BMG will return to court to face a lawsuits brought against the company by music labels and publishers. The lawsuits claim that by funding Napster BMG kept the peer-to-peer network running for an extra eight months which resulted in damages of $17 billion to the industry in lost sales. That's $71 million per day.

According to BMG the investments in Napster were made in hopes of turning the site into a legal, licensed service, and the claims made by the plaintiffs will prove difficult to win.

Many plaintiffs are accusing Bertelsmann of "tertiary infringement", which means that they see that by funding Napster Bertelsmann legitimized the service, and opened the Pandora's box that is still releasing new peer-to-peer services today.

Source: News.com

The huge archive of independent bands that once were hosted at MP3.com will be returning online. The MP3.com domain name was sold to CNET Networks last year, but the music archive of the site was acquired by TruSonic, a former division of MP3.com. On Tuesday GarageBand announced that it has partnered with TruSonic, and will be bringing the MP3.com archive back online.

Former MP3.com members can transfer their accounts to GarageBand at http://www.mp3isback.com/ or http://www.garageband.com/mp3transfer. Members can store up to three tracks for free, with each additional song costing $6.99. For a one-time fee of $99, members can have an unlimited storage space.

Don't forget to visit our very own MP3Lizard.com for absolutely free storage space for your band!

Source: News.com

The Electronic Frontier Foundation (EFF) has expressed its concerns over two anti-piracy bills introduced in California. According to EFF the bills would dramatically impact Internet users' rights to privacy and anonymity.

California Assembly Bill 2735 and Senate Bill 1506 would require anyone who knowingly disseminates commercial recorded or audiovisual material over the Internet to mark it with his or her name and address or face a possible one-year prison sentence.

"These California anti-anonymity bills would force everyone - including children - to put their real names and addresses on all the files they trade, regardless of whether the files actually infringe copyrights," said EFF Legal Director Cindy Cohn. "Because the bills require Internet users to post personally identifying information, they fly directly in the face of policy goals and laws that prevent identity theft and spam and protect children and domestic violence victims."

For example, the federal Children's Online Privacy Protection Act of 1998 (COPPA) forbids collection of personally identifiable information from children online without parental consent.

"This bill creates criminal liability for sharing a single song or even a portion of a song or movie, but leaves no space for fair uses such as commentary, criticism, parody or educational uses of works," said EFF Activist Ren Bucholz. "This bill is supposed to stop piracy, but it may be the most ineffective and harmful method yet proposed."

After Apple asked SourceForge to remove PlayFair from their site, the software quickly found a new home at SourceForge's Indian counterpart Sarovar.org. It did not take too long, however, for Apple to do the same thing with Sarovar.

According to the release in Sarovar forums, Apple's lawyers contacted the site and requested for PlayFair to be removed immediately.

PlayFair uses a so-called "analog hole" in order to make DRM-free copies of purchased iTunes tracks.

Source: Sarovar.org

Real Networks has reportedly contacted Apple several times in hopes of getting a foothold in both the Apple iTunes music store, and the iPod portable player.

Real CEO Rob Glaser has warned Apple, that sticking to its current policy might endanger Apple's position in the long run, and give "Microsoft friendly" music stores an edge. While Real's Rhapsody service uses the same AAC format as Apple is using at iTunes, only songs bought from iTunes can be played with the iPod player. That's because Apple doesn't license its DRM technology to third parties.

With Apple having a strong presence with iPod and iTunes, and Microsoft pushing its own DRM protected Windows Media technology to content providers, it seems that Real is quite desperate to find allies.

Source: Financial Times

Microsoft has settled a lawsuit over DRM patents with InterTrust Technologies for $440m. With the payment Microsoft resolves all outstanding litigation between the companies, and licenses InterTrust technology for use within Microsoft products.

The license makes it possible for Microsoft to really start pushing for DRM protected content. The deal includes end users using Microsoft products, but third-party software manufacturers still need to license DRM technology from InterTrust for their products.

InterTrust, partly owned by Sony and Philips, filed its intellectual property lawsuit against Microsoft in 2001. According to InterTrust Microsoft started implementing technologies covered by InterTrust's patents shortly after it had demonstrated its technologies to Microsoft. Microsoft denied the charges until last summer, when it begun license negotiations with InterTrust.

Source: vnunet

Email worm Netsky.Q variant has managed to bring down the websites hosting eDonkey2000 and eMule at www.edonkey2000.com and www.emule-project.net. The worm has also brought down two piracy sites at www.cracks.st and www.cracks.am. The only site that has managed to survice the Distributed Denial of Service (DDoS) attack is Kazaa homepage at www.kazaa.com.

The eDonkey website is available at eDonkey2000.com, and the eMule-project is currently available at an alternative address -- www.eMule-Project.org. Of course not too many would think of trying the second-level domain name without the third-level part, www.

According to the F-Secure virus information page the Netsky.Q work will be performing its DDoS attack between April 7th and 12th, 2004.

Source: Silicon.com

While Apple iTunes, Roxio's Napster and other online music stores are still offering a lot of single track downloads at 99 cents a piece, and full albums at $9.99, the prices on new releases have already went above the prices of new CDs.

For instance N.E.R.D.'s new album Fly or Die costs $16.99 at iTunes, and $13.99 at Napster. For comparison you can purchase the album on CD for $13.49 at Amazon.com.

The driving force behind the changes to the price structure are the five major record labels that provide the licenses to online music stores. The single track download prices on hot new releases might be boosted to anywhere from $1.25 to $2.49 per song. Some labels are very eager to lift prices, while the others realize that at the current stage raising prices would make little difference in revenues, but would definitely drive customers away rather than lure them in to explore new technologies.

One has to hope that the record industry has the patience to let the industry grow, and maybe even try and find ways to offer discounts and great deals to loyal customers. It doesn't take an analyst to predict that a 150 per cent increase to prices would deal a huge blow on the sales. And it doesn't take a legal expert to see the blame eventually being cast on peer-to-peer networks and Internet music piracy.

Microsoft and Time Warner have made substantial new investments in digital rights management (DRM) company ContentGuard, the company announced Monday.

ContentGuard develops content protection technologies, and holds several patents that have been licensed by, for instance, Microsoft and Sony. Its technologies have also been adapted by several content delivery companies, including Zinio, which provides technologies to deliver identical digital versions of newspapers and other print magazines.

ContentGuard technology originated from Xerox's Palo Alto Research Center (PARC). Time Warner, Microsoft, and ContentGuard now own substantially all of the company, with Xerox retaining a small equity interest in the company.

Microsoft and Time Warner have not commented on the possible uses of ContentGuard's technology. According to ContentGuard, the companies will co-operate to extend the DRM license portfolio offered by ContentGuard.

Source:
News.com
ContentGuard press release

Minister of Canadian Heritae, Hélène Scherrer promised on Friday that changes will be made to the Canadian copyright law. The changes would make it illegal to download music for free from the Internet.

Both the federal court and the Copyright Board of Canada have ruled that sharing and downloading files on peer-to-peer networks is not illegal by Canadian law.

The rulings caused an instant turmoil in the Canadian music industry. They felt that the rulings would in effect destroy the industry, and the livelihood of Canadian artists. However the Canadian Idol winner Ryan Malcolm, for example, feels quite differently about the whole P2P issue.

"Whether people download or not, as long as they're listening to music," Malcolm said. "I think it's a challenge for the industry, to try and find a new way to survive."

It remains to be seen what kind of changes, if any, will be made to the law.

Source: Canoe / Edmonton Sun