Digital-Lifestyles

Business

Changes to business digitisation brings

  • SCO Caps Legal Costs in Linux Fight

    In an attempt to reassure shareholders and limit runaway legal costs, SCO has announced that it is restructuring its arrangement with Boies, Schiller & Flexner, the company’s legal firm. SCO is currently in a protracted battle with the IBM and the Linux community over claims that it owns sections of the Linux kernel source code, and claims that the GNU Public License is invalid.

    SCO has now agreed to pay BSF US$31 million (€25.5 million) for the entire legal case, but but they will now receive a higher proportion of any settlement fee if SCO win the case. BSF now are now looking to get up to 30% of any damages awarded to SCO.

    With things not looking too bright for the UNIX provider, 30% of nothing may not make BSF very happy. Recent developments in the case with IBM have seen SCO’s evidence based on sections of the Linux kernel code dismissed. They have even been accused for manipulating their source code to make it look more like Linux kernel by omitting lines. Some of the code put forward as evidence does not even appear in the kernel, is public domain, or is exempt because of compatibility standards.

    SCO has cash and securities amounting to about US$43 million (€35.35), so even if they lose they’ll have US$12 million (€9.87) in the bank. Legal costs for SCO have been becoming increasingly expensive of late – last quarter’s bill came to US$7.3 million (€6 million), contrasted with the US$15 million (€12.33 million) the company spent in the five quarters previously.SCO’s president and CEO, Darl McBride, is still upbeat about his company’s future: “Several positive developments fell into place for us this quarter that strengthened the Company’s overall position. We successfully delivered on our strategy to restore profitability within our UNIX business which is generating positive cash flow. At the same time, we saw a nice uplift from SCOsource licensing revenue. In addition, we closed the BayStar transaction and as announced today, we implemented a Shareholder Rights Plan that will help protect the Company from any potential undervalued takeover attempt. Finally, we are pleased to have entered into a letter of intent with Boies, Schiller & Flexner that not only demonstrates their belief in SCO’s legal case but will also provide SCO with greater financial flexibility. We remain steadfastly committed to enforcing our intellectual property rights on behalf of our customers, employees and shareholders. Through the combination of the quarter’s positive developments and our current cash position, we are well-positioned to pursue our current litigation through its conclusion.”

    SCO

    Slashdot debates SCO’s case

  • ITV’s Digital Plans

    ITV chief executive Charles Allen has said that the company is to launch more channels to ensure that they stays competitive as broadcast television moves towards its all-digital future. Mark Desmond, managing director, said that details of the new channels would not be announced until after ITV3 launches this autumn. One of the channels is thought to be a children’s offering in association with a US broadcaster.

    Additionally, the broadcaster is in talks with BBC director-general Mark Thompson to acquire BBC Worldwide’s 10 UKTV channels. To achieve this, ITV would buy out BBC Worldwide’s share in the joint venture with Flextech Television. This would bring ITV a raft of ready-made lifestyle channels including UKTV Gold, History, Food and Drama.

    UKTV

  • French Consumer Group Takes Action Against Copy-protected CDs

    Consumers in France have taken legal action against EMI and retailer Fnac, accusing them of deception, because of copy-protection techniques used on CDs. They are unhappy because the copy protection scheme employed by EMI prevents the discs being played on some car stereos, home CD players and PCs – and also stops owners from making personal copies. This contravenes legislation passed in France 1985, stating that consumers can make copies of CDs for personal use.

    UFC-Que Choisir is seeking damages for consumers through the legal action, and consequently Fnac and EMI face a fine of up to €188,000 (UK£126,350), if the group is successful. They may also have to remove all copy-protected CDs from sale.

    Fnac say that they are confident that they will not be fined, as they claim to have taken adequate steps to inform customers of the potential problems with copy-protected CDs.

    UFC-Que Choisir have another copy-protection case going through the courts at the moment, this time concerned with consumers prevented from transferring tracks from CD to portable players.

    Que Choisir

  • US Top of the Spam League, Canada’s Unwanted Email Output Apparently Falls

    A new survey from Sophos reveals that the US is the top spam sending nation in the world, followed in distant second place by South Korea. The US sends 42.53% of all spam, South Korea 15.42%.

    The UK, France, Spain and Germany all send under 1.5% of the world’s total of spam each.

    South Korea’s spam output has tripled in the last year, but Canada has managed to half the amount of spam originating from its borders – though this could simply be a fact that everyone else’s has risen. Spam now accounts for more than 65% of all emails sent. Somebody, somewhere, must be buying things from these people to make this a viable business.

    The US’s spam output has risen despite the Can-spam Act coming into force this year in January, allowing ISPs and government agencies to prosecute spammers – even jailing them. The Can-spam Act also requires that unsolicited emails must have an way of opting out of future emails, but everyone knows that spammers just use this to verify if your email address is active and send even more unwanted emails.

    Interestingly, 40% of the world spam total is sent through zombie PCs – computers that have had their security compromised and are being used as spam relays without the owner’s knowledge or consent.

    Sophos’ Dirty Dozen

  • MPAA Takes Action Against Chip Manufacturers

    The Motion Picture Association of America has sued two chip manufacturing companies for selling integrated circuits to manufacturers that produce non-approved DVD players.

    The MPAA isn’t happy that the makers of some DVD players deviate from the the agreed standards and produce appliances that do not feature the full range of DRM features. Consequently, the MPAA is suing Sigma Designs and MediaTek for distributing Content Scramble System chips to such companies, and thus breaking their original license agreement to distribute the chips only to other CSS-licensed outfits.

    CSS and related DVD technologies are controlled by a technology group called the DVD Copy Control Association, and any manufacturer must agree to their contract terms before they can work with the format.

    Dan Robbins, MPAA Chief Technology Counsel said: “Responsible corporate citizens honour the contracts they sign. There is no leniency for irresponsible companies that seek to circumvent the system and operate outside of the law.”

    This latest action from the MPAA shows that they are keen to use a variety of techniques to protect their business – this doesn’t revolve around copyright law like previous instances, this is about contracts.

    DVD Copy Control Association

  • P2P Networks Not Responsible for Copyright

    Whilst acknowledging that copyright infringements do happen on P2P networks, the 9th Circuit Court of Appeals in San Francisco has ruled that P2P network owners and software developers can’t be held responsible for them.

    Ironically, this is the same appeals court that ruled against Napster in 2001. The difference this time? Napster kept a catalogue of all available titles on a central server. The court made reference to the oft-quoted 1984 Sony Betamax case where film studios attempted to ban video recorders – the Supreme Court ruled that being potentially able to infringe copyright was not reason to ban a technology with legitimate uses.

    The presiding judge, Sidney R Thomas said: “The introduction of new technology is always disruptive to old markets, and particularly to those copyright owners whose works are sold through well- established distribution mechanisms. History has shown that time and market forces often provide equilibrium in balancing interests, whether the new technology be a player piano, a copier, a tape recorder, a video recorder, a personal computer, a karaoke machine or an MP3 player.”

    He then went on to point out how well studios had done out of home video sales, demonstrating that they were now worth more than cinema ticket sales.

    Michael Weiss, head of StreamCast Networks, said in a statement:”As CEO, I am proud that Morpheus has become the first American P2P company to successfully win its fight for the right to continue to develop innovative new distributed communications technologies. In today’s ruling, the 9th Circuit Court has affirmed our strong conviction from day one that developing Morpheus was not just legally our right, but morally was the right thing to do.”

    The MPAA and RIAA will not be pleased – the next stop for them is Washington, and Congress.

    StreamCast

  • AMD Using Strained Silicon in Processors

    AMD are now using strained silicon in their processors to improve performance. The technology has been incorporated into the company’s new 90nm chips and will soon find its way into the company’s 130nm products later this year.

    Strained silicon is made when the metal’s atoms are pulled apart to increase the space between them. I suppose the scientists’ naming department had the day off when that was invented. The increase in atomic space means that the electrons carrying the signals through the silicon can move faster.

    IBM and Intel already use a form of strained silicon in their chips, but AMD say that their technique is different. There have been recent developments in silicon straining, and the most recent development in this field is uniaxial strained silicon, where it has only been stretched in one direction. Perhaps AMD are using this technique.

    AMD

  • Google Floats as Demand Sags

    Google has floated at a US$85 (€68.7) share price, considerably less than the original valuation of US$108 to US$135 (€88 to €110). The company also issued less shares – only 19.6 million, where 25.7 million had been planned initially. It is thought that executives held on to parts of their stakes because of weak demand. Only 5.5 million shares were issued to private investors, less than half the number first bandied about. The shares were issued in a Dutch auction – bids are ranked from highest price down and shares are allocated. Pundits feel that by releasing less shares, the stocks did not have to be sold to the lower bids – sneaky.

    The IPO will raise US$1.67 billion (€1.35 billion) for Google, making it the fourth largest this year. Though, since many IPOs have been cancelled in the last few months, that isn’t saying much.

    The float values Google at US$23 billion (€18.6 billion), down from the US$36 billion (€29.1 billion) suggested when optimism for the share sell off was at its highest. To give some perspective, Amazon is valued at US$16 billion (€13 billion).

    The Google Prospectus

  • EDS and BSkyB Suing Each Other

    BSkyB are suing EDS over a contract for a new IT system at the broadcaster’s Livingston and Dunfermline call centres, accusing them of negligent misrepresentation and breach of contract.

    BSkyB hired EDS in 2000 to supply a new customer service platform for the 6000 staff in the centres, but ran into difficulties in the first twelve months. After redefining the project requirements, the system was handed over to BSkyB a year later in 2002, and the contract ended in December that year as BSkyB felt that EDS could not deliver the system in accordance with their contract. However, EDS claim that they ended the contract, not BSkyB.

    A quick rummage in a filing cabinet should end that debate, though BSkyB claim to have consulted some 50,000 documents to come to the conclusion that EDS did not deliver what they signed up for.

    The system has cost BSkyB about UK£170 million since 2000, and they are expected to fork out another UK£50 million to the two Scottish call centres until 2008. The broadcaster is now looking to sue for about UK£180 million to UK£240 million to get back lost revenue and effort.

    EDS aren’t doing to well lately, having lost a number of high profile government contracts, notably with the Child Support Agency, NHS and Inland Revenue.

    EDS have announced that they will be countersuing, as they claimed to be expecting this sort of behaviour from BSkyB. Given the size of the two companies and the nature of corporate litigation, this one will run and run.

    EDS UK

    BSkyB

  • Paul Oakenfold and EA Games sign exclusive deal

    EA Games have signed Paul Oakenfold, the hyper DJ/remixer/producer/music untouchable, to an exclusive deal to provide games for some of their forthcoming titles.

    Steve Schnur, Worldwide Executive of Music and Audio at Electronic Arts is very excited about it, “We see this as a landmark agreement that will set the standard for partnerships between artists and games developers”

    The initial fruits of this first-of-its-kind deal have already emerged. Oakenfold will act as music supervisor for GoldenEye: Rogue Agent, composing an original score for it; has written the EA SPORTS Football theme, due to debut in FIFA Football 2005; and will contribute towards Total Club Manager. Beyond these details, the terms of the deal are not yet known.

    Paul Oakenfold

    EA Games