April 2011

E-books overtake US paperbacks

E-books are the biggest-selling category of the US publishing industry for the first time.

Sales of e-books in February tripled over the previous year to $90.3 million, the Association of American Publishers reported, exceeding adult paperback sales of $81.2 million. A 169 percent surge in e-book revenues since the start of the year contrasted with a 24.8 per cent decline in print book sales to $442 million over the two-month period. February figures showed steeper declines in some print categories, with adult hardcover sales falling 43 percent to $46.2 million and mass-market paperbacks down 41.5 percent at $29.3 million. Publishers hesitated to extrapolate firm trends from the early months of the year, but said print sales had been depressed by harsh winter weather in many states, weak consumer spending and the bankruptcy of Borders, the nation’s second-largest chain of bookstores by sales.

House Judiciary passes patent-reform bill

The House Judiciary Committee approved comprehensive patent-reform legislation, sending the bill to the House floor by a vote of 32-3.

Like the legislation that overwhelmingly passed the Senate last month, the bill switches the United States to a first-to-file patent system and allows the U.S. Patent and Trademark Office to keep the fees it collects in order to address the backlog of hundreds of thousands of patents. It also establishes a post-grant review process intended to weed out bad patents. A large range of tech firms has lined up to support the bill, including IBM, Microsoft and GE. The drug companies are also strong supporters of the legislation. But some small inventors have complained the changes will reduce their incentives for innovation by favoring large corporations.

CPB Funding Survives

After threats and legislative attempts by Republicans to zero out Corporation for Public Broadcasting funding, the continuing resolution that passed the House and Senate April 14 keeps the dollars flowing to noncommercial radio and television stations.

The CR, which funds the government through September, forward funds CPB through 2013 at the annual 2012 figure of $445 million, preserving the two-year forward funding mechanism Republicans had targeted. Also preserved was a $27.2 million Ready To Learn program funded through the Department of Education, though the final decision on that funding remains at the discretion at DOE. But CPB did not emerge unscathed. The legislation cuts funding in other areas, including: $30 million of $36 million for expanding digital technologies; $20 million by zeroing out the Public Telecommunications Facilities Program, a Commerce grant that funds noncommercial TV and radio equipment; and $50 million by zeroing out public radio interconnection and station fiscal stabilization funds.

FCC's Lloyd Escapes Czar Purge

Mark Lloyd, the Federal Communications Commission's chief diversity officer, was not among the four so-called White House czars whose positions were defunded in the just-passed continuing resolution to fund the government through September.

Lloyd had been among a handful of posts targeted by Rep. Steve Scalise (R-LA) in a previous CR that did not pass. His reintroduced amendment did make it onto the latest CR.

The posts that were axed, according to Rep Scalise, are the "Health Care Czar" (White House Office of Health Reform), the "Car Czar" (Senior Advisory to the Secretary of the Treasury Assigned to the presidential Task Force on the Auto Industry), the "Urban Affairs Czar (White House Director of Urban Affairs)" and the Climate Change Czar (Assistant to the President for Energy and Climate Change). Along with Lloyd, also spared was the green jobs czar (special advisor for green jobs, enterprise and innovation, Council on Environmental Quality).

Google Faces Antitrust Complaints in South Korea on Android Popularity

Google is facing antitrust complaints in South Korea as mobile phones using its Android software gain dominance.

NHN Corp. and Daum Communications Corp., operators of South Korea’s two largest Internet search sites, filed complaints against Google with the country’s Fair Trade Commission for blocking local phone carriers and manufacturers from embedding their search applications in devices using the Android operating system.

Google has banned South Korean phone manufacturers from including Web search applications made by other companies under its marketing contracts, Seongnam-based NHN said. Google has delayed certifying the use of its software for handset makers that violated the condition, the South Korean company said. Daum learned about Google’s practices while trying to have its applications installed and has evidence to prove its claims, the Seoul-based company said. About 70 percent of the more than 10 million smartphones sold in South Korea were Android-based devices as of March 31, according to an estimate by Park Jong Soo, an analyst at Hanwha Securities Co. in Seoul. NHN and Daum together control about 90 percent of Web searches on personal computers in South Korea, according to Lee Chang Young, an analyst at Tong Yang Securities Inc. in Seoul. Google’s share is between 1 percent and 2 percent, Lee said.

India eyes cap on imported telecoms equipment

India’s telecoms regulator proposed a series of measures to cap the amount of equipment made outside India used in its telecoms industry. The protective move is an attempt to boost domestic manufacturing and keep foreign suppliers out of the country’s lucrative telecoms sector.

The Telecom Regulatory Authority of India said that by 2020 it wanted at least 50 per cent of all equipment – including mobile handsets, Internet data cards and chips – to be manufactured by Indian groups and at least 80 per cent produced domestically. The move, intended to turn India into an equipment manufacturing hub, could have serious repercussions for global hardware makers such as Nokia, Ericsson and Huawei. India is the world’s second-biggest mobile market, after China, with 826m mobile subscribers as of February this year, and is adding about 20 million subscribers every month. The market is dominated by global companies, which supply more than 85 per cent of the equipment used by Indian operators and consumers. Among the 10 biggest hardware makers only one is Indian, according to analysts.

States debate Internet cafe gambling

Are casino-style video slot games gambling under state laws? Should states allow that kind of gambling? Keith Whyte, executive director of the National Council on Problem Gambling, says it is gambling. "What we've seen a lot with these Internet sweepstakes cafes is it's a way to get around gambling laws," Whyte said. "The only reason people are going to these facilities and spending so much time and money is because it's gambling. If it wasn't gambling, it wouldn't be popular." The assumption, he said, is people are going primarily to gamble and not to use the Internet, make copies or fax documents.

Chairman Genachowski 'hopeful' Congress will pass auction legislation

Federal Communications Commission (FCC) Chairman Julius Genachowski remains hopeful that Congress will pass spectrum auction legislation as the number of remaining legislative days shrinks.

House members have yet to draft and rally around a spectrum auction proposal, and some Commerce Committee Republicans are at odds with Senate Democrats on how spectrum policy should look. But Chairman Genachowski said that the economic benefits of the auctions have resonated with members and that the proposal — a central aspect of his tenure — is gaining bipartisan support. He did not say how auction legislation should look and said there are various "good models" in play. Many auction proponents hope the FCC will get a broad mandate to shape the auctions as it wishes.

Acting FCC Press Secretary Exiting

Rob Kenny, who has been acting press secretary for Federal Communications Commission Chairman Julius Genachowski, is leaving to become a senior VP in the Washington office of Mercury, a public affairs/lobbying firm whose clients include the National Association of Broadcasters and AT&T.

Starting in early May, Kenny will handle media relations and focus on healthcare and telecom, though not exclusively. Kenny worked with some of the Mercury executive when he was director of public affairs for the New York State Health Department in the 1990s and early 2000s. Kenny has been on loan to the chairman from the Homeland Security and Public Safety Bureau, where he has been director of media relations. That was a permanent job. He was also acting press secretary under FCC Chairman Kevin Martin. He has been in public service for 22 years; this will be his first foray into the private sector.

New rules to let Europe web users turn off cookies

People surfing European websites will be able to turn off the cookies used to spy on their Internet habits under rules hammered out by the region's online advertisers, the Brussels-based Internet Advertising Bureau Europe announced. "It will change significantly how the Internet will look and how people interact with ads," said Kimon Zorbas, vice president of the industry group that developed the new rules.