INTERNET
Internet Oversight Board's Leader Proposes Large Government Role
(WSJ)
Mexico's E-Revolution (WIRED)
OWNERSHIP
Oligopolies Are On The Rise (WSJ)
Clear Channel Uses High-Tech Gear To Perfect The Art Of Sounding
Local (WSJ)
INTELECTUAL PROPERTY
Napster Wins One Round In Music Case (NYT)
Movies Get Framed (WP)
Online Group to Give Advice Regarding Copyrights (NYT)
INTELECTUAL PROPERTY
NAPSTER WINS ONE ROUND IN MUSIC CASE
Issue: Intellectual Property
In a ruling in the Napster case, Judge Marilyn Patel wrote that while the
evidence before the court has been limited, she was concerned that the five
major record labels have created joint ventures to distribute music over the
Internet. Judge Patel, of Federal District Court in Northern California, is
therefore allowing Napster to seek evidence that the record companies
colluded to monopolize the digital music market. If Napster is able to show
illegal collusion, it could invalidate the record companies' lawsuit. As
part of its defense, Napster has asserted that the record companies, hoping
to maintain a dominant market position, have colluded to prevent alternative
methods of distribution, and have offered anticompetitive licensing terms to
would-be Internet competitors. The record companies maintained that Napster
abetted copyright infringement, a position supported by Judge Patel's order
for Napster to stop the wholesale exchange of information it had no
permission to distribute.
[SOURCE: New York Times, AUTHOR: Matt Richtel]
(http://www.nytimes.com/2002/02/23/technology/23MUSI.html)
(requires registration)
MOVIES GET FRAMED
Issue: Intellectual Property
[Editorial] Jack Valenti responds to accusations that the movie industry is
deliberately withholding exhibition of movies over the Internet and stifling
digital innovation through enforcement of copyright ownership. Valenti
argues that, given the financial fragility of the film industry, every
producer longs to use the Internet as a distribution channel. As yet,
though, there is little way to assure fair rent or sale prices over the
Internet. Valenti rejects the idea that copyright owners are stifling
innovation. He suggests that the critics' definition of 'innovation' is
legalizing the breaking of protection codes, without which there is no
protection for creative work. While Valenti admits that broadband's
popularity is limited by unavailability of movies over the Internet, he also
suggests that the film industry will remain hesitant to release movies
unless strong protection for copyrighted material is implemented for
Internet exhibitions.
[SOURCE: Wahington Post, AUTHOR: Jack Valenti (chairman and CEO of the
Motion Picture Association)]
(http://www.washtech.com/news/media/15327-1.html)
ONLINE GROUP TO GIVE ADVICE REGARDING COPYRIGHTS
Issue: Intellectual Property
Concerned that corporations are using cease-and-desist orders to intimidate
sites whose content may be protected by the First Amendment, the Electronic
Frontier Foundation and several law schools have created a searchable
cease-and-desist database to inform recipients of their rights. These
notices typically accuse Web publisher of copyright or trademark violations
and warning that "your conduct may result in legal action against you."
"People get these letters and wonder, `Does this mean I have to take
everything down and go home?' " said Wendy Seltzer, a fellow with the
Berkman Center for Internet and Society at Harvard Law School. "What we try
to do with this site is to clarify what it is they have to worry about and
what's more likely to just be someone blowing hot air."
[SOURCE: New York Times, AUTHOR: Amy Harmon]
(http://www.nytimes.com/2002/02/25/technology/ebusiness/25CHIL.html)
(requires registration)
OWNERSHIP
OLIGOPOLIES ARE ON THE RISE
Issue: Ownership
Easing government regulations and economic rewards are pushing American
industries to consolidate into oligopolies. A ruling last week by a federal
appeals court striking down regulations barring cable operators from owning
television stations is just one of many vanishing rules that are resulting
in a flurry of mergers. For example, the thousands of family-operated cable
television companies that operated twenty years ago have been replaced by
the current possibility of three companies owning two-thirds of the market.
While a certain amount of consolidation is thought to improve efficiencies
and bring down consumer costs, oligopolies can destroy competition vital to
preventing companies from pushing prices above costs.
[SOURCE: Wall Street Journal, AUTHOR: Yochi J. Dreazen, Greg Ip and Nicholas
Kulish]
(http://online.wsj.com/article/0,4286,SB1014589181477203560,00.html?mod=Page
%20One)
(requires subscription)
See Also:
IMPATIENT COURT PRESSES THE F.C.C. TO DEREGULATE
[SOURCE: New York Times, AUTHOR: Amy Harmon]
(http://www.nytimes.com/2002/02/25/business/media/25REGS.html)
CLEAR CHANNEL USES HIGH-TECH GEAR TO PERFECT THE ART OF SOUNDING LOCAL
Issue: Ownership
Radio giant Clear Channel is using the power of technology and it's national
reach to bring DJs from large markets into smaller communities, thus cutting
staff costs and expanding their national brand. Operating over 1200 U.S.
stations, Clear Channel grew from a single FM station by taking advantage of
a 1996 law that struck down a nationwide ownership cap of 40 stations and
allowed companies to own 8 stations in the largest markets. Now stations in
the Clear Channel family share DJs via a practice called, "voice-tracking".
Popular voice personalities record customized programs to make it sound as
if they are local residents of various smaller communities. This practice
enables a small station in Boise to pay $4000 to $6000 a year for an on-air
personality instead of having a local DJ on staff. The result is the
creation of multiple identities for many DJs who live in one city and do
"local" shows in several other markets.
[SOURCE: Wall Street Journal, AUTHOR: Anna Wilde Matthews]
(http://online.wsj.com/article/0,,SB1014589283422253080,00.html?mod=todays%5
Fus%5Fpageone%5Fhs)
(requires subscription)
INTERNET
INTERNET OVERSIGHT BOARD'S LEADER PROPOSES LARGE GOVERNMENTAL ROLE
Issue: Internet
A major restructuring was recommended by the president of the Internet
Corporation for Assigned Names and Numbers (ICANN) calling for governments
to nominate one-third of the board and eliminating participation by the
general Internet community. Currently the general Internet community elects
5 of the 19 board members. The new proposal would reduce the number of board
members to 15 with one third nominated by governments, one third through a
committee process and the rest appointed by four policy and technical
groups. ICANN has long been criticized for being beholden to corporate
interests and the proposal is expected to draw criticism from public
interest groups.
[SOURCE: Wall Street Journal, AUTHOR: Associated Press]
(http://online.wsj.com/article/0,,SB1014605787304403400,00.html?mod=technolo
gy_main_whats_news)
(requires subscription)
MEXICO'S E-REVOLUTION
Issue: Digital Divide
When Mexico launched an e-gov revolution last year, the goals were lofty:
free e-mail accounts for every Mexican, online educational, health and
government services. But the initiative had no funding in 2001 and received
only $73 million for 2002. It remains unclear how the cash-strapped
government will pay for the thousands of computers needed to network 10,000
communities by 2006. Under the plan, computers with Internet connections
will be available through library, school and office kiosks allowing access
to 85 percent of the Mexican population. Currently, only 6 percent of the
population has Internet access. The initiative remains a priority for the
government as e-government transactions are considered to be far less
corruptible than direct interactions.
[SOURCE: Wired, AUTHOR: Julia Scheeres]
(http://www.wired.com/news/print/0,1294,50622,00.html)
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