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November 20, 2006
Volume 15, Issue 8


Online Ad Revenue Grows 33%

Excerpted from Online Media Report by Wendy Davis

Online ad spending last quarter reached an estimated $4.2 billion – up 33% from the same time last year – according to a report issued this week by the Interactive Advertising Bureau and PricewaterhouseCoopers. Please click here for the full story.

Universal Music Licenses QTRAX

Universal Music Publishing Group (UMPG) announced a digital distribution licensing agreement with QTRAX, the first industry sanctioned advertising-supported peer-to-peer (P2P) music network, developed and distributed by DCIA Member LTDnetwork.

UMPG Chairman & CEO David Renzer commented, "UMPG desires to be at the forefront of licensing legitimate new technologies and sites in an effort to maximize revenues for our copyrights, songwriters, and artists. We believe that QTRAX and the legal P2P environment represent an exciting new business model with great upside potential and we are pleased to have concluded this new arrangement with them."

Allan Klepfisz, CEO of LTDnetwork parent Brilliant Technologies, stated, "The Universal Music Publishing Group deal represents a significant milestone for us in our drive to offer the most comprehensive licensed P2P service ever and to establish first-mover velocity with users and major international advertisers."

"We are happy to be a partner with UMPG in its effort to maximize the earning potential of its extensive catalog. We are extremely pleased with this momentous agreement for us. We are proud to be in Universal’s stable of preferred distributors and look forward to working with UMPG on developing the billion transactions-per-month marketplace that is P2P."

With 47 offices in 41 countries worldwide, UMPG is part of the Universal Music Group (UMG) and one of the industry’s largest global music publishing operations, owning or administering more than 1 million copyrights.

Digital Containers Signs SiteScape

ThinkFire, a leading intellectual property services firm, has successfully represented DCIA Member Digital Containers in an agreement for use of Digital Containers’ patents and know-how, with SiteScape, a leading teamware, document management and workflow provider.

Digital Containers’ technology enables any digital material, including video, books, music, pictures, feature-length films, and documents, to be placed in a "container," which can be sent electronically to any recipient as an e-commerce object, permitting safe distribution of the material.

The Digital Containers inventions are covered by fundamental patents and provide important controls for SiteScape documents in all phases of update.

"This technology will provide the SiteScape customer with complete document protection and compliance with many government standards and privacy initiatives," said Brian Hays, CEO & Chairman, SiteScape.

"Technology licensing allows companies to quickly incorporate leading edge technology and expand their product reach," added Kathie Lusardi, VP, Licensing for ThinkFire, who negotiated the license agreement. "The Digital Containers inventions and know-how will enable SiteScape to provide significant security and distribution advantages without additional research and development costs."

INTENT Spotlights Digital Music Conference

Les Ottolenghi, CEO and Co-Founder of DCIA Member INTENT MediaWorks, delivered a Spotlight Presentation at the Digital Music Conference in Miami, FL this week. His address, "New Distribution Success Stories," offered insights for suppliers of Internet media and advertising interested in capitalizing on the surging demand for digital media with business models that are legal, profitable, and consumer friendly.

Les is recognized as a leader in the field of media distribution and distributed computing. He has advised the White House on emerging new business models related to P2P networks and testified before both the US Senate and the Federal Trade Commission (FTC) regarding the landmark MGM v. Grokster case.

INTENT MediaWorks is a leading provider of technology for the legal and profitable distribution of licensed digital media content and advertising via the Internet and P2P file-trading systems.

Report from CEO Marty Lafferty

Photo of CEO Marty LaffertyWe are very pleased to be able to offer an incentive to DCINFO readers who wish to attend the upcoming Digital Hollywood Europe in London (DHL) conference.

The DCIA has obtained a limited number of all-event passes (value $1,195 US each) to make available on a first-come first-served basis.

If you would like to be a delegate at the inaugural DHL conference, from November 29th through December 1st at ExCeL London in The Docklands, here’s what to do.

Please call 410-476-7965 or e-mail DHL@dcia.info as soon as possible, but no later than this Wednesday, November 22nd, with your name, title, and company.

We will confirm the status of your registration acceptance within twenty-four hours of receipt of your request.

The DCIA will be conducting two "Next Generation P2P" panels at DHL featuring the following DCIA Member speakers.

Altnet CTO Anthony Rose. Altnet is a leading online distributor of licensed digital content, providing the means for record labels, film studios, and software developers to market and sell their products to a worldwide audience of 70 million users. Altnet distributes licensed content into leading peer-to-peer (P2P) applications and Internet websites, providing their users with access to Altnet’s library of digital rights managed (DRM) content and payment processing platform.

Altnet’s newest offering is the Global File Registry (GFR), which provides a centralized database containing the unique identifiers of millions of infringing files captured and collated on behalf of multiple content owners. Unique identifiers include file-hash, URL, content management system ID, and other means of uniquely identifying a particular data item on any of the network types supported by GFR.

CacheLogic CTO and Co-Founder Andrew Parker. CacheLogic is a global provider of media delivery services for content owners and ISPs. It has achieved this position through its proven track record, market-leading solutions, and commitment to research and development. CacheLogic is considered a leading authority on P2P technology and a leader in high-performance digital media delivery.

CacheLogic’s Streamsight Monitoring Network (SMN) provides traffic analysis from within ISP networks across the globe. Through its work with digital content rights holders and broadcasters on strategies for the distribution of legitimate video content using P2P technologies, CacheLogic has established VelociX, its peer-assisted media delivery platform. This platform enables content owners to harness the benefits of P2P technology while offering the benefits of a CDN.

CyberSky-TV CEO Guido Ciburski. With the introduction of CyberSky-TV P2P television, broadcasting live video no longer needs to cost any money. CyberSky-TV is a free software application for sharing television streams. It allows users with a broadband Internet connection to share the TV channels they are able to receive. TV channels can be shared irrespective of the means of reception, whether by cable, terrestrial, or satellite, and whether analog or digital, as long as the incoming TV signal can be redirected to a PC.

CyberSky-TV developed the ByteTornado protocol for its application. Similar in operation to other major P2P protocols in use by popular file-sharing networks, ByteTornado shares data delivery workloads across connected client systems as well as the distributor’s own server infrastructure. This way it drastically decreases the operational costs for a stream provider.

Digital Containers CEO Chip Venters. Digital Containers owns patented solutions that support secure file and media delivery, tracking, authorization, certification and communication of transactional data to trusted third parties across the Internet. Whether a Digital Container is distributed by e-mail, by instant message, in a P2P network, by download from a website, or physically on a CD, the persistent copyright protection and status/activity tracking gives the file its own security and commerce system.

Digital Containers’ software and intellectual property were originally developed by its predecessor Deskgate Technologies. Digital Containers’ management team has successfully designed, built, and marketed products that deliver secure documents, electronic bills, medical records, electronic books, newsletters, catalogs, music, and video over the Internet.

Friend Media Technology Systems (FMTS) CTO Jonathan Friend. FMTS has created software that is capable of blocking unauthorized transmission of content on P2P networks and capturing a significant amount of data with respect to activity on P2P networks. Due to the design of the FMTS system, relying on content comparison and in-depth network research generated by FMTS, it is possible to protect material against unauthorized distribution very quickly after its creation.

The FMTS system also provides research and statistical data, including the ability to track network participants among multiple sessions, thereby producing detailed activity logs. FMTS offers a broad view of activity thanks to the gathering of network-wide data, instantaneous cross-referencing of data for trend analysis, and identification of obfuscated content.

FTI Consulting Senior Managing Director Bruce Benson. FTI Consulting advisors come from all facets of the public and private sector. They are credentialed authorities, government agents, and former chief executives and general counsels - people who understand FTI clients’ concerns in a way that only those who have been on the same side of the desk possibly can. FTI’s roster includes banking and securities industry professionals, forensic computer experts, and visual communication specialists, among others.

FTI Consulting is advancing a new area of practice focused on participants in the emerging P2P and social networking distribution channel for copyrighted works. This includes content rights holders, applications developers and distributors, advertisers and advertising agencies, database management and payment services firms, as well as Internet service providers (ISPs) and traffic management solutions providers.

INTENT MediaWorks CEO and Co-Founder Les Ottolenghi. Founded in October 2003, INTENT MediaWorks has quickly become a leader in digital media distribution by creating groundbreaking technologies and services. INTENT helped usher in a new era of digital media by turning each file into a marketing tool for its copyright owner. INTENT’s digital media distribution system is the most comprehensive available, reaching all major P2P file-trading networks, web-based communities, as well as e-mail, RSS, and any channel on the Internet.

In addition, INTENT has developed a new model for lifestyle branding and viral social marketing that merges file-trading functionality with social network features, such as blogs, IM, VOIP, groups and personal profiles. INTENT MediaWorks was uniquely cited by the US Supreme Court for its legal solution to P2P digital media distribution. Today, INTENT reaches 250 million consumers around the globe.

Perenety CEO Xavier Casanova. Perenety is a Silicon Valley start-up founded by three Stanford graduates. Its product is "shooter," a free-and-simple software application that friends can use to privately exchange photos and videos. All files sent and received via shooter are fully encrypted and can only be accessed by users with passwords. When sending a "shoot," files are securely routed and stored on the Perenety File System, a new P2P technology designed to help users communicate easily with their friends via shooter.

The name Perenety is derived from the word "perennial:" lasting an indefinitely long time. It reflects the founders’ true passion and commitment to continually build high quality products and their belief in the fundamental core values: sincere dedication to customers, relentless spirit of innovation, and integrity.

RawFlow Marketing Manager Ingjerd Jevnaker. RawFlow is a leading provider of live P2P streaming technology that enables broadcasters, CDNs, and webcasters to maximize the scalability and quality of their Internet broadcasts without increasing risk or cost. RawFlow is an international company that offers broadcasters and content owners a full range of services from simple installations to complete end-to-end solutions to support streaming of audio and video.

RawFlow increases steaming quality and capacity by using spare upstream capacity in the network. It offers a secure digital media delivery solution that supports digital rights management (DRM). RawFlow was founded and managed by an experienced team of internet entrepreneurs in 2000.

In addition, the "All Video – All the Time" panel will feature Mikkel Dissing, CEO and Co-Founder of RawFlow. Mikkel has over 10 years’ experience managing and developing start-ups. Previously he worked for the eCRM solutions company Touch Clarity, the global dot.name registry GNR, and online travel agency CoDan Agentura. Earlier, Mikkel was Managing Director for Imperial Derby where he rolled out new products to the South African market generating annual revenues of £15m.

Finally, RawFlow will be hosting a VIP networking reception at Grapeshots, a small wine bar situated close to Liverpool Street Station, in the narrow Artillery passage – a street where Jack the Ripper used to lurk. This special event is scheduled for Thursday, November 30th from 6:00 PM to 9:00 PM. Please RSVP to marketing@rawflow.com. Share wisely, and take care.

ED Turns to VeriSign

DCIA Member VeriSign, the leading provider of intelligent infrastructure for the networked world, announced that the US Department of Education (ED) has chosen its integrated authentication services to comply with Homeland Security Presidential Directive 12 (HSPD-12), the Federal Government’s secure identity credentialing mandate.

VeriSign will provide the government agency with its integrated Personal Identification Verification (PIV) Card Management System (CMS) and Shared Service Provider (SSP) Public Key Infrastructure (PKI) solution. The integrated, managed solution helps enable quick deployment and faster compliance with the mandate.

"VeriSign’s managed PKI solution made it possible for us to deploy an HSPD-12-compliant solution without making costly infrastructure investments, saving time and taxpayer dollars," said Winona Varnon, Director of Security Services, ED. "The seamless integration between the CMS and the SSP components represents a significant advantage over other solutions. Given VeriSign’s extensive experience operating mission critical Internet infrastructure, we are confident we have made the right decision."

The VeriSign integrated solution provides agencies with a single, easy-to-use platform to manage the issuance and life-cycle of both the PIV card and the associated PKI credentials. This managed service solution of smart card and certificate management systems helps enable quicker deployments and ensures the highest return on the customer’s investment.

"To comply with the HSPD-12 mandate, government agencies need proven, reliable, and scalable solutions that meet the criteria specified in Federal Information Processing Standard 201 (FIPS 201)," said George Schu, VP of Strategic Development, VeriSign. "VeriSign’s integrated PIV Card Management System and Shared Service Provider PKI allow our customers to lower the total cost of ownership by leveraging a common platform to meet critical government security requirements."

Digital River Supports Lucion

DCIA Member Digital River, a global e-commerce and web hosting outsourcing provider, will perform e-commerce services for developer of file management, automated document imaging, and file protection systems, Lucion Technologies.

Digital River is managing the online sale, marketing, and digital delivery of Lucion’s paperless office and file management software and the company’s online backup solution. The software titles are being sold at www.lucion.com in an online store built and hosted by Digital River as well as through hundreds of online retail, content, and portal sites in the Digital River oneNetwork online marketplace.

Don Peterson, SVP of Global Client Development at Digital River said, ‘‘In our experience, companies that effectively implement site merchandising and sell through multiple online sales channels are well-positioned to increase their brand awareness and grow their online sales. It is our job to help Lucion achieve this success by leveraging the e-commerce and e-marketing best practices we have developed during the past decade managing the online businesses of tens of thousands of companies.’’

Darin Hunsaker, CEO of Lucion, added, ‘‘We chose Digital River as our e-commerce provider because of successful store implementations with prior companies and because its world-class infrastructure offered our customers a stable, secure, online channel that reliably delivers FileCenter and FileBackup downloads. Digital River also presented us with an opportunity to expand our online business beyond direct sales by adding our software applications to its oneNetwork marketplace and exposing our software to shoppers through well-known online retail sites.’’

Telcordia Extends Asia Pacific Presence

DCIA Member Telcordia Technologies, a global provider of telecommunications software and services, continues to grow its operations in the Asia Pacific region with the opening of offices in Beijing and Hong Kong, China.

This is the latest in a series of strategic moves, aimed at leveraging Telcordia’s innovation, experience, and reach in the Asia Pacific region. Earlier this year, Telcordia established an India entity, Telcordia Technologies India Private Limited, and opened a state-of-the-art software development lab in Chennai, India, in order to have dedicated resources to support its growing list of mobile, fixed line, and cable operators throughout the region.

Telcordia’s traction in the region has gained significant momentum with recent wins at Tata Teleservices, a leading wireless operator in India, which selected the Telcordia Service Delivery Solutions Portfolio to support its expansion of new services. In addition, Liaoning Mobile Communication Company (LMCC), a subsidiary of China Mobile, the number one mobile service provider in the country and also the largest mobile operator around the world, selected Telcordia Granite Inventory to help transform network operations to maximize efficiency and respond quickly and effectively to rapidly evolving customer demands.

"The Asia Pacific region has traditionally been early adopters of new, advanced services and is the perfect market for Telcordia’s innovative and proven communications solutions," said Michael Anderson, Senior Vice President, Marketing and Strategy, Telcordia. "China is one of the fastest growing markets in the world and with more than 3.46 billion people in the region – more than 50% of the world’s population – it is a strategic focus for Telcordia as we continue to successfully expand our global reach."

Passalong Puts Nettwerk’s BNL OnTour

PassAlong Networks, developer of digital media innovations, in conjunction with DCIA Member Nettwerk Music Group, has developed a special version of "OnTour" enabling alternative rock band Barenaked Ladies to communicate directly with its concert-going fans.

OnTour is a service that matches fans’ favorite artists with a concert database so fans never miss a concert again. The OnTour Widget automatically searches a participating computer’s music library and conveniently highlights relevant concerts coming to specified locations. The service provides an elegant way for fans to stay connected to their favorite artists using a simple and clean desktop interface.

The OnTour - Barenaked Ladies Edition enables Nettwerk and Barenaked Ladies management to send unique promotional offers and live concert mixes directly to users who download the special version.

"This is a succinct use of technology," said Brent Muhle, who leads digital initiatives for Nettwerk. "OnTour is an artist memento with a purpose; it allows the artist the ability to communicate directly with those looking for relevant concert information. The OnTour Widget is exactly the type of one-to-one communication tool that makes this an exciting time for any music fan."

"Nettwerk and PassAlong are equally committed to using technology innovations to better connect artists and fans," said Dave Jaworski, Co-Founder & CEO of PassAlong Networks. "It’s great to have a visionary partner that is anxious to be on the leading edge with us."

Nettwerk Music Group also offers special versions of the OnTour Widget for its other artists. The special versions are now available at the websites of Jars of Clay, Leigh Nash, Guster, Anathallo and The Format.

ZIM Launches P2P TV Platform

ZIM Corporation, a mobile entertainment and Internet TV service provider, has launched ZIMTV and ZIMTV.mobi, an English-based P2P Internet TV platform for personal computers and mobile phones. ZIMTV is an expansion of ZIM’s overall Internet TV strategy which also includes a partnership with PPLive.com, the world’s largest P2P Internet TV provider with over fifty million users.

ZIMTV provides a complete Internet TV (or "IPTV") broadcasting platform for content owners to distribute their content to millions of potential online viewers worldwide.

ZIMTV offers the following features to content providers: consumer friendly Internet TV platform which currently has free channels containing sports, movies, television, news, animation, and educational video content; plans for pay-per-view channels for premium content; an online video advertising model which allows advertisers to purchase "clickable" ads in between video programming; revenue sharing on all TV ads that are sold during programming; the opportunity for content providers to own a branded TV channel on www.zimtv.biz / www.zimtv.mobi or on an external site; English language content with plans to include international language content in the future.

"We are excited at the opportunity to provide broadcasters worldwide with a platform to distribute their video content on the Internet and on mobile phones. ZIMTV offers content providers an attractive opportunity to create new revenues and new customers," said Dr. Michael Cowpland, President and CEO of ZIM."

Orb Streams YouTube to Cell Phones

Orb Networks announced this week that its free MyCasting service is the first to take Internet videos mobile by making it possible to add, manage, and stream them using any mobile device with a browser and media player.

People can now enjoy their favorite videos from YouTube, Google, Guba, and DailyMotion while on the move. Because Internet videos aren’t formatted to play on cell phone screens, it’s been virtually impossible for cell-phone users to watch online videos. Orb MyCasting changes that.

Orb MyCasting makes it possible for people to organize, enjoy and share their videos, music, photos, TV, documents, and other digital media when (time) and where (place) they want it, using the device – be it a mobile phone, PDA or laptop – that they already own.

"Orb cracked the code that was keeping online video from going mobile – the long awaited convergence of Internet video and mobile phones has arrived," said Joe Costello, Chairman & Co-founder of Orb Networks.

"When millions of people are visiting Internet video sites daily, it’s obvious this is a wildly popular form of entertainment and communication that’s here to stay. We’re extending the experience beyond the PC to mobile devices so that every cell phone user who connects to the Internet and has a media player can enjoy their favorite Internet videos wherever and whenever they want."

Orb MyCasting service is free and without consumer limitations. "With Orb, it’s simple: If you want to watch an Internet video on your cell phone, then watch it," said Costello. "There are no limits to which videos or how many videos you can watch."

Playstar & Function Launch P2P SMS Games

Playstar Corporation has signed a joint venture agreement with Function for worldwide distribution of its proprietary P2P text message (SMS) online games. Within ninety days, Function will roll out the first series of proprietary SMS online games driving adoption rates via P2P, affiliate, referral and organic marketing.

Playstar’s P2P games allow friends to connect and play against one another from anywhere in the world. This will foster referral-driven growth, most of which will come in the form of friends challenging one another to compete in a variety of different skill games. This type of organic marketing will have extremely positive effects on Playstar’s consumer adoption rates. Simply put: it is tough to turn down a friend’s challenge for a quick game via text message. The ability to capture new players immediately coupled with Playstar’s retention capabilities will result in its accelerated emergence as a leader across this extremely lucrative industry.

Playstar CEO Stewart Garner said, "This joint venture allows SMS games developed with proprietary software to be marketed to all cellular phone carriers."

Function CEO Marc Askenasi added, "We look forward to rolling out simple, fun and most importantly, free P2P games that appeal to all consumer demographics. In a world of Premium Rate SMS services, we are excited to deviate from this model and remove all the existing restraints on consumer adoption rates. How do we plan to achieve this? As opposed to creating a marketing strategy based on our games, we are creating our games based on our marketing strategy. Collectively, Function and Playstar are positioned to drive consumer adoption rates and usage exponentially emerging as the dominant player of P2P text message games."

Zune: Size Matters, Sharing is Caring…

Excerpted from Digital Music News Review by Paul Resnikoff

For better or for worse, the Zune now exists in a fishbowl, thanks to a multi-million dollar push by Microsoft. A softer launch may have been possible, though obscurity remains the enemy of countless iPod rivals. Now, the derby has begun, and consumers will begin to eye the alternative. Unfortunately for Microsoft, initial impressions are important, and this device is unquestionably oversized and heavy. Sure, the Zune offers a bright, colorful, and large screen, but the device itself is almost brick-like compared to its 30GB iPod rival.

Those negatives aside, the Zune delivers an attractive look and feel. The exterior is almost buttery to the touch, and a translucent cover and minimalist collection of buttons offer a unique look. Fire the device up, and the colorful screen jumps out, offering a nice iPod enhancement. And the software setup is not only smooth; it is loaded with well-photographed, seemingly-spontaneous scenes of people socializing. Images are crisp, on-deck navigation is both innovative and effective, and synchronization with the Zune Marketplace and application is solid.

As a first-generation concept, Zune-to-Zune sharing is a noteworthy stab, and even groundbreaking. But Microsoft has blown this concept sky-high in its advertising campaign, inflating consumer expectations in the process. Could you imagine a device that allows easy swapping without restrictions, and grab songs from the sky? The problem is that consumers love the theoretical concept, but are disinterested in a heavily-limited imitation. The Zune can only swap materials between devices, and cannot grab content over-the-air from internet-based destinations. And playback limitations on shared content - three plays or three days - are essentially a buzzkill. Again, groundbreaking as a first-generation release, but not worthy of a massive advertising splash.

Incidentally, the enlarged screen is great for both video and picture viewing. Snapshots are rendered crisply, and the player smartly shifts into a horizontal mode for both formats. Audio fidelity is also solid, and certainly on par with the iPod. Meanwhile, users will probably be disappointed by the center wheel, which does not allow scrolling and instead relies on directional clicking.

On the software side, the Zune Marketplace receives relatively high marks. Critics have pointed to a catalog of two million songs, which compares unfavorably to the iTunes Store collection of 3.5 million. In reality, most people stuff their devices with tracks that have been ripped from CDs, transferred over IM, or downloaded from P2P networks. That puts paid downloads and subscription-based content on the back-burner, and lessens the importance of the paid catalog. Meanwhile, Microsoft has improved its device-to-application functionality by creating a Zune-specific store and jukebox, despite its unfriendliness to other DRM systems. Synchronizations are smooth, and users can easily combine subscription-based tracks with permanent downloads. It all feels the same, at least within the device.

The Zune has pros and cons, but will it sell? The device is blanketed throughout retail outlets in the United States, and the player is certainly good enough for primetime. Some buyers will bite, though Microsoft lacks a solid, iPod-killing advantage. The price tag is the same, sharing is still first-generation, and iPod wins on design. In the end, the Zune lacks that standout factor that screams, "buy me!" Meanwhile, Apple has been in the game for five years, and buyers can pick-and-choose their iPod size, price, and fashion flavor. Perhaps consumers are getting tired of yet-another iPod Christmas and the Zune can benefit from that weariness. But more than likely, the iPod will experience another strong holiday run while the Zune ramps towards a respectable sales tally.

Related images can be found here.

Technology Friendly 110th Congress

Excerpted from MediaPost Report

Technology companies can rejoice now that the Democrats have taken over Congress, since the 110th Congress could be the most technology-friendly in history. One reason is that Nancy Pelosi, the next Speaker of the House, hails from San Francisco, CA. A year ago, she unveiled an "innovation agenda" that called for broadband access for all Americans. Nothing ever came of it, but something may in the future.

Pelosi is friendly with Silicon Valley Democrat Anna Eshoo, whose constituents include Steve Jobs, David Filo, and Hewlett-Packard. Bill Archey, President of the American Electronics Association, the largest technology lobbying group in the US, says, "to use a Silicon Valley term, the Democrats tend to get it."

It is, however, unsure where the Dems stand on the issue of digital copyright, as many of their biggest contributors come from Hollywood. Some want to help the entertainment business circumvent the 1998 Digital Millennium Copyright Act. Please click here for the Business 2.0 Magazine report.

Alston & Bird Policy Advisory

DCIA Member Alston & Bird has published a new US legislative and public policy advisory entitled "Preliminary Legislative and Public Policy Outlook for the 110th Congress (2007-2008)."

Please click here for the advisory, which is available as a PDF on the Alston & Bird website.

The US House and Senate have now reconvened for the lame-duck session, with Democrats biding their time until they officially take control of both chambers for the start of the 110th Congress in January.

The purpose of the advisory is to provide clients and other interested parties with a snapshot of the key issues that Alston & Bird believes are likely to appear on the new Congressional policy agenda in January, and to provide context for those issues given the change in political control.

Potentially Big Loss in Brooklyn

Excerpted from TuneLab Music News Report

In another RIAA sue-for-downloads case, UMG v. Lindor, the presiding judge in Brooklyn federal court has held that the defendant, Marie Lindor, can try to prove that the RIAA’s claim of $750-per-song statutory damages is a violation of the Due Process Clause of the Constitution, since she has evidence that the actual wholesale price of the downloads is only 70 cents.

This decision activates an earlier ruling by the Magistrate in the case that the record labels must now turn over ‘all relevant documents’ regarding the prices at which they sell legal downloads to online retailers. The judge rejected the RIAA’s claim that the defense was frivolous, pointing out that the RIAA had cited no authorities contradicting the defense, but Ms. Lindor’s attorneys had cited cases and law review articles indicating that it was a valid defense.

Should the judge rule that the RIAA cannot seek such ridiculous damages, individuals will not be so easily muscled into a large settlement and will actually have a chance at defending themselves. Read more at Recording Industry v. The People.

Coming Events of Interest

  • Digital Hollywood Europe in London – November 29th - December 1st at ExCeL London, The Docklands, England. The DCIA will moderate two P2P panels featuring DCIA Member company executives Anthony Rose, CTO, Altnet; Andrew Parker, CTO and Co-Founder CacheLogic; Guido Ciburski, CEO, CyberSky-TV; Chip Venters, CEO, Digital Containers; Jonathan Friend, CTO, Friend Media Technology Systems (FMTS); Bruce Benson, Senior Managing Director, FTI Consulting; Les Ottolenghi, Co-Founder & CEO, INTENT MediaWorks; Xavier Casanova, CEO, Perenety; and Ingjerd Jevnaker, Marketing Manager, RawFlow

  • VIP Networking Reception – November 30th at Grapeshots near ExCeL London, The Docklands, England.Sponsored by DCIA Member RawFlow. Please contact Ingjerd Jevnaker at +44 (0)20 7480 4220 for more information.

  • Innovating in a Web 2.0 World – December 7th. There is a tremendous amount of focus on Web 2.0 and yet there are as many questions as answers. What is it? Who's using it? How can you get started? Join WebSideStory for a free webinar on how your online business can innovate in the midst of this Web 2.0 world.

  • 2007 International CES – January 8th–11th in Las Vegas, NV. With four decades of history, the International Consumer Electronics Show (CES) reaches across global markets, connects the industry and enables CE innovations to grow and thrive. The DCIA will moderate the "Next Generation P2P" panel on Wednesday January 10th, featuring DCIA Member executive Les Ottolenghi, Co-Founder & CEO, INTENT MediaWorks.

  • P2P MEDIA SUMMIT NY – February 6th–8th in New York, CA. The Winter DCIA Conference & Exposition will cover policy, marketing, and technology issues affecting commercial development of this emerging high-growth industry. Exhibits and demonstrations will feature industry-leading products and services. For sponsor packages and speaker information, please contact Karen Kaplowitz at 888-890-4240 or karen@dcia.info. Plan now to attend.

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