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Main Stories
o Eolas Wins $512 Million Web Browser Patent Judgment Against Microsoft
o Apple Posts Four-Year Revenue High, Beats Analysts
o Yahoo to Drop Google's Search Technology in Favor of Inktomi
o Report: Ad Spending to Rise 7.8% Overall in 2004; 'Net Ads to Jump 12.1%  
o GameCube Sales Up 35% in 2003; PlayStation 2 Shipments Top 70 Million  
o Electronic Arts, Sony Music Partner on "NFL Street" Game Soundtrack
o Warner Bros. Launches Video Game Division
o Games.com Domain Purchased From Atari for $1.1 Million
o CinemaNow Adds Permanent Downloads to 'Net Video-on-Demand Service
o Online Magazine Salon.com Gets $800,000 Investment

o Briefly Noted: Marvel - video game division, Apple - audio production software, Mforma - Universal - Paramount, General Dynamics Interactive - Mandarin Oriental Hotel Group, Mag Rack - Warner Bros. Publications, TVN Entertainment - Paramount, Sony - "Hot Shots Golf Fore!," Acclaim - "Worms 3D" - "Combat Elite: WWII Paratroopers," Netflix, OutKast's "Hey Ya!" - 110,000 paid downloads

Chicago -- A federal judge has upheld a $512 million patent judgment against Microsoft originally brought by Web browser developer Eolas Technologies and the University of California. However, U.S. District Court Judge James Zagel immediately put the ruling on hold while Microsoft lodges an appeal. The patent Eolas holds covers technology that launches applications within a Web page, like a streaming media player. The U.S. Patent Office, along with many Web developers who fear such a ruling could force them to pay new royalties, are investigating whether the Eolas technology is based on "prior art," in which case the patent would be invalid. While the appeal is mounted, Microsoft was ordered to pay Eolas $45 million in interest. "We remain confident that on appeal, when people hear this though, they will see that -- as we claimed -- the patent is not valid," Microsoft spokesman Lou Gellers told CNET News.com.
http://biz.yahoo.com/ap/040115/microsoft_suit_1.html
http://news.com.com/2100-1023_3-5141318.html 
http://www.eolas.com
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o Apple Posts Four-Year Revenue High, Beats Analysts

Cupertino, Calif. -- Crediting strong sales of its Macintosh computers and iPod digital music players, Cupertino-based Apple on Wednesday reported a four-year revenue high and earnings that beat consensus analyst estimates. The company said that it recorded quarterly net income of $63 million, or $0.17 per share -- $0.02 higher than analysts polled by Thomson First Call had predicted. A year ago, Apple posted a loss of $8 million, including restructuring charges. th e company also posted revenue of $2.01 billion, its highest level in four years. Revenue during the same period in 2003 was $1.47 billion. Apple shipped 829,000 Macintosh units during the quarter, up 12% from the year ago, as well as 733,000 iPods, up 235%.
http://biz.yahoo.com/prnews/040114/sfw069_1.html
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o Yahoo to Drop Google's Search Technology in Favor of Inktomi

Sunnyvale, Calif. -- Web portal Yahoo has announced that it will launch its own search engine technology during the first quarter of 2004, at the same time dropping long-time search partner Google and becoming the company's main rival in the field. Yahoo has been working to develop its own algorithmic search technology -- the same type used by Google -- since it acquired search firm Inktomi for $235 million in December 2002. "Competition-wise, this sets Yahoo up to take Google on," Search Engine Watch editor Danny Sullivan told CNET News.com. "The minute Yahoo bought Inktomi, the idea they were partners and friends fell by the wayside. But Yahoo has not given consumers a strong reason to think of Yahoo as different from Google. They need Inktomi out there to get their own voice and differentiate themselves."
http://biz.yahoo.com/bw/040114/145726_1.html 
http://news.com.com/2100-1024_3-5141328.html
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o Report: Ad Spending to Rise 7.8% Overall in 2004; 'Net Ads to Jump 12.1%

New York -- Advertising spending is expected to increase 7.8% in 2004 to $138.4 billion, following a 6.1% increase in 2003, according to forecasts released on Thursday by TNS Media Intelligence/CMR. Growth in Internet ad spending is expected to outpace all other media except Spanish-language television, and will increase 12.1% in 2004 as compared to network TV (9.6%), radio (9.5%) and newspapers (5.5%). "We anticipate expenditures on the upcoming U.S. elections and summer Olympic Games to strengthen the ad market significantly in 2004," said TNS president and CEO Steven J. Fredericks. "Additionally, as the economy improves, all leading categories of media will see improvement in advertising spending, with Spanish language television, the Internet, and Spot TV showing the strongest year over year gains."
http://www.tnsmi-cmr.com
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o GameCube Sales Up 35% in 2003; PlayStation 2 Shipments Top 70 Million

Redmond, Wash. -- Japanese video games firm Nintendo reported on Thursday that sales of its GameCube console increased 35% in 2003 over the previous year, bettering a 25% drop in sales for Sony's PlayStation 2 and knocking Microsoft's Xbox into third place in the console race. Nintendo, which slashed the price of the console to $99 in September, expects to sell six million GameCube consoles in its current fiscal year. The 2003 sales for GameCube software increased 63% over 2002, topping sales increases for both Xbox software (54%) and PlayStation 2 (23%). For its part, Sony reported that it has now shipped over 70 million PlayStation 2 consoles worldwide, and that software sales during the crucial November and December months reached a record 66 million units.
http://makeashorterlink.com/?I29411417 
http://news.com.com/2100-1043-5141061.html 
http://www.nintendo.com 
http://us.playstation.com
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o Electronic Arts, Sony Music Partner on "NFL Street" Game Soundtrack

Redwood City, Calif. -- Video game developer Electronic Arts said on Thursday that it partnered with Sony Music to include pre-release songs in its new "NFL Street" game, two of which will also be released as music videos that feature actual gameplay footage. The two tracks will also be released to radio as singles. NFL Street, which was released today for PlayStation 2, Xbox and GameCube, features a soundtrack scored by the X-ecutioners, as well as licensed tracks from Sony Music artists including Korn featuring NAS, Killer Mike, Lil Flip, Lostprophets and Wylde Bunch. As part of the partnership, select Sony artist CDs sold at several retailers will include a playable demo CD of NFL Street. "This project gives us the perfect opportunity to combine some of the most exciting artists working today with the fast growing -- and highly influential -- world of gaming," said Don Ienner, president of Sony Music U.S.
http://biz.yahoo.com/bw/040114/145687_1.html 
http://www.ea.com 
http://www.sonymusic.com 
http://www.nflstreet.com
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o Warner Bros. Launches Video Game Division

Burbank, Calif. -- Warner Bros. has announced the formation of a video game division, Warner Bros. Interactive Entertainment (WBIE), which will focus on licensing of its properties for use in video games. The company named Jason Hall, former CEO of game developer Monolith Productions, to head the new unit. Monolith is currently working on an online game based on Warner Bros.' "Matrix" film trilogy. The new unit will also contain a separate division, Warner Bros. Games, which will focus on the creation, development, production and distribution of games.
http://biz.yahoo.com/rc/040114/media_warnerbros_games_1.html
http://www.wbie.com
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oGames.com Domain Purchased From Atari for $1.1 Million

Cincinnati, Ohio -- Games, Inc., operator of a network of online games sites, announced on Thursday that it has purchased the Games.com domain name from video game publisher Atari for $1,125,000 in cash and stock. As part of the transaction, Games, Inc. will also acquire digital licenses to a number of board game titles, including "Monopoly," "Scrabble," "Risk," "Battleship," "Boggle" and "Yahtzee" in addition to several classic Atari games. Ohio-based Games, Inc. said it will enhance the Games.com site's functionality, adding chat and skill-based tournaments for prizes, with a re-launch scheduled in the spring. Games, Inc. also operates sites including Lottery.com and Cards.com.
http://biz.yahoo.com/prnews/040115/clth055_1.html 
http://www.atari.com 
http://www.games.com
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o CinemaNow Adds Permanent Downloads to 'Net Video-on-Demand Service

Marina del Rey, Calif. -- CinemaNow, a provider of Internet-based video-on-demand programming, announced on Thursday the addition of a "download-to-own" component to its service that will let users permanently own films they download to their PCs. The films will be transmitted in Microsoft's Windows Media Video 9 Series format and protected by Microsoft's Windows Media Digital Rights Management software in conjunction with CinemaNow's PatchBay technology. The first titles available for permanent download include the surfing film "Endless Summer" and several music concert films. Marina del Rey, Calif.-based CinemaNow is majority-owned by Canadian movie studio Lions Gate Entertainment.
http://www.cinemanow.com ____________________________________________

o Online Magazine Salon.com Gets $800,000 Investment

San Francisco -- Online magazine Salon.com announced on Thursday that it has received an investment of $800,000, from Rolling Stone magazine founder Jann Wenner and Adobe Systems co-chairman John Warnock. In addition, Salon will partner with Rolling Stone on a series of articles on the upcoming presidential election, and Wenner will take a seat on Salon's board of directors.
http://www.salon.com
http://www.nytimes.com/2004/01/15/business/media/15mag.html

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> Complete Information for Department of Homeland Security

Small businesses wanting to do business with the government face unique challenges when entering the federal marketplace. The 2003- 2004 Directory of Homeland Security includes a detailed list of procurement information and small business government contacts for the various federal departments and agencies. Contact names, titles, phone and fax numbers and descriptions are included in the listings. The Department of Homeland Security portion of the directory has entire section titled, "Doing Business with the Department of Homeland Security." To order the 2003-2004 edition, go to: http://www.tech-directories.com/dmw.htm
 

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(New York) Comic book publisher Marvel Enterprises on Thursday announced the formation of a video game group, to oversee the development of all licensed video games based on Marvel characters. Ames Kirshen has been appointed as manager of game development. The company currently has 13 game titles in development with studios including Activision, THQ, Vivendi Universal Games and Encore, and said that games based on its comics sold over 6 million units in both 2002 and 2003.
http://biz.yahoo.com/bw/040115/155171_1.html 
http://www.marvel.com

(Anaheim, Calif.) Apple Computer on Thursday previewed new technologies that will be included in the next version of its Logic audio production software. The package will include Sculpture, a new component-modeling based synthesizer; UltraBeat, a synthesizer that provides multiple synthesis techniques for generating electronic or acoustic drum sounds; Guitar Amp, a new guitar amplifier simulator; and support for enhanced Apple Loops, an open-standard file format for real-time matching of audio loops and sound effects.
http://biz.yahoo.com/prnews/040115/sfth034_1.html

(Santa Monica, Calif.) Mforma, a publisher of wireless entertainment content, announced on Thursday deals with movie studios Universal and Paramount, to develop wireless games based on licensed properties. Mforma secured rights from Universal Studios Consumer Products Group to create games based on monster movie characters including "Frankenstein," "The Bride of Frankenstein," "The Mummy," "The Wolf Man" and "The Creature from the Black Lagoon." A "Dracula" game is already available to Sprint PCS Vision subscribers. Kirkland, Wash.-based Mforma also secured rights from Viacom Consumer Products to make games based on Paramount Pictures' "Days of Thunder" and "Beverly Hills Cop." The company has already released games based on "Top Gun" and "Star Trek Nemesis."
http://www.mforma.com

(Needham, Mass.) General Dynamics Interactive, a provider of multimedia and broadband entertainment solutions to the hospitality industry, announced on Thursday that it installed its first high-definition multimedia system in Mandarin Oriental Hotel Group's new hotel in New York City. The Intrigue Multimedia System's features include LCD displays and surround-sound speakers, a DVD/CD player, high-definition movies-on-demand, Internet via the television and electronic artwork and coordinated music to display on room televisions.
http://www.mandarin-oriental.com 
http://www.intrigueonline.com

(New York) Mag Rack, a unit of Rainbow Media Holdings that develops magazine-style video-on-demand programming, said on Thursday that it has signed an agreement with Warner Bros. Publications to develop a guitar instruction program. The "Guitar Xpress" video magazine is scheduled to debut on cable systems that offer Mag Rack in February.
http://www.magrack.com

(Burbank, Calif.) TVN Entertainment, a provider of video-on-demand programming and delivery services, said on Thursday that it signed an agreement with Paramount Pictures for the rights to distribute movies in video-on-demand and pay-per-view formats. New releases including "School of Rock" and "Timeline" will be available to TVN customers, as well as library titles such as "An Officer and a Gentleman" and the first six "Star Trek" films.
http://www.tvn.com

(Foster City, Calif.) Sony Computer Entertainment America on Thursday said it plans to release "Hot Shots Golf Fore!" in 2004, the fourth installment in the franchise that has sold more than 7.5 million units worldwide. Developed by Japan-based Clap Hanz, the title will be based on the Japanese game "Minnano Golf 4," which has sold over one million units since its release in Japan on Nov. 27.
http://www.claphanz.co.jp 
http://www.us.playstation.com/games/SCUS-97130/flash

(Glen Cove, N.Y.) Game developer Acclaim Entertainment said on Thursday it signed an exclusive publishing agreement with U.K.-based developer Team 17 to release "Worms 3D," the latest installment in the studio's 8 million unit-selling franchise. Separately, New York-based Acclaim said it will release Nevada-based developer BattleBorne Entertainment's "Combat Elite: WWII Paratroopers" for next-generation consoles in June.
http://biz.yahoo.com/prnews/040115/nyth025_1.html
http://biz.yahoo.com/prnews/040115/nyth023_1.html 
http://www.team17.com 
http://www.worms3d.com 
http://www.battleborne.com 
http://www.combatelitegame.com

(Los Gatos, Calif.) Online DVD rental service Netflix on Thursday announced the opening of a new shipping center in Lakeland, Florida. The facility will serve the 3.5 million residents in central Florida communities including Tampa, St. Petersburg, Orlando and Daytona Beach. The company said it now reaches more than 80% of its members with generally overnight delivery.
http://biz.yahoo.com/prnews/040115/sfth004_1.html 
http://www.netflix.com

(Los Angeles) The top selling digital song download of 2003 was BMG/Arista artist OutKast's "Hey Ya!," which sold over 110,000 downloads, according to figures from Nielsen Soundscan. Data also shows that U.S. consumers bought a total of 2.5 million songs during the week of the Christmas holiday.
http://biz.yahoo.com/rc/040115/media_music_downloads_1.html

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