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September 22, 2003

House Action on RIAA Subpoenas Unlikely
By Roy Mark

Despite the headlines coming out of the U.S. Senate last week about legislation to roll back the subpoena power provisions of the Digital Millennium Copyright Act (DMCA), it appears unlikely Congress will take any action to lessen the authority of the music industry to issue bulk subpoenas to obtain the names of alleged online pirates.

The landmark 1998 DMCA allows copyright holders to issue subpoenas to Internet service providers (ISPs) demanding the name, address and telephone numbers of ISP subscribers suspected of illegally downloading copyrighted material. The subpoenas can be filed prior to any charges of infringement, are not subject to a review by a judge, and requires no notice to, or opportunity to be heard by, the alleged infringer.

The constitutionality of the subpoenas was heard in the U.S. Court of Appeals for the District of Columbia last week and Sen. Sam Brownback (R.-Kan.) introduced a bill requiring the owners of digital media products to file an actual case in a court of law in order to obtain the identifying information of an ISP subscriber.

At a Senate Commerce Committee hearing on Wednesday, California's Barbara Boxer voiced opposition to Brownback's bill and later that afternoon, Rep. Lamar Smith (R.-Tex.), responding to a reporter's question during a press conference by the Republican High Tech Working Group, said House action on the DMCA is not likely.

"We don't feel it (DMCA) needs to be revisited," Smith, chairman of the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, said.

Earlier this year, the RIAA, which served the first DMCA subpoenas on Verizon in July of 2002, won a district court decision forcing the company to reveal the names of two subscribers the RIAA suspected of illegally downloading copyrighted songs. Since then, the RIAA has issued more than 1,500 of the subpoenas to Internet service providers.

Those subpoenas led to 261 civil lawsuits being filed by the RIAA last week against alleged copyright infringers. Verizon is appealing the decision, claiming the RIAA is unfairly using the subpoenas.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
R G V  N E W S L E T T E R


SEPTEMBER 2003

Welcome to the Rockbridge Global Village, Inc. Newsletter. We hope that you find information and topics within this newsletter interesting and useful.


Topics in this newsletter:

FTC Expands Case Against St. Lois Spammer
House Action on RIAA Subpoenas Unlikely
Microsoft Unveils Office 'Fourth Pillar'
Motorola Chairman and CEO Retiring


 

September 22, 2003
FTC Expands Case Against St. Louis Spammer
By Roy Mark

The Federal Trade Commission (FTC) is expanding its investigation into the adult Website Married Bit Lonely, alleging Dutch citizen Martin P. Bevelander participated with Brian T. Westby in sending consumers sexually explicit spam with deceptive subject lines that disguised the content.

In April, The FTC charged Westby, who lives in the St. Louis area, with sending spam containing subject lines that read, among others, "Did you hear the news?" and "New movie info." When consumers opened the messages, they were immediately subjected to sexually explicit solicitations to visit Westby's adult Web sites. Westby subsequently agreed to an injunction against the practice.

Steven Wernikoff, a staff attorney in the Midwest division of the FTC, told internetnews.com the agency is now investigating whether Westby was working with Brevelander both before and after Westby agreed to the injunction.

"The FTC has authority over companies and individuals that engage in deceptive practices in the U.S.," Wernikoff said. "While it is true that Mr. Brevelander is individually outside the U.S., we will work with other international agencies. In the past, we have had meaningful relief working those agencies." The FTC says because of the deceptive subject lines, consumers had no reason to expect to see such material. The complaint alleges consumers "may" have opened the e-mails in their offices, in violation of company policies, and, in other cases, children may have been exposed to inappropriate adult-oriented material.

Westby's spam provided a hyperlink for consumers who wished to "unsubscribe" to the e-mail, but, according to the FTC, when consumers used the hyperlink in an attempt to get off the mailing list, they received an error message and they were unable to unsubscribe.

The FTC also alleges that the defendant used false "reply to" information in the e-mail, making it appear that an innocent third party was the sender, a practice known as spoofing. As a result, thousands of undeliverable e-mails flooded back to the computer systems of these third parties, deluging their computer systems with an influx of spam that couldn't be delivered to the addressee.

In addition, according to the FTC, it unfairly portrayed these innocent bystanders as duplicitous spammers, often resulting in their receiving hundreds of angry e-mails from those that had been spammed.


September 22, 2003
Microsoft Unveils Office 'Fourth Pillar'
By Thor Olavsrud

In an effort to make its Office System more useful in common organizational tasks -- and give partners a stepped up sales pitch -- Microsoft (Quote, Chart) Monday unleashed one last surprise in its vision of what constitutes its new system, with the unveiling of the Microsoft Office Solution Accelerator program.

The program brings Office into the solutions space by focusing on providing packages that will help customers take their existing Microsoft applications and systems and streamline organizational tasks, like implementing compliance with the Sarbanes-Oxley Act or jumpstarting Six Sigma implementations.

Anders Brown, group product manager of the Information Worker New Markets Group at Microsoft, told internetnews.com that Office System -- slated to launch on Oct. 21 -- now consists of four main pillars: programs, servers, services and now solutions.

"An Office Solution Accelerator is really an integrated set of software components, templates and architectural guidance," Brown said.

The idea is to give Microsoft partners the tools to go beyond just integration by helping them provide a complete, end-to-end solution to customers, based around integrating, configuring and customizing Office Solution Accelerators. Through the Accelerator packages, Brown said partners will be able to spend less time integrating Microsoft products and dedicate more time on higher value-add services specific to their expertise.

"The Office Solution Accelerators will allow us to quickly relate customers pains to demonstrable solutions; this capability was always expensive and time-consuming in the past," said Rob O'Dell, National Solutions director for Immedient, a Microsoft Gold Certified Partner specializing in solution deployment and integration. "They enable customers to quickly leverage their investments in the Microsoft platform, while being assured of the best architectural approach and ongoing enhancements in functionality. This will positively impact the top and bottom line for customers."

This isn't the first time Microsoft has ventured into the solutions space with its products (it offers Management Pack Modules, out-of-the-box solutions for its servers and applications), but it is the first time it has done so with Office, Joe Wilcox, Microsoft analyst with Jupiter Research, told internetnews.com. Wilcox said the program synchs with Microsoft's new thinking when it comes to its productivity suite.

"In the past, Microsoft sold Office on the features. What has it got? Now Microsoft is stepping back and trying to sell Office more on what you can do with it," Wilcox said.

"Microsoft is really trying to reinvent Office and shift the focus away from the individual applications toward what businesses can do with the entire package," he said. "So the company has been working on what it calls 'scenarios' around which businesses might use Office. You'll see this same approach adopted with other products, particularly as Microsoft begins to advance its Windows Longhorn platform. The benefit is really for Microsoft's channel partners, probably more than the customer."

Wilcox explained that Microsoft does not have a broad sales force. Instead, it relies on local resellers and system integrators to go out into the field and sell its products.

"The company has every incentive to try to help them do that," he said.

He added, "Microsoft wants to communicate the value of Office 2003. The company wants people to adopt the new product as quickly as possible. These packages are one way to do that."

Brown noted that the company is training its partners to sell the new solutions, and will host 200 partners at its Redmond campus for a training event next week.

"We fully expect partners to trade service offerings around these," Brown said.

Microsoft will begin releasing the first seven accelerators this fall. Brown said the initial packages aim to streamline tasks in areas like finance, operations, sales and human resources. Future efforts will focus on additional packages aimed at information workers in those areas.

Initial packages will include:

  • Office Solution Accelerator for Sarbanes-Oxley, which Microsoft said will help organizations address key compliance needs like business process documentation and distributed certification
  • Office Solution Accelerator for XBRL, aimed at streamlining the financial reporting process through the utilization of Extensible Business Reporting Language (define), which the company said would allow customers to standardize internal and external financial information management processes, in order to provide increased financial transparency and support for new financial compliance legislation
  • Office Solution Accelerator for Recruiting, designed to help human resources departments integrate recruiting tools
  • Office Solution Accelerator for Proposals, intended to streamline the proposal creation process
  • Office Solution Accelerator for Six Sigma, which seeks to help organizations manage Six Sigma projects
  • Office Solution Accelerator for Business Scorecards, which aims to simplify management of key performance initiatives
  • Office Solution Accelerator for Excel Reporting, which seeks to extend Excel's reporting capabilities for freeform analysis and reporting, streamlining report creation.

"All of them are essentially built on top of the Office System," Brown said. He added, "This is really about listening to customer feedback. They're saying 'hey, we want more ongoing value in-between large releases of Office.'"

Brown said Microsoft will provide guidance on pricing and licensing at a later date.


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Silicon Valley
 
September 19, 2003

Motorola Chairman and CEO Retiring
By Michael Singer

Motorola (Quote, Chart) said late Friday that chairman and CEO Chris Galvin has decided to retire.

Galvin has agreed to remain as chairman and CEO of the world's No. 2 cell-phone manufacturer and a top tier semiconductor maker until his successor is named.

Grandson of the company's founder, Galvin joined the company in the summer of 1967 and managed to make drastic changes in the last three years in the lead role.

However, under Galvin's watch, Motorola lost the top cell-phone sales spot to Finland-based Nokia . Now, mounting tension between Galvin and the board of directors seems to have finally taken its toll.

"While I have achieved substantial results, the Board and I do not share the same view of the company's pace, strategy and progress at this stage of the turnaround," Galvin said in a statement. "Accordingly, it is time for me to pass the baton to new leadership."

Motorola's Presiding Director John Pepper said the remaining board members supported the decision.

"Under his leadership and restructuring initiatives, the company has significantly strengthened its balance sheet, generated positive cash flow for 10 consecutive quarters, returned to profitability," Pepper said. "He has strengthened the Motorola brand throughout the world and put in place a strong, new management team to lead the company forward."

Already replacements are being discussed. According to the Associated Press, Motorola president and COO Mike Zafirovski, who leads the company's Personal Communications Sector, is being named as a likely candidate.

After taking the reigns, Galvin launched a five-point turnaround plan, which led the Schaumburg, Ill.-based company through a series of obstacles including the Asian currency crisis, the telecom boom and bust and a coincident semiconductor down cycle. The company was prone to restructuring its workforce often resorted to blaming its losses on the same factors.

Galvin was known for his shrewd business tactics and managed to outlast legal and financial obstacles in the company's recent $34 million offer for Next Level Communications.