U.S. Dist. Court, Atlanta, denied motion by BellSouth for temporary restraining order and preliminary injunction against Access Integrated Networks (AIN), which BellSouth is suing for allegedly misleading sales practices that it said falsely associated its products and services with BellSouth (CD Aug 12 p6). Judge Willis Hunt said in decision issued Thurs. that AIN’s suspension of telemarketing activities made injunction unnecessary.

N.H. PUC ordered America’s Digital Satellite Telephone to show cause why it shouldn’t be punished for slamming. PUC acted after receiving more than 60 consumer complaints against carrier in last 3 months alleging it had used deceptive telemarketing tactics that tricked customers into making unwanted carrier switch. PUC said preliminary review indicated cause for state action. Carrier has until Sept. 6 to respond.

SBC/Southern New England Telephone (SNET) filed suit in U.S. Dist. Court, New Haven, charging AT&T Broadband had engaged in false advertising. SBC SNET took issue with ads that began appearing in Conn. newspapers in July that compared price of AT&T local and long distance services against similar offerings by SBC SNET. SNET said ads contained “false and misleading statements” because they compared local service prices offered by SBC SNET in only certain areas of state “without indicating that SBC SNET customers in other areas of the state, with smaller local calling areas, pay significantly less.” Suit also took issue with prices quoted for SBC SNET services that included caller ID, 3-way calling, call forwarding. SBC SNET asked court to put halt to AT&T ads and to compel company to compensate SBC for impact of statements in ads. SBC cited Conn. Unfair Trade Practices Act. Company also requested temporary restraining order and preliminary and permanent injunctive relief.

Rent-a-Center (RAC), despite taking $2 million charge to cover costs in settlement of discrimination lawsuit, said 2nd- quarter net income jumped to $41.9 million from $27.5 million year ago as sales rose to $494.6 million from $442.7 million on 6.6% gain in same-store sales. Rentals and fees rose to $456.1 million from $409 million, while merchandise sales inched up to $23.9 million from $20.1 million. Merchandise sales at Colortyme franchisees increased to $12.4 million from $11.2 million, while royalty income and fees were down slightly to $1.64 million from $1.84 million. Federal judge has given preliminary approval to settlement under which RAC will pay $47 million to more than 5,300 women and make changes in its employment policies. Settlement is expected to be finalized by year-end, capping legal battle that stemmed from suit filed by Claudine Wilfong in Aug. 2000 that applied to women employed in middle management in regional offices. It was followed by one filed by Margaret Bunch covering store managers. RAC also paid $2 million fee in quarter in connection with its paying off $128 million in debt in reducing total to $564 million. Chain also opened 16 stores in quarter, while acquiring another 38 including Conn.-based Rentown. It spent $27.2 million in first half acquiring chains and accounts, CFO Robert Davis said. In cost-saving move implemented earlier this year, 15% of chain’s 2,000 employees are covered by pay scale based on of living in 3 geographic regions with goal of hitting 40-50% by year-end, CEO Mark Speese told analysts in conference call. New pay scale, which was first implemented in Feb., is expected to eventually generate $10 million in annual savings in labor costs, company officials said. As RAC continues to expand based of more than 2,200 stores, chain sees room for 4,000 in U.S., Pres. Mitch Fadel said. Overall rent-to-own market, which encompasses 8,000 stores, could “double before it reaches saturation,” he said.

Vivendi Universal delayed publishing June 30 earnings report until Aug. 14, citing “nonaudited preliminary consolidation results for the second quarter and first half of 2002,” CEO Jean-Renee Fourtou said. Vivendi has “too much debt,” Fourtou said, so company obtained 1 billion euros of unsecured credit and is identifying “assets and holdings not core” to its mission.

Sony Computer Entertainment America (SCEA) joined Interactive Digital Software Assn. (IDSA) in applauding Canadian DoJ and Royal Canadian Mounted Police for what SCEA called “precedent-setting conviction for the illegal sale and distribution of circumvention devices.” Echoing comments made by IDSA late last week (CED July 22 p3), SCEA said “conviction marks the first time a defendant has been convicted under criminal statutes in Canada for selling modification chips (mod chips).” SCEA Gen. Counsel Riley Russell said: “This is an important case of first impression in Canada. Sony Computer Entertainment America has been fighting circumvention devices like these within U.S. borders for years. We are pleased that our neighbor to the north has recognized the illegitimacy of these devices under applicable law.” Canadian action follows early success that has been made by game industry and govt. in U.S. SCEA said that since U.S. Congress passed Digital Millennium Copyright Act (DMCA) in Oct. 1998, company “has successfully argued that mod chips are illegal circumvention devices under the DMCA in the United States, and the recent Canadian conviction recognizes that such devices violate copyright laws in other areas of the world.” Company said previous recent rulings on mod chip cases in U.S. include: (1) On July 12, defendant Howard Chen of Howie’s Hi- Tech Games in Milpitas, Cal., was preliminarily enjoined under DMCA from selling, advertising, installing or otherwise trafficking in mod chip and game enhancers. (2) On May 24, defendant Rick Oliver was sentenced in U.S. Dist. Court, Omaha, for willful circumvention of copyright protection system for commercial advantage under DMCA. Oliver was sentenced to 7 months of jail time and was ordered to pay $40,000 in restitution to SCEA. (3) On June 9, SCEA obtained summary judgment and permanent injunction against Digital Stuff Inc. of San Jose, Cal., for advertising, distributing, promoting and selling game enhancers. (4) On Nov. 4, 1999, SCEA obtained preliminary injunction against Michael and Carol Chaddon (who SCEA said operated GameMaster Inc. in San Leandro, Cal.), prohibiting them from advertising, distributing, selling or purchasing game enhancers or devices that contain mod chip function. SCEA said it “remains committed to assisting authorities to prosecute manufacturers and sellers of circumvention devices and pirate game products.”

Thomson Multimedia 2nd-quarter revenue edged up 0.6% to 2.52 billion euros despite 13.9% decline in consumer products to 1.35 billion euros, company said in preliminary, unaudited report released Fri. because sales results mistakenly were published in French legal bulletin. Complete 2nd-quarter and first-half results are set for release July 24, company said. Revenue increases were recorded in all other categories besides CE, including: Digital media solutions, up 29.9% to 613 million euros; displays and components, up 19.1% to 412 million; patents and licensing, up 19.6% to 116 million; new media services, up 63% to 13 million; corporate revenue, up 25% to 5 million.

Circuit City’s CarMax has postponed shareholder vote on planned split off and hasn’t rescheduled it. Special meeting had been scheduled for July 12 but was delayed because SEC took longer than expected to approve various documents needed for split, CarMax spokesman said. Delay will mean that spinoff, which had been expected to be completed by Aug., isn’t likely to occur before fall. CarMax, which Circuit City launched in 1993, filed preliminary documents in May.

Liberty Media said it was extending deadline on its offer to buy bigger share of debt of Telewest of Britain, citing shareholder lawsuit alleging that Liberty Media and CEO John Malone had made false and misleading statements in offer. Expiration of offer was extended to end of business July 19. It had been scheduled to expire July 11. Liberty Media also amended offer to allow Telewest shareholders to withdraw at any time before expiration date. Lawsuit filed in U.S. Dist. Court, Manhattan, said offer was illegal and shareholders involved were seeking preliminary injunction to block it.

After “polarizing experience” for CE industry from Broadcast Protection Discussion Group report (CED June 6 p1) on content protection for DTV, Thomson said it planned to discuss issues and present its positions at news briefing planned for late Wed., after our deadline. Spokesman told us company supported “broadcast flag” but would express its concerns about content controls that flag might trigger in CE equipment, as well as its concern that single digital interface favored by some parties was not to advantage of consumers or industry.