Copyright holders claimed win Mon. when a federal appeals court refused to overturn lower court order barring Napster from facilitating transfer of copyrighted songs on Internet. “The District Court correctly recognized that a preliminary injunction against Napster’s participation in copyright infringement is not only warranted but required,” 9th U.S. Appeals Court, San Francisco, said in Feb. 12 opinion. However, 3-judge panel sent case back to U.S. Dist. Judge Marilyn Patel, San Francisco, to craft narrower injunction that would: (1) Require Napster to remove infringing material only after record labels notified it of copyrighted works available on Napster system. (2) Force Napster to actively police its service to keep out pirated music. Unanimous, 50-page decision went down line in favor of music labels and against Napster, said lawyer Russell Frackman. Decision “pretty much writes Napster’s epitaph,” said lawyer Chuck Cooper.

GM and News Corp. are refusing to comment on reports that Rupert Murdoch is close to finalizing $70 billion deal to buy DirecTV. New company would become largest DBS company in world. News Corp. satellite unit Sky Global reportedly is valued at $35- $45 billion. With industry speculation rampant, GM spokesman cautioned that “no agreements had been reached” and company “remained in talks with more than one interested party” for sale of Hughes Electronics and DirecTV. If deal were to be made, boards of each company would have to approve along with regulatory agencies. Sale could run into antitrust problems and other snags, industry sources said, “but the 2 sides appear to be real close.” However, at our deadline, no deal had been announced and source said no announcement of deal “could be expected” for at least 2 weeks.

Boeing said it would provide details of its proposal to revamp U.S. air traffic control system by May, but industry officials said key issue remained $10-$15 billion cost of effort. Details of plan remained sketchy, but Boeing had said its plan could allow 50% increase in number of airline flights by using new technology, such as Global Positioning Systems (GPS). FAA spokeswoman called Boeing plan “intriguing” and said agency would be monitoring situation closely.

E-rate supporters are preparing concerted opposition to provision in President Bush’s education reform package that would roll e-rate into larger technology plan and potentially alter its funding structure. Program to subsidize school and library Internet connections currently is funded at $2.4 billion annually through surcharges on long distance bills, called “Gore tax” by its detractors since former Vice President pushed hard for its inclusion in Telecom Act and for program to be funded at high level by FCC. Moving program into Education Dept. and requiring annual appropriations “would be a major step backwards, and I will fight it aggressively,” Sen. Rockefeller (D-W.Va.) said. “It would utterly change the program,” said spokesman for Sen. Snowe (R-Me.).

Coalition for Noncommercial Media (CNM) filed motion for preliminary injunction with FCC seeking to block Western N.Y. Public Bcstg. Assn.(WNYPBA) from allowing its noncommercial TV station WNEQ-TV Buffalo to be operated commercially following its decision to sell station to LIN TV for $26.2 million (CD Nov 9 p5). Motion came on heels of petition by CNM to deny WNYPBA’s application with FCC for voluntary assignment of license of WNEQ- TV to LIN TV. Saying it was not unusual for FCC to “consume 7 years investigating allegations” in petition to deny, CNM said that unless status quo were maintained during that time, denial of application would be “a hollow remedy.” In addition to WNEQ-TV (Ch. 23), WNYPBA has been operating WNED-TV (Ch. 17) noncommercially to carry mainstream PBS schedule, CNM said, and FCC’s April 2000 modification of table of TV allotments de- reserving Ch. 23 and making Ch. 17 reserved was not final order as CNM had sought review in U.S. Appeals Court, D.C. FCC decision based on allotments policy didn’t address whether “it would serve the public interest for Buffalo, or any other community, to surrender a noncommercial TV station to commercial operation,” it said. WNEQ-TV’s LMA is unlike others because it actually would combine commercial and noncommercial service on same channel, CNM said. That would confuse audience by “deploying the prestige and integrity of public broadcaster to promote the offerings of a commercial enterprise,” it said.

Despite concerns of sales slowdown for wireless equipment, Nokia reported Tues. it had sold more than 128 million phones in 2000, level that it said beat overall market growth. It also reported preliminary estimates of 405 million wireless phone units sold in last year, short of 420 million forecast by rivals such as Ericsson. Still, Nokia said 405 million number marked 45% increase from 1999. In preliminary numbers released before financial results are reported Jan. 30, it also indicated that global wireless subscriber base reached 700 million by year-end, which Nokia said represented international penetration of 12%.