The MPAA and its allies agreed to important changes in what they called updates of state cable and telecom piracy laws (CD April 1 p8) but that critics label as harsher versions of the Digital Millennium Copyright Act (DMCA). The changes came in response to criticisms from a variety of quarters. They're incorporated in a new version of a model state law circulating for comments, on a Fri. deadline, among several consumer electronics and high-tech companies, ISPs, telcos and library associations.

MPAA and its allies agreed to important changes in what they called updates of state cable and telecom piracy laws (CED April 3 p1) but that critics label as harsher versions of Digital Millennium Copyright Act (DMCA).

Less than 2 months after his company blamed disappointing 4th-quarter and fiscal-year results largely on its overreliance on titles for Nintendo’s game systems (CED Feb 21 p6), THQ CFO Fred Gysi told Banc of America investor conference in N.Y.C. Tues. that publisher was maintaining cautious take on GameCube console.

Consumer intentions on buying TV sets rose in March from Feb., despite 2nd decline in Consumer Confidence Index in as many months, according to preliminary data in Conference Board monthly survey. Of 5,000 households polled, 6.6% said they planned to buy TV set in next 6 months, vs. 6.1% in Feb., 6.3% in Jan., 6.3% in March 2002. Consumer Confidence Index fell to 62.5 from 64.8 in Feb., following sharp decline from Jan. Conference Board said “a quick and successful outcome” in Iraq war “would certainly ease some of the uncertainties facing consumers” and therefore could boost confidence. However, “it is the economic fundamentals that will determine whether a rebound in sustainable,” it said. End of 1991 Persian Gulf war sparked “surge” in confidence, “but labor market conditions quickly diminished the spark,” it said.

State regulators are eyeing wireless best practices as a potential way to avert the need for service quality regulation, at the same time as industry is drafting voluntary guidelines, officials said. Neb. PSC Comr. Anne Boyle told us she had circulated proposed best practices at last month’s National Assn. of Regulatory Utility Comrs. (NARUC) winter meeting for review. Boyle said the issue was teed up for an upcoming NARUC meeting in Denver, with hopes that industry, FCC and the National Assn. of State Utility Consumer Advocates (NASUCA) would participate, she said. Meanwhile, the Mo. attorney general is in negotiations with Sprint PCS and Nextel on a lawsuit filed in Dec. over billing practices.

U.S. retailers heralded introduction of front-lit Game Boy Advance (GBA) SP handheld device with front-page ads in Sun. ad circulars. Although no major retailers appeared to be offering SP at price below $99 SRP announced by Nintendo of America (NOA), Circuit City (CC) advertised one free GBA game with purchase of SP hardware from choice of two 3rd-party offerings -- Activision’s The Invincible Iron Man and Midway’s Defender. However, it was unclear at our deadline whether CC was offering GBA games free as part of deal with Activision and Midway in which it received titles at reduced price, or merely was trying to unload titles that might have been in oversupply. CC and 2 publishers hadn’t commented Mon.

Long distance telecom revenue declined 9% in 2001 to $99.3 billion and preliminary 2002 data showed a continued drop, according to an annual FCC report, Telecommunications Industry Revenues. Other 2001 data: (1) CLEC revenue increased 36% to $14.8 billion and accounted for 10% of local service revenue. (2) Revenue for ILECs edged up 1% to $117.9 billion. (3) Wireless revenue grew more than 20% to $75 billion. (4) The industry as a whole saw a 3% increase to $302 billion -- www.fcc.gov/wcb/stats.

The trial in the CBS-TV and Fox copyright infringement suit against EchoStar over the latter’s carriage of distant network signals is scheduled to open April 7 in U.S. Dist. Court, Miami, EchoStar said in its annual 10-K report filed with the SEC. The trial comes nearly 5 years after the initial suit was filed involving the networks, EchoStar and PrimeTime 24, which provided distant network programming for the satellite service. EchoStar since has reached settlements with ABC (April 2002) and NBC (Nov. 2002). It also settled with PrimeTime 24, which had filed a breach-of- contract suit in Sept. 1998 against the satellite service, seeking $10 million in damages. The suit has bounced between federal district and appeals courts for much of the 5 years. A federal judge granted a preliminary injunction in Sept. 2000, blocking EchoStar from continuing to provide distant network signals, but that ruling was overturned by the 11th U.S. Appeals Court, Atlanta, returned it for further proceedings. Six of the original 8 plaintiffs, including CBS-TV and Fox, entered court-ordered mediation with EchoStar in late Jan. Meanwhile, the company said the EchoStar IX satellite was scheduled for May launch aboard a Boeing sea launch vehicle positioned near the equator. EchoStar IX, which has thirty-two 120-w transponders, will be located at 121 degrees W and will provide Ku-/Ka-band spot beam service. The Space Systems/Loral satellite also has a C-band payload. The bird is expected to be operational 60-90 days after launch, an EchoStar spokesman said. Still in limbo are EchoStar’s plans for VisionStar, which has a license for a Ka-band satellite at 113 degrees W. EchoStar owns 90% of VisionStar and has asked the FCC for an extension after failing to meet to construction and launch milestones. It paid $2.8 million last year to increase its stake in VisionStar to 90%. VisionStar had missed April 30 and May 31, 2001, deadlines for construction and launch of the satellite, respectively, and the FCC previously denied a request for extension.

Taiwanese chip designer Mediatek said it revamped user interface of DVD chipset, announcement made just hours after ESS Technology filed motion for preliminary injunction that sought to bar company from importing product. ESS sued Mediatek in Sept. alleging it “intentionally and unlawfully” copied company’s DVD firmware and user interface. It also sought to have Mediatek products found to infringe on its patents recalled from market. While Mediatek argued that there were “many factual and legal issues” in case centering on limited copyright protection in U.S. for user interfaces, it made modifications to avoid “potential impact to its customers’ interests.” Mediatek, which has marketed MT 1369 chipset for DVD players, conceded in documents filed in U.S. Dist. Court, San Francisco, that it had bought DVD model with ESS chip before Aug. 2002, but denied it had infringed on patents. It has filed counterclaim seeking to invalidate ESS patents. While 2 companies sparred publicly, check of court records showed that U.S. Magistrate Edward Chen had set settlement conference for March 25.

Trial in CBS-TV and Fox copyright infringement suit against EchoStar over latter’s carriage of distant network signals is scheduled to open April 7 in U.S. Dist. Court, Miami, EchoStar said in annual 10-K report filed with SEC. Trial comes nearly 5 years after filing of initial suit involving networks, EchoStar and PrimeTime 24, which provided distant network programming for satellite service. EchoStar since has reached settlements with ABC (April 2002) and NBC (Nov. 2002). It also settled with PrimeTime 24, which filed breach-of-contract suit against satellite service in Sept. 1998 seeking $10 million in damages. Suit has bounced between federal district and appeals courts for much of 5 years. Federal judge granted preliminary injunction in Sept. 2000, blocking EchoStar from continuing to provide distant network signal. But ruling was overturned by 11th U.S. Appeals Court, Atlanta, which held lower court’s ruling wasn’t supported by evidence and returned it for further proceedings. Six of original 8 plaintiffs, including CBS-TV and Fox, entered court- ordered mediation with EchoStar in late Jan. Meanwhile, company said EchoStar IX satellite was scheduled for May launch aboard rocket using Boeing sea launch vehicle positioned near equator. EchoStar IX, which has thirty-two 120-w transponders, will be located at 121? W and will provide Ku-/Ka-band spot beam service. Space Systems/Loral satellite also has C-band payload. Bird is expected to be operational 60-90 days following launch, EchoStar spokesman said. Still in limbo are EchoStar’s plans for VisionStar, which has license for Ka-band satellite at 113? W. EchoStar owns 90% of VisionStar and has asked FCC for extension after failing to meet construction and launch milestones. It paid $2.8 million last year to increase stake in VisionStar to 90%. VisionStar had missed April 30 and May 31, 2001, deadlines for construction and launch of satellite, and FCC previously had denied request for extension. EchoStar also appears to have narrowed its list of OEM customers to Canada’s Bell ExpressVu. Not mentioned in annual 10-K is previous agreement with Via Digital, which is expected to be sold to France’s Canal Plus. Elsewhere in annual report, EchoStar said it reduced monthly churn rate for year ended Dec. 31 to 1.59% from 1.6% year earlier and average subscriber acquisition costs were $421.