Sorrento Networks announced a definitive agreement with its preferred shareholders and convertible bondholders to restructure its debt into equity. It also said it filed a preliminary proxy statement with the SEC for shareholder approval on its capital restructuring plan and its reincorporation into a Del. company.

The U.S. Bankruptcy Court, Wilmington, Del., approved Globalstar’s $10 million financing plan, the company said. Globalstar had received preliminary approval for $4 million in Feb. (CD Feb 25 p12).

Just 2 months after announcing its planned acquisition by Taiwan’s Sampo (CED Jan 29 p1, Jan 30 p3), Grundig is negotiating with new candidate to buy venerable German CE company. Grundig revealed last week it was conducting “intensive discussions” with Turkish CE manufacturer Beko Elektronik and had signed letter of intent March 4 “intended to pave the way for further cooperation” between 2 companies.

U.S. Dist. Court, Seattle, ordered Microsoft to produce more than 300 boxes of documents as evidence in “windows” trademark dispute with Lindows.com, resulting in trial delay. Jury trial scheduled to begin April 7 has been rescheduled to Dec. 1. Evidence in question includes documentation from 1992 Apple v. Microsoft case. Lindows.com said those documents revealed that elements such as windows, icons and menus weren’t property of any one company because they were widely used in computer business -- contrary to Microsoft’s current argument that it should maintain exclusive use of term “windows.” In March 15, 2002, order denying Microsoft request for preliminary injunction against Lindows.com, court said that “in its defense of a copyright suit brought by Apple Computer, Microsoft successfully argued that several companies had introduced user interfaces featuring overlapping windows prior to Microsoft’s announcement of its Windows product.” Current case began in Dec. 2001 when Microsoft filed trademark action against Lindows.com asking court to block Lindows.com from using its company name and its product name, LindowsOS. To date, 2 successive have rulings denied Microsoft’s requests for injunction.

U.S. Bankruptcy Court, Wilmington, Del., approved Globalstar preliminary financing agreement on interim basis, company said. Plan proposed investments by 5 entities totaling $10 million (CD Feb 21 p5). Court authorized Globalstar to borrow up to $4 million and said it would consider entire $10 million in 2nd hearing March 6. Investors must qualify by March 7 and submit proposals by March 21, company said, and winning bids will be announced in early April.

New preliminary financing agreement announced by Globalstar Mon. could be beginning of consolidation in mobile satellite service (MSS) industry, industry officials said. ICO Investment Corp. and Iridium Investors are 2 of 5 entities involved in Globalstar’s new $10 million financing plan (CD Feb 19 p13).

Globalstar announced new preliminary financing agreement worth $10 million with 5 different investors. Company recently turned down $55 million in financing from New Valley Corp. due to “inability to reach a final agreement,” latter said (CD Jan 31 p9). Investors include ICO Investment Corp. and Iridium Investments, N.Y.-based Blue River Capital and Loeb Partners, and Columbia Ventures in Vancouver, Wash., Globalstar said. Investors will provide debtor-in-possession (DIP) financing, but funds won’t be available until plan is approved by bankruptcy court. “This DIP financing will give us time to initiate an efficient, transparent process for seeking the best final offer for ultimate ownership of our business,” Globalstar Chmn. Olof Lundberg said. Additional investment offers will be considered via bidding process being set up by company. Bidding should be complete by 2nd- quarter, Globalstar said.

FCC-established effective isotropic radiated power (EIRP) and power flux density (PFD) limits create additional risk without additional protection, Northpoint told agency. Limits are part of Commission amendments to rules on co- frequency operations of nongeostationary orbit (NGSO) fixed satellite services (FSS) and geostationary orbit (GSO) and terrestrial systems. “The current EIRP limit increases the number of [multichannel video data and distribution (MVDDS)] transmitters required to cover the country” and would “severely restrict” Northpoint deployment, company said. Requirement that MVDDS transmitters and NGSO user terminals be minimum of 10 km apart restricts MVDDS deployment in urban areas, it said, “eliminating possibility of MVDS service in all major cities.” Northpoint said preliminary analysis cited by Mitre suggesting 14 dBM EIRP limit wasn’t made public and shouldn’t have been considered in decision: “Commission rules (and good public policy) prohibit Commission reliance on nonpublic data and analysis. These rules should be eliminated.”

Time has come for U.S. to get serious about ENUM, protocol that maps domain names to telephony platforms, NTIA Dir. Nancy Victory said this week. In letter to David Gross, State Dept. coordinator for international communications & information policy, Victory said U.S. should consider opting in to e164.arpa e-numbering system now under development. Thirteen ITU member states have opted in so far and are running trials, she said. It’s time for U.S. to become more active, Victory said: “Specifically, the United States should move quickly to address certain key preliminary issues regarding U.S. implementation of ENUM and, if resolved satisfactorily, then formally opt in to e164.arpa.” Victory listed 8 principles aimed at guiding U.S. ENUM implementation: (1) Preserve national sovereignty. (2) Support competition. (3) Promote innovation. (4) Protect users’ privacy and security. (5) Minimize regulation. (6) Preserve opportunities for alternative systems. (7) Allow for interoperability. (8) Maintain stability and security of Internet and telecom systems. ITU opt-in procedures require each member state to enter its specific country code into ENUM tree. U.S. will have to determine how best to coordinate process with 19 countries in Country Code 1, Victory said. Once those issues are resolved, she said, Dept. of State can give necessary notice of U.S.’s decision to opt-in, after which industry can establish trials to provide ENUM services to U.S. consumers and businesses, she said.

Mad Catz Interactive was sued by L.A.-based competitor Pelican Accessories, which charged that Mad Catz had “conspired with cheat code content provider Fire International to misappropriate Pelican Accessories’ proprietary game enhancement encryption codes.” It also accused Mad Catz and Fire of “conspiracy to defraud Pelican Accessories in connection with Mad Catz’s recent acquisition of the GameShark trademark from Interact.” Last month, Mad Catz bought GameShark brand and Web site URL from Recoton for $5 million (CED Jan 24 p3). It also signed multiyear technology deal with Doncaster, England-based Fire International giving Mad Catz N. American rights to Fire’s videogame enhancement technology (CED Jan 27 p9). Pelican said its complaint presented “a laundry list of claims against Mad Catz, Fire International and its principal shareholder, Jason Cooper, for a series of ‘bad acts.'” Complaint charged Fire and Pelican had participated in joint venture for more than 2 years in connection with promotion and development of Codebreaker line of game enhancement products in U.S. Pelican said: “Using confidential information it gained from its fiduciary relationship with Pelican Accessories, Fire is alleged to have disclosed confidential bid information to Mad Catz, thereby allowing it to become the successful bidder for the GameShark trademark. In addition, the suit alleges that Mad Catz and Fire had been negotiating ‘under the table’ for months while Fire was representing to Pelican Accessories that the business relationship between Fire and Pelican was solid and exclusive.” Pelican said “the unprecedented level of unethical behavior by Mad Catz and Fire left Pelican with no alternative but to take this legal action.” Pelican Pres. Chris Richards declined to comment further but said his company “would soon be filing a motion for preliminary injunction to stop Mad Catz from introducing its GameShark line of products based upon trade secrets misappropriated from Pelican.” Pelican also said “retailers who decide to risk carrying the new GameShark products containing proprietary trade secrets from Pelican Accessories may be asked to remove those products from their shelves in the near future.” As for new content for Codebreaker products, Richards said Pelican already had created its own in-house content development group that company said would “exponentially increase its speed to market with new Codebreaker products.” Mad Catz had made no comment by our deadline.