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.

Preliminary specification is set for High Definition Multimedia Interface (HDMI) designed to protect DTV content from unauthorized copying and redistribution, HDMI Founders group announced Fri. Work on digital interface, which incorporates JVC’s High-bandwidth Digital Content Protection (HDCP) encryption, was announced April 16 by consortium of Hitachi, Matsushita, Philips, Silicon Image, Sony, Thomson, Toshiba.

Preliminary specification is set for High Definition Multimedia Interface (HDMI) designed to protect DTV content from unauthorized copying and redistribution, HDMI Founders group announced Fri. Work on digital interface, which incorporates JVC’s High-bandwidth Digital Content Protection (HDCP) encryption, was announced April 16 by consortium of Hitachi, Matsushita, Philips, Silicon Image, Sony, Thomson, Toshiba.

WorldCom’s financial troubles have cost state employee pension funds billions of dollars in losses and raised questions whether WorldCom is fit to bid on state telecom contracts. Some states were considering suing WorldCom because their losses appear to be result of fraud.

BOSTON -- One of hottest topics in fixed wireless arena for World Radio Conference (WRC) in 2003 is potential global harmonization for wireless access systems at 5 GHz, said Veena Rawat, deputy dir.-gen., spectrum engineering branch of Industry Canada. “It will be one of the most controversial, one of the most difficult items,” Rawat said in Thurs. panel at Wireless Communications Assn. conference here. One fundamental point of debate is whether those systems should have primary or secondary use of band, she said. While there has been interest in fixed wireless sector for creating global harmonization for wireless access services in that spectrum, Linda Wellstein, partner with Wilkinson, Barker, Knauer, said NTIA had raised interference concerns as part of WRC planning process in U.S.

Consumer intentions on buying TV sets rose sharply in June from May, according to preliminary data in Conference Board monthly survey. Of 5,000 households polled, 7.5% said they planned to buy TV set in next 6 months, vs. 6.6% in May, 7.2% in April, 7% in June 2001. Nevertheless, overall Consumer Confidence Index fell 4 points from May, hurt by weak labor market, “generally soft” business conditions and “waning public confidence in questionable business practices,” Conference Board said: “Still, the latest readings point to continued consumer spending and moderate economic growth.”