Energizer and Monster Cable reached agreement that latter will stop using advertising claims that Energizer said were false. Energizer filed suit Jan. 3 alleging Monster’s claim that its batteries had 25% more power than standard alkalines was false, based on independent test results. Under agreement, Monster will remove claims from any Web site it controls by Feb. 1. Monster also must use “best efforts” to remove any point-of- purchase materials at retail that make similar claim. Energizer filed motion for preliminary injunction Jan. 10 and companies entered consent order in lieu of trial. Monster officials weren’t available for comment. Suit covered Monster High Capacity Alkaline PowerCells that were sold as AAA, AA, C, D and 9V batteries in 4, 8 and 20-packs. Monster also had AA Ultra Gold Alkaline PowerCells that it said had 35% more power than standard alkalines.
Consumer intentions on buying TV sets fell sharply in Jan. from Dec., reflecting overall decline in consumer confidence, according to preliminary data in Conference Board monthly survey. Of 5,000 households polled, 6.3% said they planned to buy TV set in next 6 months, vs. 7.5% in Dec., 6.7% in Nov., 7.4% in Jan 2002 . Consumer Confidence Index dropped nearly 2 points from Dec., Conference Board saying: “Overall readings continue to reflect the country’s lackluster economic activity. Now, with the threat of war looming, consumers have grown increasingly cautious about the short-term outlook.”
U.K.-based Rage and its administrative receivers at Ernst & Young said Wed. that game publisher had to close its 4 studios after sale of company couldn’t be completed. They said “it has not proved possible to achieve a sale of the business as a going concern due to the time required to resolve the complex legal issues surrounding the transfer of license and intellectual property rights.” As of our Wed. deadline, 145 of company’s 165 jobs had been cut because there wasn’t any revenue to finance wages, Ernst & Young said. Rage had announced earlier this month that following withdrawal of its banking facilities, Bank of Scotland had appointed Ernst & Young partners Hunter Kelly and Keith Hinds as receivers to handle its assets and supervise Liverpool company.
U.K. Office of Telecom (Oftel) required 4 mobile operators to reduce their charges for making calls to their mobile networks, prompting some operators to consider seeking judicial review of decision. In its ruling, Oftel said it would impose 15% cut in call termination charges for all mobile operators by July 25.
U.S. Navy intends to step up consultations with industry to develop sea-based wireless communications network, effort that will decrease agency’s need to transmit voice and data messages via multiple systems. Vice Admiral Richard Mayo, commander of Naval Network Warfare Command (NETWARCOM), said Wed. at Network Centric Warfare conference in Arlington, Va., that “industry absolutely has to be involved” to develop such direct ship-to-ship wireless capability.
U.S. Dist. Judge Lawrence Kahn, Albany, N.Y., promised ruling soon on Madster’s bid to take enforcement of preliminary injunction against filing-sharing service away from Chicago court that held company in contempt, RIAA said. Kahn said he wouldn’t disturb order or other previous actions of U.S. Dist. Judge Marvin Aspen, Chicago. Madster, formerly Aimster, contends Aspen and record company plaintiffs overstepped bounds in copyright infringement action set by Bankruptcy Court hearing Madster’s Chapter 11 reorganization in Albany.
Sirius projects subscriptions will rise to 321,000 by year-end 2003 from 29,947 activations as of Dec. 31, reaching 1.3 million subscribers by end of 2004. So said Sirius in preliminary proxy statement filed with SEC for as-yet- unscheduled special shareholder meeting to ratify terms of company’s proposed $1.2-billion recapitalization deal. Projections on Sirius subscriber growth would put it roughly year behind progress of rival XM, which began commercial service nationally 8 months earlier than Sirius. XM announced at CES it had reached 360,000 subscriptions Dec. 31 and projected growth to million by end of 2003. Sirius expects its activations to reach 2.9 million by end of 2005, 4.9 million by end of 2006, it said in proxy filing. Sirius has projected it will reach cash flow breakeven in 2005 at 2 million subscribers, assuming recapitalization plan is approved.
European Commission is investigating several European TV and pay-per-view companies and their relationships with several Hollywood studios, spokeswoman for European Commission delegation confirmed. She declined to identify companies, but said there were 2 separate investigations and both were in preliminary stages. She said first was centered on duration of contracts involving one pay-TV company and studios, and 2nd involved “most-favored-nation” clauses in contracts. With such clause TV companies would commit themselves to offer higher price, which they also would do with other companies, she said. “The Commission’s concern is that such contracts might lessen competition and keep film prices artificially high in Europe,” she said. Financial Times said AOL Time Warner’s Warner Bros., Disney and Sony’s Columbia Tristar Motion Pictures were part of investigation. British Sky Bcstg. told Bloomberg News that it had been contacted by investigators.
FCC staff members plan to look at new issues such as review of TELRIC pricing, powerline broadband offerings and voice-over-IP (VoIP) this year, they told Commission in special meeting Wed. to look at bureau activities. Much of meeting was devoted to reviews of bureaus’ achievements and look ahead to new projects, often with praise from commissioners for bureau chiefs’ work. “This is further evidence that lawyers can manage,” Comr. Adelstein told Enforcement Bureau Chief David Solomon, who is lawyer.
Sirius projects subscriptions will rise to 321,000 by end of 2003 from 29,947 activations as of Dec. 31, reaching 1.3 million subscribers by end of 2004. So said Sirius in preliminary proxy statement filed with SEC for as-yet-unscheduled special shareholder meeting to ratify terms of company’s proposed $1.2- billion recapitalization deal (CED Oct 18 p1).