16th March 2007
Prompt Communications Newsletter
Communicating technolgy

Dear Reader,

Hazel Butters

Welcome to the Prompt Communications Newsletter. Since YouTube and Viacom have been unable to settle their dispute over copyright infringement, the spat is now heading to the courts. This will no doubt be a landmark case which is likely to have a large influence on the future direction of not only online video services, but the future of a lot of online businesses. It's almost certain to be a long drawn out affair, but one worth watching.

For any feedback on our newsletter, or to discuss how we can help you with your technology PR, marketing, copywriting or surveys, please email me at hbutters@prompt-communications.com. We are always delighted to hear from you.

Best regards,

Hazel Butters
Prompt Communications

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Technology Update

By Sean McManus and Lance Concannon

Viacom and YouTube heading for legal showdown

In what promises to be one of Web 2.0's watershed legal tussles, media giant Viacom is suing Google's YouTube business for $1 billion. Viacom, which owns many popular TV channels and the Paramount movie studio, claims that YouTube's entire business model is based around selling advertising on the back of pirated material, much of it legally owned by Viacom.

Viacom claims that nearly 160,000 clips of its copyrighted material have been viewed over one and a half billion times, and that new clips are being uploaded constantly. Google, for its part, says that it is confident that YouTube is operating within the limits of the Digital Millennium Copyright Act and that it intends to aggressively defend itself in court.

Microsoft to evict cybersquatters?

Microsoft has declared war on cybersquatters. The company is trying to acquire control of five domain names registered in the UK which it believes are confusingly similar to its own trademarks. According to the BBC, Microsoft won a judgement last year against the UK-based Dyslexic Domain Company, in which Microsoft was granted control of a domain name plus profits that had been raised through its exploitation.

Microsoft claims 2000 domain names that embed its trademarks are registered daily. We found that one mistyping of the domain name for Windows Live Messenger cheekily leads to a site stuffed with Google ads, including those paid for by Microsoft. As a result, Microsoft could end up paying twice for traffic having already paid by marketing the domain name the user tried to enter. It seems doubtful that users are confused into thinking the spam sites are official Microsoft sites, though, as Microsoft claims.

Red Hat Enterprise Linux 5 Released

At the CeBIT show in Hannover this week Red Hat announced the launch of the newest version of its Red Hat Enterprise Linux open source operating system. Originally planned for release in 2006, version five has been delayed due to the process of including virtualisation support which enables a single processor to run multiple operating systems. Two versions of the software are available, the standard edition for SMEs and the advanced edition for high end enterprise computing applications.

Sly Fox takes Digg to MySpace

Wired News has republished leaked sales documents proving that Fox is planning to introduce a news portal similar to Digg. On Digg, users vote for technology news stories, so that the more popular stories rise to the front page. Fox is planning to emulate the idea on MySpace, according to screenshots and a presentation republished by Wired. The story could shake up how news is accessed, at least for MySpace's vast community, and could help Fox to bring young readers in to its news sites.

Since acquiring MySpace, Fox has been looking for a way to make it pay. Selling news sponsorships for $150,000 per month, with category sponsorships ranging from $25,000 to $100,000, might just do the trick. While it's an interesting story, republishing the sales documents in full, a clear breach of copyright law with no obvious public interest defence, seems a very odd stance for another publishing business to take. Wired News is owned by magazine publisher Conde Nast.

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Consumer Technology Update

By Dave Wilby

Commodore makes triumphant return to gaming arena

Feast your eyes on a site to make every thirty-something geek in Blighty run for their wallets. Commodore, a true legend of eighties home computing, famous for its Vic 20 and Commodore 64 platforms, chose this week's Cebit show to launch a whole new business dedicated to PC gaming. It will start selling a line of PCs that cater for modern-day high-end gamers next month. Each PC comes cram-packed with top-of-the-line consumer gadgetry, and a choice of paint jobs beyond this ageing nostalgia-freak's wildest dreams.

You can pick from nearly 100 superb artwork designs, including this superb 8-bit makeover. Bala Keilman, chief executive of Commodore Gaming told the BBC: "It feels like the right time to bring back the Commodore brand." The first four PCs in the Commodore range sport Intel Core Duo or Quad processors, have up to 4GB of RAM, two video cards, hundreds of gigabytes of hard drive storage and expected to cost between £1,000-£5,000 ($1,900-$9,500).

Spore finally unleashed on unsuspecting worlds

Why be a small cog, when you can be the ghost in the machine? The £10 million ($20 million) sequel to The Sims was launched this week, and this time instead of manipulating a little fella in a pretend house, players get to control the whole universe and everything in it. Will Wright, the brains behind The Sims, and publisher Electronic Arts, unveiled Spore at the South by South West Interactive festival in Austin, Texas.

Some people had thought Wright's vision for the title was a tad ambitious last year, but he seems to have pulled it off again: "Spore is about the entire history of life and where life goes in the future," he told a baying audience before the official demo. He also admitted that it would take players "76 years without sleep" to explore all of Spore's different planets. TimesOnline explains that the game begins with a drop of water emerging as a single-cell organism, and players must then develop this cell to build a civilisation and ultimately take over the universe. The Sims remains the biggest-selling game series of all time, shifting 70 million copies and generating $1.6 billion (£827 million).

...and finally

Have you checked out progress over at NASA's Mars Exploration programme recently? Great strides have been made, with both terrain rovers Spirit and Opportunity taking some fantastic images of the planet's surface, while the Mars Reconnaissance Orbiter (MRO) has been taking some surreal aerial shots and shorts which really bring the world to life.

The greatest surprises this week however, were the posting of two superb 'hang-glide' simulations of the land explored by the rovers created using pictures shot by the MRO HiRise cameras over numerous orbits. These clips of the geology of the Columbia Hills where Spirit is based, and Victoria Crater where Opportunity trundles, are not to be missed.

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US Media Report

By Kay Wilson

US The sap must be rising if the media traffic this week is any indication. The news networks are definitely having a spring clean with moves such as anchor Rita Cosby and president Rick Kaplan moving on from MSNBC. Kaplan moves to CBS Evening News with Katie Couric whereas Cosby seems to be jobless. Roland S Martin is joining CNN Network(www.cnn.com ) as a contributor and Trish Regan has moved to CNBC as a reporter and stand-in anchor for Business Day.

The media shuffles within the Los Angeles Times and New York Times are too numerous to mention all but include Chris Gaither being promoted to technology editor in LA and Jennifer Kingson becoming the NY Times deputy media editor.

In high-tech media Sindre Lia has been promoted to editor-in-chief and Phillip Berne to reviews editor in InfoSync World and Andrew Conry-Murray becomes new products editor for Network Computing.

After huge job cuts at Time Magazine over the last few months, the recent changes appear to be much more positive ones with managing editor Rick Stengel giving the magazine more visual overhauls. Adding to the already updated cover; different layouts, text and photographs will hopefully bring new light to this hard hit publication.

Conrad Black, former media publisher, has started his trial for fraud in Chicago and it is rumoured could face up to 101 years in jail. He is charged with many monetary scams against Hollinger International Inc shareholders, Black's own media company, such as charging the company for exotic holidays and extravagant parties for his wife.

Black has an almost Hollywood past, including being publisher for the Daily Telegraph in the UK, the Jerusalem Post and the Chicago Sun-Times. However, on a par with the shallowness of Tinsel Town, his downfall may be the prosecution consisting of his so-called "friends" and co-workers.

UK Media Report

By Annie Kasmai

UK Christian Hall has been appointed as deputy editor on PC Answers. Hall has been with Future Publishing for two and a half years now and has worked on Internet Works and most recently on .net magazine. Hall's new role means he is responsible for news and reviews on the PC magazine.

Tony Jackson is replacing John Plender as the writer of the Financial Times' Monday column, Inside Companies and Markets. Jackson will start in this new role from 2nd April and Plender will continue to write for the FT.

Steve Lodge has started as personal finance reporter on the FT money team.

Best of the 'Net

By Lance Concannon

Assignment Zero

Assignment Zero is best described as Journalism 2.0. The project, which officially launched this week, aims to approach news coverage in an entirely new way. The basic idea is that the site will bring together a network of professional journalists together with members of the public who can help cover stories.

By combining the skills of trained and experienced journalists with the ability of 'citizen journalists' to get closer to the stories, Assignment Zero hopes to bring an entirely new kind of news coverage to the web. It all sounds like rather a lot of wishy-washy Web 2.0 blue sky thinking, but we'll certainly be interested to see if they can make it work.

Marketing Update

By Elissa Fry, Lisa Facinelli and Sally Forge

When advertising turns political...

What lengths would you go to when expounding your message to the masses? Probably not as far as digital marketing agency Profero or search engine Ask, which have joined forces and are behind an online marketing initiative under the guise of a political campaign. According to NMA, the campaign aims to encourage users to find online information using a variety of sources, rather than simply relying on one or two big name search engines. One method is through the Information Revolution website which uses testimonials from apparently ordinary members of the public, discussing the importance of choice. You might ask whether this is ethical, but as far as Ask and Profero are concerned any campaign which encourages people to use search engines has their full support!

Microsoft sees the bright side of piracy

Information Week reports that last week at the Morgan Stanley Technology conference in San Francisco, Jeff Raikes, President of the Microsoft Business Division, made some surprisingly positive remarks about software piracy and how it is helping Microsoft expand their customer base. If people continue to illegally copy software, Raikes actually wants them to pirate Microsoft products.

He is hoping to use piracy as a marketing tool with the expectation that this will allow Microsoft products to reach another audience. Raikes is convinced that in the future, some of these unlicensed users will become devoted Microsoft customers. Ironically Raikes thought nothing of contradicting himself when he reinforced his pledge to not stop fighting piracy. Either Microsoft really does see this as an opportunity to gain customers or are they just trying to feign control over the consumer.

Gaming theory declares MySpace biggest potential earner

Students testing web 2.0 business models at the London School of Business found MySpace to be the social networking community most likely to generate revenue in the long-term. Theoretical communities such as iTown, created by Apple and composed of iTunes members, were pitted against FaceBook, YouTube and Second Life; but MySpace came out on top due to its high membership and content levels, which the students determined were crucial to financial success. The students also predicted that the dominant social networking communities in five years' time may not exist yet and could be totally new ones based on mobile and family entertainment platforms.

Fight spam in the courts, says Scot

An internet consultant has been awarded damages in a Scottish court after receiving one spam email and has started a campaign to encourage spam recipients to fight spam in the courts. The story reported on Yahoo news says the company sending the email believes the award could have implications for email marketing in future. The consultant represented himself in court and has created a website called Scotch_Spam to clarify the legal process and provide updates on cases in progress.

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Web 2.0 Watch

By Fiona Blamey

UK bloggers unite for Comic Relief

If you want to support Red Nose Day in a way that doesn't involve wearing your pyjamas to work, British blogger Troubled Diva (that's not his real name) may have just the solution.

Last Friday, Mike Atkinson (that's his real name) hit upon the idea of publishing an anthology of funny blog posts, with all profits from the book to go to Comic Relief. British bloggers would be allowed to submit one entry from their archive, Mike would read through them all and select the best ones for publication.

So far, so good, but that only gave Mike and his handful of cohorts a week to produce a book from scratch, if it was to go on sale at midnight last night as planned. Bloggers soon spread the word by linking to Mike's original blog post from their own blogs. An interview on Radio Five Live's Pods and Blogs section helped too, and by the Tuesday evening cut-off, Mike had received more than 300 submissions.

As I write, the book is being published through lulu.com, the online self-publishing outfit we mentioned the other week. Called Shaggy Blog Stories: A Collection of Amusing Tales from the UK Blogosphere, it is available to buy here [will confirm link tomorrow] for GBPx.xx [will confirm price tomorrow].

As well as being a way to help alleviate world poverty without having to wear a hilarious false nose, we reckon the book will act as a fantastic introduction to some of the funniest amateur British writing on the web. Well worth a look.

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