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LINES - February News Highlights

- Many colleges, where the push for Internet-assisted learning really began, say they have achieved only modest results. These schools are becoming more reluctant to talk about their relationships with their online efforts, thinking it might tarnish their names. Meanwhile, businesses that have not been affiliated with colleges are seeking to create their own online programs by attracting professors to share in the teaching. These efforts are becoming complicated as colleges become increasingly reluctant to let their professors participate in outside ventures. The end result may cause numerous battles over intellectual property. (Economist, 17 Feb 01)

- Fathom, Columbia's for-profit University is struggling to attract both customers and investors. To keep Fathom going for the next two years, Columbia will invest $10 million in addition to its existing $18.7 million. Fathom will now focus on a new revenue plan to build a base of loyal users. Columbia and Fathom's 12 other member institutions will create and contribute shorter, noncredit online courses and seminars to accompany their free content now offered. For the complete article CLICK: http://www.chronicle.com/free/v47/i22/22a03301.htm

- There is a push among some governors and lawmakers to promote legislation that will standardize tax codes across the states for securing sales taxes on purchases over the Internet. Currently, buyers pay sales tax by reporting them on their tax returns. If the new legislation were to pass, new software would be developed to allow eTailers to determine and collect the sales tax on a transaction depending on where the buyer lives. The proposed legislation faces opposition from government officials who are afraid of hindering the already slowed growth. (Associated Press, 31 Jan 01)

- IBM's new Electronic Media Management System (EMMS) will help copyright owners combat the free distribution of their digital property on peer-to-peer networks such as Napster. EMMS allows copyright owners to set limits on how their files are used once they have been freely distributed. BMG Entertainment has already agreed to use IBM's EMMS. (Investor's Business Daily, 30 Jan 01)

- Streaming music technology can cost a broadcaster as much as $81 per year for each user who listens for 1.5 hours per day. Bridgeport, a new mode for Internet music, developed by Supertracks of Portland, OR would reduce that cost to $15 per user, no matter how many hours each user listens. The technology works by transferring a broadcaster's set of music directly to a user's hard drive, allowing the user to listen whenever he or she wants. The order of music, however, cannot be altered and songs cannot be shared with other users. According to Supertracks, the technology complies with the Digital Millennium Copyright Act of 1998. One drawback is the time needed to download a music set - as much as five hours for a user with a 56K dial-up connection. (Wall Street Journal, 20 Feb 01)

- Aimster, named for its fusion of Napster ideals with AOL Instant Messaging technology, may prove immune to legal attack. Launched in August and now numbering 2.5 million registered users, Aimster lets people share all types of digital media files. Users can even search the Napster network for files they want. Unlike Napster, Aimster does not use central computers to manage the files through the network, but utilizes AOL's popular AIM technology to link end users. According to Barry Schuler, chairman of AOL Time Warner's online unit, "(Aimster) is not doing anything illegal, and so we'll see where it goes." (Washington Post, 25 Feb 01)

- Myplay.com is a music file-sharing service that has earned the goodwill users store music on their hard drives but in online, 3GB lockers. By letting users share only over the Web, Myplay gives musicians more control over their music. Exclusive music provided by Myplay and not by its customers provides royalties to record companies and artists. (New York Times, 1 Feb 01)

- Digital watermarks appear to be another compromise between file swapping on the Internet and copyright holders. If the technology proves successful, rights holders will still receive their royalties, while consumers will have relatively unfettered access to free shared music over the Net. Although the fate of watermarks has yet to be determined, many analysts contend that the recording industry is hoping that the Digital Millennium Copyright Act, will make watermarks go away, while academics and free-speech groups have challenged that law. (Interactive Week, 29 Jan 01)

 



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