TheState.com: Technology

Deadline in Google book deal extended to Friday

Mon, 09 Nov 2009 17:53 EST

A judge has given Google Inc. more time to revise a legal settlement that has drawn government scrutiny because it would give the Internet search leader the digital rights to millions of out-of-print books.

Under a change approved Monday, Google and groups representing U.S. authors and publishers now have until Friday to change an agreement reached more than a year ago. It marked the latest twist in a copyright lawsuit that the authors and publishers filed against Google's digital book project four years ago.

The revisions to the settlement were supposed to be filed by the end of Monday, but Google and its negotiating partners told U.S. District Judge Denny Chin they still needed to address objections raised in September by the U.S. Justice Department. Chin signed off on the extension without comment.

The Justice Department has warned it probably would try to block the current agreement from taking effect because antitrust regulators had concluded it threatened to thwart competition and drive up prices.

Some of the Justice Department's preliminary findings echoed concerns from a chorus of critics that include Google rivals Microsoft Corp., Yahoo Inc. and Amazon.com Inc.

Google snaps up mobile ad startup for $750 million

Mon, 09 Nov 2009 19:13 EST

Google Inc. is buying mobile advertising network AdMob for $750 million, underscoring the Internet search leader's determination to ensure its marketing machine reaches the growing number of people surfing the Web on phones.

The all-stock deal announced Monday also represents the latest sign that Google's leaders are feeling better about the economy's direction, encouraging them to spend more freely after clamping down through much of this year.

Once it closes within the next few months, the AdMob acquisition would become Google's most expensive purchase since it bought online ad service DoubleClick for $3.2 billion in March 2008.

It took a year to close the DoubleClick deal, far longer than Google anticipated, as U.S. antitrust regulators took time before deciding the DoubleClick combination wouldn't stifle competition in the online ad market. Google expressed confidence that antitrust regulators won't need as long to vet the AdMob deal because there are still several other mobile ad networks from which to choose.

AdMob shares at least one similarity with DoubleClick: AdMob's system specializes in delivering more visual messages, known as display advertising. Google makes most of its money from text-based ads connected to search requests, but has been trying to become a bigger player in display ads - a format that tends to be favored by big-spending companies trying to promote their brands.

Electronic Arts acquires Playfish for $275 million

Mon, 09 Nov 2009 19:08 EST

As its packaged video games business lags, Electronic Arts Inc. has snapped up Playfish Inc., the creator of popular social networking games such as "Who Has the Biggest Brain" and "Pet Society," for $275 million in cash.

With the acquisition, EA is diving further into the lucrative world of social online games, which tens of millions of people play on Facebook, MySpace, the iPhone and other platforms.

The purchase will help Redwood City, Calif.-based EA move into gaming in online communities at a time when declining consumer confidence is cutting into traditional packaged video game sales. Just last week, the company launched a version of "Spore," a game that lets players create an evolving universe, on Facebook.

In addition to the upfront cash payment, EA said Monday it will pay up to $100 million in cash contingent on Playfish hitting certain financial targets though December 2011, plus $25 million in equity-based retention agreements with employees.

Later Monday, EA also announced it plans to cut 1,500 jobs, or roughly 17 percent of its work force, as part of a restructuring plan to focus on successful games.

EA posts 2Q loss, cutting 17 pct. of work force

Mon, 09 Nov 2009 19:03 EST

Electronic Arts plans to cut its work force by 17 percent as it tries to align its business with a transforming video game industry.

The company announced the layoffs of 1,500 people just hours after it said it is paying at least $275 million to buy Playfish Inc., a maker of social online games popular on Facebook, MySpace and the iPhone. The layoffs are expected to save about $100 million a year.

"We are focusing on what works and what matters," Chief Financial Officer Eric Brown said in an interview.

Digital content makes up about 12 percent of EA's revenue. But it's growing, while industry sales from packaged video games are on the decline.

The cuts are in addition to the 1,100 jobs the company already slashed this year as part of a restructuring plan to shift focus to hit games.

Tagged.com settles with NY, Texas in invite fight

Mon, 09 Nov 2009 15:23 EST

The social networking Web site Tagged.com has adopted reforms on the use of invitation e-mails after being accused of essentially stealing the e-mail addresses of some 60 million Internet users, state Attorney General Andrew Cuomo announced Monday.

Cuomo charged in July that the San Francisco-based Tagged.com sent out e-mails to members' contact lists, asking recipients to view private photos posted by their friends. But when the recipients tried to access the photos, they were asked to sign up for the site, and the e-mail addresses in their contact lists were then lifted to send out more solicitation emails, Cuomo said.

On Monday, Cuomo said Tagged will not access contacts or send messages without the member's informed permission. It also will provide clear and conspicuous disclosures.

As part of the agreement, Tagged will pay $500,000 in penalties and costs to New York. In a second agreement, the company will pay $250,000 in penalties and costs to Texas, which also investigated Tagged's practices.

Tagged CEO Greg Tseng said the 5-year-old company had voluntarily proposed reforms and overhauled its registration process. It also planned to add more privacy features.

High court considers what can qualify for a patent

Mon, 09 Nov 2009 19:08 EST

Should techniques for training horses be eligible for a patent? What about a system for choosing a jury or fail-proof method for speed dating?

Supreme Court justices raised the questions Monday as they struggled to decide what types of inventions should qualify for patent protection.

In a case that has put software and bioscience companies on edge, the justices debated whether processes or methods of doing business should be eligible for protection. The dispute has raised serious questions about whether software programs, medical procedures, financial transactions and other nontangible inventions should be able to obtain patents like those granted to physical devices. And it left the high court grappling with the line between abstract processes and concrete applications.

Monday's oral arguments made clear that the justices are skeptical that the business method at the center of the case before them - a process of hedging weather-related risk in energy prices - deserves a patent. Some saw a risk in using the current case to set broad precedent on what can and cannot be patented.

The court's newest justice, Sonia Sotomayor, asked the lawyer defending the hedging application how the high court can limit patent protection to "something that is reasonable?"

Sony offers `Cloudy' early to people with its TVs

Sun, 08 Nov 2009 12:09 EST

In a bid to sell living room electronics and spur buzz for "Cloudy with A Chance of Meatballs," Sony Corp. is offering the movie for free to U.S. buyers of its Internet-connected TVs and Blu-ray players starting Monday.

People who buy that equipment will be able to watch the movie in any 24-hour window from Dec. 8 until it is released on DVD and Blu-ray disc on Jan. 5.

Sony's move highlights the way that movies are increasingly becoming available on TVs that connect directly to the Internet as the entertainment industry strives to come up with new business models.

Amazon.com Inc. and Blockbuster Inc. offer movies for rental or purchase on certain Internet-connected TVs, while Netflix Inc. will make its streaming catalog available to its subscribers with Sony Bravia TVs.

Those services, however, don't provide the early-release jump Sony is trying with "Cloudy with A Chance of Meatballs," which comes from the Sony Pictures movie studio.

Porn PC virus can kill a good name

Mon, 09 Nov 2009 08:23 EST

Of all the sinister things that Internet viruses do, this might be the worst: They can make you an unsuspecting collector of child pornography.

Heinous pictures and videos can be deposited on computers by viruses - the malicious programs better known for swiping your credit card numbers. In this twist, it's your reputation that's stolen.

Pedophiles can exploit virus-infected PCs to remotely store and view their stash without fear they'll get caught. Pranksters or someone trying to frame you can tap viruses to make it appear that you surf illegal Web sites.

Whatever the motivation, you get child porn on your computer - and might not realize it until police knock at your door.

An Associated Press investigation found cases in which innocent people have been branded as pedophiles after their co-workers or loved ones stumbled upon child porn placed on a PC through a virus. It can cost victims hundreds of thousands of dollars to prove their innocence.

Software cos. eye key patent case in Supreme Court

Sat, 07 Nov 2009 12:37 EST

With the technology industry looking on, the Supreme Court on Monday will explore what types of inventions should be eligible for a patent in a pivotal case that could undermine such legal protections for software.

A ruling that sides with the Patent Office could bar patents on processes and methods of doing business, such as online shopping techniques, medical diagnostic tests and procedures for executing trades on Wall Street. And it might even undercut patents on software.

In a worst-case scenario for the high-tech industry, the ruling could invalidate many existing software patents or at least make them more difficult to defend in lawsuits. And it could make such patents harder to obtain in the future because software is generally patented as a process for doing something rather than as a physical invention.

"Technology companies care about this case because it will define what you can and cannot get a patent on," said Emery Simon, counselor to the Business Software Alliance, which represents large technology companies including Microsoft Corp. and Intel Corp. "The scope of patentability could have ramifications for the path that technology takes."

It's impossible to know what products might never have come to market without patent protection for software. But tech companies say these patents have played a critical role in keeping the U.S. at the cutting edge by giving people control over their inventions for nearly 20 years.

New `Call of Duty' could set entertainment record

Fri, 06 Nov 2009 15:08 EST

This holiday season's biggest entertainment blockbuster likely will be a sequel to a popular franchise, with jarring depictions of war and an intricate story of good versus evil. It could easily rake in more than last year's record $155 million opening weekend for "The Dark Knight."

But this blockbuster is not a movie.

It is "Call of Duty: Modern Warfare 2," a video game that Activision Blizzard Inc. is releasing Tuesday. Fans worldwide are expected to spend at least half a billion dollars on the game in the first week.

That would at least match last year's "Grand Theft Auto IV," which was the most successful video game release in history and might have been the top entertainment launch ever.

Justin Criswell, 31, plans to line up at a GameStop store in Brooklyn on Monday night so he can buy the new "Call of Duty" when it goes on sale after midnight, for $60. It's available for PCs, Microsoft's Xbox 360 and Sony's PlayStation 3.

Parents plan Web broadcast for disabled daughter

Fri, 06 Nov 2009 13:09 EST

Disabled with severe cerebral palsy, 32-year-old Anne Lamic spends her days in southeastern France mostly in bed, surrounded by stuffed animals and dolls. She cannot speak or walk, and she sometimes has seizures.

Now, Lamic's parents are planning to broadcast her quiet life to the world via webcam. Their announcement has caused a stir in France, with many criticizing the plan as an invasion of Lamic's privacy and asking: How far is too far in the struggle to make disabled people more visible in society?

In terms of disabled rights on issues such as visibility and accessibility to public transport and buildings, advocacy groups say France trails behind Nordic countries, the United States and Canada, despite a 2005 law designed to ensure their rights are upheld.

Lamic's father says he hopes to force people into confronting their prejudices, even if his tactic startles them.

The webcam "will allow people to see handicaps in ways that are real, everyday and familiar," Didier Lamic told The Associated Press in a telephone interview Friday, adding that the videos "must be watched with tenderness and love."

Mass. receives money for broadband mapping

Fri, 06 Nov 2009 15:49 EST

Massachusetts has received about $2 million in federal stimulus funding to help identify the speed and location of broadband services in the state over the next five years.

Gov. Deval Patrick said on Friday that the grant from the National Telecommunications and Information Administration will help Massachusetts determine which parts of the state have broadband, which parts don't and what types of broadband are offered.

The state map will be part of a national map to be created by 2011 to guide policies aimed at expanding high-speed Internet access.

Patrick met in Washington earlier this week with U.S. Secretary of Commerce Gary Locke to push for the state's broadband priorities.

Report: Minn. needs significant Internet upgrades

Fri, 06 Nov 2009 15:08 EST

Internet speeds in more than four-fifths of Minnesota are too slow to support technologies that could draw new jobs, take cars off the roads and bring new services to people in their homes, a new report said Friday.

The Minnesota Ultra High-Speed Broadband Task Force is calling for minimum Internet speeds of 10 megabits per second for the entire state by 2015, setting a standard 15 times faster than the current federal definition of broadband.

By that measure, 83 percent of the state needs an upgrade.

The group's report describes broadband as "an economic and social necessity for all citizens of the state no matter where they are located." It says faster Internet could enable everything from more telecommuting for workers to telemedicine linking patients and doctors through two-way high-definition video.

"It's an important economic tool as we try to attract and retain the best companies here so we can have good jobs," said Rick King, chief technology officer at Thomson Reuters Legal and the task force's chairman.

Pa. regulators OK Windstream's purchase of D&E

Fri, 06 Nov 2009 14:47 EST

Windstream Corp.'s acquisition of D&E Communications Inc. phone and Internet company has the approval of Pennsylvania state utility regulators.

The Pennsylvania Public Utility Commission voted 4-0 on Friday to approve the move. In a statement, the agency said the transaction is expected to be seamless to customers while promising better service and stable prices.

Little Rock, Ark.-based Windstream agreed in May to buy D&E for $159 million in stock and cash in a deal that nearly doubles the size of its business in Pennsylvania.

Ephrata, Pa.-based D&E has about 165,000 access lines and 44,000 high-speed Internet customers throughout eastern Pennsylvania.

Windstream provides digital phone, high-speed Internet and high-definition digital TV service and has about 3 million access lines in 16 states.

Earnings Preview: Electronic Arts

Fri, 06 Nov 2009 16:04 EST

Video game publisher Electronic Arts Inc. reports earnings for its fiscal second quarter, which ended in September, on Monday after the market closes. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The video game industry has had a tough time for much of this year after capping 2008 with record sales. The recession has forced customers to cut back on spending, and the lack of big hit titles relative to last year has made year-over-year comparisons difficult.

Electronic Arts, however, could beat Wall Street's expectations for the quarter, according to some analysts, driven by sales of games such as "The Beatles: Rock Band" and "Madden NFL 10."

BY THE NUMBERS: Analysts, on average, are expecting a profit of 7 cents per share on sales of $1.12 billion, according to a poll by Thomson Reuters.

EA does not give quarterly guidance.

Deja vu: Wal-Mart, Amazon, Target in DVD price war

Fri, 06 Nov 2009 12:48 EST

First it was books. Now it's DVDs.

Wal-Mart Stores Inc. started another price war Thursday, trimming the online preorder prices of some upcoming DVDs following its price cut on books last month. And, once again, competitors Amazon.com and Target scrambled to match the prices.

It's the latest salvo in an ongoing online push by Wal-Mart designed to make sure everyone knows it intends to be the low-price leader on the Web, as well as in stores.

The retailer, based in Bentonville, Ark., said late Thursday that it would lower the online prices of new DVDs such as "Harry Potter and the Half Blood Prince" and "Star Trek XI" to $10.

But when Amazon reduced some of its DVD prices to $9.99, Wal-Mart shot back by cutting its DVDs to $9.98 as of Friday morning. Target got into the act Friday morning, too. All three companies also sweetened the pot by offering free shipping for the DVDs being sold.

EBay settles lawsuit filed by Skype founders

Fri, 06 Nov 2009 13:47 EST

EBay Inc. has settled a legal skirmish with the founders of Skype that threatened to complicate eBay's plans to sell most of the Internet phone service to a group of investors for $2 billion.

The online marketplace operator said Friday the settlement gives Skype ownership of critical software that had been licensed from Joltid Ltd., which is a company founded by Skype co-founders Niklas Zennstrom and Janus Friis. The settlement effectively ends Zennstrom and Friis' litigation against the investor group and eBay.

In return, Zennstrom and Friis will get a 14 percent stake in Skype. They also agreed to make a "significant" capital investment in Skype, eBay said.

When eBay announced the sale in September - after exploring plans to spin out Skype through a public stock offering - it said the investor group would buy 65 percent of Skype for $1.9 billion in cash and $125 milion to be paid later. EBay was to own the remaining 35 percent.

Now with the stake going to Zennstrom and Friis, the investor group will own 56 percent of Skype, while eBay will keep 30 percent.

Judge stops 2 Web sites from selling Beatles songs

Fri, 06 Nov 2009 15:49 EST

A federal judge has temporarily blocked two music-sharing Web sites from selling songs by The Beatles and other artists for 25 cents apiece.

U.S. District Judge John F. Walter on Thursday blocked the sites BlueBeat.com and Basebeat.com and owner Hank Risan from selling copyrighted songs by The Beatles and others. Music company EMI Group filed a federal lawsuit on Tuesday seeking an injunction against the sites, claiming they were engaging in music piracy.

EMI claims the Web sites have infringed on its copyrights to numerous artists' songs, including The Beach Boys, Coldplay and Lily Allen. Its complaint states BlueBeat.com and Basebeat.com were offering the recently released digitally remasters of The Beatles catalog for 25 cents per song; the box set of 13 albums retails for $250.

The Beatles songs have never been legally offered for sale online through sites such iTunes or other music sharing services.

The Web site's attorney opposed EMI's injunction request, saying the sites are selling an altered version of the songs.

AT&T completes delayed Centennial acquisition

Fri, 06 Nov 2009 16:49 EST

AT&T Inc. said Friday that its acquisition of smaller wireless carrier Centennial Communications Corp., has closed after several delays due to the regulatory process.

AT&T bought Wall, N.J.-based Centennial for $944 million in cash. The deal was announced a year ago, and was initially expected to close in the second quarter this year.

With the acquisition, AT&T is gaining 879,000 wireless subscribers and an expansion of its wireless network in Puerto Rico and in rural areas of the Midwestern and Southeastern U.S.

As part of a deal with regulators, AT&T has committed to selling eight Centennial service areas in Louisiana and Mississippi. In May, it reached a deal to sell five of them to Verizon Wireless for $240 million.

Centennial subscribers who are not in one of the eight markets to be divested are now AT&T subscribers. They can keep their rate plans or move to AT&T plans, the company said.

DirecTV shows subscriber gains, as rivals see loss

Thu, 05 Nov 2009 18:09 EST

Satellite TV operator DirecTV Group Inc. was one of the few pay-TV companies to gain subscribers in the third quarter, though earnings stayed steady because of the higher costs it incurred attracting and serving those new customers.

DirecTV said Thursday that a marketing partnership with AT&T Inc. that began in February accounted for most of the increase in U.S. subscribers, but it likely also retained subscribers and gained new ones because of a perennial favorite, the NFL Sunday Ticket package that airs out-of-market games to football fans.

DirecTV, which is controlled by media mogul John Malone's Liberty Media Corp., has focused on attracting consumers who don't mind paying more for quality TV as long as they get football and other packages they want.

"DirecTV's high-end positioning has insulated it from the downturn," Craig Moffett, senior analyst at Sanford Bernstein, said in a research note. "Among all the cable and satellite incumbents, DirecTV has been the sole provider able to maintain video subscriber growth."

The company believes the Sunday Ticket is so valuable that in March it agreed to pay the National Football League 43 percent more - to $1 billion a year - to extend the contract another five years.

Nvidia says profit jumps 74 percent in 3Q

Thu, 05 Nov 2009 17:49 EST

Graphics chip maker Nvidia Corp. said consumer demand is healthy and improving as it reported a 74 percent jump in third-quarter profit.

The Santa Clara, Calif.-based company reported Thursday that it earned $107.6 million, or 19 cents a share, for the three months that ended Oct. 25. Revenue rose less than 1 percent to $903 million but the company said it saw improvement in each of its PC, professional services and consumer businesses.

The results easily beat estimates of analysts surveyed by Thomson Reuters, who were expecting a profit of 10 cents a share on revenue of $838 million.

In the final three months of the year, Nvidia said it expects revenue to grow 2 percent from the third quarter, implying sales of $921.1 million, which would beat analysts' current forecast of $868.1 million.

Operating expenses are forecast to be about $305 million.

Sapient predicts rise in services sales

Thu, 05 Nov 2009 19:49 EST

Sapient Corp., which helps companies with technology needs, said Thursday that services revenue would rise sequentially in the fourth quarter.

The company said services sales would range from $172 million to $175 million in the fourth quarter. They were $165.5 million in the third quarter.

Services account for nearly all of the company's revenue.

Sapient also said the operating profit margin in the fourth quarter, excluding certain costs, would be 10 percent to 11 percent.

The company gave the outlook as it released third-quarter results, which showed a steep decline in profit from a year ago. The company earned $5.9 million on sales of $172.5 million, compared with $18.1 million on sales of $184.1 million in the same period of 2008.

EU agrees on new Internet user rights

Thu, 05 Nov 2009 09:07 EST

EU lawmakers and governments agreed on new rights for Internet users Thursday, aiming to protect them from arbitrary crackdowns on those who illegally download music and movies on the Internet.

EU Telecoms Commissioner Viviane Reding said a deal was reached after EU governments agreed to EU parliament demands to balance measures against illegal downloaders with a broader set of rights for telecom users.

The reforms were two years in the making. They also include new privacy controls, consumer rights and increased competition for Internet and phone services - key improvements that have been overshadowed by the fight over digital user rights.

Thursday's proposal also includes other reforms to overhaul Europe's telecoms market.

They include setting up a new EU-wide telecoms authority charged with ensuring fair competition, bolstering consumers' rights to switch mobile or landline telephone operators within one working day, and expanding digital networks to provide faster broadband Internet service for users in rural areas.

Hyatt Hotels, Ancestry.com jump in market debuts

Thu, 05 Nov 2009 17:49 EST

Two well-known companies surged in their market debuts Thursday despite what has recently been a difficult market for initial public offerings.

Shares of Hyatt Hotels Corp. jumped 12 percent in their first day on the New York Stock Exchange as markets appeared to dismiss concerns about infighting among its founder's heirs and tepid hotel reservations around the world.

Meanwhile, investors impressed by Ancestry.com's large subscriber base and growth story pushed the genealogy Web site's stock up as much as 21 percent on the Nasdaq market.

"I have to say, it's a very dangerous market right now, especially considering how many deals have recently missed their target or withdrawn," said David Menlow, president of IPOfinancial.com. "It's easy to connect those dots and assume the entire IPO market has heavily stalled. But that was obviously not the case today."

Five of the last nine IPOs have closed below their offering price in the first day, while others have suspended plans to go public. Texas bank PlainsCapital Corp. blamed market swings when it postponed its IPO late Wednesday. Energy company AEI and Aviv REIT Inc., a real estate investment trust that focuses on health-care properties, have also called off deals in the past week.

Sirius XM 3Q loss narrows as revenue rises

Thu, 05 Nov 2009 18:04 EST

Sirius XM Radio Inc., the satellite radio provider that was on the brink of bankruptcy nine months ago, on Thursday reported a much improved third quarter as it signed up more subscribers and paid down debt.

Sirius has been battered by the downturn in the auto industry as plunging car sales meant its satellite radios were being installed in fewer vehicles, hurting subscriptions. But the company has aggressively cut costs by integrating the operations of former rival XM Satellite Radio Holdings Inc., which it bought in July 2008.

Sirius, the home of radio shock jock Howard Stern, posted a quarterly loss of $149.2 million, or 4 cents per share - much smaller than last year's loss of $4.9 billion, or $1.93 a share.

The latest quarter included a $138 million charge to pay off a credit line extended by Liberty Media Corp. and to take on new debt at a lower interest rate. Last year's third-quarter loss was significantly inflated by a $4.75 billion impairment charge. Excluding these and other charges, Sirius would have reported a profit of $106 million compared with a loss of $37 million a year ago.

Revenue rose to $618.7 million from $488.4 million in the year-ago period, which included only two months of business from XM. But assuming that XM had been fully integrated then, revenue would still have edged up from $613 million.

Leap 3Q loss widens as subscriber growth slows

Thu, 05 Nov 2009 20:29 EST

Leap Wireless International Inc. said Thursday its third-quarter loss grew 31 percent as competition and the weak economy were a drag on subscriber growth.

The company, which sells prepaid wireless service to consumers, said it lost $64.6 million, or 85 cents per share, in the three-month period, compared with a loss of $49.3 million, or 72 cents per share, in the year-ago quarter.

There were 11 percent more shares outstanding in the recent quarter, which diluted per-share results.

Revenue rose 21 percent to $599.5 million, from $496.7 million last year.

Analysts polled by Thomson Reuters, on average, were expecting a smaller loss of 53 cents per share on higher revenue of $620.2 million.

Google providing better view of personal data

Thu, 05 Nov 2009 06:55 EST

Google is offering a new privacy control that will make it easier for people to see some of the information being collected about them.

The "Dashboard" feature unveiled Thursday pulls together all the data that pour into Google's computers whenever Web surfers log in to one of the company' services.

That includes summaries of an individual's e-mail, search requests and viewing habits on Google's video site, YouTube. Before, a user would have to check multiple places for all that.

The snapshot doesn't include any activity that occurs when a person isn't logged into a Google service.

Dashboard represents Google Inc.'s latest step to give its users more control over their personal information and appease privacy watchdogs.

No Doubt sues video game maker over 'Band Hero'

Thu, 05 Nov 2009 14:32 EST

No Doubt has sued video game maker Activision for putting words in band members' mouths.

The band on Wednesday sued Activision Publishing Inc. over a feature in the new "Band Hero" game that allows players to control virtual band members and have them sing other artists' songs.

The lawsuit claims a feature allows players to have lead singer Gwen Stefani perform suggestive lyrics from the Rolling Stones' hit "Honky Tonk Women." The suit also notes a virtual version of bassist Tony Kanal can be made to sing his band's hit "Just a Girl," but with Stefani's voice.

The game, an offshoot of Activision's popular "Guitar Hero" series, went on sale Tuesday.

The company, which is based in Santa Monica, Calif., said in a statement that it engaged in extensive negotiations with No Doubt's management and have a valid written agreement for their participation in "Band Hero."

Activision posts 3Q profit, backs 2009 outlook

Fri, 06 Nov 2009 10:04 EST

It's been a rough year for the video game industry, but Activision Blizzard Inc. reported a profit for its third quarter because of lower costs and a good response for games such as "Guitar Hero 5" and "World of Warcraft."

It also reaffirmed its guidance for the full year, citing a big expected release next week for "Call of Duty: Modern Warfare 2," which could easily be the most lucrative entertainment launch this holiday season.

If all goes as planned, the hotly anticipated game will give the industry a much-needed boost for the holiday season. But it's not yet clear whether Americans will shell out as much cash for video games as they did last year. The recession, along with fewer hit game launches, has dampened sales this year after the industry hit a record in 2008.

Activision said Thursday its net income grew to $15 million, or a penny per share, in the latest quarter. In the same period of 2008 it lost $108 million, but the results are not completely comparable because Activision Blizzard was formed about 10 days into the year-ago quarter.

Revenue slid slightly to $703 million from $711 million.

Sapient 3Q profit plummets on charges, sales dip

Thu, 05 Nov 2009 19:49 EST

Technology-services provider Sapient Corp. said Thursday that third-quarter profits plunged by two-thirds, partly due to special charges, and the CEO said customers were growing more confident in business prospects.

The company said it earned $5.9 million, or 4 cents per share, compared with $18.1 million, or 14 cents per share, in the same quarter last year.

Excluding items, the company said it would have earned 11 cents per share, down from 18 cents per share a year ago.

The company identified $8.6 million in charges for stock-based compensation, restructuring, amortization of assets it bought, and acquisition-related costs.

Revenue fell to $172.5 million from $184.1 million a year earlier.