Galt Global Review

QFS 360

July 13, 2005
business digest


US Roundup

by Faye Mallett

File-sharing networks to blame, Supreme Court orders
The US Supreme Court has ruled that file-sharing companies are to blame for what users do with their software.

The surprise ruling could start a legal assault on the creators of file-sharing networks.

The unanimous ruling is a victory for recording companies and film studios in what is widely seen as one of the most important copyright cases in years. The legal case against Streamcast Networks - which makes the software behind Grokster and Morpheus - began in October 2001 when 28 media companies filed their legal complaint.

The complaint alleged that Streamcast was prospering on the back of the unfettered piracy taking place on the file-sharing networks.

However, the attempts to win damages suffered a series of defeats as successive courts sided with the file-sharing networks. The judges in those lower courts cited a ruling made in 1984 over Sony's Betamax video recorder. In that case, the Supreme Court said that the majority of people using a video recorder for legal uses outweighed any illegal use of the technology.

But in this latest ruling the judges reversed this precedent and the lower court decisions, stating that the makers of a technology have to answer for what people do with it if they use it to break the law.

US plans to make own plutonium
The Bush administration is planning the government's first production of plutonium 238 since the cold war, stirring debate over the risks and benefits of the deadly material. The substance, valued as a power source, is so radioactive that a speck can cause cancer.

Federal officials say the program would produce a total of 330 pounds over 30 years at the Idaho National Laboratory. Officials say the program could cost $1.5 billion and generate more than 50,000 drums of hazardous and radioactive waste.

Project managers say that most if not all of the new plutonium is intended for secret missions and they declined to reveal any details.

Plutonium 238 can be turned into electricity, and nuclear batteries made from the substance are best known for powering spacecraft that go where sunlight is too dim to energize solar cells. For instance, they now power the Cassini probe exploring Saturn and its moons.

Federal and private experts unconnected to the project said the new plutonium would probably power devices for conducting espionage on land and under the sea.

Environmentalists are scrutinizing the production plan - made public last week - and considering whether to fight it. They say the production effort is a potential threat to nearby ecosystems, including Yellowstone National Park, Grand Teton National Park and the area around Jackson Hole.

Cable operators win ruling
The US Supreme Court recently ruled that cable system operators do not have to open their networks to competing broadband internet service providers.

The "Brand X" ruling, which overturns an earlier decision, represents a significant victory for the US cable television industry and the Federal Communications Commission.

The case, which has been watched closely by industry groups who say it could help to shape the future of broadband internet access, grew out of a 2002 FCC decision that cable broadband was an "information service" and not subject to open-access requirements under the 1996 Telecommunications Act
.
That decision was challenged in the courts by Brand X Internet Services, a small internet service provider based in Santa Monica, California.

The appeals court sided with Brand X.

The ruling is likely to hit independent internet service providers hardest. "Unfortunately, today's ruling is both anti-consumer and anti-competition," said Representative Ed Markey of Massachusetts, a leading Democrat spokesman on communications issues.