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" Sen The warnings would be mailed directly to Internet account holders â€â€? potentially alerting parents or grandparents about illegal downloading in their households they might not know about Record Industry May Not Subpoena Providers Dec 19, 1:51 PM EST A federal appeals court ruled Friday the recording industry can't force Internet providers to identify subscribers swapping music online, dramatically setting back the industry's anti-piracy campaign Bates had approved use of the disputed subpoenas, forcing Verizon Communications Inc The appeals court said the 1998 copyright law doesn't cover popular file-sharing networks used by tens of millions of Americans to download songs S "It's an incredible ruling, a blow for the little guy," said Bob Barnes, a grandfather in Fresno, Calif " Earlier this week, the recording industry sent letters to the 50 largest U S The subpoena power was established by a law passed before the explosive growth of swapping music online The law "betrays no awareness whatsoever that Internet users might be able directly to exchange files containing copyrighted works," the court wrote " But the judges said it was not the role of courts to rewrite the 1998 law, "no matter how damaging that development has been to the music industry or threatens being to the motion picture and software industries Details were still being worked out, but if Internet providers agree, subscribers who swap even modest collections of music online could receive the ominous warnings The ruling forces the recording industry to file civil lawsuits against "John Doe" defendants, based on their Internet addresses, then work through the courts to learn their names Legal experts said the appeals ruling probably will not affect the 382 civil lawsuits the recording industry already filed since it announced its campaign nearly six months ago " She said the music industry should be required to file traditional civil lawsuits â€â€? which are more expensive and time-consuming â€â€? to prosecute downloaders The letters demanding an end to the practice would be forwarded without revealing subscriber identities to music lawyers Internet providers asking them to forward written warnings in the future to subscribers caught swapping music District Judge John D The Digital Millennium Copyright Act compels Internet providers to turn over the names of people suspected of operating pirate Web sites upon subpoena from any U "Consumers' rights cannot be trampled upon in the quest to enforce your copyright," Deutsch said The three-judge panel from the U Verizon's lawyer, Sarah Deutsch, called the ruling "an important victory for all Internet users and all consumers Since then, Verizon has identified scores of its other subscribers under subpoena by the music industry, and some of them have been sued The ruling does not make it legal to distribute copyrighted music over the Internet, but it removes one of the most effective tools used by the recording industry to track such activity and sue downloaders S , who was targeted by one of the earliest subpoenas from the Recording Industry Association of America but isn't among the hundreds who have been sued so far It also was not expected to affect financial settlements with at least 220 computer users who agreed to pay penalties from $2,500 to $7,500 each District Court clerk's office U S " Sherman promised to "continue to defend our rights online on behalf of artists, songwriters and countless others involved in bringing music to the public to turn over names and addresses for at least four subscribers The appeals court said one argument by the recording industry "borders upon the silly" â€â€? the trade group's claim that Verizon was responsible for downloaded music because such data files traverse its network But it will make identifying defendants for future lawsuits much more difficult and expensive "We clearly have to do a better job of getting law and technology and ethics into better sync," said Coleman, R-Minn Verizon had argued at its trial that Internet providers should only be compelled to respond to such subpoenas when pirated music is stored on computers that providers directly control, such as a Web site, rather than on a subscriber's personal computer The appeals judges said they sympathized with the recording industry, noting "stakes are large Court of Appeals for the District of Columbia overturned a trial judge's decision to enforce copyright subpoenas used by the recording industry Norm Coleman, who has criticized the use of such subpoenas, predicted that any efforts to broaden the 1998 law would "face some serious obstacles" in the Senate Cary Sherman, president of the recording industry group, said the ruling "unfortunately means we can no longer notify illegal file sharers before we file lawsuits against them to offer the opportunity to settle outside of litigation 3 million, or 4 cents per share, an improvement over a loss of $140 5 percent to $253 Based on a restatement of earnings for last year's third quarter, the company reported a net loss of $17 The company's financial problems have led to Nasdaq threatening to delist its stock 23 billion, compared to a loss of $423 million for the same period last year 26 at the end of regular trading on the Nasdaq Stock Market The company, which is being investigated by the Securities and Exchange Commission for the way it has booked revenue over the past two years, said it filed third quarter earnings to satisfy requirements imposed by the Nasdaq Stock Market to keep the stock listed The loss was mostly due to a $5 8 million in the same period last year Gemstar TV Guide has suffered this year from a number of missteps, including backtracking on previous earnings statements after admitting that its recognition of more than $20 million in revenue was improper 3 million from $299 The company's founder, Henry Yuen, was also forced to resign under pressure by News Corp 3 billion charge the company took for the cumulative effect of accounting changes Gemstar Reports 3Q Loss of $17 " For the first nine months of the year, Gemstar reported a net loss of $6 3M Nov 14, 6:31 PM EST LOS ANGELES (AP) â€â€? Gemstar-TV Guide International Inc The company's difficulties included a disagreement with its independent auditors, which led to Gemstar missing the filing deadline for its second quarter earnings "I believe we are starting on the path to normalcy," newly appointed chief executive Jeff Shell said during a conference call with analysts Revenue declined 15 "This has been a very disruptive, lengthy process, which will result in a stronger, more transparent company The company lost money from licensing its interactive program guide technology and from declining circulation for its TV Guide magazine 2 million, or 34 cents per share, for the same period last year , which owns 42 percent of Gemstar TV Guide Shares of Gemstar were up 21 cents to close at $4 reported its third quarter earnings Thursday and restated earnings from previous quarters, but warned that all those numbers would likely be restated again and told investors not to rely on them |
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