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TOP STORIES FOR WEDNESDAY, JUNE 08, 2005
  More Consumers Turning to Legal Music Services
  Microsoft to Release Unbundled Operating System
  Pentagon Hacker Arrested, Faces Extradition
  Educating Parents about Kids' Downloading Habits


MORE CONSUMERS TURNING TO LEGAL MUSIC SERVICES
Growing numbers of U.S. consumers are using legal online music
services, making them viable competitors to peer-to-peer (P2P)
services, which are typically rampant with illegal file sharing,
according to research firm NPD Group. NPD data indicate that Apple's
iTunes music store ties for second on a list of the most-used online
music services, even with LimeWire and just behind WinMX. Other legal
services Napster and RealNetworks's Rhapsody placed seventh and ninth
on the list, which also includes such P2P services as Kazaa and
BearShare. Isaac Josephson of NPD pointed out that, aside from avoiding
the risk of prosecution, legal online music services offer several
advantages over P2P networks, including convenience of finding what
you're looking for and knowing that files you download do not contain
spyware. These factors, coupled with the threat of legal action for
copyright violations on P2P networks, make paying for music online an
attractive proposition, according to Josephson.
Reuters, 7 June 2005
http://www.reuters.com/newsArticle.jhtml?storyID=8721861

MICROSOFT TO RELEASE UNBUNDLED OPERATING SYSTEM
Microsoft has moved a step closer to compliance with stipulations of a
European Commission (EC) antitrust ruling originally handed down in
March 2004. In addition to a $613 million fine, the EC ordered
Microsoft to offer versions of its operating systems that do not
include the company's Windows Media Player. After recent pressure from
the EC, including threats of additional penalties, Microsoft announced
that unbundled versions--which the company is calling "N" versions--of
Windows XP Home Edition and Professional will be available to computer
makers by June 15 and to retail customers by July 1. Still outstanding
is an EC demand that Microsoft loosen the licensing terms of its
software to promote development of competitive products that will
function with Microsoft's operating systems. Microsoft said it is
working to meet that condition.
Internet News, 8 June 2005
http://www.internetnews.com/bus-news/article.php/3511116

PENTAGON HACKER ARRESTED, FACES EXTRADITION
A British man suspected of hacking into more than 50 computer systems
operated by the U.S. government has been arrested in London and faces
extradition to the United States. Gary McKinnon is accused of
exploiting security weaknesses in computer systems at the Pentagon,
NASA, and a number of military sites between February 2001 and March
2002. In one attack, McKinnon is said to have blocked access to 2,000
individual military computers in the Washington area. U.S. authorities
said they spent $1 million fixing the damage from the attacks, and a
grand jury indicted McKinnon in 2002. McKinnon has been released on
bail, and Karen Todner, McKinnon's attorney, said he would
"vigorously" fight the extradition. "As a British national," she said,
"he should be tried here in our courts by a British jury."
The Register, 8 June 2005
http://www.theregister.com/2005/06/08/brit_hack_suspect_arrest/

EDUCATING PARENTS ABOUT KIDS' DOWNLOADING HABITS
A British charity focused on children's issues on the Web has launched
a campaign designed to educate parents about the downloading habits of
their kids. According to Childnet, as many as 90 percent of parents do
not understand how music can be downloaded from the Internet. The
charity is producing leaflets in 8 languages for distribution in 19
countries to try to address and correct this gap of understanding
between parents and children. Representatives of the entertainment
industry applauded the initiative. Peter Jamieson, chairman of the
British Phonographic Industry, said, "We are committed to working with
parents to make them aware of the dangers of illegal downloading."
Dennis Henderson of Virgin Megastores noted that spreading the word
about legal download services is as important as fostering an awareness
of illegal file sharing.
BBC, 8 June 2005
http://news.bbc.co.uk/2/hi/entertainment/4072566.stm

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