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Saturday, July 14, 2007

Tests show viewers react to ads, TV networks say

NEW YORK: In new experiments for NBC, people are hooked up to sensors as they watch television, and researchers observe changes in their heart rate, palm sweat, eye movement and breathing patterns.

But the panelists are not watching just NBC programs. They are watching commercials - in fast-forward mode.

So far, the findings have been just what NBC hoped: Judging from the biological reactions, the test subjects were just as engaged while watching fast-forwarded advertisements as they were while viewing opening scenes from the NBC show "Heroes" at regular speed.

And that conclusion - which is still preliminary - could have big implications for NBC and other networks as they negotiate rates for air time with advertisers. Although advertisers have steadfastly refused to pay the networks for viewers who fast-forward commercials, as more households buy digital video recorders like TiVo, the networks may one day argue that this system should change.

When it comes to fast-forward advertisements, "the assumption has always been that they have no economic value, that they have no communication value," said Alan Wurtzel, president for research at NBC Universal. "But the fact of the matter is we're learning that they are valuable."

The thesis flies in the face of the assumption among advertisers that their ads have no effect when played at a high speed over a DVR.

Over the past month, as advertising agencies and television networks negotiated billions of dollars in deals for commercials during next year's season, executives who buy commercial airtime did not waver in their position that people who zap past advertisements are of no value to them.

"Would we pay when they're fast-forwarding? No," said Jason Maltby, president and co-executive director for national broadcast at MindShare North America, an agency that buys advertisements in the WPP Group. "You've created a message that in theory requires 15 seconds or 30 seconds to get that selling message across. On a high-speed DVR, 30 seconds gets pushed down to 1.5 seconds with no audio. It just wouldn't work."

Some researchers said efforts like NBC's to find alternative measurements are a step in the right direction.

"Whether people watch or not is not a useful measure of anything," said Joe Plummer, chief research officer for the Advertising Research Foundation. "Exposure has very, very weak correlation with purchase intent and actual sales whereas an engagement measure has high correlation and are closer to what really matters, which is brand growth and creating brand demand."

Media executives have long discussed the potential of using physical reactions and brain scanning to track their messages, and advances in medical research in the past few years have made this more practical. NBC is working with Innerscope Research, a small company in Boston that uses wearable sensors to translate physical responses into what the company calls "emotional engagement."

Innerscope has developed its own scale for engagement that combines the biometric factors that it tracks. On a scale of 1 to 100, a 50 is neutral, and above 60 is engaged. In Innerscope's test for NBC, viewers of the first 20 seconds of live ads clocked in with a 66 and those fast-forwarding scored 68.

"People don't turn off their emotional responses while they're fast-forwarding," said Carl Marci, the chief science officer of Innerscope. "People are obviously getting the information."

Microsoft to spend $1.15 billion for Xbox repairs

LOS ANGELES: In what may be one of the costliest consumer warranty repairs in history, Microsoft announced on Thursday that it would spend up to $1.15 billion to repair failing Xbox 360 game machine consoles.

While the company would not say how many units were failing, Robbie Bach, president of Microsoft's entertainment and devices division, said that there have been an "unacceptable high number of repairs." The majority of Xbox 360 owners, he said, have not experienced hardware failure.

Company officials said that Microsoft had sold 11.6 million Xbox 360 units by the end of June, shy of the 12 million units the company had predicted. The Xbox 360, which first went of sale in November 2005, is currently the best-selling game machine in the United States, according to NPD, a market research firm.

The size of the anticipated repair bill suggests that a third to as many as half of the machines are flawed.

Microsoft, based in Redmond, Washington State, said it would take a charge of $1.05 billion to $1.15 billion against earnings in the quarter ended June 30. Consumers know they have a problem if three red flashing lights appear on the console. Gamers on online forums have been referring to the event as "the Red Ring of Death" because the machine then shuts down.

Thecompany declined to explain the nature of the failure, but said that it was not caused by a single problem in the console, which it said contained 1,700 components and 500 million transistors. The company also said there were no health or safety concerns involved. The problem began to appear over the last three to four months, Bach said, after "significant usage" of the consoles. He said the company has taken steps to correct the problem in new devices.

Microsoft said it would extend the warranty of the game console to three years to customers worldwide. Previously, products sold in the United States were covered by a one-year warranty, while Xbox 360 units sold in Europe had a two-year warranty.

In addition, customers who have had their consoles repaired because of the "three flashing lights" problem will be reimbursed for the cost of the repairs.

Microsoft has succeeded in establishing the Xbox brand against the better known Sony PlayStation and other game machines. The Xbox and its successor, the Xbox 360, was the software maker's first major foray into hardware. Although sales are small relative to the rest of Microsoft's revenue, the Xbox has been an important venture for the company and was viewed by many analysts as Microsoft's attempt to compete with the likes of Sony and Apple for control of electronics and entertainment within homes.

The device can be used to access the Internet and view movies. Microsoft said its entertainment and devices division reported an operating loss of $315 million on $929 million in revenue for the three-month period that ended in March, and analysts have estimated that the company lost about $6 billion getting a foothold in the game machine industry.

A new Xbox 360 with a 20-gigabyte hard drive sells for about $400, but other versions cost about $300.

The announcement comes on the eve of the E3 Media and Business Summit, the video-game industry's major trade show, to be held next week in Los Angeles. "This is bound to affect discussions between Microsoft and its developers and retailers," said Richard Doherty, a partner in the research company Envisioneering Group.

Another consumer product disaster in China: exploding mobile phone batteries

SHANGHAI: After concerns over pet food, toothpaste, seafood and defective tires, China may now have to cope with another consumer product disaster: exploding mobile phone batteries.

Chinese regulators in the southern Guangdong Province, one of the world's biggest electronics manufacturing centers, said this week that they had found Motorola and Nokia mobile phone batteries that failed safety tests and were prone to explode under certain conditions.

The batteries were said to be manufactured by Motorola and the Sanyo operation in Beijing, and were being distributed by companies based in the Guangdong Province, near Hong Kong - one of China's biggest export centers.

It is unclear whether any of the substandard and hazardous batteries entered the export market. The announcement came just a day after China's state-controlled news media reported that in June a 22-year-old man in western China was killed after his Motorola cellphone exploded in his shirt pocket.

The man was reportedly a welder and the heat associated with the job might have touched off the explosion.

Motorola and Nokia - two of the world's biggest mobile phone makers - immediately denied links to the distributors of the problem batteries, suggesting that they were counterfeit.

"All the batteries tested were not Motorola genuine batteries. They were fakes," said Yang Boning, a spokesman for Motorola in Beijing. "Those companies are not our suppliers."

Nokia executives said they were investigating the case and trying to determine whether any of the substandard batteries affected Nokia phones. Nokia officials said they did not manufacture batteries in China and that the company had no business ties with the Chinese distributors named in the safety tests.

"We are confident this is a counterfeit product," said Eija-Riitta Huovinen, a Nokia spokeswoman in Finland.

But the discovery of the exploding batteries is already threatening to turn into another consumer product nightmare, and helping fuel mounting international concerns about the quality and safety of goods being made in China.

For years, China's role as the world's factory floor has seemed to usher in an age of lower and lower prices, and helped tame inflation around the globe - powering one of the greatest economic growths stories in history.

The dark side of that boom, however, has been a culture of counterfeiting or copying high-end western products.

Counterfeit products have been produced here since the country's economic reforms began to take hold in the early 1980s, and everything from fake Gucci bags to counterfeit DVDs and Windows operating systems can be bought on the streets of big cities in China.

But now, perhaps for the first time, cheap and sometimes counterfeit products from China are beginning to look increasingly dangerous or even deadly.

Exports of tainted pet food ingredients this year set off one of the biggest pet food recalls in U.S. history, possibly killing or injuring as many as 4,000 cats and dogs, according to American regulators.

Cough medicine laced with a mislabeled industrial chemical from China called diethylene glycol might have killed as many as 100 people in the Dominican Republic last year.

A few weeks ago, a U.S. company recalled about 450,000 Chinese made tires because they did not contain a major safety feature, which could prevent tire treads from splitting and falling apart.

The recall occurred after a lawsuit blamed the Chinese-made tires for an accident that resulted in the death of two passengers in the United States.

China has responded to the public relations disasters in recent months with a massive effort to reassure global investors, customers and consumers at home that "Made in China" is not a warning label.

Regulators have announced efforts to overhaul food safety regulations, to introduce a national recall system and to revamp the nation's top drug regulator. In recent months, China's leading quality regulation agency dispatched more than 30,000 inspectors on a nationwide sweep to find counterfeit and substandard foods, drugs and consumer products.

The government has all along insisted that most of its products are safe and of high quality, and warned the media not to create a panic.

But the government has announced the results of some of its inspections, and they are startling: 20 percent of the nation's food and consumer products are substandard or tainted, the government said this week.

Food is laced with industrial chemicals, formaldehyde, industrial wax and dangerous coloring dyes; baby clothes are contaminated with dangerous chemicals, children's snack food is doused with excessive amounts of preservatives and old food waste is repackaged and sold as new.

Worried about a backlash among Western consumers, global corporations are now upgrading their own inspections, and worrying about the potential for a massive recall after RC2 announced that its popular Thomas & Friends toy railway sets were coated with lead paint. That forced the recall of 1.5 million toys.

Companies are also preparing for a possible flood of class-action lawsuits.

In Guangdong Province, along the southern rim of China, investigators are looking into how the substandard batteries made their way to the market and whether they could have entered the export market, appearing identical to Motorola and Nokia goods.

A spokesman for Motorola said that after Guangdong officials announced on Thursday that they had discovered substandard mobile phone batteries produced by Motorola, the company's own scientists immediately conducted their own tests.

Now, Motorola is investigating the matter and trying to determine how to act. Guangdong regulators could not be reached for comment. Sanyo officials also could not be reached late Friday.

Nokia and Motorola, however, say they are very concerned about the substandard goods, particularly because their reputations are at stake in China, which has the world's largest number of mobile phone subscribers at over 400 million.

Kevin J. O'Brien in Berlin contributed to this report.

Europeans worry about Google's takeover of DoubleClick

BRUSSELS: The European consumer group BEUC says it fears that Google's takeover of the online ad tracker DoubleClick will damage European Union privacy rights and limit consumers' choice of Web content.

A BEUC appeal Wednesday to EU regulators came after U.S. consumer privacy advocacy groups asked the U.S. Federal Trade Commission to look at how the two companies, when combined, would have access to an unprecedented amount of data on consumers' Web usage and Internet search habits.

Cornelia Kutterer, the senior legal advisor for BEUC, said the association had asked the European Commission and other European authorities to look into privacy concerns - even though the two companies have not yet requested EU approval for the $3.1 billion deal.

"They have, so far, complementary databases with private data. If they merge them, this could lead to unmatched databases of profiles," Kutterer said. "If they can combine them, this could lead to a violation of user privacy rights."

In a letter to data privacy and consumer rights regulators, BEUC said the new company would have and could exploit enormous amounts of personal information about users as they click on Web pages and applications.

"Never before has one single company had the market and technological power to collect and exploit so much information about what a user does on the Internet," it said.

"The unprecedented and unmatched databases of user profiles," it added, "appear also to be in clear violation of users' privacy rights."

Google's search engine relies on its user logs to compile information of the search terms entered into specific Web browsers as well as other potentially sensitive online information. The company says this helps its search engine better understand its users so that it can deliver more relevant results and advertisements.

Google's privacy policies are already being looked at by an EU panel of national data-protection officers to see if it stores search information for too long. Trying to soothe EU concerns, the company has offered to cut the time it retains data on user searches from the current 24 months to 18 months, saying this was going further than most other search engines.

Google had no immediate response to BEUC's concerns, but has said previously that the takeover "poses no risk to competition and should be approved."

BEUC said that people who agreed to give their details to DoubleClick could not have imagined that the details would be transferred to Google.

"We fear that Google will vertically leverage its keyword search dominance with DoubleClick's leadership in online banner/video display advertising, and with its Google-YouTube dominance in video search," BEUC said. "Consumers would have no real ability to choose services other than those served by Google or to simply opt out of sharing personal data with Google.

Sony alters price and power of PlayStation 3

Sony on Monday cut the price of its current PlayStation 3 by $100, or 16.7 percent, and introduced a high-capacity model in an effort to spur sales of the struggling video game console.

Sony also said it would offer a model with a bigger hard drive for storing downloaded content like video games and high-definition movies in the United States and Canada for $599 starting in August.

There are no plans so far to offer the new 80-gigabyte PS3 in Japan, Nanako Kato, a Sony Computer Entertainment spokeswoman, said.

Effective immediately, the current 60-gigabyte model will cost $499, down from $599.

The new PS3 also includes a retail copy of the online racing title "MotorStorm," a company spokesman said.

The new machine supports the company's strategy of eventually of offering downloaded high-definition movies, video games and movie trailers, a Sony spokesman, David Karraker said.

Karraker said further details on high-definition movies for download would be released at a later date.

The announcement comes two days before the E3 Media & Business Summit in Santa Monica, California, where dozens of industry heavyweights including Sony's rivals, Microsoft and Nintendo, are expected to show off their latest games and related products.

Sony has said it sold 3.6 million PS3s in the fiscal year ending March 31 and expects to sell another 11 million in the current fiscal year. Microsoft said in its most recent quarterly earnings report filed in April that it had shipped 11 million Xbox 360s.

Nintendo, meanwhile, claims it has sold nearly 6 million Wiis worldwide as of March 31, and more than 40 million Nintendo DS handhelds.

The company has predicted it will sell another 14 million Wiis and 22 million additional DS systems by the end of the current fiscal year.

The Wii and PS3 were released within days of each other late last year. Microsoft had a head start in the current generation of consoles, having introduced its Xbox 360 in 2005. Last week, the software company announced an extension of the warranty due to the high number of systems suffering from hardware failure.

In April, Microsoft began selling a version of its Xbox 360 with a 120-gigabyte hard drive and a souped up high-definition video connection.

Called Xbox 360 Elite, the black-colored system sells for $479.99.

Xbox gamers who already own the $399.99 20-gigabyte model can buy a snap-on 120-gigabyte hard drive for $179.99.

Karraker said Sony would use the E3 show to focus on two areas: ways to increase the number of consumers who own PS3s and other products like the PlayStation Portable handheld system, and expanding the system's library of available games.

He said Sony would be releasing 100 new video games during the current fiscal year, including 15 titles that are exclusive to the PS3 like the hack-and-slash action title "Heavenly Sword."

Google buys e-mail security firm

SAN FRANCISCO: Google buying specialist in e-mail security and management

Taking aim at one of Microsoft's core franchises, Google said that it would acquire the e-mail security and management company Postini for $625 million in cash.

The deal, announced Monday, underscores Google's ambitions to become a serious player in the business of selling software to companies and organizations, in competition with Microsoft and others.

Google, which earns the vast majority of its profits from selling ads it places next to search results and on sites across the Web, has increasingly emphasized its small but rapidly growing software business.

Earlier this year, Google's chief executive, Eric Schmidt, said the company's strategy was made up of three components: "search, ads and apps," or applications, meaning software programs.

As part of that strategy, Google has been trying to persuade businesses to replace existing e-mail systems and other programs with the company's own package of business software.

That package, called Google Apps, includes the Gmail service; an online calendar, and programs that can read and edit documents created with Microsoft's Word and Excel programs.

But many businesses - especially large ones - remain leery of moving some critical functions like e-mail to Google's programs, which, unlike traditional business software that resides on corporate networks, are delivered as services over the Web and are considered less secure.

The acquisition of Postini, a private company whose products allow businesses to control spam and viruses, and help them to monitor and preserve e-mail messages to comply with regulations, is an effort by Google to allay some of those concerns.

"In bigger businesses, security and compliance requirements are a must," said Dave Girouard, Google's vice president and general manager for enterprise.

If completed, the deal would be the third-largest acquisition in Google's history, after its planned $3.1 billion purchase of the online advertising company DoubleClick and its $1.65 billion deal for the video site YouTube.

Google and other companies say that software will increasingly move to the Web and will often be free and supported by advertising.

Over the last year, Google has pursued that vision with efforts to turn some of its Web programs, which are popular with consumers, into business tools.

Last year, the company began to offer companies, academic institutions and nonprofit organizations a version of Gmail and other business applications at no charge.

In February, Google packaged a broader set of business programs, including a word processor and spreadsheet, into Google Apps and began charging businesses $50 a user annually for a version that includes customer support.

By comparison, the market researcher Gartner estimates that businesses pay on average about $225 a person annually for Microsoft Office, which includes Word and Excel, and for Exchange, the widely used corporate e-mail program.

Microsoft, for its part, has sketched out a future in which business programs are likely to become a hybrid of desktop software and Web services.

Moving in that direction, Microsoft acquired FrontBridge Technologies, a Postini competitor, in 2005, and offers that company's products as Web services. And while its core e-mail Exchange products are still programs that it sells and that customers must install on their networks, some Microsoft partners offer Exchange as a Web service.

Microsoft downplayed the notion that Google's acquisition of Postini would create more competition for Exchange and other Microsoft applications.

"What we are hearing from our customers is that they are looking for an experienced solutions provider," said Roger Murff, director of marketing for unified communications services at Microsoft. The deal is "further validation that we are doing the right thing and have been doing the right thing for several years," Murff said.

For now, Google's efforts to make inroads into the $2.5 billion corporate e-mail business remain just that. The company said more than 100,000 businesses were using Google Apps, but it will not say how many of them are using the pay version. Meanwhile, Microsoft's e-mail products are used by 62 percent of corporate users, and IBM's by 26 percent, according to Gartner.

Web e-mail services like Gmail likely will not be a significant force in the corporate market until 2010, when they are expected to become the first choice of 8 percent of corporate users, according a Gartner forecast in January.

"Google has a long ways to go before they become a strong competitor to Microsoft" in business software, Chenxi Wang, a principal analyst with Forrester Research, said.

Still, the size of the deal underscores how important the corporate software market is for Google.

"Google wouldn't spend $625 million on something that they didn't think would be a material opportunity for them," Mark Mahaney, a securities analyst with Citigroup, said. "It really fits into Google's world view of being a repository for all users's - including business users's - information."


Microsoft to cut price of Xbox 360 to compete with Wii game console

LOS ANGELES: Microsoft plans to cut the price of its Xbox 360 game console to compete with Nintendo's top-selling Wii.

The company needs to lower the price of the Xbox, which retails from $299 to $479, to increase sales and lure customers who are not interested in traditional combat and racing video games, said Shane Kim, vice president of Microsoft Game Studios.

He declined to say when a price cut might be announced, but added that it would not happen at the annual Electronic Entertainment Expo, or E3, game conference in Santa Monica, California.

"We need to compete effectively for that customer, and part of that is getting to the mass market price point for the console," Kim said Tuesday. "We definitely are working on that area."

The Xbox 360 has trailed the $249 Wii in sales since Nintendo introduced the player in November.

This week, Sony lowered the price of the PlayStation 3 console, which has lagged behind both Xbox and Wii, by 17 percent to $499 from $599 in the United States. Microsoft has vowed to make its video-game business profitable by next year.

"A price cut would give the Xbox 360 an advantage over its rivals, particularly in North America where you have a choice of consoles to play the same game," said Etsuko Tamura, an analyst at Mizuho Investors Securities in Tokyo. "There's a lack of Xbox titles in Japan, so a price cut here would have no effect."

In fiscal 2006, the games unit lost $1.26 billion on sales of $4.26 billion. David Hufford, a director of Xbox product management, said last month a price cut was needed to persuade parents to buy the machine for their children.

Microsoft also said that Walt Disney would offer films for rent through its Xbox Live online service. Warner Bros. and Paramount studio already sell and rent movies on Xbox Live.

First comes the hype, then the actual iPhone; now, the accessories


Along with the iPhone comes the iPhone accessory business, featuring an array of products that manufacturers expect customers will buy to protect, enhance and show off their $500 or $600 electronics investment.
(The New York Times)

If Apple's iPhone is as successful as the pundits, early adopters, and Steven Jobs expect, it is not just Apple that stands to make big profits from its effort to redefine the mobile phone industry.

Along with the iPhone comes the iPhone accessory business, featuring products to protect, enhance and show off those $500 or $600 electronics investments.

"The iPhone is a showpiece," said Kathy Sharpe of Sharpe Partners, a marketing agency based in New York. "It is all about status and fashion. Anything that lets you show it off, you will want."

As another Apple product, the iPod, proved, the accessories market is big business. According to Richard Doherty, a principal in the Envisioneering Group, consumers typically spend half as much again on accessories as they do on the product itself. "We expect three million iPhones to be sold in the first 45 days, with an average $225 spent on accessories per unit," he said. If Apple sells 10 million iPhones by the end of 2008 as planned, that would put the value of this iPhone support system at $2.25 billion.

So it is no wonder that companies that grew fat because of iPod accessories, like Belkin, Digital Lifestyle Outfitters (or DLO, recently purchased by Philips) and Griffin, are excited by the prospect of another sleek device that needs dressing up.

Applealso stands to benefit from accessories. "We want to participate in the accessories business, but not overwhelm it," said Greg Joswiak, an Apple vice president. "It's important to have lots of developers."

The iPhone is in a sense another iteration of an iPod, meaning that many of the first accessories will be reworked versions of items that have already proved popular with the standalone music player, like cases, chargers, car mounting kits, FM modulators and headphones.

While the iPhone uses the same 30-pin connector as many iPods, not all accessories will work, Joswiak warned.

Those that do are designated with the logo "Works with iPhone." Noncertified accessories will open a dialogue box suggesting that the user turn off the cellphone function.

Some existing devices may not work properly because accessory makers have been hampered in their planning by the same situation that greeted consumers: most were not able to get their hands on a device until June 29, when the cellphone was first sold.

Even the largest manufacturers were given nothing more than general dimensions. Several companies got their first look at the actual phone only a few weeks ago when Apple engineers certified their products.

As a result, companies like Gomadic and RadTech have decided not to market accessories until they can get their hands on an actual product. "We've had 800 requests for information on our Sleevz case products for the iPhone," said RadTech's owner, John Grzeskowiak. "That's slightly more than for the fifth-generation iPod."

Here is a sampling of what's available now or coming soon:

Cases

Some cases cover the unit completely, but most the vast majority of the first to market are little more than frames that protect the edges of the device.

Incipio Technologies is offering $30 leather cases in 14 colors. Belkin's first offerings, also $30, include an armband holder, an acrylic case and a black leather belt holster.

DLO is selling two case styles initially: the black $35 leather hip case ejects the phone with a push of two fingers, and includes holes to store the device's ear buds.

Its $25 Jam Jacket, available in four colors, leaves the iPhone's proximity sensor, volume control, camera lens and headset jack exposed. The Apple ear buds can be stored on the outside of the case.

For the Screen

While an iPod is usually kept in a pocket, the iPhone is going to see much more face time. Sticking an iPhone next to your eyes and ears — especially after all your envious friends have manhandled it — may not be the most sanitary practice.

To exploit this concern, the case maker iSkin is marketing an iPhone case that includes an antimicrobial agent embedded in the silicon. The $40 revo case will be available in four colors next month.

The revo includes a privacy screen to prevent prying eyes from knowing your taste in YouTube videos. A removable hard visor will protect the screen when not in use.

Apple's decision to use a glass screen rather than plastic may protect the device from scratches, but it is not enough to stop companies from selling screen-protection products. "The money shot of the iPhone is its screen," said Andrew Green, DLO's vice president for marketing and design. "It is up to us to protect it."

DLO will be selling replaceable glass covers. RadTech will be selling an iPhone version of its ClearCal protective screen. The $10 transparent Mylar sheet uses a siliconized adhesive to fill in minute scratches on the screen's surface.

Headsets

Appleis marketing what it believes is one of the smallest Bluetooth headsets available. The black $129 device delivers what the company says is up to 72 hours of standby time and up to 5.5 hours of talk time.

The standard Apple-supplied wired headset includes a tiny squeezable switch that allows the user to move back and forth between listening to music and answering calls. But some users fault the company's earbuds for poor sound quality and an inability to remain in the ear.

In August, Shure, a headphone manufacturer, will sell the Music Phone Adapter, a $40 device that connects to its existing line of sound-isolating headphones and incorporates what the company says is a professional quality microphone as well as a switch that allows users to send and end calls without touching the iPhone.

ISkin's Cerulean F1 headset, $130, sends a wireless stereo signal from an iPhone when playing music, automatically switches to mono when answering a call, and then back to stereo when the call is finished.

Future Products

Now that manufacturers have been able to get their hands on actual iPhones, expect accessories to proliferate.

The iPhone's inaccessible battery is one opportunity. "As both a phone and an iPod, the iPhone raises very interesting issues, such as battery life," said Rishi Persaud, an iSkin vice president, noting that external battery packs and piggyback batteries are two products that the company will explore.

Other companies are likely to market replacement batteries, but have no need to introduce such products now, as the iPhone's standard warranty will cover battery failure for the next 12 months.

The other potentially large opportunity is in devices that enhance the iPod part of the iPhone. Belkin will soon sell a device to play iPhone music through a car's speakers; the company is also considering various Bluetooth wireless solutions to do the same.

For those iPhone owners who hope to find a way to dock their device into an existing speaker system, beware. Because of the radio frequency on which the wireless system operates, incoming calls could cause noisy interference. iSkin and others are working on speaker docks that contain the proper shielding to prevent that.

Apple will undoubtedly mix it up, as it did with the iPod, with new iPhone designs and force accessory makers back to the drawing boards and consumers back to the stores.





Google chief executive criticizes Viacom

SUN VALLEY, Idaho: Eric Schmidt, the chief executive of Google, took a swipe at the media conglomerate Viacom, which is suing the Internet search leader and its video sharing site YouTube for $1 billion over "massive copyright infringement."

Schmidt, speaking with reporters at a hotel bar at the 25th annual Allen & Co. media gathering, said litigation was the foundation of Viacom, which owns the MTV Networks, the Paramount film studio, and the video game developer Harmonix.

"Viacom is a company built from lawsuits, look at their history," Schmidt said on early Friday. "Look who they hired as CEO, Philippe Dauman, who was the general counsel for Viacom for 20 years."

Dauman, a long-time advisor to the Viacom chairman Sumner Redstone, served as general counsel from 1993 to 1998 and served as deputy chairman from 1996 to 2000. Before joining Viacom, Dauman was a partner at law firm Shearman & Sterling.

Viacom Chairman Sumner Redstone responded by saying that despite a long history of suing rivals, he preferred to resolve disputes outside of court. "I would rather be a lover than a fighter," Redstone told reporters at the conference in Idaho.

Viacom has demanded that YouTube take down hundreds of thousands of segments from its popular programs including "The Daily Show with Jon Stewart," "The Colbert Report" and "South Park."

Viacom has said it sued Google because the companies failed to reach a distribution deal that adequately compensated Viacom for its content. A court hearing begins later this month.

Schmidt, who said he had spoken with Dauman while at the conference, also said Google intended to fight the Viacom suit.

Google has been the target of numerous lawsuits, most recently one filed by the Australian government charging the company with promoting deceptive business practices with its lucrative pay-per-click advertising system.

Thailand also briefly blocked access to YouTube after finding a handful of videos uploaded by users that mocked the king, a serious offense in Thailand.

The top English soccer league also sued Google for copyright infringement in May.

Schmidt alluded to Viacom's high-profile $2.4 billion antitrust suit against Time Warner in 1989. That suit claimed Time Warner's HBO pay cable movies service attempted to put Viacom's rival service Showtime out of business by intimidating cable operators and Hollywood studios to give preferential treatment to HBO.

The suit was ultimately settled out of court by 1992. As part of the settlement, Time Warner paid $75 million and agreed to purchase a cable system owned by Viacom for an above market price, as well as agree to distribute Showtime more broadly on Time Warner cable television system.

The two companies eventually agreed to merge their rival comedy cable networks to form Comedy Central, now home to popular shows hosted by Jon Stewart and Stephen Colbert.

Separately, Schmidt said the surge in popularity of Internet social networks such as News Corp.'s MySpace and Facebook would ultimately be positive for Google.

Google, whose main source of revenue comes from selling advertising based on text keyword searches, relies on its catalog of documents from the Web, its so called index.

But sites such as Facebook, whose members and third party companies have rapidly created new content for Facebook, prevent the indexing of its pages.

Schmidt said the closing off of social networks was a "transient" phase and that these companies will eventually see the value of open borders.

Video-game makers attract wider range of players


SANTA MONICA, California: Nintendo expects its popular Wii game machine will continue to be in short supply, while Sony said it was already seeing increased sales of its PlayStation 3 after announcing a price cut Monday.

The two Japanese video-game console makers presented an outlook of their business to game developers and industry executives at the E3 Media and Business Summit, the major video-game trade show in the United States.

Reggie Fils-Aimee, the president of Nintendo of America, said, "Wii has effectively been sold out for all 33 weeks." Nevertheless, he said, Wii "is poised to become the No. 1 platform worldwide very soon."

The Wii, which uses a hand-held motion-sensitive controller, has been a success in another way. It has attracted a significant number of older gamers, Fils-Aimee said. In Wii households, he said, one in eight men over 50 regularly use the console. He said that was a first in video-game history.

"Our next challenge is to destroy the psychological barrier that separates veteran gamers from novice players," he said.

To broaden Wii's appeal, in 2008 Nintendo will introduce Wii Fit, a game that encourages physical fitness. Bundled with a Wii balance board, players stand on the platform to register their body mass index, and then head-butt virtual soccer balls, twirl a virtual hula-hoop and perfect their balance.

Fils-Aimee, who would not state a price for the new bundle, said that the board would be used as a control device for future games as well.

The company also introduced the Wii Zapper, a $20 frame that holds the Wii's existing controllers in a combination that creates new types of game moves and weaponry.

Besides the 60 games available for the Wii, 100 new titles will be available by the Christmas holiday season. The Nintendo DS portable system will have an increase in the number of game titles to 440 by the end of the year, from 300 now.

Jack Tretton, president of Sony's computer entertainment division, said that cutting the price of the 60-gigabyte PlayStation 3 to $500 had already doubled sales at its top five retailers. Analysts had said that the console was too expensive to attract a wide audience.

The Nintendo Wii, which costs $250, and Sony's PlayStation 3 were introduced in November, but Nintendo has sold 2.8 million machines, twice as many as Sony.

The price cut "bodes well for us," said Peter Dille, senior vice president of marketing for Sony Computer Entertainment America.

Sony demonstrated its newest PlayStation 3 titles, as well as games for its older PlayStation 2 and PlayStation Portable, or PSP, platforms.

It also introduced a number of first-person shooter games and several aimed to appeal to wider audiences, including "LittleBigPlanet," a game in which players create their own elements in a virtual world, interact with them, and then share them with friends online using Sony's PlayStation Live service.

"We will have 200 games for the PlayStation 3 worldwide this year," Dille said. "Everyone is very confident."

The E3 event this year has been greatly reduced after criticism that it attracted more video-game obsessed adolescents than business people. Still, Sony, as well as its chief rivals, Microsoft and Nintendo, used colored lights, smoke, and deafening sound effects to present their new games to smaller audiences.



Asian currencies get lift from rising shares

BEIJING: Rising Asian shares buoyed most regional currencies on Friday, with the Philippine peso leading the pack after the central bank in Manila slashed interest rates but eased the impact by scrapping a low-interest deposit scheme.

The peso steadied near 45.75 per U.S. dollar, up half a percent from Thursday's close, after suspected central bank intervention pushed it back from a day high of 45.73.

"The central bank's rate cut yesterday seems to be taken in a positive light," a trader in Manila said. "The cut is positive for the equity market, and with the equity market strong, there is foreign interest and that causes the peso to strengthen."

The central bank surprised investors by cutting its key rates by 150 and 175 basis points.

In an accompanying move, the central bank removed a tiered system, under which interest rates were reduced by up to 400 basis points on banks' deposits in excess of 10 billion pesos.

Sean Callow, currency strategist at Westpac, said he believed that the relaxation was compatible with the central bank's cut of its 2007 inflation forecast to a range of 2.6 percent to 3.1 percent. "Markets should quickly factor in at least one rate cut in coming months," he said in a note.

In Indonesia, the rupiah climbed 0.3 percent to 9,028 against the U.S. dollar.

The Thai currency climbed for the 12th day on speculation that measures to curb the baht's advance would take time to be effective. The baht rose 0.2 percent to 33.25 versus the U.S. dollar in onshore trading, the highest in almost a decade, and climbed 1 percent to 30.60 offshore. The government will relax limits on how much Thais can invest abroad and boost domestic borrowing to alleviate pressure on the baht, Finance Minister Chalongphob Sussangkarn said.

The South Korean currency strengthened 0.2 percent to 916.90 against the U.S. dollar, reaching the highest level since December and bringing the week's gain to 0.3 percent.

The won had a fifth weekly advance after the central bank on Thursday raised the benchmark interest rate to a six-year high of 4.75 percent.

In Malaysia, the ringgit had a fifth weekly gain, rising 0.2 percent to 3.4430 against the U.S. dollar.

Elsewhere in Asia, the Singapore dollar gained 0.1 percent to 1.5146. The Taiwan dollar rose 0.1 percent to 32.762, while the Vietnamese currency was little changed at 16,135.

In Europe, the euro traded at $1.3771, from $1.3791. The U.S. dollar traded at ¥122.40, from ¥122.05, and at 1.204 Swiss francs, from 1.2012 francs. The British pound traded at $2.0323, from $2.0333.

Asian and European stocks surge on optimism about U.S. consumer spending

Asian stocks surged on Friday and European shares gained as investors turned more optimistic about the long-term global economic outlook, pushing Wall Street past two milestones.

Investors, who this week were concerned about fallout from the subprime mortgage market meltdown in the United States and a possible slump in consumer spending, seemed to set aside those worries for now.

Stock market indexes in Australia, South Korea, Hong Kong and Singapore all reached record peaks and the Taiwan exchange hit a seven-year high Friday after the Standard & Poor's 500-stock index surged Thursday past the 1,500 mark and the Dow Jones industrial average to 13,861.73, both records.

The firm tone continued in Europe, where the London, Frankfurt and Paris bourses all opened higher.

Investors found comfort in a number of developments, including reports from U.S. retailers that were stronger than expected and a $38.1 billion bid by Rio Tinto for Alcan, the Canadian aluminum producer.

The aluminum deal, which was endorsed by Alcan's board Thursday over a competing but less lucrative offer from Alcoa, was also reassuring for investors because it helped relieve concerns that merger activity may be falling off. The deal would create the world's largest aluminum producer once Alcan and Rio Tinto combined.

"The U.S. economy is holding up better than people had expected at first," said Chu Moon Sung of Shinhan BNP Paribas Investment Trust Management. "That leads to better earnings growth at both U.S. and Asian companies."

Tobias Levkovich, chief U.S. equity strategist for Citigroup, referring to a statement by President Franklin D. Roosevelt, said: "I can't help but fall back to the FDR line, 'There's nothing to fear but fear itself.' We were getting ourselves into a tizzy, but some of this stuff is just fear. It's not based in anything other than a psychological shift."

Just last month, stock prices suffered some of their worst losses of the year as rates spiked on Treasury securities. But many investment strategists said they believed that the stock market remained fundamentally strong, despite the recent volatility in prices.

"You just can't keep a good market down," said James Paulsenj of Wells Capital Management. "Clearly there's been this deep concern weighing over the market saying, 'Where is the consumer?' But we know now the consumer is alive and well."

Asian currencies also rose, paced by Indonesia's currency and the Philippine peso, as a regional stock rally signaled increased demand for emerging-market assets.

Investors sold yen to buy higher-yielding currencies in so-called carry trades, after the surge in U.S. stocks eased concern that a housing slump in one of Asia's biggest overseas markets might stunt export-led Asian economic growth.

"Stocks rose so much and risk appetite came back, helping Asian currencies strengthen," said Catherine Tan, head of emerging markets at Forecast Singapore. "Everyone's very bullish."

Also playing a significant role in Wall Street's bull run, analysts said, was a growing sense that the bond market had stabilized. After spiking at nearly 5.3 percent in mid-June, the yield on the benchmark 10-year Treasury note, has fallen back to around 5.1 percent.

"Our biggest concern was that interest rates were starting to move higher," said David Bianco, chief U.S. equity strategist for UBS. "They seem to have found some relative stability compared to where they were in June, and this is really an important issue."

Interest rates on long-term U.S. Treasury notes are not only stable but are above 5 percent - a rate of return that is more acceptable to investors than the 4.5 to 4.9 percent range that held for the first half of this year.

New research suggests Internet safety focus should not be on personal info

NEW YORK: Almost every lesson on Internet safety warns against posting personal information like phone numbers and school names.

Researchers are now suggesting, though, that such advice, however well-intentioned, does not necessarily make children safer from predators and related threats.

In a recent study published in the Archives of Pediatrics and Adolescent Medicine, researchers found no evidence that sharing personal information increases the chances of online victimization, like unwanted sexual solicitation and harassment.

Rather, victimization is more likely to result from other online behavior, like talking about sex with people met online and intentionally embarrassing someone else on the Internet.

"For a long time, we really didn't know," said Michele Ybarra, one of the authors of the study. "It made sense if you post or send information you increase your risk. It's also a very easy message: Don't post personal information and you'll be safe."

But Ybarra, president of the nonprofit Internet Solutions for Kids, warned that parents and educators must now reassess the lessons, saying resources might be wasted on tips that did not address the underlying problem. Instead of discouraging children from communicating, she said, the better approach was to teach them about what at-risk behaviors to avoid and warning signs to spot.

"We now need to be a lot more specific and accurate in our message," she said.

The research, published in February, was based on telephone surveys of 1,500 Internet users aged 10 to 17.

In a separate study of 2,574 law-enforcement agencies, researchers found that online sex crimes rarely involved offenders lying about their ages or sexual motives. The 2004 study, published in Journal of Adolescent Health, said offenders generally were not strangers, and pedophiles were not luring unsuspecting children by pretending to be a peer.

The research also found that online victims tended to be teens with troubles offline, like poor relationships with parents and depression.

"A lot of parents, I think, can breathe a big sigh of relief," said Anne Collier, editor of the online newsletter Net Family News. "If their kids are just socializing with their friends online, they are going to be fine."

Who killed Ashraf Marwan?

The billionaire's body tumbled over the railing of his apartment's fourth-floor balcony and landed hard on the London sidewalk. And like so much in the complicated life of Ashraf Marwan - a 62-year-old Egyptian who had been the most effective spy in the history of the Middle East - the mysterious circumstances of his death two weeks ago provoked further speculation.

As Scotland Yard investigates the suspicious fall, and as newspapers and bloggers throughout the world wonder whether any of several intelligence services played a role in his death, a debate continues over whether Marwan was a well-connected and resourceful Israeli spy or a brilliantly manipulative Egyptian double agent.

Marwan's death has also brought a new and chilling significance to a long-running legal battle in Israel involving the unauthorized leaking of his name to journalists. And in the aftermath of the discovery of his broken body on a sidewalk in the St. James neighborhood on June 27, I cannot help but wonder if I had a small part in the events that led to Ashraf Marwan's death.

Marwan's story - a tale overflowing with the suspense and ruthless duplicity of a spy novel - began to take shape in the spring of 1969.

He had come to London, ostensibly to consult a Harley Street doctor about a stomach ailment. He chose to be examined by a doctor whose offices had been used previously for a covert meeting between King Hussein of Jordan and the general director of the Israeli prime minister's office.

Along with his X-rays, Marwan handed the doctor a file crammed with official Egyptian state documents. He wanted them delivered to the Israeli Embassy in London.

The Mossad, the Israeli intelligence service, determined the documents to be genuine. Still, a rapidly formed working group of Mossad wise men debated the risk in dealing with a walk-in, a volunteer who shows up bearing gifts.

If he's not a double - an agent spreading disinformation - then he's uncontrollable. It was decided, however, that this walk-in's credentials were worth the gamble.

Marwan, the excited vetters discovered, was married to a daughter of Egypt's president, Gamal Abdel Nasser. He was also Nasser's liaison to the intelligence services. Not even 30, he was an intimate of the leaders who determined Egypt's future.

Three days after meeting with the doctor, Marwan was contacted by the Mossad as he walked through Harrods, the London department store.

His operational life as a spy began.

From the start, Marwan delivered. He yielded so many top secret Egyptian documents it was as if, as one Mossad agent put it, "we had someone sleeping in Nasser's bed." Based on this trove of secrets, Israel developed what became an article of faith for the nation's political and military leaders: "the Concept." With biblical certainty, the Concept held that until 1) Egypt possessed missiles and long-range bombers and 2) the Arab states united in a genuine coalition, a new war with Israel would not take place.

Running the agent, who was given code names including "Angel," "Babylon" and most frequently "the In-Law," grew into a small industry. For face-to-face meetings with his handler and often the head of the Mossad, a safe house was purchased in London not far from the Dorchester Hotel. It was wired to record every conversation, every aside. A special team of clerks turned the tapes into transcripts for the prime minister, the army chief of staff and a handful of other top Israeli officials. Marwan received £50,000 at each meeting, but this was only a minor expense compared to the estimated $20 million spent over the first four years of Marwan's operational life.

Israel's leaders felt this was money well spent: They knew what their enemies were thinking.

Then in April 1973, the In-Law sent a flash message to his case agent using the word "radish." This was the code for an imminent war. Zvi Zamir, the head of the Mossad, rushed from Tel Aviv to the London safe house. The In-Law revealed that on May 15, Egypt and Syria would launch a surprise attack.

Israel called up tens of thousands of reservists and deployed additional brigades and support equipment in the Sinai and the north.

The alert dragged on for three months and cost $35 million.

But it was a false alarm. The In-Law had been wrong.

Six months later, on Oct. 5, 1973, the In-Law sent another flash message with the code word "radish." Zamir was awoken at 2:30 a.m. with the news. The next morning, he took the first El Al flight to London.

Syria was massing tanks and missiles in the north. Egypt was conducting military maneuvers near the Suez Canal. Russia had begun evacuating families from the region. Yet that afternoon General Eli Zeira, the head of Israeli military intelligence, announced at a staff meeting that a coordinated attack by Egypt and Syria was "low probability - even lower than low."

Just before midnight, London time, the In-Law appeared at the safe house. He spoke to Zamir for less than an hour and then left.

Zamir phoned an aide at 3:40 a.m. on the morning of Yom Kippur, the holiest day on the Jewish religious calendar. The Egyptians and Syrians, he said, will attack simultaneously on both fronts at sunset.

At an Israeli cabinet meeting that morning, the In-Law's warning was not considered persuasive. The last time he had promised war would break out, nothing happened except the expenditure of $35 million.

Moshe Dayan, the minister of defense, lectured the army chief of staff, "On the basis of messages from Zvika you do not mobilize a whole army."

Nevertheless, it was decided that at 4 p.m. - two hours before the In-Law said the attack would be launched - armored brigades would move into position along the Suez Canal. Until then, there would be only three tanks in position to hold off any invasion.

At 2 p.m., the Arab armies went to war. Egypt crossed the Suez Canal in the south and Syrian tanks charged from the north. Their armies overwhelmed the surprised and unprepared enemy. After three days of fighting, General Dayan worried openly about the "destruction of the third Temple," the state of Israel. Prime Minister Golda Meir was given a bottle of suicide pills; she preferred to die rather than witness the destruction of the Jewish state.

Israel's outnumbered forces fought back and recovered their key positions. After being rearmed by airlifts of weapons and supplies from the United States, they attacked. Before the month's end, Israel won the war.

Still, the Yom Kippur War was an Israeli intelligence disaster.

Decades later, the Mossad and military intelligence continued to argue over who was to blame. Zeira, who lost both his job as head of military intelligence and a good deal of his reputation, spent years sifting through the events leading up to the attacks.

He wondered: Who had spread the false Concept? Who had "cried wolf" in May 1973 and persuaded Israel to call up its reserves? Who had been wrong about the time of the invasion? The answer, Zeira was certain, was that Israel had been deliberately and artfully misled.

From the start, the In-Law had been a double agent. The Mossad formed a special committee to examine the In-Law's role.

Its conclusion: Marwan was not a double.

But Zeira was unconvinced. He began to talk to journalists about his theory. I was one of those he spoke to. He never told me the spy's name, but he pointed me in a direction that made it easy - less than a half hour of searching the Internet - for me to deduce his identity. I used Marwan's name in a 2003 book about the Yom Kippur War.

Not long after its publication, Zvi Zamir called Zeira a "traitor" for divulging Marwan's identity. Zamir petitioned the attorney general for an investigation. But there was no official inquiry, and Zeira sued for slander. Last month, an Israeli Supreme Court justice ruled in arbitration that Zeira had in fact revealed Marwan's identity.

Now with his unexplained death, the many enigmas of Ashraf Marwan's complex life have grown even murkier. In Egypt, Gamal Mubarak, the president's son and possible successor, and Omar Suleiman, the head of the Egyptian intelligence service, attended Marwan's funeral. Sheik Mohammad Seyed Tantawi, Egypt's highest-ranking imam, led the prayers over the coffin, covered with an Egyptian flag.

On the following day, in response to reporters' questions, President Hosni Mubarak called Marwan "a patriot," according to Egypt's official Middle East News Agency. "He carried out patriotic acts which it is not yet time to reveal," the president added.

In Israel, an angry Zamir told the newspaper Haaretz, "I have no doubt that reports published about him in Israel caused his death." The former Mossad chief again called on the attorney general to indict Zeira.

In London, Marwan's sister was described as saying she saw him in good spirits only hours before his death. But another unidentified friend said Marwan, in declining health, lost his balance and fell.

And there were reports that he made many enemies through his activities in selling armaments. A coroner's inquest is expected to announce its findings in mid-August.

And now I am reminded of my last telephone conversation with Ashraf Marwan.

"Are you afraid?" I asked.

"Why should I be afraid?" he replied. "I was a soldier."

Marwan promised to reveal more about which country he was fighting for when we were to appear together on a news program in the United States. But two days before the taping, he called to tell me he would not speak in public until he had finished a book about the war.

I never heard from him again. Now Scotland Yard - and, I suspect, other agencies - is trying to find the manuscript he said was writing at the time of his death.

Howard Blum, a contributing editor at Vanity Fair, is the author of "The Eve of Destruction: The Untold Story of the Yom Kippur War."

Europe looks at controls on state-owned investors

BERLIN: European policy makers are considering imposing controls on state-owned funds that take stakes in flagship European companies. The deliberations that have kicked off in recent weeks are a reaction to the uncertain political intentions of China and Russia as they start investing vast new reservoirs of cash in Western markets.

So-called "sovereign wealth funds" have taken off recently as a way for emerging-market countries to earn higher returns on excess reserves, rather than squirreling them away in the usual low-yielding government securities.

Whether backed by China's $1.2 trillion in currency reserves, or the profits that are accruing in places like Russia and the United Arab Emirates from energy sales, such funds are posing a dilemma even for politicians with strong records of supporting foreign investment: Do the state-controlled investors simply want to make money, or might they be seeking political influence as well?

"With those sovereign funds we now have a new and completely unknown elements in circulation," the Chancellor Angela Merkel of Germany said recently. "One cannot simply react as if these are completely normal funds of privately pooled capital."

The German government has taken the lead in Europe, with officials hoping to hash out a plan of action by the end of this year.

France is supporting the German initiative, which could lead to restrictions, or at least careful reviews, of moves made by the varying types of state-controlled investors that have sprung up in the last few years.

"I find that our German friends are totally right to do this," said Jean-Pierre Jouyet, the French European affairs minister. "We have to be better organized on the European level to defend our interests."

This week, Charlie McCreevey, the European Union's commissioner for the internal market, directed his senior officials to mount a similar exercise - although with no specific mandate. Other members of the commission, including Peter Mandelson, who handles trade policy, are also following the issue, EU officials said.

"We are trying to avoid coming at this with easy, early shots," said Oliver Drewes, McCreevey's spokesman. "But it is an important enough development, a new one on the European agenda, that the European Commission needs to take a look."

The political attention the funds are drawing in Europe raises what for some are troubling questions about whether the exercise is a veiled form of protectionism. Even with the best of intentions, scrutinizing financial flows could antagonize major trading partners, like China, and squeeze the investment that Europe will need in the future.

"The most serious question is how we do this without creating a new kind of protectionism," said Elmar Brok, a German conservative who sits in the European Parliament. "As exporting countries we cannot afford that at all."

Some countries, like Singapore and Dubai, have long had public investment funds that invest abroad.

But the emergence of much larger players - most notably China and Russia - have drawn new attention. These new pools of wealth, fed by sales of natural resources and growing currency reserves, can operate in different forms. But what they have in common is that they are ultimately controlled by governments rather than private investors.

Stephen Jen, global head of currency research at Morgan Stanley, has estimated that emerging market countries now have about $1.5 trillion in excess reserves to invest.

China above all set the tone when it announced plans in March to invest some of its $1.2 trillion in reserves in higher-yielding assets than the U.S. government securities it owns now. In May, it took a $3 billion, nonvoting stake in Blackstone, the U.S. private equity giant that has been active in Europe as well.

Likewise, Russia announced that it would invest a portion of its $357 billion of official reserves, designated the Future Generations Fund, creating a fund of $30 billion. That could grow by $40 billion a year from oil and natural gas exports.

A wake-up call for Germany came after Russia took a 5 percent stake in European Aeronautics Defense & Space, the parent of aircraft manufacturer Airbus, through a state bank last year. German officials said that triggered their current deliberations.

When DaimlerChrysler, the main German EADS shareholder, later sold 7.5 percent of the company, it was transferred to a consortium of German banks rather than being sold on the open market, where Russia could have seized the opportunity to raise its stake.

Russia, whose push for a board seat at EADS was rebuffed, said this week that it was now considering selling its stake.

What unsettles European leaders the most is that the intentions of the funds are murky - and assuming the worst could provoke disputes with Moscow and Beijing.

"Are they run on professional or political criteria?" said Joaquín Almunia, the European commissioner for economic and monetary affairs. "I would also like to know where a fund is investing and why," he added, but "this creates political problems."

Virtually every West European country has mechanisms in place to review outside investments on national security grounds, though the scope of that authority, and the political influence involved, can vary. Britain tries to keep politics out of the picture by having independent agencies conduct the reviews, while France has issued a list of protected sectors, ranging from biotechnology needed to fight terrorism to casinos that might launder money.

The Germans are grappling with how to define what funds would fall under scrutiny, how to regulate their investments - if at all - and whether EU rules would be affected, according to a German official. Peer Steinbrück, the German finance minister, has said that the German inquiry is examining sectors including banking, postal services, telecommunications, logistics and energy, with an eye toward not harming normal capital flows.

"We want to take care that we look at the totality of the factors in the financial markets," said Gerhard Cromme, the chairman of engineering giant Siemens and an informal adviser to the German government on the subject.

Given that the reviews in Berlin and Brussels focus heavily on Russia and China, much will depend on whether European leaders choose to see potentially malign intentions among those investors. The evidence to date cuts both ways, analysts said.

When it has undertaken other investments, like the Blackstone deal, and a much smaller pension fund, it has worked through third parties, and Beijing's orders have been identical to those of any commercial investor: get a good return.

Yet other Chinese investments, notably in Africa, illustrate more national interest, one EU official pointed out. There, with a mixture of foreign aid, high-profile visits and investment, China has tried to secure long-term access to oil and other raw materials.

Russia has seemed more aggressive with energy resources, suggesting it would do the same with the money it earns from them.

Vladimir Putin, the Russian president, has embraced energy resources as a tool of foreign policy, most notably in a standoff with Ukraine. And one goal of its investment in EADS, analysts have observed, was to help revitalize Russia's own lagging aerospace industry.

The optimists caution that the rising controversy may simply be more growing pains of greater global economic integration. If China and Russia can convince the West their intentions are benign, and act accordingly, then perhaps they will relish being viewed as normal, though very powerful, foreign investors.

"In five or 10 years, dealing with Chinese and Russian investments will be a daily task," said Christian Strenger, a board member at DWS, a major German asset management firm. "And when it becomes much more normal, then this issue may die down."

Experts warn of lightning-strike injuries with electronic devices

TRENTON, New Jersey: Listen to an iPod during a storm and you might get more than electrifying tunes.

A Canadian jogger suffered wishbone-shaped burns on his chest and neck, ruptured eardrums and a broken jaw when lightning traveled through his music player's wires.

Last summer, a Colorado teen ended up with similar injuries when lightning struck nearby as he was listening to his iPod while mowing the lawn.

Emergency physicians report treating other patients with burns from freak accidents while using personal electronic devices like beepers, music players and laptop computers outdoors during storms.

Michael Utley, a former stockbroker from West Yarmouth, Massachusetts, who survived being struck by lightning while golfing, has tracked 13 cases since 2004 of people hit while talking on cellphones. They are described on his lightning safety Web site, www.struckbylightning.org.

Contrary to some urban legends and media reports, electronic devices do not attract lightning the way a tall tree or a lightning rod does.

"It's going to hit where it's going to hit, but once it contacts metal, the metal conducts the electricity," said Mary Ann Cooper of the American College of Emergency Physicians and an emergency-room doctor at University of Illinois Medical Center at Chicago.

When lightning jumps from a nearby object to a person, it often flashes over the skin. But metal in electronic devices - or metal jewelry or coins in a pocket - can cause contact burns and exacerbate the damage.

A spokeswoman for Apple, the maker of iPods, declined to comment. Packaging for iPods and some other music players do include warnings against using them in the rain.

Lightning strikes can occur even if a storm is many miles away, so lightning safety experts have been pushing the slogan "When thunder roars, go indoors," Cooper said.

Jason Bunch, 18, said it was not even raining last July, but there was a storm in the distance. Lightning struck a nearby tree, shot off and hit him.

Bunch, who was listening to Metallica while mowing the grass at his home in Castle Rock, Colorado, still has mild hearing damage in both ears, despite two reconstructive surgeries to repair ruptured eardrums. He had burns from the earphone wires on the sides of his face, a nasty burn on his hip where the iPod had been in a pocket and "a bad line up the side of my body," even though the iPod cord was outside his shirt.

"It was a real miracle" he survived, said his mother, Kelly Risheill.

The Canadian jogger suffered worse injuries, according to a report in The New England Journal of Medicine on Thursday.

The man, a 39-year-old dentist from the Vancouver area, was listening to an iPod while jogging in a thunderstorm when, according to witnesses, lightning hit a tree and jumped to his body. The strike threw the man about 2.5 meters, or 8 feet, and caused second-degree burns on his chest and left leg.

The electric current left red burn lines running from where the iPod had been strapped to his chest up the sides of his neck. It ruptured both ear drums, dislocated tiny ear bones that transmit sound waves, and broke the man's jaw in four places, said Eric Heffernan, an imaging specialist at Vancouver General Hospital.

Tuesday, July 10, 2007

Tesla General Purpose Processor Platform

NVIDIA Announces Tesla General Purpose Processor Platform
Today, NVIDIA reveals that it is not behind when it comes to general purpose GPU, or GPGPU, computing. Earlier this year the company announced its complete unified device architecture, or CUDA, Technology, which laid the groundwork for GPGPU programming for NVIDIA GPUs. CUDA Technology directly competes with AMD’s Stream Computing initiative.
The internal PCIe solution consists of an output-less GeForce 8-series based card on a PCIe x16 card. The Tesla D870 is NVIDIA’s only internal GPGPU card for desktops. The GPGPU still requires two external PCIe power connectors and consumes up to 170-watts of power at maximum. NVIDIA claims the Tesla D870 delivers 518 Gigaflops of GPGPU processing power.
The Tesla C870 GPGPU server packs two GeForce 8-series GPUs in an external system with packaging similar to the QuadroPlex. The GPGPU delivers one Teraflop of GPGPU computing power while consuming up to 550-watts of power.
The Tesla S870, D870 and C870 carry an MSRP of $12,000, $1,499 and $7,500, respectively.

Toshiba's stylish Tekbright 7 digital photo frame

As the barrage of new Toshiba gear continues to flow from Paris, along comes a device that we aren't used to seeing from the laptop and monitor-tilted company. The seven-inch Tekbright 7 digital photo frame sports a stylish silver bezel, a clear beveled surround, rear-mounted kickstand, 800 x 400 resolution, and a 400:1 contrast ratio. Additionally, you can load up your images via CF, SD, MMC, MS, MSPro, xD, and USB, and there's even a paltry 16MB built-in for storing the crème de la crème. Unfortunately, it doesn't appear to sport any WiFi abilities or even a wireless remote, but the reasonable €139 ($186) pricetag seems to justify the omissions somewhat.

BenQ Introduces Two New Digital Cameras

Even after all the name changing, CEO shenanigans, and apparent scrapping of their digital camera division, BenQ still has found the time, money, and effort to release a few nice looking new cameras. The C740i (7 megapixel) and the E820 (8 megapixel) share a number of the same features, including: 3x optical zoom, Pentax lenses, a 2.5-inch LTPS screen, SD card support, continuous movie mode, face tracking, and red eye reduction. Where the cameras part ways, however, is in the details. The C740i features PASM, which gives you all sorts of control over shutter and aperture settings, and has a high ISO of up to 1600. The C820, on the other hand, can shoot in 16:9 or 3:2 modes, has an ISO of up to 1200, and uses PictBridge for direct printing. No word yet on pricing or availability.

Toshiba intros Camileo Pro digital video camera

Toshiba looks set to release a new digital video camera for those interested in a little point and shoot action, with its new Camileo Pro offering some slight advantages over the previous plain old Camileo. This one boasts a 7 megapixel sensor, according to Le Journal du Geek, and will capture 640x480 video in either MPEG-4 or AVI formats, with a 2.5-inch LCD, 3x optical zoom, SD card slot, and 64MB of internal storage rounding out the specs. While there doesn't appear to be any word of a North America release, those in Europe will be able to get their hands on one for 199€ ($268).

Silicon Power's 8GB UDMA 300x Compact Flash card

Sure, there still aren't any DSLRs available to handle it, but at least now you have choice in your unsupported UDMA CF media. Meet the UDMA 300x Compact Flash card from Silicon Power. Available in 2, 4, or 8GB capacities, these cards feature an Ultra Direct Memory Access 45MBps transfer rate making them the ideal choice for rapid firing, professional DSLRs -- you know, when they actually start supporting UDMA sometime later this year. On sale in Japan in the next few days for prices which should top-out at around $200 for 8GB.

AMD Releases Two New TV Wonders

AMD announced two new multimedia TV Wonder products – the TV Wonder 650 Combo PCIe and TV Wonder 600 USB. The new TV Wonder 650 Combo PCIe features the Theater 650 Pro video processor, which made its debut over a year ago.
AMD equips the TV Wonder 650 Combo PCIe with dual tuners, one to receive analog and one to receive digital broadcasts. Both tuners can operate simultaneously, allowing users to watch and record from two sources at the same time. The digital tuner on the TV Wonder 650 Combo PCIe features ClearQAM technology, which allows users to receive unscrambled digital broadcasts over cable TV lines.
The digital tuner on the TV Wonder 650 Combo PCIe can also tune into high-definition broadcasts from over-the-air and ClearQAM digital signals. An FM tuner is also integrated. The TV Wonder 650 Combo PCIe slips into a single PCIe x1 slot. Other notable features include Avivo video processing for hardware MPEG-2 encoding, motion adaptive 3D comb filter, automatic color control, automatic gain control, noise reduction and edge enhancement technologies.
The new TV Wonder 600 USB tuner features a hybrid TV tuner design that can tune into analog and digital broadcasts. Unlike the TV Wonder 650 Combo PCIe, the TV Wonder 600 USB does not have dual tuner functionality. Nevertheless, users can tune into free over-the-air digital and high-definition broadcasts or analog broadcasts. The TV Wonder 600 USB does not support ClearQAM. AMD doesn’t divulge details of the new TV Wonder 600 USB’s innards. Both new tuner products come bundled with Catalyst Media Center software and fully compatible with Windows Vista Media Center and Windows XP Media Center Edition. Expect the TV Wonder 650 Combo PCIe and TV Wonder 600 USB to show up in September.

Truths you Should Know About Online Degrees

Searching for a college can be a daunting task, especially when you are not sure what is true and what is false about certain types of colleges. When it comes to taking college classes online, there are many people that are misinformed. Here are six myths about online colleges:

Online courses are easier than traditional brick and mortar college classes.

False. This is a huge misconception about online colleges. Online college courses are actually typically more difficult than traditional college classes. By taking a class online, you are assuming all responsibility to learn on your own time. Whether you listen to a lecture by your instructor that is streamed online or you have to take the time out of your own schedule to go over some slides online to take a quiz, you take the responsibility to learn the information. Although the instructors are helpful and respond promptly when you ask them a question, they will not baby sit you and make sure you get your stuff done, so you have to be organized and responsible enough to complete the assigned tasks on your own time.

A degree from an online school isn't quite as good as one from a brick and mortar college.

False. A degree from any college is good, as long as the college is accredited. Nowadays, one main qualification for a high-paying job is an education and a college degree. Workers without a college degree are usually left behind when it comes to being promoted in any area of work. College-educated employees earn almost double the wages as high school-educated workers, and with so many people starting to go to college, we can only expect the gap to expand even more.

Employers look down upon online college degrees.

False. Employers do take into consideration that you earned your degree online, but not for reasons you might think. With many jobs available in the workplace that require employees to work under little or no supervision, responsibility and organization are two of the main qualities employers are looking for in a good worker. By taking online classes and earning your degree, you prove that you are hard working, dedicated to learning and organized enough to work on your own time and under your own management.

There is no social interaction or communication with other students or instructors.

False. With the advancement of the internet, there is a lot of communication between students. There are chat rooms, classroom discussions and instant messaging services to keep in contact with not only your classmates, but your instructors. Even in traditional brick-and-mortar colleges, students often keep in touch with classmates and professors via some type of electronic medium. Many professors at four-year institutions actually prefer to maintain contact with students through e-mail because of the ease and availability.

The credits you earn at an online college will not transfer to other colleges.

False. As long as your credits are earned from an accredited online university, they will most likely transfer to any college, including brick and mortar colleges and other online universities. Many online colleges actually have programs called transfer programs. In a transfer program, you take your general education classes at a technical or online college and transfer those credits to a four-year college or university, where you then decide your specific area of study.

You need to be a computer genius to earn your degree online.

False. There are many different types of people who take online courses that are not computer science majors. The programs that many online institutions use for learning online are very user-friendly, and instructors try to make it very simple for students to perform computer-related tasks, such as uploading their assignments or taking a quiz. There are many online resources that are available to students who wish to take a class online, including electronic libraries, instant messaging and online tutorials that help progress your online learning experience and education.

By making yourself aware about the truths of college, you can become educated about different colleges before you enter higher education. Research colleges, read articles and inform yourself about different colleges and different types of colleges.

Source: at ArticlesBase.com

To Be Pro CD For Every One






This Training cd designed and created for a training course that was conducted for PED Project Apprentices on 21 November 2006 in Ramallah-Palestine. This cd include E-Mail & Internet skills ,win xp & Linux suse installation , MS office, and some programs.

SO I DECIDED tO SHARE IT WITH REST OF THE WOLRD

IT COVER ALL NEWBIES AND PRO CONCEPT AND I THANKS THE PERSON HOW BIND AND DO ALL THE WORK

I TAKE NO LEGAL RESPONSIBILTY WHAT A PROGRAM IN THE CD CAN DO ITS JUST FOR KNOWLEDGE


To Be Pro CD is an iso package file.

File Size 430MB.

ISO file is compressed & splited.

Download CD:

How to Burn ISO File Video Tut

How to Burn ISO File

This movie describe how to burn ISO file using nero burning program

Linux Installation In Video Mode

linux Installtion on Ur Pc
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Windows Vista Installation In Video Mode

Windows Vista Installation In Video Mode

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Windows XP Pro Installation in Video Mode

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Sunday, July 8, 2007

High Yield Investment Program

A High Yield Investment Program, or HYIP, is a type of pyramid scheme normally offered via the Internet. HYIPs typically accept deposits as low as $1 while promising astoundingly high returns..

Online HYIP schemes rarely last for the long term. Overwhelming number of cases suggest that HYIPs are Ponzi schemes, in which new investors provide the cash to pay a profit to existing investors, which they typically then withdraw.[citation needed] This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised).

The introduction of e-currencies has made it possible for HYIPs to operate on the internet and cross international boundaries, and to accept large numbers of small investments. HYIPs usually accept deposits by either e-currency, like e-gold, e-bullion and INTGold, or use specialist third party payment processors like AlertPay, SolidTrustPay, CEPTrust, TriStarMoneyChangers and StormPay. HYIPs typically offer a significant incentive commission (for example, 9% of invested funds) for members to attract and refer new investors.

Most HYIPs disclose little or no detail about the underlying management, location, or other aspects of how money is to be invested, and relatively little information (other than asserting that they do various types of trading on various stock and other exchanges) on how they actually generate the returns they purport. They are sometimes presented with some form of an emotional appeal, appeals for faith, and promises that they will help investors achieve financial freedom.

Arguably, the largest HYIP scam that has existed on the internet was PIPS (People in Profit System or Pure Investors). The investment scheme was started by Bryan Marsden in early 2004, (according to the Wayback Machine record of http://pureinvestor.com) and spanned more than 20 countries. PIPS was investigated by Bank Negara Malaysia in 2005 which resulted in Marsden and his wife being charged in a Malaysian court with 97 counts of money laundering involving more than RM77 million - US$20 million - (copy of New Straits Times article dated 11 Oct 2006). Even after these charges were brought forth many of Marsden's followers/investors continued to support him and believe they would see their money some day. This behavior and denial could be seen and still is seen on hyip forums such as Talkgold Forum and others.

Interest rates
HYIPs typically claim to offer interest rates of 1% or more per day on invested funds; some claim to offer much higher daily rates exceeding 200% a day. Allegedly, the highest-return HYIP on record has offered 1,100% ROI in one day. Claims of astronomical returns without large capital outlay or background information are indicative of a Ponzi-structured HYIP program.

As a comparison with a typical 1% per day claim, Warren Buffett, one of the world's most successful investors, made around 30% per year during his most successful period; that is on average, less than 0.1% per day. As the claimed returns of 1% per day are extremely unlikely to be produced legitimately, all HYIPs are therefore likely to be Ponzi schemes, and so most investors will in due course lose their money.

HYIP games
As a result of online forums and monitoring sites which have made HYIP investors more aware of their nature, a different sort of "honest" HYIP began springing up in the early months of 2006. Basically, the HYIP owner calls his or her program a "ponzi-structured game" where one should "not invest money one cannot afford to lose", and where there is "never a guarantee of earnings or refunds". They promise to pay out up to (for example) 95% of deposits, the rest going to hosting or other fees and the owner's profit.

In such "games", the first participants ("investors") may make a good profit and are encouraged to refer other people to the program because of referral commission, the fact that they have already made back their principal and are playing with profit, and that the more people who deposit money, the more money can be paid out to participants. In theory, strategies can be developed to maximize profit using these games (but, of course, since this is a zero-sum game, such strategies work by taking advantage of ignorance or errors by others). Some forum users may gain a reputation whereby others will trust their word that they have been able to withdraw their profits, encouraging others to invest in the hopes that more will invest after them and that they can therefore make a profit. As these games are by definition Ponzi schemes, it is inevitable that the vast majority of investors who are not at the top of the pyramid will lose their money.

These "games" might be considered as lotteries. However, the odds of winning cannot be determined, as one cannot know whether one is playing early enough to win money (that is, whether a sufficient number of new participants will follow). Thus, these activities are unlike a lottery or other forms of gambling, where a player has an equal chance of winning no matter when a ticket is bought, or where the odds of the game are known.

HYIP monitors
HYIP monitors, or HYIP listing/rating sites, are websites that list and/or promote HYIPs for referral commissions. The monitor charges each HYIP a listing fee which is usually then invested into that program, although there exist free listings and occasionally monitors which invest their own money. The monitor then labels the HYIP as "Paying" or "Not paying/Scam" depending on whether interest is received within the terms specified by the program. Monitors also allow other HYIP investors to rate and comment on the programs, based on factors such as promptness of payouts and responsiveness of the HYIP administrator. Programs with higher ratings achieve higher rankings on the monitor sites, which coupled with a "Paying" status may entice more investors who rely on the monitor.

In most cases, HYIPs only pay monitor sites to keep their "Paying" status visible, but do not pay other investors. As HYIP monitors are not affiliated with the HYIPs themselves, they are unable to prevent investors from being scammed; they neither help to recover lost funds nor track down the scammers. Promoting or perpetuating Ponzi schemes is a criminal offense punishable by jail terms or fines in most countries. That the monitor sites place disclaimers saying that they "do not promote the programs advertised on their website" does not absolve them from criminal liability.

In order to generate a "paying" status early (so that future visitors will see it) and maintain it for the longest possible time, newly opened HYIPs list their site quickly as well as constantly pay monitors their interest on time. Added to the fact that many monitors invest the listing "fee", and that a commission is received on each deposit made by people who visit the HYIP via the monitor, they are the most likely to profit when a program runs out of funds.

HYIP owners can manipulate monitors and forums, by paying people to comment positively or by using a range of IP addresses or proxy servers in different locations so that "paying" votes appear to come from around the world. This allows the HYIP to rise up the rankings more quickly than others, giving investors a false sense of security. Additionally, even if they know it will scam in the future, some investors will also rate new HYIPs positively until the HYIP stops paying, because they want more people to invest after them in the hopes that the program will last longer. Future scammers can also build up a good reputation on forums for a large payoff once most forum members trust them.

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