California’s video game law ruled unconstitutional

By Gina Keating

LOS ANGELES (Reuters) – A U.S. appeals court ruled on Friday that a California law restricting the sales and rental of violent video games to minors and imposing labeling requirements is too restrictive and violates free speech guarantees.

The Ninth U.S. Circuit Court of Appeals found that the labeling requirement unfairly forces video games to carry “the state’s controversial opinion” about which games are violent.

The unanimous opinion by a three-judge panel could have a far-reaching impact on efforts by other states to establish mandatory video game labeling requirements.

The court upheld a lower court finding that California lawmakers failed to produce evidence that violent video games cause psychological or neurological harm to children.

“Even if it did, the Act is not narrowly tailored to prevent that harm and there remain less restrictive means of forwarding the state’s purported interests,” the court wrote.

Those alternative measures include the voluntary ratings system established by the Entertainment Software Rating Board, educational campaigns and parental controls, the court said.

State Sen. Leland Yee, the author of the legislation, said he will urge California Attorney General Jerry Brown to appeal the court’s ruling to the U.S. Supreme Court.

“I’ve always contended that the … law the governor signed was a good one for protecting children from the harm from playing these ultra-violent video games,” Yee told Reuters. “I’ve always felt it would end up in the Supreme Court.”

Bo Andersen, president and chief executive of the Entertainment Merchants Association, said the ruling vindicates his group’s position that “ratings education, retailer ratings enforcement, and control of game play by parents are the appropriate responses to concerns about video game content.”

Andersen and Michael Gallagher, president and CEO of the Entertainment Software Association, urged the state to abandon any further appeals of the case.

“This is a clear signal that in California and across the country, the reckless pursuit of anti-video game legislation like this is an exercise in wasting taxpayer money, government time and state resources,” Gallagher said in a statement.

The 2005 law, which requires games described as violent to carry an “18″ label, has been contested by video game publishers, distributors and sellers.

A lower court had barred the law from taking effect in 2006, and later invalidated it. The state appealed that case, titled Video Software Dealers Association v. Arnold Schwarzenegger (CV-05-04188), last October.

Entertainment Software Association members include Disney Interactive Studios, Electronic Arts, Microsoft Corp, THQ Inc, Sony Computer Entertainment America, and Take-Two Interactive Software.

(Reporting by Gina Keating; additional reporting by Jim Christie in San Francisco; editing by Gerald E. McCormick, Richard Chang)

U.S. lawmaker to push to repeal Internet gambling ban

By Doug Palmer

WASHINGTON (Reuters) – A senior Democratic lawmaker will push legislation this year to repeal a U.S. ban on Internet gambling that has hurt trade ties with the European Union, a congressional aide said.

“The bill introduction should happen in the next month,” a spokesman for House of Representatives Financial Services Committee Chairman Barney Frank said.

On Thursday, Reuters reported the EU could file a complaint about U.S. enforcement of the gambling ban at the World Trade Organization.

“Mr. Frank will bring back legislation to repeal the UIGEA (Unlawful Internet Gambling Enforcement Act),” the spokesman said, referring to a Republican-crafted bill passed in 2006 when the party controlled Congress and the White House.

Supporters of the ban argued offshore Internet gambling websites take billions of dollars out the U.S. economy, damage families and serve as vehicles for money laundering.

The law cost Europe’s online gambling companies billions in lost market value as they were forced to retreat from one of their most lucrative markets. It barred businesses from knowingly accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic fund transfers and checks.

Against Frank’s advice, the Bush administration finalized regulations late last year to implement the ban and gave companies until December 1 to comply.

Frank said the rules would burden the financial service industry at a time of economic crisis.

Many publicly traded European companies, like PartyGaming and 888.com, withdrew from the United States after Congress passed the ban, but they face possible criminal prosecution for activities before then.

The European Commission, acting on industry petition, began a formal investigation in March into whether Washington was singling out EU companies for enforcement actions while allowing U.S. online firms to operate freely.

Sources familiar with that investigation told Reuters in Brussels on Thursday they expect the investigators’ report, initially due last year, to recommend action at the WTO when it is released next month.

Rather than move immediately to litigation, EU officials would use the report as leverage to seek a negotiated solution with the United States, they said.

China Internet users asked to probe custody death

BEIJING (Reuters) – China has invited skeptical Internet surfers to help investigate the death of a man in custody who police say ran into a wall blindfolded while playing hide-and-seek, state media said on Friday.

Li Qiaoming, 24, died from a severe brain injury four days after being sent to hospital from a detention center in the southwestern province of Yunnan, the Beijing News said.

He had been arrested for illegally cutting down trees.

The cause of death given by police has been widely questioned on the Internet.

“We’ve invited Internet users to investigate the case on the spot and hope they can made their own judgment and spread the information they see with their own eyes to as many people as possible,” Gong Fei, Yunnan’s propaganda chief, was quoted as saying.

“It’s the first time in Yunnan, and even in China, netizens have been asked to participate in an investigation,” he was quoted by the official Xinhua news agency as saying.

China, the world’s most populous country, has the world’s largest Internet population, with 298 million users at the end of 2008, an increase of nearly 42 percent from the previous year.

China keeps a tight rein over the Internet, launching crackdowns on what it sees as “vulgar” content, ranging from pornography to politically taboo subjects, but also keeps a close eye on hotly discussed topics for signs of possible unrest.

Police brutality of detainees to extract confessions is also a regular topic for the media.

(Reporting by Beijing newsroom; Editing by Nick Macfie and Sanjeev Miglani)

Ill, disabled Aussie kids get first online network

By Pauline Askin

SYDNEY (Reuters Life!) – Being a teenager can be hard, and even tougher if you’re different, but an Australian organization hopes to ease these growing pains through an online social network dedicated to youth with illnesses or disabilities.

Livewire (www.livewire.org.au), which was launched this week, is being touted by the media as a “Facebook for sick kids” and is the first social network website of its kind in Australia.

According to child health statistics, an estimated 450,000 Australians aged between 10 and 21 are currently living with a serious illness, chronic health condition or disability, and the website hopes to become a support network for them.

“This whole relationship that the kids can create with others is really to help them secure the friendships that they may be missing out on in the real world,” Omar Khalifa, managing director of Livewire told Reuters.

“We keep hearing from these children that they want to be normal; they don’t want to dwell on their illness. One boy wrote to us and said ‘I’m paralyzed from the waist down but when I come on Livewire I know I’m not as bad as others,’” Khalifa said.

Livewire provides a safe and fun online community where members can share experiences, he said. Like MySpace or Facebook, users can play games, access blogs and enter chatrooms.

“Livewire is a lot safer, I wouldn’t be comfortable talking about my illness on Myspace of Facebook,” said 13-year-old user Annie Grindrod, who suffers arthritis.

“You are talking to people who have gone through the same things you have gone through and spent time in hospital and its good to just be able to talk to them,” she told Reuters.

Livewire recruits members from referrals through it’s parent organization, the Starlight Children’s Foundation, and through hospitals that treat disabilities or chronic cases.

The site is hoping to sign up 20,000 members this year, and has stringent security measures in place to ensure members are safe from cyber bullying and other threats.

“The Federal Police have developed part of the training program for us to identify cyber bullying and anything else untoward that may happen in a chat. So our guys are pretty clued up,” Khalifa explained.

(Reporting by Pauline Askin; Editing by Miral Fahmy)

Social networks are telcos’ new best friend

By Georgina Prodhan

BARCELONA (Reuters) – Everybody at this week’s Mobile World Congress in Barcelona wanted to be the new best friend of the social networks.

From the world’s biggest phone maker, Nokia, to tiny Irish semiconductor start-up Movidia, delegates to the wireless industry’s biggest annual gathering couldn’t stop talking about Facebook, MySpace and Bebo.

The majority of visits to such online communities are still made by people sitting at a computer telling their friends where they are and how they are feeling, exchanging opinions on their favorite movies and music or uploading videos.

But the spontaneous and personal nature of much of that communication lends itself perfectly to the mobile phone.

The top executive at MySpace, owned by News Corp, said members reaching the network from mobile phones had quadrupled in the last year to 20 million, out of 135 million unique visitors in total, and Facebook has seen a similar leap.

“This is really just the start of where we’re going with this,” MySpace Chief Executive Chris DeWolfe told Reuters.

MySpace announced deals at the fair with Nokia and Palm, who will adapt some of their phones to make uploading pictures or video to the social network a matter of a single push of a button.

The company is confident that most smartphone makers will feature MySpace in the coming year.

The so-called Facebook phone or Social Mobile made by INQ, a spin-off of Hutchison Whampoa’s 3, won handset of the year award from the show’s hosts, the GSM Association — and everyone involved was eager to claim a share of the credit.

“Qualcomm’s integrated chipset technology and BREW software have enabled INQ… to realize the potential in mobile social networking,” gushed Enrico Salvatori, the head of chipmaker Qualcomm’s operations in Europe.

BUZZ

Behind the buzz is a telecoms industry that has finally brought together the network speed and capacity and the gadgets to make capturing and sharing pictures or video on the run a fun thing to do rather than a tedious and frustrating experience.

Apple’s iPhone, first announced two years ago and updated in mid-2008, gave the industry a jolt and still sets a benchmark, although imitators and challengers abound.

Korea’s LG Electronics has also struck out with bold designs and models made for capturing and sharing media, and has been marketing features like a single button for publishing video to Google’s YouTube for over a year.

Sony Ericsson made headlines at the mobile fair with plans to bring a 12-megapixel camera to market in the second half of this year, and Samsung unveiled an phone with built-in high-definition camcorder. 

Disney buys kids Web site Kerpoof

LOS ANGELES (Hollywood Reporter) – The Walt Disney Company said Thursday it has paid an undisclosed amount for Kerpoof Studios, a creator of online tools that kids can use to make artwork, write stories and create short movies.

Kerpoof’s technology has been integrated into Disney.com, enabling users to create artwork around properties including Mickey Mouse and characters from the films “Cars” and “The Little Mermaid.”

Disney said it will continue to run Kerpoof.com. Kerpoof will remain in Colorado. The company’s co-founder Krista Marks has been named general manager of Disney Online Kerpoof Studios.

Disney has made several recent investments in Internet companies, with the biggest being Club Penguin, which Disney acquired in 2007 for as much as $700 million.

Kerpoof is a mostly free site containing art objects, 3-D backgrounds, blank pages and writing and drawing tools that can be manipulated by children. It has become popular among elementary-school teachers. Users can upgrade their options for about $45 a year.

(please visit our entertainment blog via www.reuters.com or on blogs.reuters.com/fanfare/)

Livewire to help connect sick kids

EVERY five weeks when Nicholas Fitzpatrick-Fuller arrives at Randwick Children’s Hospital for a full blood transfusion he battles boredom and the loneliness of being away from his friends and family.

But the 14-year-old from Port Kembla has a new way to spend his time thanks to Livewire – a new social networking site for young Australians living with serious illness, chronic health problems or disabilities.

Owned and run by the Starlight Foundation, Livewire is a way for youngsters aged between 10 and 21 to connect with others and share experiences and even entertain themselves with games and other content.

More than 450,000 young Australians live with serious health issues and, after having to miss school, sport and other social activities, are left feeling isolated.

"It’s pretty fun and I’m sure I’ll be using it quite a lot," Nicholas said as he was nearing the end of his six-hour transfusion yesterday.

Livewire managing director Omar Khalifa says the site’s goal is to brighten the lives of seriously ill children.

"The site helps them to communicate with family and friends while they are away and to increase their own emotional well-being," he said.

"Adolescents go through a lot of change on their lives between the ages of 10-21 and that is really the target for us at Livewire."

Cinnamon Pollard, Livewire marketing and partnership director, says the site offers more than just a way to socialise.

"Livewire offers what we call a moderated environment. Chat hosts are young and educated in adolescent health issues with most coming from teaching and social work and social support backgrounds."

Apart from setting up the site, Livewire has also installed wireless networks to connect patients in hospitals including Randwick, Canberra and Westmead.

The site will be open to children who have written permission from their parents but will also have sections for siblings and parents to address any needs and concerns they might have about their respective situations.

"If you’re very sick and bedridden or housebound then you also lack self determination because people are always doing things for you," Ms Pollard said.

"To lack self determination at that time of your life has a massive impact on your social and emotional wellbeing."

Communications Minister Stephen Conroy today said the site would help alleviate the isolation felt by young people with a chronic illness.

"Livewire helps young people to stay in touch with those they love, and to connect and gain support from others who share a similar situation," he said.

"I feel strongly that this pioneering online community will help bring a sense of normality and stability to many otherwise disrupted lives."

The Daily Telegraph

Music site aims to spotlight creativity, thrift

By Georg Szalai

NEW YORK (Hollywood Reporter) – Online TV firm Next New Networks and fiber-optic service Verizon FiOS are launching an online network Thursday called $99 Music Videos to showcase the talents of emerging musicians and filmmakers.

The companies say they aim to create an MTV for the digital and iTunes age against the backdrop of strong consumer interest in online music videos.

The network pairs musicians and filmmakers to produce original music videos for no more than $99, potentially giving them exposure to new fans.

Verizon is the exclusive launch sponsor for the network, which initially will consist of two shows: a behind-the-scenes look at the videos and the finished videos themselves. Viewers can rate the videos and submit their own.

The network launch kicks off with an original video for “The Sun Song” by La Strada, directed by executive producer and Webby Award-winning filmmaker Jack Ferry.

New videos will premiere every Thursday at 99dollarmusicvideos.com. Directors also include Dan Meth, Ana Veselic, Kathleen Grace and Matthew Semel. Upcoming music talent includes Jeffrey Lewis & the Junkyard, Via Audio, Plushgun, the Depreciation Guild, Project Jenny, Project Jan, Lowry and Savoir Adore Frances.

The forces behind the network include MTV’s original creative director, Fred Seibert, a co-founder and the creative director of Next New Networks; Felicia Williams, former entertainment content manager at YouTube and Next New’s director of creative development; and Ferry.

“$99 Music Video stands for everything that’s exciting about Web entertainment today in bringing together rising star bands, creative filmmaking and a low-cost vibe to create original, fresh content,” Seibert said. “I was there at the start of MTV, and this has the same feeling all over again.”

(Editing by Sheri Linden at Reuters)

(please visit our entertainment blog via www.reuters.com or on blogs.reuters.com/fanfare/)

Mobile advertising edges closer to breakthrough

By Kate Holton

BARCELONA (Reuters) – After years of hype and hot air, advertising on mobile phones finally appears to be making some headway, boosted by the popularity of smartphones such as Apple’s iPhone and the content found on them.

Executives gathered at the mobile industry’s annual event in Barcelona, Mobile World Congress, said the biggest boost to advertising was the introduction of smartphones, led by the iPhone, which had made surfing the Web an everyday occurrence.

Apple is also responsible for the popularity of another growth driver, the AppStore, which lets iPhone users download thousands of small software programs to personalize the way they play games, listen to music or find directions.

Advertisers have been able to place ads within those programs, or widgets.

But any operators hoping for a boost should likely not hold their breath, as analysts and executives believe the majority of advertising dollars will go to the publishers such as Google who already dominate the Web.

“While we all believe in mobile advertising, we have to recognize that it hasn’t taken off as quickly as expected,” said Vodafone’s Vittorio Colao, chief executive of the world’s largest mobile group by revenue.

The mobile industry has talked up advertising for many years, touting the personal and ubiquitous nature of the phone and its ability to offer ads based on location.

Anyone interested in a new car, for example, can in one step click through to ring the dealership.

Its supporters also point to the forecast that in a couple of years, mobile is expected to become the most common way to get onto the Internet, overtaking the computer.

But would-be promoters of mobile advertising have found that getting around the problem of cluttering up the phone’s small screen with display ads has been harder than expected.

And, a lack of common standards across the industry in how operators, handset makers and advertising agencies approach the service, and the little research showing its effectiveness, mean the industry is still some way from taking off.

There is no real consensus yet on the value of global advertising spent on mobile although Mike Wehrs, head of the trade group Mobile Marketing Association, said he believed it was at the million range and not yet billions.

HYPER TARGETED

Serious interest, however, is growing fast.

Christian Louca, the UK country manager of mobile advertising agency YOC, told Reuters the mobile advertising industry had now moved beyond the trial phase and was starting to see dedicated budgets for mobile. 

Whereabouts of detained Egypt blogger unknown: Amnesty

CAIRO (Reuters) – Egyptian authorities have not disclosed the whereabouts of an Egyptian blogger and activist who campaigns against Egypt’s Gaza policy and was reported to be detained earlier this month, Amnesty International said.

Diaa Eddin Gad, 22, was detained on February 6 outside his home in the Nile Delta province of Gharbiya by security men who beat him as he screamed to his mother for help, Amnesty said in a statement seen by Reuters on Thursday,

“He is believed to be held incommunicado in an unknown location, putting him at danger of torture,” the London-based rights group said, adding that inquiries by his lawyers and family had failed to locate him.

Gad’s blog Sawt Ghadib or “An Angry Voice” (http://soutgadeb.blogspot.com) contains pro-Gaza slogans, news and commentary on Gaza, as well as strident denunciations of Egypt’s President Hosni Mubarak and security services.

Amnesty said that days before Gad was arrested, he had participated in a Gaza solidarity demonstration in Cairo. Police gave no reason for the arrest.

Egypt has been less tolerant of criticism of its Gaza policy since an Israeli offensive that ended on January 18 and which increased Egyptian public opposition to Cairo’s participation in an Israeli-led blockade of the Hamas-run territory.

Authorities also detained a Egyptian-German activist who blogs on Gaza issues, Philip Rizk, this month but released him after several days following an international outcry. Authorities have also detained several activists for trying to enter Gaza illegally.

The Egyptian government is wary that public support for Gaza will boost the popularity of the Muslim Brotherhood, the strongest opposition group in the country, which has ideological and historical ties with Palestinian Islamist group Hamas.

(Writing by Sarah A. Topol)