Neowin.net

The open-source operating system trailed only the economic environment in the biggest risks outlined by CFO John Connors.

Microsoft is taking the Linux threat seriously. So seriously, in fact, that open-source software comes in at the No. 2 spot on the company's top five list of risks. In a teleconference to go over the Redmond, Wash.-based developer's fourth quarter and fiscal 2003 results on Thursday, CFO John Connors detailed the five biggest risks to his company's business. "The general economic environment is risk and driver No. 1," he said. "Linux and non-commercial software is risk No. 2."

The rest of the top five, Connors said, are growing the installed base in today's tight-spending climate, litigation, and executing plans on multiple fronts. "I'm a bit surprised that Linux comes in at number two on their list," said Michael Cherry, an analyst with Directions on Microsoft, an independent research firm that tracks Microsoft's products and strategies. "I might have flipped Nos. 2 and 3. But when you think about it, Linux falls in the same category as the attempt to grow the installed base," he said, going on to lump the two into what he calls "just good enough."

News source: InformationWeek

The campaign comes just weeks after U.S. appeals court rulings requiring Internet providers to readily identify subscribers suspected of illegally sharing music and movie files. The 1998 Digital Millennium Copyright Act permits music companies to force Internet providers to turn over the names of suspected music pirates upon subpoena from any U.S. District Court clerk's office, without a judge's signature required.

In some cases, subpoenas cite as few as five songs as "representative recordings" of music files available for downloading from these users. The trade group for the largest music labels, the Washington-based RIAA, previously indicated its lawyers would target Internet users who offer substantial collections of MP3 song files but declined to say how many songs might qualify for a lawsuit.

"We would have to look at historic trends, but that is a very high number," said Alan Davidson of the Center for Democracy and Technology, a civil liberties group that has argued against the subpoenas. "It doesn't sound like they're just going after a few big fish."

Music fans are fighting back with technology, using new software designed specifically to stymie monitoring of their online activities by the major record labels.

A new version of "Kazaa Lite," free software that provides access to the service operated by Sharman Networks Ltd., can prevent anyone from listing all music files on an individual's machine and purports to block scans from Internet addresses believed to be associated with the RIAA.

Many of the subpoenas reviewed by the AP identified songs from the same few artists, including Avril Lavigne, Snoop Dogg and Michael Jackson. It was impossible to determine whether industry lawyers were searching the Internet specifically for songs by these artists or whether they were commonly popular among the roughly 60 million users of file-sharing services.

The RIAA's subpoenas are so prolific that the U.S. District Court in Washington, already suffering staff shortages, has been forced to reassign employees from elsewhere in the clerk's office to help process paperwork, said Angela Caesar-Mobley, the clerk's operations manager.

The RIAA declined to comment on the numbers of subpoenas it issued.

"We are identifying substantial infringers and we're going to whatever entity is providing (Internet) service for that potential infringer," said Matt Oppenheim, the group's senior vice president of business and legal affairs. "From there we'll be in a position to begin bringing lawsuits."

A spokeswoman for the Administrative Office of the U.S. Courts said the clerk's office here was "functioning more like a clearing house, issuing subpoenas for all over the country." Any civil lawsuits would likely be transferred to a different jurisdiction, spokeswoman Karen Redmond said.

Verizon, which has fought the RIAA over the subpoenas with continued legal appeals, said it received at least 150 subpoenas during the last two weeks. There were no subpoenas on file sent to AOL Time Warner Inc., the nation's largest Internet provider and also parent company of Warner Music Group. Earthlink Inc., another of the largest Internet providers, said it has received only three new subpoenas.

Depaul University in Chicago was among the few colleges that received such subpoenas; the RIAA asked Depaul on July 2 to track down a user known as "anon39023" who was allegedly offering at least eight songs.

There was some evidence the threat of an expensive lawsuit was discouraging online music sharing. Nielsen NetRatings, which monitors Internet usage, earlier this week reported a decline for traffic on the Kazaa network of one million users, with similarly large drops across other services.