Saturday, September 8, 2007

Motorola sues Aruba for patent infringement on 3D and wireless technology

Posted by Will on Tuesday, August 28th, 2007 at 5:48 pm under Financial, Technologies, Motorola, Announcements
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Motorola logo subsidiaries Symbol and Wireless valley sue ArubaWhat better way to inject some much needed coin into the company coffers than to go out and take other people’s money? It looks like Motorola is going to join in on the fun that Broadcom and Nokia are having with their IP legal battles. The embattled mobile phone once-giant is claiming that their recent acquisition of Symbol also gave them the rights to some technology related to 3D representations and short-range wireless networking and management.

Motorola isn’t actually the one suing Aruba, rather, Motorola’s subsidiaries Symbol Technologies and Wireless Valley Communications have filed for a monetary damages and a permanent injunction against Aruba (a supplier of wireless networking equipment for offices).

Now, we’re usually against “use the courts to handle your licensing negotiation” tactics, but seeing as how this law suit doesn’t really stem from licensing negotiations and the fact that poor, old Motorola could really use some help these days, we’re going to root for Moto on this one. Just this one time Moto (wait, didn’t we say that before?).

U.K. firms more Visible with deal

U.K. firms more Visible with deal

By Stuart Kemp
LONDON -- A triumvirate of U.K. production banners have united in their quest to raise £24 million ($47 million) from investors looking to benefit from an investment vehicle named Visible Films that employs both existing tax breaks and the new-look credit system here.

The trio of companies are the Recorded Picture Co., Ecosse Films and Samuelson Prods. and includes Oscar-winning producer Jeremy Thomas ("The Last Emperor"), producer Douglas Rae ("Mrs. Brown") and Marc Samuelson, whose myriad credits include the recent "Stormbreaker" and "The Libertine."

The group aims to raise the investment cash through a system that takes in the new-look tax credit system installed here by the government Jan. 1 and the well-established 1998 Enterprise Investment Scheme.

Visible Films will give investors the opportunity to pump as much as £8 million ($16 million) into each banner's vehicle for production, but it does not ask them to invest in a slate of titles but instead the pedigree of the producers and companies involved.

Such pedigree is unquestioned, with titles made by the companies' three principals having won or been nominated for 14 Oscars, 11 Golden Globes and 26 BAFTAs.

By launching their own film-investment companies, the producers say they can "offer the public direct investment into their films."

The three new companies will be Visible Films (Ecosse) Plc., Visible Films (RPC) Plc. and Visible Films (Samuelson) Plc. "British films are now not only winning major awards in Hollywood and London but also are huge boxoffice successes. The Visible Films companies offer the opportunity to invest in producers who have made films such as 'Mrs. Brown,' 'The Last Emperor' or 'Wilde,' " Visible Films (Ecosse) producer Robert Bernstein said.

Said Thomas: "One of the attractions of this plan is that investors can be involved in a varied group of films with high aspirations and with risk mitigation from the tax relief available."

Added Samuelson: "Another attraction of investing in our schemes is the fact that investments will be channeled directly into making and distributing films."

The trio now await the rubber stamp go-ahead from financial watchdog the Financial Services Authority, which is expected by Wednesday.

Broadcasting ‘must reinvent itself rapidly'

Broadcasting ‘must reinvent itself rapidly’

A Comeback in 3-D, but Without Those Flimsy Glasses

The New York Times
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March 1, 2007

LOS ANGELES, Feb. 28 — A little past the two-minute mark, the music video for Gwen Stefani’s recent single, “Wind It Up,” finds her chained to a fence while a flurry of bubbles and snowflakes float by. Viewed from a certain perspective — that is, through 3-D glasses — it is a dreamlike moment in which the flurry seems close enough to touch.

The video begins with Ms. Stefani yodeling, a homage to “The Sound of Music,” one of the her favorite films. But the idea of adding the bubbles and snow came from an unlikely source: James Cameron, the director behind effects-laden hits like “The Terminator” and “Titanic,” who visited Ms. Stefani’s set last October and shot a separate version of the video with 3-D equipment.

“I had mentioned to the director that any kind of atmospheric effects like snow or rain usually play in 3-D,” Mr. Cameron recalled.

While “Wind It Up” was not initially planned as a 3-D video, Ms. Stefani probably won’t be the last recording artist to follow Mr. Cameron’s lead.

As part of a newly created venture, Mr. Cameron is working with Jimmy Iovine, the chairman of the Interscope Geffen A&M record label, to produce music films, concerts and other content in 3-D to show in specially equipped theaters. Mr. Iovine and Mr. Cameron hope to deliver their first production by summer.

The two acknowledge that they have yet to work out many details: they say they don’t know how many productions will be created or which artists will be featured, but the idea has been discussed with Interscope artists including Marilyn Manson and Nine Inch Nails. Many music fans may be too young to recall the last time 3-D was in vogue: the 1980s, when hordes donned flimsy multihued glasses to watch “Jaws 3” and other attractions.

But the latest version of the technology has Hollywood buzzing again, particularly since 3-D showings of animated fare like “Chicken Little” have racked up impressive sales. Mr. Cameron is at work on a $200 million 3-D feature titled “Avatar.”

Mr. Iovine and Mr. Cameron are aware of the odds of changing consumer behavior. They are wagering that fans will be willing to trek to a movie theater and pay perhaps a few dollars more than the price of a regular ticket to see their favorite stars on the big screen and in 3-D. The glasses now resemble standard sunglasses, and musicians may be able to make their own designs.

The venture, led by the film producer Gene Kirkwood, also represents a distinctive take on what both the music-video and the concert can be. If it works, the partners said, fans could experience a concert as if they were on stage next to U2’s guitarist, the Edge, or see the members of Kiss in full makeup perform a pyrotechnic show seemingly right in front of them, all for a fraction of the price of seeing a headline act on tour.

“What it does is put you, the audience, right there with the performer onstage, in their creative reality,” Mr. Cameron said recently during a break in production from “Avatar.” “The whole idea of a concert may change.”

Mr. Iovine and Mr. Cameron have discussed with executives at Harrah’s Entertainment setting up a night club in Las Vegas where visitors would be surrounded by 3-D images and watch 3-D performances, though no deal has been struck.

Mr. Iovine also said that 3-D performances could become a new way for artists to build ties to their fans and generate much-needed revenue for the ailing music business.

“The record industry has to have lots of different revenue streams, and this just looks like one that’s creatively cool,” Mr. Iovine said. “And you can’t download it. You can’t get it anyplace else.”

Universal Studios parks itself in Korea

Universal Studios parks itself in Korea

By Carl DiOrio - The Hollywood Reporter
USKOR & Associates has nabbed exclusive rights to develop a Universal Studios theme park in Korea.

A site-selection review has been launched, with plans targeting a resort-style theme park development comparable in size and scope to Uni's biggest domestic parks, officials said.

"It has been my longtime dream to establish a Universal Studios theme park resort in Korea," USKOR vice chairman Simon Hwang said. "And the (exclusive option agreement) is an important step toward the fulfillment of that dream."

Universal Parks & Resorts chairman and CEO Thomas Williams said the Korea market boasts several attractive demographics, including a well-heeled consumer public and high entertainment industry growth.

"Korea has ideal conditions for a global theme park like Universal Studios," Williams said.

USKOR will be responsible for arranging full financing for the project as well as obtain governmental and public support, officials said. POSCO E&C has inked a letter of intent to join a USKOR-led consortium as the rightsholder's first strategic partner.

USKOR president Frank Stanek is 4a 0-year veteran of entertainment and theme parks, including various roles in the development of such resorts as Tokyo Disneyland and Universal Studios Japan.

"In Korea, all the global theme park development projects announced so far have revolved around selection of a specific site before creation of a consensus with citizens, often resulting in the derailment of such projects," Stanek said.

USKORs "open-dialogue-based development approach" will better serve the project by forming investor-group agreement on site selection and other issues, officials said.

NBC Universal wholly owns Universal Studios Hollywood and holds a "significant" interest in Universal Orlando. NBC Uni also maintains licensing agreements for Universal Studios Japan in Osaka and Universal Mediterranean near Barcelona.

License agreements also have been announced for Universal Studios Dubailand in Dubai and Universal Studios Singapore.

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Private equity changing face of film industry



Private equity changing face of film industry

By Scott Roxborough and Jonathan Landreth - The Hollywood Reporter
Complete coverage from Cannes: News, reviews, video and more

CANNES -- Private equity has transformed the U.S. film industry. Players like Relativity Media, which invested in slates at Sony and Universal; Dune Entertainment, which is backing films at 20th Century Fox; and Merrill Lynch, which is close to funding the new Tom Cruise-headed United Artists, are underwriting the major studios.

But with the U.S. market stuffed with hedge fund cash, equity groups are looking abroad for investment opportunities in the media space. Where and how the big players decide to invest could radically reshape the industry in Europe and Asia.

While hedge funds are famously tight-lipped about what investments they are eying, the difference between the international and U.S. markets suggest that private equity strategies will take a different form abroad.

"Hedge funds are interested in volume and there is no one company in Europe or Asia that can deliver a slate of $30 million-$40 million pictures," said Brian Gilmore, principal at investment banker house Capitoline Global Finance. "So what you are seeing is funds looking at assets -- companies they can buy and merge with others to get the volume they need."

The pre-Cannes fusion of European sales groups Celluloid Dreams and HanWay to create Dreamachine is a deal that is being watched closely by private equity groups as a possible model for future cross-border hookups.

"I really like the Dreamachine deal, it looks very smart," the director of film finance at one of Europe's leading national banks told The Hollywood Reporter. "Alone, neither of these companies was big enough to be able to go to the next level, to access financing to do big pictures. Together, they should have the volume to access debt financing, enough to get backing for slates of pictures in the $10 million-$40 million range."

Because of the Byzantine system of film financing in Europe -- with complicated national tax structures and state subsidies, many observers see outside equity buying into distribution-based companies rather than production houses.

"We've been approached by equity firms that like the idea of a company that has all the separate parts of the distribution chain in house," said Andreas Klein, CEO of German indie Splendid, which bundles theatrical, DVD, TV sales and synchronization duties under one corporate roof.

Similarly, in Asia, investment banks and hedge funds are targeting whole companies.

With backing by ABN-AMRO, Fireworks International recently paid $50 million for a 36% stake in Taewon Entertainment of South Korea. Fireworks has committed an additional $50 million in various forms to, among other things, help Taewon buy into CGI companies in the region.

"Taewon is our Korean partner and our film partner," said David Roberts, managing director and head of Asian Equities for ABN-AMRO, adding that the equity investment is aimed at helping Taewon to become a leader in making Hollywood films with an "Asian feel."

That isn't to say no one is investing directly in foreign film slates.

The Weinsteins have set up a $285 million fund, with the help of Goldman Sachs, to invest in movies with Asian themes and elements.

The fund will be used to finance the production, acquisition and marketing of about 31 Asian films to be distributed by the Weinstein Co. over six years.

And at Cannes, principals in the fledgling Hong Kong-based A3 Intl. Film Fund declared their intentions to begin to raise $100 million during the next three months for the purpose of making 30 Asian films with varying budget levels during the next five years.

European production companies with a strong track record -- like Luc Besson's Europa Corp. ("Arthur and the Invisibles," "Taxi," "The Transporter") or the U.K.'s Big Talk Productions ("Hot Fuzz," "Shaun of the Dead") could also be targets for big-pocketed funds.

"This is all about making quality product that will sell internationally," Capitoline exec Gilmore says. "It's about giving the Luc Bessons or Pedro Almodovars of the world -- who can deliver the quality -- the capital to take it to the next level. Whether that's by buying assets or debt-financing foreign slates is going to vary from territory to territory and company to company."



China Film Group digitizing 2,000 screens

China Film Group digitizing 2,000 screens

By Jonathan Landreth - The Hollywood Reporter
BEIJING -- State-run moviemaking giant China Film Group Corp. plans to build about 2,000 digital cinemas in a new joint venture partnership with the country's leading steelmaker, Shougang Steel, company executives said Wednesday.

Dubbed China Film Group & Shougang Digital Cinema Building Co. Ltd., the joint venture, first unveiled to local media last week, believes the use of digital cinema technology will help stem some of China's rampant movie piracy problem.

Last year, about 93% of the discs sold in China were illegal copies, costing moviemakers upward of $2.6 billion in lost ticket sales, according to MPA estimates.

"The goal of our cooperation is to build digital cinemas across the country," Han Sanping, CFGC's board chairman told the official Xinhua news agency. "We will build about 2,000 new digital screens before the end of 2008."

Zhang Wenxi, Shougang's culture department chief, confirmed the China Film partnership in an interview but declined to offer financial details of the deal or detail how the joint venture plans to achieve its goal in a year when Beijing is set to host the Summer Olympics.

A ban on construction in the capital is expected to go into effect before the games begin on Aug. 8, 2008.

China now has about 3,000 modern movie screens, only 124 of which were digital in 2005, according to a recent report from the Nielsen Co. and Screen Digest. The number of digital screens in China rose from just 93 in 2004, with growth led by China Film, with 91 digital screens, and Stellar Film, with 27.

China Film's digital screens account for roughly half of their total 180 screens, a total that makes it the second-largest distributor in the country after Shanghai United Cinema Circuit, the report said.

Both groups began installing digital cinema systems in 2002 once the government's plan to encourage digital cinema began to take shape.

CFGC released 39 digital films in 2006, earning 120 million yuan ($15.38 million) at the boxoffice, company data shows.

In June 2006, China Film signed an exclusive 30-year deal with Archer Entertainment Media Communications to digitize screens across China, the Nielsen report said. As part of the deal, Archer gained rights to redevelop cinema venues and to control all aspects of digital production, distribution and exhibition.

In November, Warner Bros. International Cinema pulled out of China after four years when new government rules limited the company to holding a minority share in the theaters they were building.

It was not clear how the China Film deal with Archer will relate to the new partnership with Shougang, which, according to general manager Wang Qinghai, is expanding into electronics, architecture, shipping, finance, media and culture, Xinhua reported.

The China Film-Shougang deal is not the first pairing of unlikely partners in China's burgeoning media and culture business.

Last week at the Festival de Cannes, JA Media, a wholly owned subsidiary of alternative energy firm the Jian Group, said it will begin shooting its first five feature films this summer (HR 5/20).