Silicon Valley Wire

San Francisco-Based BitTorrent Raises $8.75 Million in First Round

San Francisco - BitTorrent, the San Francisco-based eveloper of peer-to-
peer file-sharing software with 45 million users, said that it has raised
$8.75 million in its first round of venture capital financing, which the
company intends to use to develop its software into a commercial digital
distribution tool for media firms. DCM - Doll Capital Management led
the investment round. While BitTorrent creator Bram Cohen did not
specifically say that his software would cease supporting the trading of
free music, movies, games and other copyrighted works, he did speak of
cooperating with media firms. DCM co-founder David Chao was more
explicit. "We believe BitTorrent's cooperative distribution technology
will become the leading platform for the legal and secure distribution of
large-file content for a wide range of commercial purposes around the
globe," said Chao. BitTorrent's software is already used by firms
including Red Hat, Sun Microsystems, PBS and Blizzard Entertainment
for legal content distribution.
http://tinyurl.com/dx87z

Menlo Park-Based Kana Software Raises $4 Million

Menlo Park, Calif. -- Kana Software, a Menlo Park-based maker of
software that helps businesses improve customer service, said on Friday
that it has raised $4 million in a private placement of stock. The company
said that it has sold about 2.6 million shares for $1.52 each to institutional
investors -- the same two that invested $2.4 million in the company last
June. As a result, NightWatch Capital now owns over 15% of the
company's stock. Proceeds will add to the company's working capital.
John Thompson, the CFO at Kana, said that
http://tinyurl.com/cd5vh

Netflix Lowers Guidance, Citing $4 Million Class Action Settlement

Los Gatos, Calif. -- Netflix, the Los Gatos-based online DVD rental
service, has lowered its profit outlook for the third quarter, citing the
potential $4 million in damages it faces in settling a class action lawsuit.
The company was sued in September 2004 over claims of false
advertising for its DVD rental service. The settlement is expected to reach
between $3-$4 million. Netflix now expects earnings of between $2.5-
$5.3 million for the quarter, down from previous expectations of $4.5-$8
million. The company also slightly increased its subscriber projections for
the quarter, from an estimate of between 3.35-3.5 million to a new
forecast of 3.59-3.61 million.
http://biz.yahoo.com/prnews/050929/sfth040.html?.v=29
http://biz.yahoo.com/ap/050929/netflix_guidance.html?.v=1

San Jose-Based Cisco to Acquire Los Altos-Based Nemo Systems

San Jose, Calif. -- Cisco Systems, the San Jose-based maker of
networking equipment, said on Friday that it has signed a deal to acquire
Los Altos-based Nemo Systems, a privately held developer of network
memory technologies, for $12.5 million in cash. Cisco said that the
addition of Nemo's core technology will improve the performance of its
core switching platforms and service modules. The deal is expected to
close by October 29, when Nemo will become part of Cisco's Data
Center, Switching and Security Technology Group.
http://newsroom.cisco.com/dlls/2005/corp_093005.html

Palo Alto-Based Socialtext Lands Investment from SAP Ventures

Palo Alto, Calif. -- Socialtext, a Palo Alto-based developer of group
productivity software, said on Friday that it has received an $850,000
investment from SAP Ventures, the investment arm of business software
giant SAP, to close its second round at $4 million. Draper Fisher
Jurvetson, the Omidyar Network and the University Venture Fun also
took part in the round. Socialtext currently has more than 200 business
customers, including Nokia and Symantec.
http://biz.yahoo.com/bw/050930/305172.html?.v=1

Sony Computer Entertainment Receives Emmy Award for PlayStation

Foster City, Calif. - Sony Computer Entertainment, which bases its
U.S. headquarters in Foster City, said that it has been awarded an Emmy by
the National Academy of Television Arts and Sciences (NATAS). The
award for Outstanding Achievement in Technology and Advanced New
Media is for Sony's pioneering of the 3D polygonal-based gaming
experience. "Emerging technologies in digital media play an important
role in the way in which people consume in-home entertainment, and
gaming in particular has been a consistent source of innovation in recent
years," said Seth Haberman, chair of the Video Gaming and Technology
Awards panel for NATAS. "We felt that the advent of PlayStation
exemplified a significant shift in the direction of the gaming."
http://tinyurl.com/c479e

S.F.-Based SimpleStar to Acquire Palo Alto-Based OurPictures

San Francisco -- Simple Star, a San Francisco-based provider of
consumer imaging products and services to such companies as Comcast,
Walgreens and Snapfish, said that it has signed a deal to acquire
OurPictures, a Palo Alto-based provider of photo print and share services.
Financial terms of the deal were not disclosed. Simple Star said that the
acquisition will give it a more complete consumer photo offering,
allowing users of its PhotoShow software to print photos at more than
25,000 locations nationwide. OurPictures currently provides photo
software print and share services to Ritz Camera Centers, a deal similar to
Simple Star's partnership that allows PhotoShow users to order prints
from Walgreens. Simple Star plans to retain OurPictures' entire team.
http://www.simplestar.com/press/ss_op_acquisition_092805.html

Mountain View-Based Identity Engines Raises $8.7 Million in Funding

Mountain View, Calif. -- Identity Engines, a Mountain View-based
developer of identity-based technologies designed to secure corporate
networks, said on Thursday that it has raised $8.7 million in its first round
of venture capital funding from Horizon Ventures and Lightspeed
Venture Partners. The year-old company plans to use the funds for
product development and to grow the sales and marketing organization.
Identity Engines’ appliances provides services such as authentication,
authorization and auditing to distributed network devices.
http://www.idengines.com/news/index.html

Santa Clara-Based BEA systems Acquires Cupertino's M7

Santa Clara, Calif. -- Expanding its slate of tools for developers, Santa
Clara-based BEA Systems, a maker of infrastructure software, said that it
has acquired Cupertino-based M7 for an undisclosed sum. M7 develops
tools for the development of sophisticated web applications based on
open source and frameworks such as Struts, Hibernate, Java Server Faces
and JavaServer Pages. With the acquisition, BEA plans to merge its
existing developer tools capabilities with M7’s. .
http://tinyurl.com/76vmc

Apple Acknowledges Manufacturing Flaw in Some iPod Nanos

Cupertino, Calif. - Cupertino-based Apple has acknowledged that a
manufacturing issue affecting a small number of its iPod Nano digital
music players causes their screens to crack easily, and said that it will
replace the defective units. "This is a real but minor issue that involved a
vendor quality problem in a small number of units," Apple spokesman
Tom Neumayr told the Associated Press. "This has affected less than one-
tenth of 1% of the total iPod Nano units that we've shipped. And it's not a
design issue." A number of Nano owners have complained on a web site
called FlawedMusicPlayer.com that the devices' screens also scratch too
easily, to the point that they are difficult to read. Apple rebuffed these
claims, adding that the Nano is made of the same polycarbonate plastic as
other iPod models. "A few vocal customers are saying their Nano is more
susceptible to scratching than prior iPods," an Apple representative told
CNET News.com. "If customers are concerned about scratching, we
suggest they use one of the many iPod Nano cases that are now becoming
available."
http://biz.yahoo.com/ap/050928/ipod_nano.html?.v=3 
http://biz.yahoo.com/rb/050928/apple_nano.html?.v=6 

DirecTV to Carry Programming from XM Satellite Radio

Washington, DC -- XM Satellite Radio, a provider of satellite radio
services with more than 5 million subscribers, said on Thursday that
much of its programming will soon be available to 14.6 million
subscribers of satellite television service DirecTV. Beginning November
15, DirecTV subscribers will have access to 72 channels of XM's music,
children's and talk programming. "This marks the beginning of a natural
partnership," said Patricia Kesling, XM's senior vice president of
marketing and operations. "We know from experience that when people
get to sample XM, they want to become XM subscribers." Last year,
DirecTV-rival  Dish network began offering satellite radio programming
from Sirius Satellite Radio.
http://www.xmradio.com/newsroom/screen/pr_2005_09_29a.html

Rolling Stones Album to be Released on New SanDisk Memory Card

Sunnyvale, Calif. - SanDisk, a Sunnyvale-based maker of flash memory
storage media, said that Rolling Stones album "A Bigger Bang" will be
the first title released using its new mobile digital rights management
technology. The technology can secure movies, music and games
embedded on special cards, which can be used in cell phones and portable
digital players. The album will be sold on 256MB cards featuring the
company's "TrustedFlash" technology for $39.95 starting in November. It
also will contain locked versions of other Rolling Stones albums that may
be unlocked through a PC or mobile phone.
http://biz.yahoo.com/bw/050927/276204.html?.v=1

Survey: Most Consumers Say Web Poses Threat to Children

San Francisco -- The vast majority of consumers believe that the Internet
poses a threat to children, especially from online predators and
pornography, according to a new poll conducted by Harris Interactive for
San Francisco-based Zone Labs. The survey shows that 94% of
consumers believe that the Internet presents a threat to children -- with
61% citing predators in chat rooms as the biggest threat and another 16%
citing pornographic web sites. The survey also revealed that only 23% of
respondents had installed software to secure their personal computer
against such Internet threats, and 78% said that they don't feel safer
computing online compared with a year ago.
http://biz.yahoo.com/bw/050929/295504.html?.v=1

Report: 2005 U.S. Internet Ad Revenue Up 26% to $5.8 Billion

New York - U.S. Internet ad revenue for the first half of 2005 rose 26%
over the same period last year to a record $5.8 billion, according to a new
report from PricewaterhouseCoopers conducted for the Internet
Advertising Bureau (IAB). Search advertising spending grew 27% while
remaining steady at 40% of the overall Internet ad market. Behind search
ads were banner ads, which accounted for 20% of Internet ad revenue,
and classified listings (18%). "The consistent growth in overall revenues
shows marketers may be shifting more of their total advertising budgets
to online," said PricewaterhouseCoopers partner David Silverman. "This
is a natural development as research shows more consumers are spending
a larger percentage of their media time online, while the flow of
advertising dollars follows."
http://www.iab.net/news/pr_2005_9_26.asp

Sunnyvale-Based Modulus Lands $10 Million in Second Round

Sunnyvale, Calif. -- Modulus Video, a Sunnyvale-based maker of video
compression systems, said that it has secured $10 million in its second
round of funding, led by Palo Alto-based Thomas Weisel Venture
Partners. Menlo Park-based Trinity Ventures also participated. Modelus'
MP-4 system allow for the delivery of standard and high definition video
over satellite, cable, terrestrial and IPTV networks. The company's
products include encoders and professional decoders targeted at the
broadcast, narrowcast and video-on-demand markets.
http://modulusvideo.com/main.php?action=item&Page=22&id=40

Santa Clara-Based July systems Raises $10 Million in Third Round

Santa Clara, Calif. -- July Systems, a Santa Clara-based developer of
technology that allows mobile operators and content retailers to market to
mass audiences, said that it has received a $10 million in its third round of
funding, led by Motorola Ventures, the investment arm of mobile handset
maker Motorola. July's technology allows for the creation of mobile
storefronts that allow consumers to browse "virtual malls" on their
handheld devices. The company also has teamed with Motorola to create
an architecture designed to handle all dimensions of mobile services
retailing.
http://www.julysystems.com/news/pressReleaseIn14.asp

Shareholders Approve Epiphany Sale to SSA Global Technologies

San Mateo, Calif. -- Epiphany, a San Mateo-based maker of customer
relationship management software, said on Wednesday that its
stockholders have approved the company's sale to Chicago-based
software vendor SSA Global Technologies. Once the $329 million deal is
completed, most likely by the end of the month, Epiphany will operate as
a subsidiary of SSA, with shareholders receiving $4.20 a share. The deal
was first announced in August.
http://biz.yahoo.com/bw/050928/285939.html?.v=1

Intel and Microsoft to Support Toshiba's HD DVD Standard

Santa Clara  Calif. -- Tehnology giants Intel and Microsoft have
announced their support of Toshiba's HD DVD next-generation DVD
standard, which will compete with Sony's rival Blu-ray for dominance in
the global market for new higher-capacity DVD discs. "We have a high
expectation of having a single format, and that format is HD DVD," said
Bill Kircos, a spokesman for Santa Clara-based Intel. With the news, the
two companies join such household names as NEC and Sanyo and film
studios Warner Bros., Universal and Paramount as members of the HD
DVD Promotion Group. Supporters of Sony's Blu-ray include Palo Alto-
based Hewlett-Packard, Cupertino-based Apple, Dell and film studios
Fox and Disney.
http://makeashorterlink.com/?Z171351EB

Wireless Industry Reports Record Subscriber Additions

San Francisco -- The wireless industry on Wednesday reported the largest
one-year addition of new subscribers since first offering commercial
service in 1983, adding 25.2 million subscribers for the year ending in
June. Steve Largent, the president of wireless industry association CTIA,
said that the U.S. wireless penetration rate of roughly 65% points to more
growth in the future. "When you look at countries in other parts of the
world with penetration rates exceeding 100%, it's only logical to predict
that subscriber growth in the U.S. is far from over," said Largent. CTIA's
semi-annual survey also reported a sharp increase in SMS traffic and
revenue from data services. In the month of June alone, more than 7.2
billion SMS wireless messages were sent, up from 2.8 billion the previous
year. Revenue from text messaging and SMS traffic was  $1.24 billion, up
154%.
http://www.ctia.org/research_statistics/index.cfm/AID/10030

Qwest Says it Won't Re-Enter Bidding for Ashburn-Based MCI

Denver -- Ending weeks of speculation, Denver-based Qwest
Communications said that it won't resume its bidding for MCI if
shareholders vote to reject the company's $8.44 billion takeover by
Verizon. "While some have speculated that Qwest might reconsider
bidding for MCI… Qwest does not plan to submit a new offer," the
company said in a statement. Qwest earlier this year faced off with
Verizon in a heated bidding war for MCI. Although Qwest's final $9.74
billion offer was higher, MCI's board chose to accept Verizon's bid,
largely because of that company's perceived advantage in financial
stability. Several large MCI shareholders have since threatened to vote
against the deal next week, angry that the company accepted the lower
offer.
http://biz.yahoo.com/bw/050927/275989.html?.v=1

Report: Two of Every Five Americans Now Have Broadband Access

New York -- Two out of every fire Americans now have broadband
Internet access at home, according to a new study released by
Nielsen//NetRatings. The firm said that 120.8 million people, or 42% of
the U.S. population, had high-speed connections in August, up from
103.8 million in January. "Although broadband penetration among
Internet users has long been on the rise, it was always amid speculation
that the high cost of broadband would limit its widespread adoption," said
Charles Buchwalter, the vice president of client analytics for
Nielsen//NetRatings. "However, over the last year, carriers have
responded to the growing demand for lower cost broadband, and all
indications are that this trend will continue." By contrast, fewer Internet
surfers are using dial-up connections. Among at-home Internet users,
those using a narrowband connection have decreased by 10% since
August last year, from 60.6 million to 54.3 million.
http://www.nielsen-netratings.com/news.jsp?section=new_pr

Study: Multitasking Youth Prefer Internet Over Radio for Music

Sunnyvale, Calif. -- Sixty percent of 13-24 year-olds say they prefer the
Internet for music, compared with 20% who prefer radio, according to a
new study conducted by OMD on behalf of Sunnyvale-based Yahoo. In
the U.S., the gap is a bit closer, with 47% saying they prefer the Internet
for music and 27% preferring radio. The report concluded that today's
youth often consumes multiple media formats at the same time, often
pushing traditional media formats to "background" status. "A key finding
from this study is that members of the [current] generation can fit up to
44 hours of activities in just one day," said Joe Uva, the president and
CEO of OMD Worldwide. "Their ability to perform up to three tasks
simultaneously, using multiple technologies, allows them to potentially
increase their media consumption during their average waking hours."
http://biz.yahoo.com/bw/050927/275430.html?.v=1 

Santa Clara-Based ViVOtech Secures $18.25 Million in Funding

Santa Clara, Calif. -- ViVOtech, the Santa Clara-based developer of a
payment system that allows consumers to make payments through radio
frequency-enabled cards and mobile devices, said on Tuesday that it has
raised $18.25 million in its second round of venture capital funding.
Draper Fisher Jurveston led the round, which also included participation
from Nokia Growth Partners, DFJ Gotham and previous investor Alloy
Ventures. The company currently has more than 100,000 of its
"contactless" payment readers deployed around the world, including fast
food restaurants, parking garages and convenience stores.
http://biz.yahoo.com/bw/050927/275529.html?.v=1

Redwood City-Based Openwave to Acquire France's Musiwave

Redwood City, Calif. -- Openwave Systems, a Redwood City-based communications
software firm, said that it has agreed to acquire Musiwave, a French provider of
music tracks and ringtones for mobile phones, for approximately $121 million in
cash. The deal could be worth an additional $18 million if Musiwave meets certain
performance milestones. Musiwave distributes its services in 25 countries through 35
mobile telecommunications operators and handset manufacturers. Gilles Babinet, the
chairman and founder of Musiwave, said that the combined company will offer a
wide variety of music-related products, including ringtones, ringbacktones, and
streaming services. The deal is expected to close late this year.
http://makeashorterlink.com/?S19226FDB

Novato-Based Siterra Acquires Real Estate Software Firm WorkplaceIQ

Novato, Calif. -- Looking to expand its product offerings fore the real estate market,
Siterra, a Novato-based provider of web-based software for project, document and
property management, said on Tuesday that it has acquired Massachusetts-based
WorkplaceIQ (WPIQ), a maker of software for the commercial real estate markets.
Financial terms of the deal were not disclosed. WPIQ makes lease management
software that is used by hundreds of retailers and corporations to help lower the cost
of their lease administration processes. The company's software is currently used to
manage more than 6 billion square feet and 250,000 leased and owned facilities
around the world.
http://www.siterra.com./about/news_050927_SiterraAcquiresWPIQ.php

Microsoft to Challenge Google, Yahoo with Paid Search Ad Service

Redmond, Wash. -- Software giant Microsoft has launched its own paid
search advertising service to compete with Mountain View-based Google
and Sunnyvale-based Yahoo, offering additional features over its rivals
for advertisers to target users based on their sex, age and location. The
company's adCenter service is currently running on MSN web sites in
France and Singapore, with testing in the U.S. scheduled to begin in
October. "We think we will offer advertisers better value because of the
superior information we have about our audience," Yusuf Mehdi, the
senior vice president of MSN Information Services & Merchant Platform,
told The New York Times. The company also said that it hopes to replace
the paid search ads currently provided by Yahoo on its U.S. MSN sites
with its own by the spring of 2006.
http://biz.yahoo.com/prnews/050926/sfm038.html?.v=26 
http://www.nytimes.com/2005/09/26/business/media/26soft.html

San Francisco-Based Snocap Signs Independent Record Labels

San Francisco -- Snocap, a San Francisco-based provider of digital music
licensing and copyright management services launched by Napster
creator Shawn Fanning, said that it has signed agreements with
independent labels including V2 Music, Matador Records, XL
Recordings and The Beggars Group. The labels will upload their tracks to
Snocap's database, which will then be added to commercial peer-to-peer
services. Snocap also said that it has signed deals with digital music
aggregators Digital Musicworks International, IDEA Distributors, IRIS
Distribution, I AM Music and Entertainment, Kufala and Soulseduction.
The company already has signed agreements with major labels Sony
BMG, Universal and EMI. Snocap will provide authorized music for
legal peer-to-peer services including Mashboxx.
http://www.tmcnet.com/usubmit/2005/Sep/1185758.htm 
http://www.snocap.com 

Monterey-Based Shop.com Raises $25 Million in Funding

Monterey, Calif. -- Shop.com, a Monterey-based online marketplace that allows people
to shop for thousands of brands of merchandise using one account, said on Monday that
it has raised $25 million in its first round of venture capital funding led by Oak
Investment Partners. The fast-growing company said that it will use the funding to
support marketing and customer service initiatives. Shop.com runs on a platform
developed by Altura International that allows consumers to shop for thousands of
products -- from different merchants at a multitude of locations across the web --
through a centralized personal shopping account. The company said that its site
experienced an increase in web traffic of more than 1000% in 2004.
http://biz.yahoo.com/prnews/050926/sfm076.html?.v=21

Santa Clara-Based Persistent Systems Unveils Major Expansion Plans

Santa Clara, Calif. -- In what's being termed a "major expansion," Persistent Systems, a
Santa Clara-based provider of custom software development services, said on Monday
that it plans to increase its employee base by 40% by the end of the year and move
2,500 software professionals into a new facility in India by March. Anand Deshpande,
the company's chairman and managing director, said that the plans are designed to meet
a rapidly growing market demand for customer software development services.
Persistent, which already has expanded its workforce from just over 800 to just over
2,000 in about a year, currently has more than 140 customers worldwide.
http://tinyurl.com/8fmy8

San Jose-Based Roamware Lands $14 Million in Third Round

San Jose, Calif. -- Roamware, a San Jose-based developer of roaming
technologies for mobile communications, said on Monday that it has
secured $14 million in its third round of funding, co-led by previous
investors Accretive Technology Partners, DCM - Doll Capital
Management and Shelter Capital Partners. The company said that it will
use the capital to expand its product line and strengthen its global
operations. Roamware's technology currently services more than 180
networks with more than 400 million mobile consumers.
http://www.roamware.com/Media/20050927.aspx

Intel Capital Leads $8.5 Million Round for Virtual Iron Software Raises

Santa Clara, Calif. -- Virtual Iron Software, a Massachusetts-based maker of data center
virtualization and management software, said on Monday that it has raised $8.5 million
in a new round of funding led by Santa Clara-based Intel Capital, the investment arm of
chipmaker Intel. Other investors in the deal included Goldman Sachs, Highland Capital
Partners and Matrix Partners. Virtual Iron provides data center technology for large
organizations that is designed to allow users to improve operating efficiency and lower
capital expenditures. The company focuses on the financial services, manufacturing,
healthcare, government, retail and hosted services industries.
http://www.hcp.com/news/newsdetails.php/id/5706

Santa Clara-Based Applied Materials Joins $300 Million Nanotech Initiative

Santa Clara, Calif. -- Applied Materials, a Santa Clara-based maker of integrated
circuits, has joined IBM and Albany NanoTech in a new partnership that will invest
$330 million and bring 100 new jobs to the Albany, N.Y. area, according to published
reports. Of the new jobs, Applied Materials will bring in about 20 researchers, while
IBM will add an unspecified number of new jobs, the Business Review reported. About
80 new research jobs are expected to be created at Albany NanoTech, a joint venture
pursuing new applications of nanotechnology.
http://www.poststar.com/story.asp?storyid=1621

State Assembly Passes Ban on Violent Game Sales to Minors

Sacramento, Calif. -- The California State Assembly has voted 65-7 to
impose a ban on the sale of violent video games to minors, although
Reuters reported that Gov. Arnold Schwarzenegger had not yet decided
whether or not to sign the bill into law. The proposed legislation would
ban the sale of games that depict the "killing, maiming, dismembering or
sexually assaulting an image of a human being," or violence "in a manner
which is especially heinous, cruel or depraved in that it involves torture or
serious physical abuse to the victim." It also requires retailers in
California to create a new labeling system for such titles, and penalizes
those caught selling them to state residents under 18 with a $1,000 fine.
Similar bans on the sale of violent video games to minors have been
routinely struck down by the courts as unconstitutional restrictions on
free speech.
http://democrats.assembly.ca.gov/members/a12/press/p122005082.htm 
http://www.gamesindustry.biz/content_page.php?aid=11455

San Carlos-Based Cellerant Raises $9 Million to Cap Second Round

San Carlos, Calif. -- Cellerant Therapeutics, a San Carlos-based biotechnology
firm developing products and services focused on the regulation of the
hematopoietic (blood-forming) system, said that it has raised $9 million to cap
its second round of funding at $25 million. Camelot Ventures, Amgen founder
George Rathmann and Eminent Venture Capital participated in the second
closing, after Novel Bioventures led the first closing. Cellerant said that the
capital will allow it to advance its program for the treatment of sickle cell
disease, as well as those for the treatment of autoimmune diseases and radiation-
and chemotherapy-induced neutropenia.
http://biz.yahoo.com/bw/050922/225076.html?.v=1

Mountain View's CyberSource to Acquire CardSystems Solutions

Mountain View, Calif. -- CyberSource, a Mountain View-based developer of
electronic payment and risk management technologies, said on Friday that it
will acquire CardSystems Solutions, an Atlanta-based provider of credit card
processing. Financial terms of the deal were not disclosed. CardSystems'
payment processing platform has direct connections to major credit card
association networks and banks, and contracts to process credit card transactions
for about 120,000 merchants. Due to a data security breach reported in May,
CardSystems will not be authorized to process credit card transactions through
selected card association networks after October 31. CyberSource said that it is
working with CardSystems and its affiliated card associations and banks to
provide uninterrupted processing for CardSystems merchants and channel
partners.
http://CybersourceDeal.notlong.com

Concerto Software and Aspect Communications Complete Merger

San Jose, Calif. -- Concerto Software, a Connecticut-based provider of contact
center communications technology, said that it has completed its merger with
San Jose-based Aspect Communications, a call center technology company. The
transaction has an estimated total value of about $1 billion. The combined
company, called Aspect Software, is owned by private equity firm Golden Gate
Capital, Oak Investment Partners, company management and others. Aspect
Software said that it anticipates about $600 million in annual revenue, with
more than 5,000 customers and a presence in about 50 countries.
http://www.concerto.com/1650News/newsitems/NewsRelease9_23_05

Fremont-based Fiberstars Expands Relationship with ADLT

Fremont, Calif. -- Fiberstars, a Fremont-based maker of fiber optic
lighting systems, said on Friday that it has entered into a series of deals to
expand its relationship with Ohio's Advanced Lighting Technologies
(ADLT). With the agreements, Fiberstars is hoping to expand the market
for its energy efficient lighting system. ADLT plans to use the company's
technology to develop new metal halide lamp products. The
announcement comes four days after Fiberstars announced plans to sell
2.5 million of its shares in a public offering.
http://biz.yahoo.com/prnews/050922/sfth094.html?.v=21

Report: U.S. Broadband Penetration at 53%, But Adoption Rate Slowing

Washington, DC -- U.S. broadband penetration continues to grow but at an
increasingly slower pace, according to a new report from the Pew Internet &
American Life Project. Broadband penetration increased just 3% in the first six
months of this year -- from 50%-53% of home Internet users -- compared with
an increase of 20% during the six-months ending in May 2004. The report cites
less "pent up demand" for broadband among Internet users, with a majority of
heavy Internet users already subscribing to a high-speed connection. About 60%
of dial-up customers say they don't want broadband, while new Internet users
accounted for just 4% of the online population in May 2005. About a third of
the U.S. adult population also reports not using the Internet at all. To entice
newer users, who are also more likely to be lower income households than
current broadband subscribers, many DSL and high-speed cable Internet
providers are engaged in competitive price-cutting. "The migration to
broadband is happening more slowly for dial-up users in 2005 than 2002," said
John Horrigan, Pew's director of research.
http://www.pewinternet.org/PPF/r/110/press_release.asp 
http://www.pewinternet.org/PPF/r/164/report_display.asp

San Mateo-Based Rearden Commerce Lands $25 Million

San Mateo, Calif. -- Rearden Commerce, a San Mateo-based developer of
an e-commerce platform for employee purchasing, said that it has raised
$25 million in a new round of funding led by Oak Investment Partners.
Foundation Capital and other previous investors also participated in the
round, which increased the company's total backing to $67 million.
Rearden's initial e-commerce offering is a platform that allows buyers of
business services such as travel and package shipping to interact with
suppliers in an effort to control expenses. "We look forward to
aggressively expanding into new service areas," said Patrick Grady, the
founder and CEO of Rearden.
http://www.reardencommerce.com/news/press.php

Pleasanton-Based Invoq Systems Raises $3.25 Million in Funding

Pleasanton, Calif. -- Invoq Systems, a Pleasanton-based maker of event
resolution and interactive alerting software, said on Thursday that it has
raised $3.25 million in its second round of funding from Baltimore-based
JMI Equity Fund. The company said that it plans to use the capital
infusion to accelerate the development of its software, as well as to
expand its sales, service and distribution capabilities. Invoq's software
allows companies to capture, communicate and remotely resolve
important systems and business events. Clients include  Bank of America,
T-Mobile, Nextel and Credit Suisse First Boston.
http://tinyurl.com/9bwq8

Cupertino-Based Symantec to Acquire WholeSecurity

Cupertino, Calif. -- Symantec, the Cupertino-based provider of virus
protection software and services, said on Thursday that it has signed a
deal to acquire WholeSecurity, a Texas-based developer of behavior-
based security and anti-phishing technology. Financial terms of the deal
were not disclosed. WholeSecurity's technology analyzes the
characteristics and actions of viruses, worms and other malicious code,
offering protection against these threats without the need for traditional
security signatures. The company's clients include eBay, Deutsche Bank
and Visa. The deal is expected to close in October.
http://biz.yahoo.com/bw/050922/225826.html?.v=1

Mountain View-Based Blue Vector Closes Second Round of Funding

Mountain View, Calif. -- Blue Vector Systems, a Mountain View-based
provider of network-based radio frequency ID and sensor appliance
infrastructure products, said that it has secured an undisclosed amount of
funding in its second round, co-led by Draper Richards and ONSET
Ventures. Blacksmith Capital also participated. Blue Vector said that it
plans to use the capital to expand sales and marketing activities. The
company's distributed computing appliances are designed to allow supply
chain operations to deploy, grow and manage their RFID
implementations using a network-based approach.
http://biz.yahoo.com/bw/050921/215247.html?.v=1

Authors Guild Sues Google for "Massive Copyright Infringement"

Mountain View, Calif. -- The Authors Guild, a trade union for published
authors, said that it has filed suit against Mountain View-based search
engine giant Google in federal court, claiming that the company's Google
Library program that scans books into its index amounts to "massive
copyright infringement." Under the program, Google scans the texts of
thousands of books in the public domain into its index, allowing users to
read them for free online. The company has also partnered with numerous
libraries to scan their texts, offering restricted page viewing and
prohibiting printed copies from being made. After initial criticism from
some publishers, Google now allows them to opt out if they choose not to
have their works indexed. "This is a plain and brazen violation of
copyright law," said Nick Taylor, the president of the Authors Guild. "It's
not up to Google or anyone other than the authors, the rightful owners of
these copyrights, to decide whether and how their works will be copied."
The lawsuit, which seeks damages and an injunction to halt further
infringements, was filed on behalf of authors Herbert Mitgang, Betty
Miles and Daniel Hoffman, who claim they were not consulted by Google
before their works were included in the project.
http://www.authorsguild.org/news/sues_google_citing.htm 

Study: More Telework Would Conserve Large Amount of Fuel

Alexandria, Va. -- With the price of gasoline surging by nearly a dollar
from August to September, the Telework Exchange, an online community
focused on increasing telecommuting among federal and white collar
employees, has issued a report outlining how much fuel employees could
conserve by working over the Internet from home or a nearby office.
According to the report, the U.S. white-collar workforce consumes 583.3
million gallons of fuel. If those employees teleworked two days a week,
they would conserve 233.3 million gallons, the group said. By cost, the
white-collar workforce spent $250 million on commuting each business
day in April. With rising gas prices, said the group, total per day fuel
costs have increased by over 42% to $355.8 million.
http://www.teleworkexchange.com/about.asp   

San Jose-Based Capella Photonics Lands $10 Million in Funding

San Jose, Calif. -- Capella Photonics, a San Jose-based maker of
wavelength selective switch modules used in optical networks, said on
Wednesday that it has raised $10 million in its fourth round of funding.
Participants in the round, which comes just 11 months after the company
raised $6 million in its third round, included Bay Partner, BCE Capital,
Vanguard Ventures and several private investors. The company said that
ti will use the capital infusion to mass-produce, sell and support its
products. In addition to the funding, Capella also said that it and its
development partner, RED-C Optical Networks, have been awarded a
grant of $1 million from the U.S.-Israel Bi-national Industrial Research
and Development Foundation (BIRD Foundation), which provides
funding to joint U.S./Israeli business teams developing non-defense
technological products.
http://biz.yahoo.com/iw/050921/095809.html

San Jose-Based Capella Photonics Lands $10 Million in Funding

San Jose, Calif. -- Capella Photonics, a San Jose-based maker of
wavelength selective switch modules used in optical networks, said on
Wednesday that it has raised $10 million in its fourth round of funding.
Participants in the round, which comes just 11 months after the company
raised $6 million in its third round, included Bay Partner, BCE Capital,
Vanguard Ventures and several private investors. The company said that
ti will use the capital infusion to mass-produce, sell and support its
products. In addition to the funding, Capella also said that it and its
development partner, RED-C Optical Networks, have been awarded a
grant of $1 million from the U.S.-Israel Bi-national Industrial Research
and Development Foundation (BIRD Foundation), which provides
funding to joint U.S./Israeli business teams developing non-defense
technological products.
http://biz.yahoo.com/iw/050921/095809.html

San Mateo-Based BlueRoads Lands $9.1 Million in Third Round

San Mateo, Calif. -- BlueRoads, a san Mateo-based maker of channel
management software, said that it has secured $9.1 million in its third
round of venture capital, led by new investor Cardinal Venture Capital.
Previous investors ArrowPath Venture Capital and El Dorado Ventures
also participated. The company said that it will use the funds to boost its
product development, sales and marketing efforts. In addition, BlueRoads
also has named Prem Malhotra as its vice president of engineering.
Malhotra has more than 24 years of software development experience,
including a stint managing the product development and U.S. and Indian
operations of Selectica.
http://www.blueroads.com/news/pr_0920_05.html

Parsons: AOL Would Compete with Yahoo, Google in Portal Space

Dulles, Va. -- Time Warner CEO Richard Parsons on Wednesday
sidestepped questions about the potential sale of its America Online unit,
instead telling an audience of investors that turning around the company's
struggling Internet arm is the key to increasing shareholder value. While
Parsons admitted that Time Warner has entertained the notion of spinning
off AOL, he downplayed the possibility and called AOL the company's
"No. 1 point of focus" because of its strong growth potential, Dow Jones
Newswires reported. Parsons declined to discuss reports that software
giant Microsoft is in talks to buy a major stake in AOL. Parsons said that
plans for AOL include transforming it from an ISP into a major web
portal that would compete against the likes of Google and Yahoo.
http://online.wsj.com/home/us

Apple CEO Calls Labels' Desire to Increase Download Pricing "Greedy"

Cupertino, Calif. -- Steve Jobs, the CEO of Cupertino-based Apple, is
calling the desire of record labels to increase the price of song downloads
"greedy," and said that services like iTunes need to keep prices low so
that consumers won't instead turn to free file-sharing services, Reuters
reported. "If they want to raise the prices, it means that [record labels] are
getting greedy," Jobs said at a news conference in Paris. "If the price goes
up, [consumers] will go back to piracy and everybody loses." Jobs also
cast doubt on mobile music downloads, a market eyed as potentially
lucrative by both record labels and wireless network operators. "It is not
clear that buying songs over the air makes economic sense," Jobs said. "I
am skeptical because of the cost...but we will see." Apple recently
unveiled an iTunes music phone in collaboration with Motorola and
Cingular. The phone allows users to transfer songs directly from a PC,
instead of purchasing them from wireless carriers for download to
phones. The company is also rumored to be developing a completely
Apple-designed mobile phone handset, which Jobs declined to comment
on at the conference.
http://tinyurl.com/8zuux

Yahoo CEO Planning to Develop International Internet TV Network

Sunnyvale, Calif. -- Terry Semel, the CEO of Sunnyvale-based Yahoo,
announced that he is planning to develop an international Internet TV
network, and invited U.K. broadcasters to provide programs that his
company could distribute. Speaking at the Royal Television Society's
Cambridge Convention, Semel said that he wants to work with U.K.
broadcasters to unlock their archives as part of a strategy to be "not a
product company," but a "major distribution platform." Semel also urged
independent producers to think of Yahoo as an outlet for new
programming. "I don't think that Yahoo or any other Internet company
should try to become a television network," Semel said. "We will be
nowhere if we have to create our own content." Yahoo said it expects to
have more than 200 million active users by year's end using services such
as mail or web hosting.
http://makeashorterlink.com/?Z5F3124DB