Silicon Valley Wire

Cupertino-Based ForeScout Raises $10 Million in Funding

Cupertino, Calif. -- ForeScout Technologies, a Cupertino-based developer
of network policy enforcement and intrusion prevention products, said
that it has raised $10 million in a new round of venture funding, led by
new investor Amadeus Capital Partners. Previous investors Accel
Partners, Meritech Capital, Pitango Venture Capital and Itouchu
Corporation also participated. ForeScout recently introduced its new
security appliance, designed to enforce a client's network access policies.
The company said that it currently has more than 275 customers,
including several Fortune 500 companies and government agencies.
http://biz.yahoo.com/prnews/051019/clw530.html?.v=9

San Francisco-Based Macromedia Acquires U.K.'s Mobile Innovation

San Francisco -- Macromedia, the San Francisco-based maker of media
software, said  on Thursday that it has acquired Mobile Innovation, a
U.K.-based developer of user interfaces for mobile devices. Financial
terms of the deal were not disclosed. Macromedia said the acquisition
will strengthen its ability to develop new mobile applications and content
built on the Flash platform. Mobile Innovation will be integrated into
Macromedia's Consulting business, led by Peter Lelliott. Matt Millar,
Mobile Innovation's co-founder and CTO, will head the company's
Mobile and Devices practice in Europe, the Middle East and Africa.
http://www.mobileinnovation.co.uk/

Analog Devices to Close Bay Area Production Facilities

Norwood, Mass. -- Analog Devices, a Massachusetts-based maker of
integrated circuits, said that it will close its production facilities in
Sunnyvale and Santa Clara, as it expands its facilities in Massachusetts
and Ireland. "Because of the size and limited expansion potential in
Sunnyvale, we have decided to focus our investments in our other
facilities," said Jerald Fishman, the CEO of Analog. The company's
Massachusetts and Ireland facilities feature its most advanced process
technologies. Production teams at the two California plants have been
asked to stay on for another year to help transition the operations.
http://biz.yahoo.com/bw/051019/196141.html?.v=1

Google Launches Eight European Web Sites for Print Project

Mountain View, Calif. -- Google said that it has launched local-language
web sites in eight European countries for its controversial Google Print
program. The Mountain View-based Internet search giant said the new
sites for Austria, Belgium, France, Germany, Italy, the Netherlands, Spain
and Switzerland will allow users to search books provided by publishers
in each country, as well as English-language books for which Google has
secured local rights. Eventually, the sites will grant access to data about
foreign-language books in the collections of the New York Public Library
and the libraries of Stanford, Harvard, Michigan and Oxford universities.
The project, however, has not been easy going for Google, which has
been sued by the U.S. Authors Guild for copyright infringement and deemed
"culturally imperialistic" by the chief librarian of France.
http://makeashorterlink.com/?I6162120C
http://euobserver.com/9/20116

Publishing Group Sues to Halt Google Library Book-Scanning Project

Mountain View, Calif. - A trade group of U.S. publishing companies has
filed a copyright infringement lawsuit against search engine giant Google
over the company's plans to scan the world's books into a searchable web
index. The Association of American Publishers (AAP), whose members
include The McGraw-Hill Companies, Pearson Education, Penguin
Group, Simon & Schuster and John Wiley & Sons, joins the Authors
Guild writers' union in suing Google. Both claim that the company is
violating copyrights by failing to ask for authors' permissions before
including their works in the Google Print Library Project, then profiting
off the works by selling advertising on the site. Patricia Schroeder, the
former Colorado Congresswoman and current AAP president, said that
while her organization believes that the Google project could be an
excellent resource, "the bottom line is that under its current plan Google
is seeking to make millions of dollars by freeloading on the talent and
property of authors and publishers." Google had temporarily halted the
project, to address author and publisher concerns, but plans to resume
scanning books on Nov. 1.
http://www.publishers.org/press/releases.cfm?PressReleaseArticleID=291

Report: Apple Seeks 10% Royalty on iPod Accessories

Cupertino, Calif. -- Makers of accessories for Cupertino-based Apple's
iPod are now being required to pay Apple royalties for the right to sell
their products CNET News.com reported. The products include car stereo
adapters, portable speakers and other electrical-powered add-ons for the
music player.  Under its "Made for iPod" licensing program, Apple is
now seeking a mandatory royalty of about 10% of a device's wholesale
price, a source familiar with the matter told News.com. The source said
that Apple told manufacturers that it would ensure that future iPods
continue to support their products through a universal docking connection
in return for the sizable cut of their revenues.
http://makeashorterlink.com/?W1601520C

ESA Sues to Overturn California Ban on Violent Game Sales

Sacramento, Calif. - The Entertainment Software Association (ESA), a
video game industry trade group, said that it has filed a federal lawsuit in
California aimed at overturning a ban on the sale of violent video games
to minors recently signed into law by Gov. Arnold Schwarzenegger. "We
believe this bill will meet the same fate as virtually identical statutes that
federal courts have routinely struck down in recent years," Doug
Lowenstein, the president of the ESA. Bans on violent video game sales
have been overturned on First Amendment free speech grounds in
Washington state, St. Louis County and the city of Indianapolis. "It is not
up to any industry or the government to set standards for what kids can
see or do; that is the role of parents," added Lowenstein. The new law
fines retail clerks who break the ban $1,000, and forces retail chains in
California to more prominently display video game ratings in their stores.
http://www.theesa.com/archives/2005/10/statement_from.php 

Mountain View-Based Vernier Networks Raises $26 Million

Mountain View, Calif. -- Vernier Networks, a Mountain View-based maker of
clientless network access management products, said on Wednesday that it has
raised $21 million in its fifth round of funding, led by Venrock Associates.
Previous investors Foundation Capital, DCM-Doll Capital Management, Allegis
Capital, UV Partners, Masthead Ventures and Weber Capital also participated.
Separately, the company said that it has added another $5 million in debt
financing from Silicon Valley Bank and Gold Hill Capital.
http://www.verniernetworks.com/news/pr2005/101905-funding.php

Area Tech Companies Rise to Top of Latest Inc. 500 List

San Jose, Calif. -- A plethora of local technology companies, led by Sunnyvale-
based eSilicon, have made the cut for the newly released Inc. 500 list, an annual
list of the nation's fastest growing private companies compiled by Inc. magazine.
eSilicon, a maker of custom microchips, came in at No. 3, with three-year revenue
growth of 7,088%. Other local companies making the top 25 include Mountain
View-based Evolve Manufacturing Technologies, which provides contract
manufacturing for semiconductor and medical equipment companies (No. 12),
and San Mateo-based NexTag, which provides online price comparisons for a
wide range of products (No. 13). San Mateo-based NetSuite (No. 27), Pleasanton-
based Zantaz (No. 59) and Menlo Park-based EmailLabs (No. 83) also ranked
among the top 100.
http://www.inc.com/resources/inc500/

San Francisco-Based Bricsnet Raises $10 Million, Names New CEO

San Francisco -- Bricsnet, a San Francisco-based provider of real estate
lifecycle management software, said on Wednesday that it has landed an
additional funding commitment of $10 million, increasing its new
funding this year to $14 million. The company said that the new
commitment came fro previous investors. Bricsnet also has named Farid
Jinian as its CEO. Jinian previously held senior level positions at Sybase,
and was a director at KPMG PeatMarwick. Hal Spitz also has been
named vice president of engineering.
http://biz.yahoo.com/bw/051019/195630.html?.v=1

Mountain View-Based Google to Change "G-Mail" to "Google Mail" in U.K.

Mountain View, Calif. -- A U.K.-based company that supplies financial research
inforamtion, said that it has dropped its legal action against Google after the
Mountain View-based Internet search giant agreed to change the name of its "G-
Mail" service in the U.K. to "Google Mail". Independent International Investment
Research, which launched its own "G-mail" web-based email service more than
two years before Google, has been threatening the search giant with legal action
since last April. The decision to drop the name in the U.K., coupled with a recent
court defeat in Germany means that Google will now be supporting a different
brand for its email service in two of the largest European
economies.
http://www.iirgroup.com/
http://makeashorterlink.com/?N5252320C

San Jose-Based Cisco Systems to Invest $1.1 Billion in India

San Jose, Calif. -- Cisco Systems, the San Jose-based maker of
networking equipment, said on Wednesday that it will invest $1.1 billion
to expand its facilities in India. The company's three-year expansion plan
in the country will include $750 million for research and development
activities, including training, development and staffing. Cisco first
established operations in India in 1995 and now employs over 1,400
people in the country.
http://newsroom.cisco.com/dlls/global/asiapac/news/2005/pr_10-19b.html

San Jose-Based StarVox Communications Raises $9 Million

San Jose, Calif. -- StarVox Communications a San Jose-based provider of
Internet-based telecommunications services to businesses, said on
Wednesday that it has raised $9 million in its first round of financing
from Novus Ventures, Trinad Capital Master Fund and Deutsche Suisse
Asset Management. The company said that the round provides it with
working capital to expand its base of both wholesale and retail customers
through internal growth and acquisitions. StarVox's domestic Voice over
Internet Protocol network currently includes over 300 points of presence
across the U.S. 
http://tinyurl.com/ao98e

Santa Clara-Based Ovonyx Lands Investment from Intel

Santa Clara, Calif. -- Ovonyx, a developer of semiconductor memory
technologies, said on Wednesday that it has received an undisclosed
investment from Intel Capital, the venture arm of Santa Clara
semiconductor giant Intel. Intel first invested in the company in 2000.
Ovonyx memory technology uses a process that has been previously
commercialized worldwide in rewritable CD and DVD optical memory
disks. The company currently has joint development programs with Intel,
BAE Systems, ST Microelectronics, Nanochip and Elpida Memory.
http://www.ovonyx.com/oct19_2005.html

Report: MP3 Players to Lead 9% Rise in Holiday Electronics Sales

Arlington, Va. - The consumer electronics industry expects to see a 9% increase
in sales during the upcoming holiday season, with MP3 players topping both the
gift-giving and gift wish lists of the 1,000 adults surveyed by the Consumer
Electronics Association (CEA). "Despite concern about the overall economy,
consumers intend to purchase, as well as hope to receive, a plethora of consumer
electronics gifts this holiday season," said Sean Wargo, the CEA's director of
industry analysis. According to the survey, consumer interest in buying a portable
MP3 player has increased from 20% in 2004 to 28% this year. Revenues from
sales of MP3 players are already up 105% so far this year.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=10849

Yahoo's Revenue Soars 47% in Quarter; Profits Beat Estimates

Sunnyvale, Calif. -- Buoyed by the success of its fee-based services and
an increase in online advertising, Sunnyvale-based Yahoo on Tuesday
reported a 47% jump in quarterly revenue, though net income remained
about the same as a year ago, when the company was helped by a large
investment gain. The company reported a profit of $253.8 million,
compared with $253.3 million a year ago, when it realized a $129 million
gain on the sale of Google shares. Earnings per share of $0.17 topped
analysts' estimates by $0.03, according to a survey by Thomson First
Call. The big story, however, was the company revenue, which rose from
$906.7 million to $1.33 billion. The news helped send the company's
stock up nearly 1% in after-hours trading.
http://biz.yahoo.com/bw/051018/186155.html?.v=1

Santa Clara-Based Intel Posts Higher Profits, but Misses Mark

Santa Clara, Calif. -- Despite an uptick in quarterly profits, Santa Clara-
based chipmaker Intel on Tuesday missed consensus Wall Street
estimates by $0.01, sending its stock down sharply in after-hours trading.
The company reported net income of $2.0 billion, or $0.32 a share,
compared with $1.91 billion, or $0.30 a share, the previous year.
Analysts, however, were expecting the company to report profits of $0.33
a share, according to a survey by Thomson First Call. Revenue rose 18%
to $9.96 billion.
http://biz.yahoo.com/bw/051018/186268.html?.v=1

Santa Clara-Based NetContinuum Lands $15 Million in Funding

Santa Clara, Calif. -- NetContinuum, a Santa Clara-based developer of
technologies designed to help IT professionals secure applications in the
data center, said that it has landed $15 million in a new round of venture
capital led by Menlo Ventures. Other previous investors, including
Palomar Ventures, Entrepia and Invus, also participated in the round,
which the company plans to use to expand its sales and marketing efforts,
pursue partnerships and accelerate product development. NetContinuum
also announced the appointment of Varun Nagaraj as its CEO. Nagaraj
previously served as the vice president of product management and
marketing at Extreme Networks.
http://www.netcontinuum.com/newsroom/pressReleaseItem.cfm?uid=57

Sunnyvale-Based Vidient Systems Raises $12 Million in Second Round

Sunnyvale, Calif. -- Vidient Systems, a Sunnyvale-based developer of
behavior recognition software designed to make video surveillance
cameras more effective, said on Tuesday that it has raised $12 million its
second round of venture funding. New investor Canaan Partners led the
round, which also included participation from previous investors
Blueprint Ventures, Trident Capital and Hotung Venture Capital. The
company plans to use the proceeds to fuel its market expansion, both in
the U.S. and abroad. Vidient recently announced that its software was
selected will be part of a new security system at Florida’s Tallahassee
Regional Airport. Other airports using Vidient’s technology include San
Francisco International, San Diego International and Salt Lake City
International.
http://biz.yahoo.com/iw/051018/098267.html

San Francisco-Based Pay By Touch Acquires CardSystems Solutions

San Francisco -- After closing $130 million in new funding earlier this
month, Pay By Touch Solutions, a San Francisco-based developer of
biometric authentication and payment systems, said that it has acquired
Atlanta-based CardSystems Solutions, a provider of merchant payment
processing services with approximately 120,000 customers. Financial
terms of the deal were not disclosed. John Rogers, the chairman and CEO
of Pay By Touch, said that the deal gives his company access to
CardSystems' fruitful sales and marketing channels, as well as to its large
client base. This is the second recent acquisition for Pay By Touch, which
earlier this month acquired the assets of ATM Direct, whose software
allows online shoppers to pay with their PIN debit cards or ATM cards.
http://www.paybytouch.com/news/pr_10-15-05.html

Report: Europeans Using Their Music Phones More Than Americans

San Francisco - Europeans who own cell phones equipped with an MP3
player are four times more likely to use their phones to listen to music
than their American counterparts, according to a report from market
research firm Telephia. The survey found that 14% of European wireless
subscribers now own a music phone. Of those, 36% listen to music on
their phones, while the same is true for just 8% of Americans with music
phones. "The advanced infrastructure and the higher availability of
music-capable devices in Europe are key factors behind the bigger growth
in adoption," said Kanishka Agarwal, a vice president at Telephia. "The
U.S. market is still waiting for higher bandwidth networks that would
support faster full track music downloads."
http://tinyurl.com/d2g4r

Menlo Park-Based SugarCRM Raises $18.77 Million in Third Round

Menlo Park, Calif. -- SugarCRM, a Cupertino-based maker of commercial open
source customer relationship management (CRM) software, said on Monday that
it has raised $18.77 million in its third round of funding, which included a $12.25
million investment from New Enterprise Associates. The company plans to use
the proceeds to further develop its business automation tools designed to help
companies manage their marketing, sales and customer service operations. The
company's Sugar Open Source Edition has been downloaded more than 350,000
times since its introduction in July 2004.
http://www.sugarcrm.com/crm/about/press-releases.html

Morgenthaler Raises $450 Million for Eighth Investment Fund

Menlo Park, Calif.  -- Morgenthaler, a Menlo Park-based venture capital firm,
said that it has raised $450 million for its latest investment fund, the firm's eighth
overall. The firm said that MPVIII, as with its previous funds, will be invested
jointly by its venture capital and buyout teams. Morgenthaler has made 60 new
investments and more than 200 follow-on investments over the past four years.
Five of those new investments were buyout companies in which the firm said that
it expects to invest $30-$70 million each.
http://biz.yahoo.com/prnews/051017/clm015.html?.v=24

Mountain View-Based Goodmail Lands $8 Million in Funding

Mountain View, Calif. -- Goodmail Systems, a Mountain View-based developer
of email certifications platforms, said on Monday that it has secured $8 million in
a new round of venture capital funding co-led by DCM - Doll Capital
Management and Emergence Capital Partners. The company said that the funding
will allow it to accelerate the launch of its CertifiedEmail service, designed to
increase the safety and reliability of email. Goodmail also named John Ouren as
its senior vice president of sales and business development. Ouren previously
served as the senior vice president of sales, services and field operations at Digital
Impact.
http://www.goodmailsystems.com/pressrelease101705.html

Gates Gives $15 Million to Mountain View Computer Museum

Mountain View, Calif. -- The Computer History Museum, a Mountain View-
based museum dedicated to preserving artifacts and stories surrounding the
information age, said on Monday that it has received a pledge for $15 million
from the Bill & Melinda Gates Foundation, the charitable foundation of Microsoft
founder Bill Gates. Including this new gift, the museum has now raised over $73
million toward its $125 million goal to create a full range of educational programs
and exhibits, as well as to establish a long-term endowment. The gift is the
museum's largest to date. Currently in its first phase, the museum features a
speaker series, seminars, oral histories, workshops and web-based educational
resources. It also features nearly 600 display objects, including such rare objects
as the Cray-1 supercomputer, the Apple I, the WWII ENIGMA, the PalmPilot
prototype and the 1969 Honeywell "Kitchen Computer."
http://tinyurl.com/ab2hm

Report: Private Equity Fundraising Having Banner Year

Arlington, Va. -- Private equity fundraising throughout the U.S. remained
"robust" in the third quarter, with 45 venture funds raising $5.4 billion and 45
buyout and mezzanine funds raising $16.8 billion, according to a new report from
Thomson Venture Economics and the National Venture Capital Association
(NVCA). During the first three quarters of 2005, both venture and buyout
fundraising levels have already surpassed 2004 totals. One hundred thirty venture
funds have raised $17.4 billion so far this year, while 122 buyout funds have
raised $54 billion. "It will be a solid year for private equity fundraising as demand
for this asset class continues to be extremely strong," said Mark Heesen, the
president of the NVCA. "We continue to see discipline on the venture side… We
could have easily seen a $50-$75 billion fundraising year had the venture industry
not exercised this prudence and accepted more money than could be invested
successfully."
http://biz.yahoo.com/prnews/051017/nym033.html?.v=28

Report: Email Security Market to Top $5.5 Billion by 2010

San Francisco -- The market for email security will grow to $5.5 billion by 2010,
up from $3.7 billion this year, according to a new report by Ferris Research, a San
Francisco-based market research and consulting firm. The firm said that email
security revenues are increasing by almost 25% a year, though that rate isn't
expected to continue past 2007, when revenues are expected to level off. "Email
security used to mean encryption, but the nature of email security has changed
dramatically in the last two years as the range and types of threats facing users has
expanded," said David Ferris, the president of Ferris Research. The report also
found that the market for email security appliances is growing faster than the
market for software and hosted services.
http://biz.yahoo.com/bw/051017/175414.html?.v=1

Report: Hurricane Katrina Raises Threat of IT Budget Cuts

Reston, Va. -- Federal spending on Hurricane Katrina relief efforts is likely to
take a bite out of the government's information technology spending, according to
a new report from market intelligence firm INPUT. The firm said that while
emergency funds going to the Federal Emergency Management Agency (FEMA)
are increasing budget allocations for the Department of Homeland Security
(DHS), concerns about the ballooning national deficit may force the government
to slash IT budgets across the board. "With the billions of dollars now needed to
rebuild the devastated regions caused by Hurricane Katrina, deficit reduction will
become even more important in the coming years," said Payton Smith, the
director of public sector market analysis for INPUT.
http://www.input.com/corp/press/detail.cfm?news=1078

Parsons: Sale of Stake in AOL to Google, Comcast is "Market Rumor"

Mountain View, Calif. -- Richard Parsons, the CEO of media giant Time
Warner, said that reports about his company's possible sale of a stake in
its America Online unit are nothing more than a "market rumor," Reuters
reported on Friday. Parsons brushed aside news reports that had his
company selling a minority stake in AOL to Mountain View-based
Google and Comcast, and also said there were no plans for an Internet
deal with Microsoft, another hot rumor in recent weeks. "It's market
rumors, and I can't curb market rumors," Parsons said at a luncheon in
Hong Kong on Thursday, declining further comment. Reuters said that
two different sources had confirmed its story about a possible deal with
Comcast and Google worth up to $5 billion.
http://biz.yahoo.com/rb/051014/media_timewarner_aol.html?.v=2

San Jose-Based eBay Closes Acquisition of Luxembourg's Skype

San Jose, Calif. -- In a deal first announced more than a month ago, San
Jose-based eBay, the online auction giant, said on Friday that it has
completed its multi-billion-dollar acquisition of Skype Technologies, a
Luxembourg-based Internet telephony firm. Under the deal, eBay paid
$2.5 billion up front, and will pay up to $1.4 billion more based on the
company's performance. The acquisition allows eBay to add Skype's
service -- which allows people to make phone calls through their
computers -- to its mega-popular online auction service, making it easier
for buyers and sellers to communicate. EBay also said that the deal will
allow it to open several new lines of business, giving it more revenue
opportunities. Skype has more than 54 million members, including about
2 million who pay to use its premium services, making it the largest
Internet-telephony company in the world. By comparison, the second-
largest Internet-telephony firm, Vonage, currently has about 700,000
customers.
http://biz.yahoo.com/bw/051014/145214.html?.v=1

EA to Collaborate with Steven Spielberg on Three New Games

Redwood City, Calif. -- Electronic Arts, the Redwood City-based
developer and publisher of video games, said on Friday that Academy
Award winner Steven Spielberg has signed a deal to help develop three
new original game franchises for the company. Under the deal, Spielberg
will work with EA's development teams in Los Angeles to led his ideas to
the concept, design, story and artistic visualization of the new games. EA
will own the intellectual properties and publish and distribute the titles.
Financial terms of the agreement were not disclosed. EA's Los Angeles
studio has developed such popular game franchises as Medal of Honor,
Command & Conquer and The Lord of the Rings.
http://biz.yahoo.com/bw/051014/145214.html?.v=1

S.F.-Based Embarcadero Technologies to Acquire Ambeo

San Francisco - Embarcadero Technologies, a San Francisco-based
provider of data lifecycle management software, said on Friday that it
will acquire Colorado-based Ambeo, a developer of data security
technologies, for about $6 million in cash. Ambeo's board has
unanimously recommended to Ambeo's stockholders that they accept the
deal, which could close by the end of this year. Raj Sabhlok,
Embarcadero's CFO called the acquisition a "natural extension" for his
company, complimenting its current offerings.
http://biz.yahoo.com/bw/051014/145197.html?.v=1

Cupertino-Based Apple Names Tim Cook as COO

Cupertino, Calif. -- Cupertino-based Apple on Friday named Tim Cook as
its new COO. Cook has served as Apple's executive vice president of
worldwide sales and operations since 2002. "Tim has been doing this job
for over two years now, and it's high time we officially recognized it with
this promotion," said Steve Jobs, Apple's CEO. Cook will continue to be
responsible for all of the company's sales and operations, and will
continue to lead its Macintosh division. Apple also announced that Jon
Rubinstein, the senior vice president of its iPod division will retire on
March 31 and be succeeded Tony Fadell.
http://biz.yahoo.com/prnews/051014/sff046.html?.v=11

Sunnyvale-Based AMD Tops Intel in U.S. Desktop Sales for 1st Time

Sunnyvale, Calif. -- After facing what seemed an insurmountable decline
in desktop sales during the first six months of 2005, Sunnyvale-based
chipmaker AMD captured 52% of U.S. retail desktop sales during the all-
important back-to-school shopping month of September, topping Santa
Clara chip giant Intel's 46% share, according to market research firm
Current Analysis. It marked the first time that AMD has been able to
outperform Intel over an entire month. The firm attributed the jump to the
rise in popularity of Media Center PCs like the HP Pavilion a1130n, most
of which include AMD processors. "This is a perfect example of being at
the right place at the right time," said Toni Duboise, a senior analyst for
Current Analysis. "There is fantastic momentum surrounding the
adoption of Media Centers and subsequently, AMD, in the forthcoming
holiday season."
http://www.currentanalysis.com/news/media-releases.asp

Grand Jury Indicts Three in San Francisco CD Pirating Ring

San Francisco – A federal grand jury in the Northern District of
California has indicted three San Francisco men in what prosecutors are
calling “the largest bust of pirated CDs in U.S. history.” According to
prosecutors, the men have been indicted on charges of illegally
reproducing 325,000 music and software CDs, including Latin music and
Symantec computer security software. "These individuals are charged
with affixing counterfeit labels on CDs to create the appearance of
legitimacy, including the FBI Anti-Piracy Warning that stated
'Unauthorized copying is punishable under federal law,"' U.S. Attorney
Kevin Ryan said in a statement. The three men, who have been released
on bail, will appear in court on October 27.
http://tinyurl.com/9mu5s   

Criticism Leads Apple and Napster to Withdraw Peer-to-Peer Ads

London -- Cupertino-based Apple and Napster announced that they have
withdrawn advertisements on peer-to-peer (p2p) file-sharing web sites
after receiving harsh criticism from the British Phonographic Industry
(BPI), a trade body representing U.K. record companies. Both companies
said that the ads were placed by agencies without their knowledge. Steve
Redmond, the director of communications for BPI, described Apple and
Napster's ads as a "sick joke" and urged other companies not to advertise
on such sites, "even unwittingly." "We deplore the unauthorized
distribution of music on Internet sites which prosper by selling
advertising on the back of copyright theft," he said. "It is hugely ironic
that iTunes and Napster, two companies which have done so much to
encourage legal downloading, have been caught up in these sites."
http://www.bpi.co.uk/

Report: 94 Million Americans Watched Streaming Video in June

Reston, Va. -- More than 94 million people in the U.S., or 56% of the
country's Internet users, viewed a streaming video online during the
month of June, according to new statistics released by comScore Media
Metrix. The firm said that over the three months ending in June, the
average consumer viewed 73 minutes of streaming video content each
month. "This research confirms that streaming video is now part of the
web experience for a broad base of consumers," said Peter Daboll, the
president and CEO of comScore Media Metrix. Male users, who
represent half of the total online population, accounted for 61% of all
video streamers. 
http://www.comscore.com/press/release.asp?press=630

Palo Alto-Based Alloy Ventures Closes New $368 Million Tech Fund

Palo Alto, Calif. -- Alloy Ventures, a Palo Alto-based venture capital firm focused
on early-stage information technology and life sciences companies, said on
Thursday that it has closed a new $368 million fund. The firm said that Alloy
Ventures 2005, its fifth fund, gives it more than $1 billion under management.
Alloy said that the fund has already invested in four companies since June, with
the firm moving into a larger facility to accommodate its expanded investment
team. Alloy holdes stakes in such IT companies as 3Leaf Networks, Gradient
Design Automation and Integrated Materials, as well as life sciences firms
including Alexza Molecular Delivery, Codon Devices and Fluidigm.
http://biz.yahoo.com/prnews/051012/clw525.html?.v=8

S. San Francisco-Based Raven biotechnologies Raises $48.3 Million

South San Francisco -- Raven biotechnologies, a South San Francisco-based
biotechnology company focused on the development of therapeutics for treating
cancer, said that it has raised $48.3 million in its fourth round of funding, led by
new investor Vulcan Capital. Also participating in the round were new investors
Biogen Idec New Ventures, CIDC Consultants and Mitsubishi UFJ Capital, as
well as numerous previous investors. Raven said that it will use a portion of the
proceeds to fund the ongoing clinical development of RAV12, its lead product
candidate, which is currently in early-stage clinical trials. RAV12 is an antibody
that targets colon, gastric and pancreatic tumors.
http://www.ravenbio.com/oct12.05.html

Cupertino-Based Apple Introduces Video iPod, iTunes Videos

San Jose, Calif. - As anticipated, Cupertino-based Apple has introduced its fifth-
generation iPod, which for the first time adds the ability to play video, in addition
to supporting music and photos. The company also announced that it will begin
selling 2,000 music videos from its iTunes Music Store for $1.99 each, along with
episodes of ABC and Disney Channel TV programs like "Lost" and "Desperate
Housewives," and short films from Pixar Animation Studios. The device will also
be able to display video podcasts, home videos or any other video content
uploaded from a computer. The new video iPod will be sold in 30GB ($299) and
60GB ($399) models that come in either white or black. "
http://biz.yahoo.com/prnews/051012/sfw073.html?.v=28   
http://biz.yahoo.com/prnews/051012/sfw072.html?.v=32

San Jose-Based Caymas Systems Lands $13 Million in Funding

San Jose, Calif. -- Caymas Systems, a San Jose-based developer of gateways that
allows companies to restrict access to resources based on identity, said on
Thursday that it has landed $13 million in an expansion round of institutional
funding. The company said that it has now raised $37 million in three rounds.
New investors Levensohn Venture Partners and Kinetic Ventures and previous
investors Redpoint Ventures and ComVentures participated in the round, which
the company plans to use to increase sales and marketing in the North American
corporate and federal government markets. It also plans to begin entry into the
European market.
http://biz.yahoo.com/bw/051013/135550.html?.v=1

Report: 60% of Ringtone Revenue Comes from Actual Song Recordings

San Francisco - Sixty percent of mobile phone ringtone revenue comes from the
sale of "realtones," or ringtones that feature snippets of the actual song recordings,
according to a newreport from market research firm Telephia. Traditional
monophonic and polyphonic ringtones now comprise only a third of the market,
while ringback tones account for 7% of revenues. "Realtone downloads are more
likely to mimic the success of online digital music downloads given the inclusion
of vocals and improved voice quality," said Kanishka Agarwal, a vice president at
Telephia "The desire for personalization drives mobile users to pay a premium for
ringtones with downloads at $1.99 as compared to $0.99 they pay for the entire
track online." The firm said that rap and hip-hop ringtones were the most
popular..
http://tinyurl.com/9yf8t   

Mountain View-Based PicksPal Launches with $2 Million in VC

Mountain View, Calif. -- Tom Jessiman, a former senior executive with
CBS SportsLine.com, Sports.com and Ziff-Davis, said that he has
launched PicksPal.com, a Mountain View-based company offering free,
weekly online games designed to test the knowledge of sports fans,
backed by $2 million in venture capital from Canaan Partners. Site
members compete for points -- no money is involved. They each begin
the week with 1,000 points, and have the chance to earn more points by
picking the outcomes of real sporting events based on real odds. The site
said that it works like a live stock picking contest, except that it's based
on the outcomes of sporting events. Winners are honored on the site. The
company also said that Kenneth Dotson, the CMO of TicketsNow.com,
has joined its board of directors. He is the former vice president of
marketing for CBS SportsLine.com.
http://biz.yahoo.com/prnews/050913/latu093.html?.v=25

Fremont's CompuDyne Public Safety & Justice Acquires Xanalys

Fremont, Calif.. -- CompuDyne, a Maryland-based developer of public
security technologies, said on Monday that its Fremont-based Public
Safety & Justice unit has acquired Massachusetts-based Xanalys for an
undisclosed sum. Xanalys makes software designed to help investigators
collect, analyze and share information, such as phone records, email,
letters and reports. The software is used by clients such as the Illinois
State Police. the Ontario Provincial Police, Citigroup and The Hartford.
"We see the acquisition of Xanalys as providing a powerful extension to
our current product suite and an enhancement to our clients' investigation
capabilities," said Dan Crawford, the CEO of CompuDyne-Public Safety
& Justice..
http://tinyurl.com/b3oe2

WSJ: Google and Comcast in Talks to Acquire Stake in AOL

Mountain View, Calif. -- Google, the Mountain View-based search
engine giant, and Comcast are in serious discussions to acquire a minority
stake in America Online, The Wall Street Journal's online edition reported
on Wednesday. According to people familiar with the situation, the talks
focus on AOL's web portal -- not its dial-up Internet service, which has
been steadily losing subscribers over the past several years. Google and
Comcast are reportedly hoping that tapping into AOL's Internet content
will help drew more visitors tro their respective online properties. The
Journal reported that Google first approached Comcast about teaming up
for a bid last week, though it may end up making a bid on its own. AOL
also reportedly has been in negotiations with Microsoft for several
months about potentially combining their Internet operations.
http://online.wsj.com/home/us

Sunnyvale-Based Yahoo to Link Instant Messenger with MSN

Sunnyvale, Calif. -- In a move to take on AOL's dominance in instant
messaging, Sunnyvale-based Yahoo on Wednesday announced a
landmark deal with Microsoft to connect users of their consumer IM
services. It marks the industry's first interoperability agreement, and will
form the world's largest IM community estimated at more than 275
million users. The companies plan to introduce the interconnectivity
capabilities between MSN Messenger and Yahoo Messenger in the
second quarter of 2006. According to Nielsen/NetRatings, AOL's core
instant messenger, known as AIM, had 51.5 million unique U.S. users in
September, compared with about 27.3 million for MSN Messenger and
21.9 million for Yahoo Messenger,
http://biz.yahoo.com/prnews/051012/sfw030.html?.v=32

Redwood City-Based Radiant Medical Raises $36 Million in Funding

Redwood City, Calif. -- Radiant Medical, a Redwood City-based
developer of medical technologies, said on Wednesday that it has raised
$36 million in a new round of venture capital financing. New investor
Bay City Capital led the round, which also included participation by 
VantagePoint Venture Partners, Three Arch Partners, Sprout Group,
InterWest Partners, MedVenture Associates, Highland Capital Partners,
Alta Partners and Weiss, Peck and Greer Venture Partners. Radiant is
developing endovascular therapeutic cooling technology for the treatment
of cardiovascular disorders. The technology is designed to reduce heart
damage during a heart attack and reduce the incidence of acute kidney
failure following routine catheterization procedures.
http://www.radiantmedical.com/news/news101205.html

California Ranked as Least Friendly State Toward Entrepreneurs

Washington, DC -- California trails every other state in the nation when it
comes to public policies designed to help entrepreneurs, according to a
new ranking by the Small Business & Entrepreneurship (SBE) Council.
According to its author, SBE chief economist Raymond Keating, the 10th
annual Small Business Survival Index "aims to gauge… whether public
policies help or hurt the entrepreneurial sector of our economy, which of
course is so important for economic growth, innovation and job creation."
Nevada tops the list of  entrepreneur-friendly states, followed by Nevada
and Wyoming. Only Washington, DC trails California on the list. The
index analyzes 26 major government-imposed or related costs affecting
small businesses and entrepreneurs, including an assortment of taxes and
measures that reflect various regulatory costs.
http://biz.yahoo.com/prnews/051012/dcw031.html?.v=30

Wi-Fi Companies to Work Together on New, Faster Standard

San Jose, Calif. - Twenty-seven Wi-Fi companies announced that they have
agreed to work together on a new Wi-Fi standard that will make the technology
go faster and further. The standard -- which follows the 802.11a, b and g
standards -- is known as 802.11n. It will have superior reach and be two to 10
times faster than current standards. The companies that support the standard
have formed a group call the Enhanced Wireless Consortium, which includes
wireless chipmakers Broadcom and Intel, laptop makers Lenovo, Sony and
Toshiba and network equipment maker Cisco. Not everyone has embraced the
new standard, however. Wi-Fi technology vendor Airgo mobile phone giant
Nokia have complained that the group is simply trying to force through the
standard that it is already planning to build.
http://makeashorterlink.com/?F27B435FB   

Sunnyvale-Based Yahoo Launches Blog Search, Podcast Portal

Sunnyvale, Calif. - Sunnyvale-based Yahoo has launched a test version of a new
blog search tool, which will integrate blog content with traditional media results
when users conduct searches on Yahoo News. The new feature separates blog
results from other news headlines, and also adds results from Yahoo's Flickr
photo sharing service, as well as user-generated My Web links to other relevant
content. Separately, Yahoo also announced the beta release of Yahoo Podcasts,
a portal that lets users search, subscribe to, rate and review podcast programs.
The indexed podcasts include programs from National Public Radio, as well as
the weekly presidential address.
http://biz.yahoo.com/bw/051011/115513.html?.v=1 
http://biz.yahoo.com/bw/051010/105348.html?.v=1