Silicon Valley Wire

San Rafael-Based Autodesk Completes $46 Million deal for Constructware

San Rafael, Calif. -- Autodesk, a San Rafael-based provider of design software and services, said on Friday that it has completed its $46 million acquisition of Constructware, a Georgia-based maker of project management software for the construction industry. The deal, first announced in early February, will allow Autodesk to integrate Constructware's products with some of its own software, including its collaborative project management tool that currently has more than 137,000 users. Founded in 1994, Constructware has been backed financially by Cordova Ventures and Live Oak Equity.
http://usa.autodesk.com/adsk/servlet/index?id=6631115&siteID=123112

Santa Clara-Based Sun Completes Acquisition of Sunnyvale's Aduva

Santa Clara, Calif. -- Sun Microsystems, the Santa Clara-based network computing giant, said that it has completed its acquisition of Sunnyvale-based Aduva, a developer of technology for managing corporate software updates and compliance risks. Financial terms of the deal were not disclosed. With the deal, Sun said that it plans to add update services to the Sun Grid Utility Services that it currently offers. The acquisition was first announced in late February.
http://www.sun.com/smi/Press/sunflash/2006-03/sunflash.20060330.1.xml?cid=155

Report: Pay for Top Execs Increases at Venture-Backed Companies

San Francisco -- Top executives at U.S. venture-backed companies are receiving about $10,000 more a year in total compensation than they did a year ago, according to a new survey by Dow Jones' VentureOne. The firm said that the median salary and bonus compensation for CEOs of venture-backed companies is $263,000, up from $252,000 a year ago. In addition, CEOs reportedly are earning larger bonuses -- a median $50,000, compared with $40,000 in March 2005. In other positions, vice presidents also are earning a median $10,000 more than last year ($180,000) and director-level positions are earning about $5,000 more ($130,000). More than 700 executives at U.S. venture-backed companies participated in the survey.
http://www.ventureone.com/
http://biz.yahoo.com/prnews/060330/sfth018.html?.v=49

Study: 43 Million U.S. Households Now Have Broadband Access

Arlington, Va. -- Some 43 million U.S. households now have broadband Internet access, up from just 2 million in 1999, according to a new study by the Consumer Electronics Association (CEA). "Broadband households are quickly becoming the norm. It is very possible that dial-up Internet connections will be a thing of the past by the end of the decade," said Gary Shapiro, the president and CEO of the CEA. While broadband adoption is quickly on the rise, the U.S. ranks 15th in the world in high-speed Internet penetration. Asian countries top the list, with South Korea, Hong Kong, Singapore and Taiwan all having higher than 50% penetration. Meanwhile, dial-up access in the U.S. continues to decline. In 2000, dial-up connections accounted for 74% of all U.S. residential Internet connections, a number that has now dropped to 36%.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=10986

FTC: Retailers Selling Fewer Mature-Rated Video Games to Minors

Washington, DC -- The Federal Trade Commission (FTC) has released the results of a nationwide undercover operation using children ages 13-16 that found retailers are not selling as many Mature-rated video games to minors. Overall, 42% of the secret shoppers were able to purchase M-rated games between October and January, down from 69% in 2003 and 85% in 2000. Enforcement of the ratings was higher among national retailers, and about half of all cashiers reportedly asked the child's age, up from just 12% in 2000. Later this year, the FTC plans to conduct similar operations to determine whether minors are able to purchase R-rated movie tickets and DVDs, as well as explicit content-labeled music recordings.
http://www.ftc.gov/opa/2006/03/videogameshop.htm

Report: Average U.S. Household Owns 26 Consumer Electronics Products

Arlington, Va. -- The average U.S. household now owns 26 consumer electronics products and has spent $1,200 on products such as MP3 players, digital cameras and notebook computers over the past year, according to a new study by the Arlington-based  Consumer Electronics Association. The study also found that analog is giving way to digital technologies across the board, and identified the top five most owned products as televisions (in 95% of households), VCRs (87%), cordless phones (85%), DVD players (81%) and wireless phones (78%). The report includes favorable findings for satellite radio, as well. Satellite radio ownership reached 10% of households as total subscribers to DC-based XM and rival Sirius breached the 10 million mark.
http://www.ce.org/Press/CurrentNews/press_release_detail.asp?id=10989

Palo Alto-Based Garage Technology Ventures Raises New Fund

Palo Alto, Calif. -- – Garage Technology Ventures, a Palo Alto-based venture capital firm focused on seed-stage and early-stage technology companies in the western U.S., said on Thursday that it has raised a new fund, with Thomas Weisel Global Growth Partners serving as lead investor. Other participants in Garage Technology Ventures I included Fisher Jurvetson, Silicon Valley Bank and E*Trade. Garage said that the primary purpose of the fund will be to co-invest with its earlier fund, the Garage California Entrepreneurs Fund. When Garage started in 1998, it operated as a “venture accelerator,” helping entrepreneurs raise venture capital and launch their startups. In 2001, the firm changed its name to Garage Technology Ventures and changed its business model to include direct investing.
http://www.garage.com/news/press/pr_06_03_30.shtml

Palo Alto-Based H-Stream Wireless Raises $12.55 Million in First Round

Palo Alto, Calif. -- H-Stream Wireless, a Palo Alto-based developer of low power wireless semiconductors, said on Thursday that it has raised $12.55 million in its first round of funding. Granite Ventures, Intel Capital, Tallwood Venture Capital and selected angel investors all participated. H-Stream is still secretive about its product plan, but said that it plans to develop iltra-low power wireless products " delivering both silicon and protocol breakthroughs." Founded in 2004, H-Stream was seeded by a group of angels which included founders of VLSI Technologies, Netscreen (now Juniper Networks), Omnivision and Spreadtrum.
http://www.hstream.com/content/release.php?s=release_01

Mountain View-Based Google to Sell More Than $2 Billion in Stock

Mountain View, Calif. -- Shares of Google fell nearly 2% on Thursday after the Mountain View-based Internet search giant announced plans to sell 5.3 million shares of its stock worth more than $2 billion. The company said that the move will partially meet the anticipated needs of index funds to purchase its stock when Google is added to the S&P 500 Index at the close of trading on Friday. Google is replacing oil and gas producer Burlington Resources in the index.
http://www.google.com/press/pressrel/ir_20060329.html

eBay Says Patent Office Upholds Favorable Ruling on MercExchange Patent

San Jose, Calif. -- EBay, the San Jose-based online auction giant, said on Thursday that the Patent and Trademark Office has upheld its earlier ruling that an e-commerce patent held by Virginia-based MercExchange was "obvious" and should not have been issued. The ruling effectively dismisses the arguments that MercExchange raised in its 100-page response to the Patent Office's previous rejection of all of the company's claims.At issue is the technology that eBay uses for its fixed price and "Buy it Now" sales, which together make up about a third of its total sales. In 2003, a district court found that eBay was infringing on MercExchange's patents, awarded the company $35 million in damages, but declined to issue a permanent injunction. While the amount was later lowered to $25 million, an appeals court ruled that the lower court should have issued a permanent injunction -- a decision that eBay is now appealing to the Supreme Court.
http://investor.ebay.com/ReleaseDetail.cfm?ReleaseID=191604&FYear=

San Francisco-Based Burrill & Co. Invests $1 Million in Proventys

San Francisco -- Burrill & Co.,a life sciences merchant bank based in San Francisco, has invested $1 million in Proventys, a North Carolina-based start-up medical technology company, Private Equity Week reported. The company was founded in 2004 by Ralph Snyderman, who previously served as head of the Duke University Health System. Proventys is focused on the field of "prospective health care," which seeks to determine the risk for individuals to develop specific diseases, detect the disease's earliest onset and intervene early enough to provide maximum benefit.
http://www.burrillandco.com/indexflash.php

Cupertino-Based Apple, Beatles' Record Label, Argue Trademark Case

Cupertino, Calif. -- The Beatles' record label, Apple Corps, and Cupertino-based Apple  squared off in a London court on Wednesday over whether the iPod maker's iTunes Store breaches a trademark agreement that the company made with the label not to enter the record industry, the International Herald Tribune reported. While Apple maintains that it functions solely as a conduit for selling music recorded and distributed by other companies, Apple Corps' lawyers contend that the argument is undermined by iTunes' lack of interoperability, and its selling of exclusive songs and repackaged collections not available elsewhere. "The agreement was intended to say, 'We do music, you do computer software delivery systems,'" Apple Corps lawyer Geoffrey Vos said of the 1991 deal. "The moment you cross the line is when you say you're in the record business." Vos also said that in 2003, Apple Corps managing director Neil Aspinall turned down a $1 million offer from Apple CEO Steve Jobs to buy the rights the Apple Records name. Apple Corps is seeking the removal of Apple's apple-shaped logo from iTunes, in addition to unspecified damages.
http://www.nytimes.com/2006/03/29/technology/29cnd-apple.html

Apple Adds iPod Volume Limit Setting in Software Update

Cupertino, Calif. -- Responding to concerns about possible long-term hearing loss, Cupertino-based Apple has released a software update for its iPod nano and fifth-generation iPod players that lets users set their own personal maximum volume limit, and also allows parents to set a lockable volume limit on their child's iPod. A section on the company's web site cautions that users should "limit the amount of time that you use earbuds or headphones at high volume," and that "hearing experts warn that noise-induced hearing loss can also occur as a result of repeated exposure to loud sound over time.
http://biz.yahoo.com/prnews/060329/sfw051.html?.v=53
http://www.apple.com/sound

Hayward-Based Dynamic Network Factory Moves into New HQ

Hayward, Calif. -- Dynamic Network Factory (DNF), a developer of storage technologies,  said on Thursday that it has opened its new corporate headquarters in Hayward. The company also said that its StoneFly subsidiary, which supplies storage area network (SAN) systems, has signed a three-year lease for new headquarters offices in San Diego. DNF said that its new 20,000 square foot facility, overlooking the San Francisco Bay, offers significantly larger production and engineering facilities, as well as an advanced training center. The company plans to retain its former Hayward headquarters offices to house its growing sales staff. 
http://www.dnfstorage.com/resources.asp/section/Reading~Room/category/Releases/ID/61

Mountain View-Based Google Finalizes $1 Billion Investment Deal with AOL

Mountain View, Calif. -- Following several months of negotiations, Google, the Mountain View-based Internet search giant, said in a regulatory filing on Wednesday that it has finalized its deal to invest $1 billion in America Online. Under the deal, first announced in December, Google will acquire a 5% stake in AOL, its largest advertising partner, sometime before mid-year. There is also a large advertising portion of the deal, in which AOL will get $300 million worth of ads on Google's network, and in turn will sell graphical ads for  Google's search engine. The news sent shares of Google up nearly 5% in Wednesday's trading.
http://biz.yahoo.com/e/060329/goog8-k_a.html

Santa Clara-Based McAfee to Invest $80 Million in India Over Four Years

Santa Clara, Calif. -- McAfee, the Santa Clara-based provider of Internet security software and services, said on Wednesday that it plans to invest more than $80 million into its India-based operations over the next four years, as well as hire another 400 employees in that country by 2008. The money will go to expand the company's research and development center in Bangalore. "McAfee India Centre will be home to about 1,000 employees by the end of 2008," said Sridhar Jayanthi, the head of McAfee's India operations.
http://www.mcafee.com/us/about/press/corporate/2006/20060329_174211.htm

San Francisco-Based Linden Lab Raise $11 Million in Funding

San Francisco -- Linden Lab, the San Francisco-based developer of the "Second Life" 3D online world, said that it has raised $11 million in a recent round of venture capital financing. Globespan Capital Partners led the round, which also included participation from Benchmark Capital, Catamount Ventures, Omidyar Network, Amazon.com founder Jeff Bezos and Lotus founder Mitch Kapor. Founded in 1999, Linden Lab's "Second Life" online community, or "metaverse," now claims 165,000 residents and a virtual economy worth over $60 million a year. The company told CNET News.com it will use the funds to bolster its staff and for international expansion.
http://biz.yahoo.com/prnews/060328/sftu070.html?.v=47
http://news.com.com/Second+Life+scores+11+million+in+funding/2100-1043_3-6054598.html?tag=cd.top
http://www.secondlife.com

San Francisco-Based CITTIO Lands $8 Million Investment from JK&B

San Francisco -- CITTIO, a San Francisco-based maker of network monitoring and operations software, said on Wednesday that it has landed an $8 million investment from Chicago-based JK&B Capital. The company, which has landed more than 100 corporate and service provider customers over the past year, said that the funding will help it to continue on its recent growth spurt. CITTIO's flagship product is designed to help companies increase datacenter productivity and manage distributed systems. Its clients include Capitol Advantage, the National Parks Conservation Association, Pacific Sunwear and The Gymboree Corp.
http://www.cittio.com/
http://biz.yahoo.com/bw/060329/20060329005602.html?.v=1

Report: State and Local IT Spending Set to Increase Sharply

Reston, Va. -- As experienced workers begin to retire at a faster clip and technologies start showing their age, information technology spending by state and local governments is expected to increase sharply over the next few years, according to a new report from INPUT. The firm expects state and local IT spending to grow from approximately $50 billion this year to $72 billion by fiscal year 2011. The forecast predicts continued growth, but at a slower rate, for the following three years. James Krouse, INPUT's manager of state and local market analysis, said that conservative IT spending of state and local governments over the past three years has resulted in a "large pent-up demand for technologies." As a result, he said that spending will be more aggressive than originally expected.
http://www.input.com/corp/press/detail.cfm?news=1178

House Bill Would Make it Easier for Telecom's to Offer Video Services

Washington, DC -- A new bill introduced by House Republicans would make it easier for telecom providers like Verizon and AT&T to offer Internet-based TV services, Reuters reported. The bill would let these companies obtain a national license, while allowing local governments to collect up to 5% of gross revenue. Recently, Verizon has been negotiating agreements with individual cities and counties to launch its FiOS TV service. "With new competitors preparing to enter the ongoing race between cable and satellite, the law needs to change," said Rep. Joe Barton (R-Texas), chairman of the House Energy and Commerce Committee. Along with Barton, sponsors of the bill include Reps. Fred Upton (R-Mich.) and Bobby Rush (D-Ill.). The bill is scheduled for a Committee hearing on Thursday.
http://today.reuters.com/news/newsArticle.aspx?type=technologyNews&storyID=2006-03-28T134335Z_01_N27323117_RTRUKOC_0_US-MEDIA-CONGRESS-VIDEO.xml

Sunnyvale-Based Aptus Endosystems Raises $19.5 Million in Funding

Sunnyvale, Calif. -- Aptus Endosystems, a Sunnyvale-based developer of medical devices and technology, said on Tuesday that it has raised $19.5 million in its second round of venture capital financing, led by new investor Prism Venture Partners. Another new investor, Baird Venture Partners,and previous investors U.S. Venture Partners and Pequot Ventures also participated. Aptus said that it will use a portion of the proceeds to launch U.S. clinical trials for its Abdominal Aortic Aneurysm (AAA) product. Ruptured AAA is the 13th leading cause of death in the U.S., causing at least 15,000 deaths a year.
http://biz.yahoo.com/prnews/060328/netu003.html?.v=51

Oakland-Based AmberPoint Lands $10.3 Million in Fourth Round

Oakland -- In its first dip into the capital markets in nearly two years, Oakland-based AmberPoint, a maker of software for service-based systems, said on Tuesday that it has secured $10.3 million in its fourth round of funding, led by new investor Meritech Capital Partners of Palo Alto. All of the company's previous investors -- Crosslink  Capital, Motorola Ventures, Norwest Venture Partners and Sutter Hill Ventures -- also participated, increasing the company's total backing to $41.1 million. AmberPoint said that it will use the funding to expand engineering operations, customer support, sales and marketing. It plans to continue its worldwide expansion, as well. Current customers include British Telecommunications, H&R Block, Motorola and the Department of Defense.
http://www.amberpoint.com/
http://biz.yahoo.com/bw/060328/20060328005233.html?.v=1

Menlo Park-Based LimeLife Raises $10 Million in Second Round

Menlo Park, Calif. -- LimeLife, a Menlo Park-based publisher of mobile software aimed exclusively at women, said on Tuesday that it has raised $10 million in its second round of funding, led by Menlo Park's U.S. Venture Partners. Other previous investors, including Rustic Canyon Partners, i-Hatch Ventures and Monitor Ventures, also participated. LimeLife's products target the growing number of women downloading both casual gaming and mobile entertainment applications. They are currently distributed through the company's relationships with wireless carriers such as Cingular, Verizon Wireless and Sprint, with T-Mobile soon to be added to that list.
http://www.limelife.com/
http://biz.yahoo.com/iw/060328/0114877.html

N.Y. Times: Apple Back in U.K. Court with Beatles Record Label

Cupertino, Calif. -- The Beatles' record label, Apple Corps, will be in court again this week for a case that will determine whether Cupertino-based Apple violated an agreement between the two companies over the use of the Apple trademark in the music business, The New York Times reported. This is Apple Corps' third lawsuit against the iPod maker, which in 1991 paid more than $26 million to the label to settle the second lawsuit, while at the same time promising not to enter the music business. Apple was sued for the third time in 2003, after it launched its successful iTunes music download store. The hearing this week will determine whether Apple's forays into the music industry violate its 1991 agreement with Apple Corps.
http://www.nytimes.com/2006/03/27/technology/27apple.html

Sunnyvale-Based mBlox and New-Visions Team on New Music Service

Sunnyvale, Calif. -- mBlox, a Sunnyvale-based developer of mobile-payments technology, said that it has partnered with New-Visions, a U.K.-based mobile marketing services firm, to launch a number of off-portal mobile music download services. The services will initially be offered in the U.K. through Vodafone and other wireless carriers. They will offer one-fee mobile music downloads that combine the price of the song with the cost of the bandwidth used to deliver song data. Songs available will be provided by New-Visions label partners like V2 Records and Ministry of Sound, whose artists include Stereophonics and The Rakes.
http://www.mblox.com/mblox/news/p_032706.asp

Report: Mobile Video Market to Increase Eight-Fold by 2010

New York -- About 41% of mobile phone users say they are interested in some form of video service for their wireless handsets, according to a new survey by  market research firm JupiterResearch. Although only 2% of them currently subscribe to such a service, 17% said that they are interested in watching live TV on their cell phones, with 11% also indicating interest in short videos. Based on the results, JupiterResearch predicts that the market for video on mobile phones with increase about eight-fold to $501 million in revenue by 2010.
http://www.jupitermedia.com/corporate/releases/06.03.28-newjupresearch.html

San Mateo-Based HedgeStreet Lands $12.5 Million from Norwest VP

San Mateo, Calif. -- HedgeStreet, a San Mateo-based online exchange for binary options and futures, said on Monday that it has secured $12.5 million in its third round of funding from Norwest Venture Partners, a Palo Alto-based venture capital firm. The company. which now has raised a total of $24.9 million since its inception in 2004, plans to use the infusion of capital to introduce new products to market, as well as increase its liquidity and further promote its service to retail and institutional investors, as well as hedge funds. HedgeStreet allows individuals to electronically buy and sell financial contracts, which are based on the outcomes of economic events and price movements in commodities, currencies, real estate and economic indicators. The company also recently landed an investment from the Chicago Board Options Exchange as part of a larger alliance.
http://www.hedgestreet.com
http://biz.yahoo.com/bw/060327/20060327005462.html?.v=1

Menlo Park's TA Associates Raises $4.3 Billion in New Funds

Menlo Park -- TA Associates, a private equity and buyout firm with West Coast offices in Menlo Park, said on Monday that it has closed two new funds -- a $3.5 billion private equity fund and a $777.5 million subordinated debt fund. The private equity fund, TA X, is the follow-up to the firm's $2 billion fund, lunched in 2000. The fund will invest $50-$300 million in the North American and European technology, financial services, business services, healthcare and consumer sectors. The debt fund, TA SDF II, succeeds TA's $500 million mezzanine fund organized in March 2000, and will provide subordinated loans pf $10-$75 million to middle-market growth companies.
http://www.ta.com/news/news_detail.asp?id=122

Menlo Park-Based Lighthouse Capital Plans New Fund, Expansion into Israel

Menlo Park, Calif. -- Lighthouse Capital Partners, a Menlo Park-based venture capital firm, on Monday announced plans to raise a new investment fund, as well as to expand its investing focus outside the U.S. into Israel. The firm said that it has entered into a partnership with Israel's Magnolia Capital to source investment opportunities. Magnolia has U.S. headquarters in Palo Alto, as well. Lighthouse also disclosed on Monday that, during the current quarter, it has invested a total of $88 million in 16 emerging technology and life sciences companies. The firm did not disclose specific details on the planned size and closing date of the new fund, which will be its sixth.
http://www.lcpartners.com/
http://biz.yahoo.com/bw/060327/20060327005553.html?.v=1

U.K-Based Zopa Lands $15 Million for California Expansion

San Francisco -- Zopa, a London-based online service that connects people who want to lend with people who want to borrow, said on Monday that it has raised $15 million in its first round of funding, which the company plans to use to launch its California operations later this year. Menlo Park's Bessemer Venture Partners led the round, which also included participation from previous investors Benchmark Capital and Wellington Partners. Zopa launched in the U.K. a year ago, and has since signed up more than 55,000 members. The company said that both lenders and borrowers can get a better financial deal through its exchange, since there are no banks involved.
http://biz.yahoo.com/prnews/060327/sfm040.html?.v=45
http://www.zopa.com

Report: U.S. Angel Investments Grow at Modest Pace in 2005

Durham, N.H. -- Angel investments in the U.S. grew modestly last year, rising 2.7% to $23.1 billion, according to new figures from the Center for Venture Research (CVR) at the University of New Hampshire. The largest chunk of those investments, about 20%, went to companies focused on healthcare services and medical devices, followed by those focused on software (18%) and biotech (12%). Jeffrey Sohl, the director of CVR, said that a growing number of angel investors are taking part in later-stage investments. "This restructuring of the angel market has in turn resulted in fewer dollars available for seed investments, thus exacerbating the capital gap for seed and start-up capital in the United States," said Sohl.
http://wsbe.unh.edu/cvr/

Redwood City's Check Point Calls Off $225 Million Acquisition of Sourcefire

Redwood City, Calif. -- More than five months after first unveiling plans to acquire Maryland-based network security software maker Sourcefire for $225 million, Israel-based Check Point Software Technologies, which has U.S. headquarters in Redwood City, said late Thursday that it has withdrawn from the deal. The move comes as the Committee on Foreign Investment in the United States (CFIUS), a panel of 12 government bodies, had launched a a full-blown investigation into the national security ramifications of the deal. The Baltimore Sun reported that the FBI opposed the sale, fearing that sensitive government information being secured by Sourcefire's software could fall into the wrong hands. Check Point, which makes firewall and virtual private network software, said that it is now instead looking to partner with Sourcefire. "We've decided to pursue alternative ways for Check Point and Sourcefire to partner," said Gil Shwed, Check Point's CEO. The deal was first announced in early October.
http://biz.yahoo.com/bw/060323/20060323005897.html?.v=1
http://www.baltimoresun.com/technology/bal-te.bz.sourcefire24mar24,0,7572577.story?coll=bal-home-headlines

San Mateo-Based M-Factor Names Jeff McFadden as New CEO

San Mateo, Calif. -- Jeff McFadden, the former CEO of Claira, on Friday was named as the new CEO of San Mateo-based M-Factor, a maker of investment management systems for consumer marketing organizations. He replaces company founder Phil Delurgio, who will remain on the company's CTO, as well as on its board. McFadden co-founded Claira in 1998, and previously served as the vice president of business development at Excite. Delurgio said that the move gives M-Factor the kind of executive management  experience it needs to lead its aggressive growth plan. "His ability to build out a premier organization and grow technology businesses is precisely what we need," said Delurgio.
http://www.m-factor.com
http://biz.yahoo.com/bw/060324/20060324005368.html?.v=1

Sony's "Shadow of the Colossus" Takes Top Honors at Game Developers Awards

San Jose, Calif. -- Sony Computer Entertainment's "Shadow of the Colossus" took five top honors, including "Best Game," at the 6th annual Game Developers Choice Awards, an event produced by the International Game Developers Association as part of the 2006 Game Developers Conference in San Jose, Calif. Developed by a team led by Kenji Kaido, Yasuhide Kobayashi and Fumito Ueda, the mythical action-adventure game also received recognition from fellow game developers for Character Design, Game Design, Visual Arts and Innovation. The Lifetime Achievement award was bestowed on Richard "Lord British" Garriott, founder of "Ultima" developer Origin Systems, who later went on to executive produce titles including "Lineage" and "City of Heroes". A full list of winners is available at the link below.
http://www.gamechoiceawards.com/gdca_6th.htm

"Darwinia" Takes Top Prize at 8th Independent Game Festival Awards

San Jose, Calif. -- Independent video game developer Introversion's PC game "Darwinia" took three prizes -- including the $20,000 Seamus McNally Grand Prize for Best Independent Game -- at the 8th Annual IGF Awards, held during the Independent Game Festival at the Game Developers Conference in San Jose. The Independent Game Festival also recognized "Dad 'N Me" as Best Web Game, and "Braid" for Innovation in Design, while also doling out $10,000 in prizes to a number of the best amateur "mods" for existing video games.
http://biz.yahoo.com/prnews/060323/lath044.html?.v=49
http://www.igf.com

San Mateo-Based Sling Media Launches Cell Phone Version of TV Service

San Mateo, Calif. -- Sling Media, the provider of a service that lets cable and satellite TV subscribers access their home channels from any Internet-connected device, said that it has launched a beta test of a new cell phone version of its service. The new application, compatible with cell phones and mobile devices running Microsoft Windows Mobile, will be available for a one-time fee of $29 beginning April 26. Users will also have to purchase the company's set-top box to connect to their home cable or satellite receiver. The combination will enable users to access their home TV channels on their cell phones, paying only for their wireless carrier's blanket data subscription package.
http://www.slingmedia.com/press/pressreleases-032206.php

Report: Traffic for Online Greeting Card Sites Spikes for St. Patrick's Day

New York -- Online greeting card companies saw a significant boost in web traffic this past week, with Internet users flocking to their sites to send St. Patrick's Day e-cards, jokes and other content, according to new figures from Nielsen//NetRatings. The firm said that combined home and work traffic to the AmericanGreetings.com network, which includes AmericanGreetings.com and Bluemountain.com, shot up 148%, to 3.4 million unique visitors for the week ending March 19. Other big winners for the week included 123Greetings.com (up 111%) and AOL Greetings (up 79%).
http://www.netratings.com/

Report: Digital Video Recorders Will Be In 130 Million Homes by 2010

Boston -- With the popularity of services for firs like Alviso-based TiVo continuing to rise, market research firm Strategy Analytics said that it expects the number of homes worldwide with digital video recorders to grow from 17.4 million at the end of 2005 to 130 million by 2010. DVRs already are present in 12% of U.S. homes, and more than half are expected to have access to one by 2010.
http://www.strategyanalytics.net/
http://biz.yahoo.com/bw/060323/20060323005544.html?.v=1

ESA Says 10,000 Have Joined Video Game Voters Network

Washington, DC -- The Entertainment Software Association (ESA), a trade group of video game publishers and developers, said that more than 10,000 Americans joined its Video Game Voters Network in its first week of existence. The political network was established for U.S. gamers to organize and take action on policy issues affecting the video game industry, such as the recent spate of attempts to enact laws banning the sale of violent games to minors. The ESA launched the network on March 13.
http://www.theesa.com/archives/2006/03/10000_gamers_jo.php
http://www.videogamevoters.org

Protegrity Acquires Santa Clara-Based OmniSecure

Santa Clara, Calif. -- Protegrity, a Connecticut-based maker of data security management tools, said on Thursday that it has acquired Santa Clara-based data security firm OmniSecure for an undisclosed sum. Protegrity said that all 20 of OmniSecure's employees will remain with the company, working from their current offices in Sanmta Clara and China. Protegrity will now have more than 90 employees and 300 clients worldwide. Founded in 2000, OmniSecure has developed file-level encryption technologies designed to protect sensitive data in files, such as images, applications and databases. The acquisition comes seven months after Protegrity acquired application security vendor Kavado.
http://www.protegrity.com/pressreleases/32106release.html

San Carlos-Based NuGEN Technologies Raises $7.75 Million

San Carlos, Calif. -- NuGEN Technologies, a developer of gene amplification and labeling systems, said that it has secured $7.75 million in a new round of funding, led by Palo Alto-based Alloy Ventures. Previous investors Sutter Hill Ventures, Radius Ventures and The Band of Angels also participated. The company said that it will use the funds to accelerate its technology development activities, as well as to expand the global distribution of its amplification and detection systems for gene expression research.
http://www.nugeninc.com/html/08_news2.html

Santa Clara-Based Nvidia to Acquire Finland's Hybrid Graphics

Santa Clara, Calif. -- Nvidia, a Santa Clara-based maker of graphics chips, said that it will acquire Finland-based Hybrid Graphics, a developer of embedded graphics software for handheld devices. Financial terms of the deal were not disclosed. Founded in 1994, Hybrid has a client list that includes Nokia, Ericsson, Philips, Samsung and Symbian. Hybrid will become a subsidiary of Nvidia and will continue to market and sell its products under the Hybrid name
http://biz.yahoo.com/prnews/060322/sfw061.html?.v=48
http://www.nvidia.com

San Francisco-Based VideoEgg Acquires Internet TV Software Firm Popcast

San Francisco -- VideoEgg, a San Francisco-based developer of web-based video publishing tools, said that it has acquired Popcast, a maker of software for viewing and broadcasting Internet TV channels. Financial terms of the deal were not disclosed. VideoEgg said that several senior members of Popcast's development team will join the company. "Our acquisition of Popcast will accelerate VideoEgg's development plans," said Matt Sanchez, the CEO of VideoEgg. VideoEgg's technology is designed to simplify the process of posting videos on the web.
http://www.videoegg.com/general/release_032106

CNET: Apple Calls Proposed French Law "State-Sponsored Piracy"

Cupertino, Calif. -- A day after French lawmakers gave preliminary approval to a bill that would force Cupertino-based Apple to allow songs purchased from its iTunes Store to play on devices other than the iPod, the company called the move "state-sponsored piracy," CNET News.com reported. "If this happens, legal music sales will plummet just when legitimate alternatives to piracy are winning over customers," Apple said. "iPod sales will likely increase as users freely load their iPods with 'interoperable' music which cannot be adequately protected. Free movies for iPods should not be far behind in what will rapidly become a state-sponsored culture of piracy." If passed in the French Senate, the bill would force Apple to reveal its closely-guarded digital rights management technology to competitors, or face the prospect of shuttering its iTunes Store in France. Gene Munster, a senior analyst with Piper Jaffray, speculated in a research note on Tuesday that France likely accounts for less than 2% of Apple's worldwide iPod and iTunes business.
http://news.com.com/Apple+calls+French+law+state-sponsored+piracy/2100-1025_3-6052754.html?tag=nefd.top

iTunes Software Installed Base Gaining on RealPlayer

Cupertino, Calif. -- Apple's iTunes music player software is approaching the installed base of rival RealNetworks' RealPlayer, but both remain far behind Microsoft's Windows Media Player, Information Week reported, citing data from Nielsen/NetRatings. The number of iTunes users has more than tripled in the past year -- from 5.4 million to 18.6 million -- while RealPlayer counted 28.7 million users in January. If the iTunes user base continues this rate of growth, it will overtake RealPlayer later this year. Both applications are dwarfed by the installed base for Windows Media Player, which ships with every PC containing Microsoft's Windows operating system. The application claimed 71.1 million users in January.
http://www.informationweek.com/story/showArticle.jhtml?articleID=183700826

San Mateo-Based Limbo 41414 Launches Auction-Sweepstakes Site

San Mateo, Calif. -- San Mateo-based Limbo 41414 said that it has launched the test version of its new site, which combines an online auction with a mobile game and sweepstakes. The company essentially raffles off prizes like Hummer H3's and NCAA Final Four tickets to players who place "bids" via text message or online. The winner is the person who places the lowest bid that no other player makes. For instance, the recent winner of a $3,000 plasma-screen TV bid $3.25.  Each bid also earns "loot," which can be redeemed for goods in the Limbo store. Limbo 41414 is backed by Draper Fisher Jurvetson and Azure Capital Partners.
http://biz.yahoo.com/prnews/060321/sftu146.html?.v=27
http://www.41414.com

Study: 50 Million Americans Now Access Their News Through the Web

Washington, DC -- Some 50 million Americans now turn to the Internet for news on a typical day, nearly twice as many as in 2002, according to a new report by the Pew Internet & American Life Project. The increase coincides with the rapid growth of broadband adaptation in American homes, Pew said. About 23% of respondents to a December survey said that they get their news from the web. Among broadband users, however, that number climbed to 43% -- 5% higher than local newspapers and nearly as high as both national TV and radio. Among  "high-powered" broadband users -- those who do more online in a typical day than other high-speed users -- 71% said that they get their news online, beating out all other categories, including local TV, radio and national TV, by wide margins.
http://www.pewinternet.org/pdfs/PIP_News.and.Broadband.pdf (PDF)

San Jose-Based Nextest Systems Raises $75.6 Million in IPO; Stock Jumps 22%

San Jose, Calif. -- Shares of Nextest Systems rose 22% on Wednesday -- their first day of trading after the San Jose-based company raised $75.6 million in its initial public offering (IPO). The company sold 4 million shares, with current stockholders selling another 1.4 million, for $14 each, the lower end of the company's $14-$16 estimate. The company, which makes equipment to test computer chips used in consumer electronics devices, said that it will use the proceeds for working capital and capital expenditures, including ghte possible expansion of its facilities. Listed on the Nasdaq National Market under the symbol "NEXT," the company's shares climbed $3.10 on Wednesday to close at $17.10.
http://www.nextest.com/
http://ipoportal.edgar-online.com/ipo/displayFundamentals.asp?cikid=98878&fnid=47582&IPO=1&coname=NEXTEST+SYSTEMS+CORP

EarthLink Selected to Build Wireless Network in Milpitas

Milpitas, Calif. -- EarthLink, one of the largest Internet service providers in the U.S., announced on Wednesday that it has been selected to build a Wi-Fi broadband network for the city of Milpitas. The approximately 6.5-square-mile wireless network will provide "affordable, high-speed Internet access" for the residents and visitors to the city. It also will allow city employees working in the field to access the Internet. Financial terms of the EarthLink contract were not disclosed.
http://biz.yahoo.com/prnews/060322/clw001.html?.v=43

French Lawmakers Approve Bill Forcing Apple to Open iTunes to Rivals

Paris -- French lawmakers have given preliminary approval to a controversial bill that would require interoperability between online copyright-protection technologies, essentially forcing companies like Cupertino-based Apple and Sony to make their iPods, iTunes Stores and Walkman devices in France work with one another. The bill now moves to the French Senate, which is expected to take up the matter in May. "These clauses, which we hope will be taken up by other countries… should prevent the emergence of a monopoly in the supply of online culture," said Richard Cazenave and Bernard Carayon, National Assembly deputies from the ruling UMP party. If the proposal becomes law, it's unclear whether Apple, Sony and others will choose to release their closely-guarded copyright-protection technologies to their competitors, or simply shut down iTunes and similar operations in France. "It is important to consumers to have the ability to move songs between their various listening devices," John Kennedy, chairman and CEO of the International Federation of the Phonographic Industry, told the Associated Press.
http://www.cbsnews.com/stories/2006/03/21/tech/main1427589.shtml   
http://today.reuters.com/news/newsArticle.aspx?type=internetNews&storyID=2006-03-21T190405Z_01_L2127100_RTRUKOC_0_US-MEDIA-FRANCE-COPYRIGHT.xml&archived=False