Silicon Valley Wire

San Francisco-Based Delivery Agents Raises $11 Million in Second Round

San Francisco -- Delivery Agent, a San Francisco-based maker of interactive commerce software for the entertainment industry, said on Wednesday that it has raised $11 million in its second round of funding, increasing its total backing to $16.5 million. Bessemer Venture Partners led the round, which also included participation from originally investors Worldview Technology Partners and Cardinal Venture Capital. The company raised $5.5 million in its first round in March 2005. Delivery Agent's platform allows viewers to search for and purchase products they have just seen on screen. Several major entertainment companies and consumer brands -- including ABC Entertainment, Martha Stewart Living Omnimedia, NBC Universal and Twentieth Century Fox -- already have adopted the software with the hopes of creating a new revenue stream.
http://www.deliveryagent.com/news.php?page=pa20060517-seriesb

Intel Capital Leads $7 Million Investment in N.Y.-based Pando Networks

Santa Clara, Calif. -- Intel Capital, the Venture arm of Santa Clara-based chipmaker Intel, has led a new $7 million funding round for New York-based Pando Networks, developer of a peer-to-peer distribution network for consumers' digital media. Pando said that the investment will support the launch of its first consumer offering, a network for sharing personal media, such as home movies, family photos and business presentations that are too large to send through email. The system runs through a free, downloadable
application.
http://www.pando.com/beta/news#intel

InforMedix Wins Federal Grant for San Francisco HIV Program

San Francisco -- InforMedix, a Maryland-based developer of technology that allows patients to manage chronic illnesses from home, said on Wednesday that it has landed a $149,000 federal grant to use its system with HIV-positive patients in San Francisco. Under the program, to be conducted by San Francisco General Hospital, patients will be prompted when to take medication through the sounding of a chime. A compartment containing the pill will be opened, with dosage information and special instructions displayed on an LCD screen. All patient interactions will automatically be recorded with a time and date stamp, and patient data will be downloaded to a web site for evaluation by medical personnel. "Without near-perfect adherence, complex anti-retroviral cocktails simply do not work," said David Bangsberg, the physician leading the program for the hospital.
http://www.informedix.com/
http://biz.yahoo.com/bw/060517/20060517005239.html?.v=1

Report: U.S. Video Game Sales Rise 15.6% in April

New York -- Countering a prolonged sales slump, U.S. video game sales rose 15.6% in April, compared with the same period a year ago, according to preliminary data from market research firm NPD Funworld. Popular titles during the month included "Elder Scrolls IV: Oblivion," "Kingdom Hearts II" and "The Godfather." Analysts, however, are split about whether the surge can be maintained, following several months of soft sales. While Merrill Lynch analyst Justin Post told Forbes.com that he expects sales to rise in the next several months, based on Xbox 360 shipments and price cuts on other consoles, Cowen & Co. analyst Lowell Singer believes the April sales tally was an anomaly and soft sales will continue for the rest of the year.
http://www.forbes.com/2006/05/16/electronic-arts-thq-0516markets10_print.html
http://www.npdfunworld.com   

Report: 2006 iPod Accessories Production to Top $104 Million in China

Hong Kong -- Manufacturers of accessories for Apple's iPod and other portable media players in China and Taiwan expect the value of their production to increase 37% this year to over $104 million, according to market research firm Global Sources. Accessories factored into the report include portable speakers, docking stations, cables, chargers, cases and wireless transmitters. "At least 50 new suppliers are ready to begin production this year in Taiwan and mainland China alone," said Global Sources' Mark Saunderson. http://biz.yahoo.com/prnews/060516/hktu005.html?.v=19
http://www.globalsources.com/astj/ipod

Palo Alto-Based HP Reports 51% Jump in Quarterly Profits

Palo Alto, Calif. -- Buoyed by a strong performance by its personal computer business, Palo Alto-based technology giant Hewlett-Packard on Tuesday reported a 51% jump in quarterly profits. The company posted profits of $1.46 billion, compared with $966 million a year ago. On a per share basis, profits of $0.51 beat consensus analyst estimates by $0.02, according to Thomson First Call. Revenue, as well, grew nearly 5% to $22.55 billion. "We grew revenue, expanded margins and generated record cash flow," said Mark Hurd, HP's president and CEO. The results helped push company shares up nearly 3% in after-hours trading.
http://www.hp.com/hpinfo/investor/financials/quarters/2006/q2.html

Palo Alto-Based Photobucket Raises $10.5 Million in Second Round

Palo Alto, Calif. -- Photobucket, a Palo Alto-based provider of visual content hosting and publishing services, said on Tuesday that it has secured $10.5 million in its second round of funding, led by new investor Trinity Ventures of Menlo Park. The company, which said that it is profitable, said that it will use the funds to expand its market and revenue growth. Photobucket, which has more than 16 million members and draws 10 million unique monthly visitors, according to comScore Media Metrix, allows user to upload videos, images and graphic art and link it to over 50,000 web sites like eBay, MySpace, Blogger, and Neopets. The company said that it serves over 50 billion image and video requests a month.
http://www.photobucket.com/
http://biz.yahoo.com/bw/060516/20060516005224.html?.v=1

Managed Security Firm SecurePipe Acquires Emeryville-Based Farm9

Emeryville, Calif. -- SecurePipe, an Illinois-based provider of managed network security services, said on Tuesday that it has acquired Emeryville-based rival Farm9 for an undisclosed sum. The combined company will operate under the SecurePipe name, with Farm9's Emeryville facility become its West Coast security operations center and regional office. "A key aim of the combination is to expand our geographic reach to achieve a strong national presence, enabling us to target a very complementary set of services to a wider range of financial services clients and other publicly traded companies," said Art Roldan, the CEO of SecurePipe. Guy Morgan, the CEO of Farm9, will become SecurePipe's vice president of client services. The combined company will more than 600 clients, including 400 banks.
http://www.securepipe.com/html/news/press.releases/5.16.06.html

Menlo Park's Charles River Ventures Invests in Browser Developer Maxthon

Menlo Park, Calif. -- Charles River Ventures, an early-stage venture capital firm with dual headquarters in Menlo Park and Boston, said on Tuesday that it has led an investment in Beijing-based Maxthon, the developer of a browser by the same name that has been downloaded more than 55 million times since 2003. The firm joined early investors Morten Lund and WI Harper in the funding round, which the company plans to use to continue fueling its rapid growth. Maxthon's Internet browser allows users to run web-based and "Internet aware" applications. Charles River has invested in such start-ups as Ciena, MCI and Sybase.
http://www.maxthon.com/blog/

Creative Sues Apple for Patent Infringement of iPod User Interface

Scotts Valley, Calif. -- Creative Technology, a Scotts Valley-based maker of portable MP3 players, said that it has sued Cupertino-based Apple for patent infringement of its MP3 player design. Creative also said that it has filed a complaint with the U.S. International Trade Commission, seeking a ruling on whether Apple's imported iPods and iPod Nanos infringe on the company's "Zen Patent" -- which covers the user interface on its music players. The complaint seeks an injunction against Apple importing iPods from its Asian manufacturers, or selling them once they arrive in the U.S.
http://biz.yahoo.com/prnews/060515/sfm145.html?.v=24
http://www.creative.com

Supreme Court Overturns Key Ruling in MercExchange Suit Against eBay

San Jose, Calif. -- In what's being hailed as a victory for San Jose-based online auction giant eBay, the Supreme Court on Monday ruled that a lower court should reconsider its decision to prohibit the company from using some of the technology behind its "Buy It Now" feature, which has been the subject of its patent infringement case with Virginia-based MercExchange. In a unanimous decision, the court overturned a year-old federal appeals court ruling requiring judges to issue permanent injunctions against companies found guilty of patent infringement. eBay argued that if the ruling held up, small patent holders could essentially hold large technology companies hostage, forcing them to settle suits or face injunctions. A Federal court could still reissue the injunction. "We are confident that when the District Court revisits this issue, particularly in light of the ongoing reexamination of the patents, that the result will be the same," said Jay Monahan, eBay's deputy general counsel for intellectual property. MercExchange first sued eBay for alleged patent infringement in 2001, and two years later, won a $35 million judgment against eBay. The amount was later reduced to $29.5 million.
http://biz.yahoo.com/bw/060515/20060515006053.html?.v=1

San Francisco-Based FiberTower to Merge with First Avenue in $1.5 Billion Deal

San Francisco -- In a deal creating one of the nation's largest operators of wireless transport services, San Francisco-based FiberTower said on Monday that it will merge with Virginia-based First Avenue Networks in an all-stock deal worth about $1.5 billion. Both companies operate networks to provide backhaul -- a service that allow wireless carriers to transmit calls to a central location, where they can then be distributed over a network. Under the terms of the agreement, First Avenue will issue approximately 73.7 million of its stock, with FiberTower owning 51% of the combined company. The combined company, to be known as FiberTower, will list its stock on the Nasdaq, and will have an installed base in 12 markets with more than 1,000 sites. Michael Gallagher, the president and CEO of First Avenue, will become CEO of the combined entity. The deal is expected to close by the end of September.
http://www.fibertower.com/news-press-releases-05152006-merger.shtml

Santa Clara-Based Sierra Design Automation Raises $14 Million

Santa Clara, Calif. -- Sierra Design Automation, a developer of electronic design automation tools used by semiconductor designers, said on Monday that it has raised $14 million in its second round of funding, from Artiman Ventures, Telesoft Partners and Evercore Ventures. The company said that it will use the proceeds to expand its sales efforts and broaden its product portfolio. Founded in 2003, Sierra Design Automation earlier this year moved into larger headquarters in Santa Clara, and earlier this month launched a new unit in India.
http://www.sierra-da.com/press01.php?id=23

San Francisco-Based LoopNet Sets Terms of Upcoming IPO

San Francisco -- LoopNet, a San Francisco-based online marketplace for commercial real estate, said that it will sell 6 million shares for $11-$13 each in its upcoming initial public offering (IPO).The company is hoping to raise a total of $89.7 million, including 2 million shares being sold by current shareholders. LoopNet's site allows commercial real estate agents to list properties for sale or lease, then lets users search through listings. The company, which plans to list its stock on the Nasdaq National Market under the symbol "LOOP," has more than 1.1 registered users, including a paid customer base of more than 105,000. It recorded over $30 million in revenue last year, a 75% increase from the prior year.
http://www.loopnet.com/
http://ipoportal.edgar-online.com/ipo/displayFundamentals.asp?cikid=701065&fnid=48844&IPO=1&coname=LOOPNET%2C+INC%2E

Mountain View-Based Identity Engines Lands $13 Million in Second Round

Mountain View, Calif. -- Identity Engines, a Mountain View-based provider of network-based identity management appliances, said on Monday that it has secured $13 million in its second round of funding, led by Menlo Park-based Trinity Ventures. Previous investors Horizon Ventures and Lightspeed Venture Partners also participated in the round, which increases the company's total backing to $21.7 million. Founded in 2004, Identity Engines makes appliance products that provide authentication and authorization services for distributed corporate networks.
http://www.idengines.com/news/releases/2006-0515.php

San Jose-Based Cisco Invests Undisclosed Amount in Guardium

San Jose, Calif. -- Cisco Systems, the San Jose-based network equipment giant, said on Monday that it will invest an undisclosed amount in Massachusetts-based Guardium, a developer of database security technology. Cisco's investment is part of a third round of venture capital for Guardium totaling $6.3 million, which was led by Cedar Fund and Ascent Venture Partners. The latest round brings the total of venture capital raised by Guardium to date to $21 million.
http://www.guardium.com/press/pr/051506.html

Diversity-Minded Infosys to Hire 300 from U.S. Universities in 2007

Fremont, Calif. -- Looking to further diversify its workforce, Indian information technology giant Infosys Technologies on Monday announced plans to recruit 300 college graduates from universities in the U.S. this year and another 25 from the U.K. in 2007. In the first phase, the company's university-level recruiting program in the U.S. will bring more than 100 American college graduates to India in August. The new employees will develop their engineering skills at Infosys Development Centers across India for six months before returning to offices in the U.S. In 2005-06, Infosys said that it doubled its percentage of non-Indian employees, hiring more than 25 different nationalities.
http://www.infosys.com/media/press_releases/hire-top-talent-us-uk-universities.asp

Mountain View-Based Vivus Sells $12 Million in Company Stock

Mountain View, Calif. -- Vivus, a Mountain View-based developer of drugs addressing obesity and sexual health said that it has sold $12 million of its stock to two institutional investors in a direct offering. Under the terms of the deal, the company sold nearly 3.7 million of its shares at $3.27 each. New investor OrbiMed led the financing, in addition to a previous company investor. Vivus said that it will use the proceeds to fund clinical trials, including a later-stage trial of the company's drug designed to treat obesity.
http://ir.vivus.com/phoenix.zhtml?c=79161&p=irol-newsArticle&ID=854890&highlight=

Humane Society Hails Google's Move to Cage-Free Eggs in Cafeterias

Mountain View, Calif. -- The Humane Society of the United States on Thursday hailed a decision by Mountain View-based Internet search giant Google to stop using eggs from hens confined in cages in all of its employee dining facilities. Google is expected to have 12 corporate cafes by the end of this year, and annually uses 300,000 shell eggs and 7,000 pounds of liquid eggs. Google joins AOL in implementing the policy. Palo Alto-based food service provider Bon Appetit is also phasing in cage-free eggs for all of its 400 cafes, including those it runs for major corporate clients such as Sunnyvale-based Yahoo, Redwood Shores-based Oracle and San Jose-based Cisco Systems. The Humane Society said that about 95% of all eggs sold in the U.S. come from hens confined to small wire enclosures known as "battery cages."
http://www.hsus.org/

Americans Flock to Web in April to Track Real Estate, Gas Prices

Reston, Va. -- Americans headed to the Internet in droves to research real estate and gas prices in April, according to new statistics from comScore Media Metrix. The firm said that traffic to real estate sites grew 12% from the previous month and 23% from the previous year, led by Homestore.com and MSN Real Estate. Peter Daboll, the president and CEO of comScore Media Metrix, credited the figures to "general angst in the real estate market,' as well as innovations on some industry web sites that allow users to gain in-depth information about properties without the assistance of an agent. Another trend during the month was Americans' intense interest in tracking ever-rising gas prices. Gasbuddy.com, where consumers can search for the best local gas rates, saw visitor numbers more than triple in April compared with the previous month, while Fueleconomy.gov, the site operated by the U.S. Department of Energy, saw an increase of 172%.
http://www.comscore.com/press/release.asp?press=854

Activision to Acquire Sunnyvale-Based Game Developer Red Octane

Sunnyvale, Calif. - Video game publisher Activision said that it will acquire Sunnyvale-based game developer Red Octane, creator of the "Guitar Hero" game franchise. Financial terms of the deal were not disclosed. Activision said that the acquisition will give it a leg up in the fast-growing genre of music-based gaming. "Guitar Hero" features a guitar-shaped controller and challenges gamers to play along with licensed tracks from artists including David Bowie, Ozzy Osbourne and the Red Hot Chili Peppers.
http://biz.yahoo.com/prnews/060509/latu073.html?.v=58
http://www.redoctane.com

Cadence, AMD to Collaborate on $100 Million Supercomputing Center in N.Y.

Troy, N.Y. -- Cadence Design Systems, a San Jose-based maker of electronic design automation software, and Sunnyvale-based chipmaker AMD will collaborate with IBM to build a $100 million supercomputing center at the Rensselaer Polytechnic Institute in New York, the school said. The Computational Center for Nanotechnology Innovations will be designed both to help continue advances in shrinking electronic device dimensions and extend the design model to an array of industries that could benefit from nanotechnology. The research an development activity will complement the ongoing relationship between IBM and AMD in upstate New York, where they are developing high-performance semiconductor devices and manufacturing processes.
http://news.rpi.edu/update.do?artcenterkey=1540&setappvar=page(1)

Yahoo, NBC Universal, Telemundo to Create Co-Branded Spanish Portal

Sunnyvale, Calif. -- Looking to beef up its offerings for Hispanics in the U.S., Sunnyvale-based Yahoo said that it has partnered with NBC Universal Television Group and Spanish-language network Telemundo to create a co-branded Internet portal. Yahoo Telemundo will integrate Yahoo's services with Telemundo's content, and replace the existing Yahoo en espanol and Telemundo web sites. Under the deal, Yahoo and Telemundo will merge staff and share advertising revenue.
http://biz.yahoo.com/bw/060510/20060510005366.html?.v=1
http://telemundo.yahoo.com

Study: Video Game Industry Contributes $18 Billion to U.S. Economy

Washington, DC -- The video game industry contributed $18 billion to the nation's economy in 2004, both directly through $8 billion in game sales and indirectly through 144,000 full-time industry jobs, according to a new study by the Georgetown University Law Center. Those numbers are expected to rise significantly over the next few years, with game sales predicted to reach $15 billion in 2010 and full-time industry jobs projected to increase to more than 250,000 by 2009. The study noted that, in addition to providing entertainment, the industry has accelerated technological innovations in areas like central processing units for consoles  -- also used by defense and medical companies -- while games are also being used by companies for training and education.
http://www.theesa.com/archives/2006/05/video_games_ser.php

San Francisco-Based Hyperic Lands Funding from Accel Partners

San Francisco -- Hyperic, a San Francisco-based developer of IT management tools, said on Wednesday that it has raised an undisclosed amount in its first round of funding from Palo Alto-based Accel Partners. Among other uses, the company said that the funding will be used to shape its business model and product lines in order to address new opportunities in the IT management space. Launched in 2004, Hyperic makes software designed to help companies monitor, report and control IT assets. The company has been self-funded until now.
http://www.hyperic.net/company/releases/5_10_2006.html

PlayStation 3 to Debut in November with $599 Price Tag

Foster City, Calif. -- Sony Computer Entertainment of America, the Foster City-based arm of the Japanese consumer electronics giant, has unveiled its next-generation PlayStation 3 video game console, which will go on sale in North America on Nov. 17 as part of a simultaneous worldwide launch. From the Electronic Entertainment Expo in Los Angeles, SCEA said that the console will sell for $599 with a 60GB hard drive, or in a less fully-featured version with a 20GB hard drive for $499. Both versions will be able to play movies on Sony's new Blu-ray DVD format. Other features include Bluetooth and Wi-Fi connectivity, and support for output of high-definition video. Sony has also designed a new controller for the PS3, featuring a six-axis motion-sensing system. The company aims to ship 4 million PS3 consoles by Dec. 31, and 2 million more by March 31, 2007.
http://biz.yahoo.com/prnews/060508/sfm131.html?.v=42
http://www.us.playstation.com

Santa Clara-Based Theras Systems Establishes Japanese Unit

Santa Clara, Calif. -- Tharas Systems, a Santa Clara-based maker of hardware-assisted verification systems, said on Wednesday that it has established a Japanese subsidiary, based in Tokyo. The company said that Nihon Tharas will provide sales and applications support to customers in Japan who design complex integrated circuits and electronic systems. The unit will be headed by Mac Sano, who previously was the co-founder and senior executive vice president of Japanese 3D graphics chip-maker RealVision. He also has served as the president of Viewlogic Systems Japan.
http://www.tharas.com/newsevents/060510.html

S.F.-Based Double Fusion Names former GameSpot Head as New CEO

San Francisco -- Double Fusion, a San Francisco-based developer of in-game advertising technology, on Wednesday named Jonathan Epstein as its CEO. In 1995, Epstein left technology publishing giant IDG to serve as the founding president and CEO of GameSpot.com. When the company was sold to Ziff-Davis in 1997, Epstein became an executive vice president for that company's ZDNet unit. Later, when CNET acquired ZDNet, he oversaw the launch of GameSpot sites in all of the world's major markets. He most recently co-headed the digital media practice of United Talent Agency. Double Fusion's technology allows publishers to integrate brands and product advertisements within connected PC and video games.
http://www.doublefusion.com/
http://biz.yahoo.com/bw/060510/20060510005379.html?.v=1

Sunnyvale-Based SanDisk Prices $1 Billion Notes Offering

Sunnyvale, Calif. -- SanDisk, the Sunnyvale-based maker of flash memory data storage products, said on Wednesday that it has priced its $1 billion notes offering, which the company first announced earlier this week. The senior notes, due in 2013, will be convertible at a rate of about 12.1 shares for every $1,000 principal aount. The company said that it will use a portion of the proceeds for capital expenditures, including new and existing manufacturing facilities, as well as the development of new technologies.
http://www.sandisk.com/Corporate/PressRoom/PressReleases/PressRelease.aspx?ID=3428

Winners Named for 10th Annual Webby Awards

New York -- New York Times columnist Thomas Friedman, billionaire Mark Cuban, virtual band The Gorillaz, Internet co-inventor Robert Kahn and the founders of social networking site MySpace.com are among the winners of the 10th Annual Webby Awards, announced on Tuesday by the International Academy of Digital Arts and Sciences. The awards recognize the top web sites, people or companies in 69 categories from a total of 5,500 entries. Winners, listed in full at the link below, will be honored at a June 12 ceremony in New York hosted by Rob Corddry of "The Daily Show with Jon Stewart."
http://www.webbyawards.com/webbys/current.php?season=10

Mountain View-Based Avidia Raises $43.8 Million in Third Round

Mountain View, Calif. -- Avidia, a Mountain View-based biopharmaceutical firm, said on Tuesday that it has raised $43.8 million in its third round of funding, led by new investor Skyline Ventures. Other participants included new investor HealthCare Ventures and previous investors Alloy Ventures, Amgen Ventures, MedImmune Ventures, Morgenthaler Ventures and TPG Ventures. Avidia is developing a new class of human therapeutic proteins called avimers, which the company said should result in drugs with multiple functions and potent activity.
http://www.avidia.com/newsroom/press/060509-series-c.aspx

EMC Acquires San Jose-Based Kashya for $153 Million

San Jose, Calif. -- Data storage technology giant EMC said on Tuesday that it has acquired Kashya, a San Jose-based maker of data replication and protection software, for $153 million in cash. EMC said that it plans to use Kashya's technology as the engine in future releases of its data recovery software. The company also said that the acquisition will allow it to expand its software portfolio for remote replication across "heterogeneous environments."
http://www.emc.com/news/emc_releases/showRelease.jsp?id=4371&l=en&c=US

Fremont-Based Auvitek International Raises $9 Million in Second Round

Fremont, Calif. -- Auvitek International, a Fremont-based supplier of demodulation processors to the digital television market, said on Tuesday that it has raised $9 million in its second round of funding, led by BA Venture Partners. The company plans to use the proceeds to develop its next generation of products, as well as expand in the digital and high-definition television markets. Launched in 2004, Auvitek develops technology used to deliver high-quality video and audio to digital television, set-top-boxes, personal computers and DVD players and recorders.
http://www.auvitek.com
http://biz.yahoo.com/prnews/060509/sftu001.html?.v=50

Santa Clara-Based Knowlent Raises $2.35 Million in Second Round

Santa Clara, Calif. -- Knowlent, a Santa Clara-based maker of electronic design automation (EDA) software, said that it has raised $2.35 million in its second round of funding, increasing its total backing to $3.6 million. Mountain View-based Incubic Venture Fund led the round, which included participation from previous investor AsiaTech Ventures of Santa Clara. The company said that it will use the new round to accelerating product development, as well as to tap into the talent pool in China to fulfill its research and development needs. Knowlent's products are designed to verify and help debug the analog layer of high speed serial interface protocols.
http://www.knowlent.com/press-050806.shtml

Menlo Park's Silver Lake to Sell 9.5 Million Shares of Gartner

Menlo Park, Calif. -- Silver Lake Partners, a Menlo Park and New York-based private equity firm that owns a 33% stake in technology market research firm Gartner, plans to sell 9.5 million shares of Gartner stock in a secondary public offering, Gartner disclosed on Tuesday. The offering is expected to raise about $137 million. Silver Lake has been Gartner's largest shareholder for over six years and will remain the company's largest shareholder upon completion of the offering.
http://investor.gartner.com/phoenix.zhtml?c=99568&p=irol-irhome

Report: Mobile Game Purchases Soar 53% During First Quarter

San Francisco -- Wireless users bought more than 8.2 million games on their phones during the month of March, up 53% from January, according to new figures from San Francisco-based communications research firm Telephia. The number of unique mobile game buyers also jumped significantly, surging 44% to about 5 million. Top revenue generators included EA Mobile, I-Play, Gameloft and Namco, which together accounted for more than half of all sales in the sector. About one in eight game downloads were free.
http://biz.yahoo.com/bw/060509/20060509005963.html?.v=1

Study: Female-Name Chat Users Get 25 Times More Malicious Messages

College Park, Md. -- People using female names in chatrooms receive 25 times more threatening or sexually explicit private messages than those with male or ambiguous usernames, according to a new study by the University of Maryland's A. James Clark School of Engineering. Female usernames, on average, received 163 malicious private messages a day in the study, which focused on Internet relay chat (IRC) chatrooms. Researchers logged into various chatrooms under female, male and ambiguous usernames, counted the number of times they were contacted and tracked the contents of those messages. The researchers also determined that simulated users, or "bots," were not behind most of the malicious messages.
http://biz.yahoo.com/prnews/060509/dctu033.html?.v=50
http://www.enre.umd.edu/content/rmeyer-assessing.pdf (PDF)

Cupertino-Based Apple Triumphs in Suit Filed by Beatles Record Label

Cupertino, Calif. -- In a key legal victory, London's High Court has ruled that Cupertino-based Apple is not liable for trademark infringement against Beatles record label Apple Corps. Apple Corps had sued Apple saying that the computing giant violated a 1991 agreement to not move into the music business when it opened its iTunes Music Store. The California company maintained that it functioned solely as a conduit for selling music recorded and distributed by other companies. "I find no breach of the trademark agreement has been demonstrated," said Justice Edward Mann  "The action therefore fails."
http://www.apple.com/
http://biz.yahoo.com/rb/060508/media_apple.html?.v=5

Los Altos-Based DreamFactory Raises $5.8 Million in First Round

Los Altos, Calif. -- DreamFactory, a Los Altos-based developer of customization and integration technology used to build web applications, said on Monday that it has raised $5.8 million in its first round of funding, led by New Enterprise Associates (NEA). The company said that the funding will allow it to expand its sales and marketing operations, as well as its product development staff. NEA focuses on early stage investments in information technology and life sciences.
http://www.dreamfactory.com/press/release10.html

Mountain View-Based Intuit to Sell Master Builder Software Business

Mountain View, Calif. -- Intuit, a Mountain View-based developer of business and financial management software, said on Monday that it has struck a deal to sell its Master Builder construction management software business to Sage Software. Financial terms of the deal, expected to close by the end of July, were not disclosed. Intuit said that it will continue to service ther construction industry through its other products, including QuickBooks Contractor Edition. Master Builder has quarterly revenue of approximately $5 million.
http://web.intuit.com/about_intuit/press_releases/2006/05-08.html

San Francisco-Based Double Fusion Acquires Eiko Media

San Francisco -- Double Fusion, a San Francisco-based developer of in-game advertising technology, said on Monday that it has acquired Detroit-based new media agency Eiko Media, which specializes in integrating branded products into retail video games. Ashley Swartz, the president and co-founder of Eiko, will become Double Fusion's senior director of creative strategy. Financial terms of the deal were not disclosed. Eiko has worked with some of the country's largest automotive manufacturers, integrating their vehicles into games.
http://www.doublefusion.com
http://biz.yahoo.com/bw/060508/20060508006131.html?.v=1

Santa Clara-Based Hyperion Completes Acquisition of UpStream Software

Santa Clara, Calif. -- Hyperion, a Santa Clara-based maker of business performance management software, said on Monday that it has completed its acquisition of Michigan-based UpStream Software, a developer of tools used to track the movement of financial information. Financial terms of the deal, first announced in April, were not disclosed. Hyperion said that the acquisition will allow it to extend its offerings to financial data quality management. The two companies have been long-time partners, working together on numerous projects.
http://www.hyperion.com/company/news/news_releases/press_release_2006_0000140.cfm

Santa Clara-Based Alliance Semiconductor Completes Sale of Unit

Santa Clara, Calif. -- Alliance Semiconductor, a Santa Clara-based developer of memory, mixed-signal and system software products, said on Monday that it has completed the sale of its Systems Solutions business unit to Canada's Tundra Semiconductor for $5.8 million in cash. The companies first announced the deal in mid-April. More than 50 of Alliance's employees are now working for Tundra. The company also is in the process of completing the sale of its Analog and Mixed Signal unit to a group of investors led by Shah Capital Partners, and said that it continues to explore the possible sale of its remaining memory chip operations. Tundra provides software for communications, networking, storage system and information technology vendors.
http://phx.corporate-ir.net/phoenix.zhtml?c=110392&p=irol-newsArticle&t=Regular&id=853250&

Sunnyvale-Based SanDisk to Sell $1 Billion in Senior Notes

Sunnyvale, Calif. -- SanDisk, a Sunnyvale-based maker of flash memory data storage products, said on Monday that it plans to sell $1 billion in senior notes. The company said that it will use a portion of the proceeds for capital expenditures, including new and existing manufacturing facilities, as well as the development of new technologies. The notes are due in 2013.
http://www.sandisk.com/Corporate/PressRoom/PressReleases/PressRelease.aspx?ID=3425

PMC-Sierra to Sell $209 Million in Stock Held by Former Passave Shareholders

Santa Clara, Calif. -- PMC-Sierra, a maker of semiconductors for broadband communications and storage, said on Friday that it is raising $209 million in a secondary public offering, though the company itself won't receive any of the proceeds. All of the 18.1 million shares being sold by $11.55 each come from former stockholders of chip-maker Passave, who received the shares as part of PMC-Sierra's $300 million acquisition of that company, which closed on Thursday. Passave's tools enable service providers to offer voice, video and data services at up to 1Gbps. The company has about 150 employees worldwide, with facilities in Israel, Santa Clara and Tokyo, as well as regional sales offices in Korea and China. The acquisition was first announced in early April.
http://phx.corporate-ir.net/phoenix.zhtml?c=74533&p=irol-newsArticle&ID=852692&highlight=

Berkeley-Based Aerovance Raises $60 Million in Third Round

Berkeley, Calif. -- Aerovance, a Berkeley-based biopharmaceutical firm, said that it has secured $60 million in its third round of funding, led by Clarus Ventures. New Investor Alta Partners and previous investors Apax Partners, Lehman Brothers, NGN Capital and Burrill & Co. also participated, in the round which is divded into two tranches. Aerovance has received $28 million and will receive the other $32 million upon meeting certain clinical and manufacturing milestones. The company is developing drugs that target severe respiratory and inflammatory diseases.
http://www.aerovance.com/press_422006.html

Report: Firms Spending Less on IT Infrastructure, More on Strategic Areas

Framingham, Mass. -- For the first time in several years, large businesses in the U.S., Western Europe, China and India are moving beyond IT infrastructure upgrades and focusing their IT spending on "strategic" areas such as business intelligence and web-based applications, according to a new survey by market research firm IDC. The firm said that security still tops the list of overall IT spending drivers, with the management and optimization of infrastructure remaining a key influencer of buyer behavior. IDC said that IT markets are expected to be "stable" through the end of 2006.
http://idc.com/getdoc.jsp?containerId=prUS20155806

RIAA Identifies San Francisco as "Piracy Hot-Spot"

San Francisco -- The Recording Industry Association of America (RIAA) has named 12 U.S. cities, including San Francisco, as "piracy hot spots," featuring multi-state criminal operations for making and distributing pirated CDs. The list also includes Atlanta, Austin, Chicago, Dallas, Houston, Los Angeles, Miami, New York, Philadelphia, Providence and San Diego. The RIAA said that it plans to step up law enforcement training and commit additional investigative resources in all of the locations. The industry organization estimated domestic CD piracy losses at $300 million, adding that more than 5 million pirated music products were seized and 3,300 arrests made last year.
http://www.riaa.com/news/newsletter/050306.asp

AOL to Add Free Phone Service to Instant Messenger

Dulles, Va. -- Hoping to build on the popularity of its instant messaging service, AOL is planning to add a bold new feature later this month that will allow its 41 million IM users to receive free incoming calls through their computers, The New York Times reported on Friday. Under the plan, users of the company's AIM instant messenger will be able to sign up for a free phone number to receive calls through a new service known as AIM Phoneline. AOL also reportedly will offer an upgraded service allowing them to make calls to anyone in the U.S. or 30 other countries for $14.90 a month. Both services are expected to be launched on May 16. Separately, The Times said that AOL also is planning to introduce AIM Pages, its answer to social networking phenomenon MySpace.
http://www.nytimes.com/2006/05/05/technology/05phone.html?_r=1&oref=slogin

Santa Clara-Based Applied Materials to Pay $464 Million for Applied Films

Santa Clara, Calif. -- Applied Materials, a Santa Clara-based maker of nano-manufacturing equipment and software products for the electronics industry, said on Thursday that it will pay $464 million to acquire Colorado-based Applied Films, a maker of equipment used in manufacturing flat panel displays and solar cells. Applied Materials said that the deal will compliment its thin film nanomanufacturing technology capabilities and provide help it to expand into new markets. "The acquisition of Applied Films expands our flat panel business to offer color filter products, and opens the fast-growing solar market for us," said Mike Splinter, the president and CEO of Applied Materials. The companies expect to complete the deal by the end of July.
http://home.businesswire.com/portal/site/appliedmaterials/index.jsp?epi-content=GENERIC&newsId=20060504005392&ndmHsc=v2*A1136120400000*B1146765720000*C4102491599000*DgroupByDate*J2*N1002992&newsLang=en&beanID=547561197&viewID=news_view