Google accused of hypocrisy on Grooveshark ban

A watchdog group that is also a longtime Google ally on copyright issues, has accused the company of being hypocritical when it recently removed a controversial music app from its app store.

Two weeks ago, CNET reported that Grooveshark, a music service that provides free access to songs by enabling users to post their own music to the site, had seen its app banned from the Android Market. It later came out that Google acted after receiving a complaint about Grooveshark from the Recording Industry Association of America (RIAA), the trade group for the four largest record companies. The search giant banned the app without providing Grooveshark any warning or opportunity to defend itself. Google also didn't disclose how exactly the music company violated Google's policies, according to Grooveshark.

EMI and Universal Music Group, two of the top record labels, have accused Grooveshark of copyright violations in separate lawsuits filed against the Gainesville, Fla.-based company. EMI settled its suit, but the legal battle with Universal Music Group continues. In a blog post yesterday, the Electronic Frontier Foundation (EFF), a group that advocates for Internet users and technology companies, noted the irony in Google's apparent loss of respect for the concept of transparency and for the Digital Millennium Copyright Act (DMCA).

Julie Samuels, an EFF staff attorney, pointed out that in the not-so-distant past Google criticized Apple for allegedly lacking transparency and adopting "draconian" business practices.

"But who's being draconian now?" Samuels wrote. Google did not respond to an interview request.

Samuels then took aim at Google's relationship with the DMCA's safe harbor provision. In past dustups with copyright owners, Google has repeatedly argued that the DMCA protects services, such as YouTube, eBay, and Craigslist, from being held liable for acts of copyright infringement committed by users. That's the same legal argument Google used to defend YouTube against a copyright lawsuit filed by Viacom in 2007. That's the same argument Grooveshark managers say protects them.

"That Google would perform a copyright takedown without requiring a valid notice under the (DMCA) is surprising to say the least," Samuels wrote. "Especially given that Google just last week filed its reply brief in the Viacom v. YouTube appeal, vigorously defending its policy of responding only to valid DMCA notices where copyright complaints are concerned."
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Microsoft Q2 net income slips, revenue surges

Microsoft Corp has reported a marginal dip of 0.45 per cent in its net income to USD 6.63 billion in the October-December quarter of 2010 but the software giant's revenues surged on sale of Office software and Kinect video game accessory.

The entity had a net income of USD 6.66 billion in the year-ago period, Microsoft said in a press statement.

The company has registered a record revenue of USD 19.95 billion in the second quarter ended December 31, 2010, as against USD 19.02 billion in the year-ago period.

Microsoft's record revenues were driven by 55 per cent growth in revenues for the entertainment and devices division as the success of the Kinect sensor boosted sales of Xbox 360 consoles, Xbox Live subscriptions and Xbox games. The quarter earnings were also boosted by sales of Office 2010.

Revenues from software major's business division grew 24 per cent year-on-year. Besides, Office 2010 is the fastest- selling consumer version of Office in history, with licence sales over 50 per cent ahead of Office 2007 over an equivalent period following its launch.

"We are enthusiastic about the consumer response to our holiday lineup of products, including the launch of Kinect. The 8 million units of Kinect sensors sold in just 60 days far exceeded our expectations," said Microsoft Chief Financial Officer Peter Klein.

"The pace of business spending, combined with strong consumer demand, led to another quarter of operating margin expansion and solid earnings per share growth," Klein added.

Revenue in the Windows division tanked 30 per cent to USD 5.05 billion,reflecting a slow growth in the personal-computer sector. However, Microsoft had launched Windows 7 in the same quarter of 2009, which makes a difficult comparison in revenues front.
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