Weekly Digest
Weekly Digest Issue No. 537
14-10-2010
by Deirdre McArdle
Intel results bode well for tech sector | Microsoft takes aim at smartphone market
Record labels lose piracy case against UPC
The high-profile case between UPC Ireland and major record labels came to a conclusion this week. High Court judge Peter Charleton ruled that laws to identify and cut off internet users were not enforceable in Ireland. He said that although internet piracy was "devastating" the recording companies' business in Ireland, the only relevant power the courts have is to require an internet hosting service to remove copyright material.
Warner Music, Universal Music Group, Sony BMG and EMI brought the case against UPC, which has 150,000 broadband customers, in order to establish a legal precedent that would force ISPs to cut off persistent illegal filesharers' internet connections -- the three strikes rule, which means those caught illegally sharing copyright material three times would be disconnected. The companies said they had given UPC details of customers they claimed were involved in illegal downloading but UPC had done nothing about it. For its part, UPC claims it has no liability because it is merely a conduit for illegal downloading.
Speaking after the ruling, Dick Doyle, Director General of IRMA said; "The Judge made it very clear that an injunction would be morally justified but that the Irish legislature had failed in its obligation to confer on the courts the right to grant such injunctions unlike other EU states. We will now look to the Irish Government to fully vindicate the constitutional rights of copyright holders and we reserve the right to seek compensation for the past and continuing losses from the State". Also reacting to the ruling, U2 manager Paul McGuinness warned that the Government must move to "implement the required EU legislation without delay."
Responsibility for tackling the issue is split between the Department of Communications, Energy and Natural Resources which is accountable for internet service providers and the Department of Enterprise, Trade and Innovation which is responsible for copyright infringement. Minister for Communications Eamon Ryan said he would meet representatives from the music industry and internet service providers to formulate an agreed approach to illegal downloading.
Universities agree on bonus points plan
Bonus points for students taking higher-level maths for the Leaving Certificate will be officially introduced in 2012, as Ireland's seven universities agree on a plan for the scheme. Following discussions this week between the universities, students will receive 25 additional points for choosing higher-level maths. This is below the 40 bonus points that had previously been mooted by deputy president of UCD Dr Philip Nolan. The points will be available to higher-level maths students who receive a grade of D3 or above in the Leaving Cert exam: for example, a D3 grade currently equals 45 points, so students will receive 70 points in total for a D3 in higher-level maths.
In a statement, Education Minister Mary Coughlan welcomed the decision from the Irish Universities Association. "The introduction of bonus points for maths sends a clear signal to our leaving certificate students about the importance we attach to the study of maths." While welcoming the decision, Minister Coughlan said that bonus points on their own are not a, "silver bullet that will fully address the underachievement identified in maths. Rather, their introduction, combined with the full implementation of Project Maths... should together see a step-change in higher level maths uptake and achievement from 2012 onwards".
Forfas and the Expert Group on Future Skills Needs (EGFSN) also welcomed the scheme, but warned that the initiative needs to be supported by the other measures highlighted in a EGFSN's 2008 report, including the professional development of teachers at both primary and secondary level.
Intel results bode well for tech sector
Results season got off to a good start this week when chip giant Intel posted a solid set of third quarter figures and raised its outlook for the upcoming quarter. Traditionally, Intel is the first major technology firm to report its quarterly earnings, and as such its results are considered a harbinger of what investors and the markets can expect from other chip and PC makers. With a 59 percent boost in net profit to USD3 billion, a 58 percent increase in per share earnings to USD0.52 and an 18 percent jump in revenue to USD11.1 billion, Intel results have gone a long way towards settling investor nerves about the third quarter, which analysts had suspected was going to be a bleak one for the PC market.
In a statement, Intel chief Paul Otellini said the results were down to "solid demand" from corporate customers, as well as continuing growth in emerging markets. He said the firm expects the healthy demand to continue for "computing products of all types". Otellini also mentioned the firm's upcoming next-generation processor, codenamed Sandy Bridge, and said he was excited about the, "many new designs around our Intel Atom processors in everything from the new Google TV products to a wide array of tablets based on Windows, Android and MeeGo operating systems".
Looking ahead to the holiday period, Intel is forecasting revenue of between USD11.0 billion to USD11.8 billion; general analyst consensus was revenue of USD11.3 billion. "This is a pretty healthy state of affairs right now, and I don't see that really changing into 2011," Otellini said in a conference call with analysts.
Microsoft takes aim at smartphone market
The already crowded smartphone market got a little bit more claustrophobic this week as software behemoth Microsoft stepped into the fray. On Monday, CEO Steve Ballmer released nine handsets that will run on its Windows Phone 7 operating system. The devices will go on sale in the US, Europe and Asia in time for the holiday season.
Microsoft is working with a number of smartphone makers, including HTC, Samsung, LG and perhaps most surprisingly, Dell. It is also partnering with global mobile operators like AT&T, Deutsche Telekom, O2, Orange, Telstra and Vodafone.
The launch of Windows Phone 7 must be considered Microsoft's last chance at making an impact on the mobile market. Competitors like Apple's iPhone, the increasing number of Android phones flooding the market, and other rivals like BlackBerry all have a solid headstart against Microsoft. However, Ballmer is confident that Windows Phone 7 offers something different. "Microsoft and its partners are delivering a different kind of mobile phone and experience -- one that makes everyday tasks faster by getting more done in fewer steps and providing timely information in a 'glance and go' format."
The Microsoft software, which has been praised by commentators for its originality, displays commonly used applications on a home screen in large blocks -- dubbed tiles -- which are constantly updated with fresh content from the internet, such as status updates or new photos from a user's Facebook friends. Microsoft has also integrated Xbox LIVE, Microsoft Office Mobile, Zune, Windows Live, Bing, and other applications into the devices.
While it's still too early to judge how Windows Phone 7 will affect the smartphone market, initial reaction has been broadly positive. However, it may well turn out to be too little too late for Microsoft as it has to battle against players that are by now firmly entrenched in the market.
Read the ENNclick blog Microsoft’s final bid for a place at the mobile table
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