The Amazon (AMZN) deal was struck after Mr. Wylie failed to agree to terms with publishers for electronic rights to his authors’ existing titles. It was a notable step in the battle between Amazon and its two main rivals in e-books, Apple Inc. (AAPL) and Barnes & Noble Inc. (BKS)

But Bertelsmann AG’s Random House, which published 13 of the 20 titles at issue, had disputed Amazon’s right to sell the titles in digital form. It boycotted new offerings by all of Mr. Wylie’s clients, putting some of the New York agent’s famous authors, including V.S. Naipaul and Dave Eggers, at a disadvantage.

Random House will now distribute the electronic versions of the works to all retailers after Mr. Wylie reached a truce with the publisher and agreed to terms for the titles.

Read the rest of this post on the original site

It’s nice to hear enthusiasm on the part of Linkin Park band member Mike Shinoda about an innovative-for-the-music-industry effort to give fans a chance to be part of the iconic Grammy-winning rock band.

That’s because most artists or content creators–while making all the right sounds about the Internet’s impact on their business–often privately cringe at the ongoing flood of user-generated material that has drastically changed the industry.

Not Shinoda, who is certain he will find some real talent via a new online contest, called “Linkin Park, Featuring You,” that gives anyone an opportunity to collaborate with the band to produce an original song based on some of the tracks from the forthcoming single “The Catalyst.”

The song is on Linkin Park’s next album, “A Thousand Suns,” to be released September 14.

“We looked at it as both risky and fun to save a spot on the record that could be just anything,” he said in an interview with BoomTown earlier this week. “It’s creative, lets the fans be heard and, of course, is a great way to promote the album.”

Of course it is, but Shinoda said he is not expecting to have to put any bad-quality music on the record just to sell more music.

“The album could not be any more sacred to us and this is certainly an X-factor, which is kind of a move against the grain for us,” he said. “But the Internet has actually given a lot more people a chance to be heard and, as it has turned out, amateurs are so much better than we ever expected.”

So far, Shinoda said, he has just sampled a few dozen of the thousands of submissions so far, either selecting randomly or via a popularity ranking system the contest uses. He said he’s also using a range of people who are part of the Linkin Park team to filter material.

But, ultimately, Shinoda and his bandmates (pictured here) will pick the winning submission, with either the song to be included on the band’s new album or the winner to be invited to perform with the band on a song on the upcoming record. Either way, a pretty good prize for an aspiring musician.

Shinoda said he is hoping to hear a lot of different sounds from electronic music to keyboards to guitars and even horns (“No one has submitted a horn version so far,” he laughed. “But I hope someone does.”)

Linkin Park is using a group of Internet companies to carry out the massive user-generated effort, including: MySpace Music (platform, promotion and direct fan messaging); Indaba Music (hosting the MySpace application that allows musicians to auto-syndicate their remixes on MySpace); Top Spin Media (using their email for a song widget to deliver audio stems to all participants); and Ning (the back end to Linkin Park’s Web site, where they are also distributing the audio stems to push back to the contest)

There have been remix contests online done before, such as Snoop Dogg’s “That Tree” Remix Contest, which had 8,000 entries and generated a lot of fan interest.

But this effort is clearly more ambitious, perhaps because Shinoda is clearly a techie, with an ongoing interest in filling the Linkin Park Web site with puzzles, games and other interactive features.

In fact, Linkin Park had already conducted a smaller contest for fans to submit designs for characters used in a game the band released in April, called “8-Bit Rebellion,” for the Apple (AAPL) iPod touch, iPhone and iPad. And, after the game was completed by a player, it unlocked a new song, “Blackbirds.”

Shinoda said the band hopes to do even more digitally, trying to involve and engage fans in ways that they never would have tried before.

“There is a huge unknown factor and this is not something we would have done five years ago,’ he said of the latest collaboration contest. “But I am not afraid of my fans being good at music, even if it turns out they are better than me.”

Until a winner is selected, here’s a most excellent music video of my favorite Linkin Park song, “Shadow of the Day,” because I wish I had written the perfect and simple line, “Sometimes beginnings aren’t so simple/Sometimes goodbye’s the only way” (maybe some fan will write something as good):

And here’s a blog post by Sam Wick, SVP of marketing at MySpace Music, about its partnership with Linkin Park:

Linkin Park Wants To Put You on Their New Album

Linkin Park is arguably one of the biggest rock acts in the world with more than seven million fans on MySpace and iLike, two Grammy wins and a boatload of accolades from the music community. So, needless to say, we were more than a little excited to help the band launch their next album, “A Thousand Suns.”

This is a band that’s almost as passionate about social media and technology as they are about the music they create–and they came to MySpace, because we have a proven track record of successfully architecting custom album campaigns that uniquely marry music to innovation on a global scale. With this in mind, we knew we had to do something that not only raises global awareness of the new album, but really plays into the intimate artist-to-fan connection that Linkin Park has been cultivating on our platform for years. And so “Linkin Park, Featuring You” was born–a multi-phase program that each of our 30 territories across the world are rolling out locally.

Linkin Park, Featuring You begins on MySpace with a music application that allows fans to create their own original version of the band’s new single “The Catalyst” and ends with the rare opportunity for one worthy fan to have his or her song stripped onto the next album. SERIOUS. To make this happen, Linkin Park and MySpace Music brought together Topspin Media, Ning and Indaba Music–a true technology trifecta–to allow fans to interact and play with the music before it is even released. Again, SERIOUS.

Mike Shinoda of Linkin Park has this message to share with his fans on MySpace and across the Web:

“In the lifetime of Linkin Park, the evolution of community and music technology has blurred the line between artist and fan. With the release of our new album we want to push it even further and so we are making a commitment to our fans that is a first of its kind: We are blindly dedicating a spot on our new album to something unknown. That space is reserved for you and we’re confident that you will create something that we can be proud to include on “A Thousand Suns.” This is not just a “fan-remix” contest; we want to collaborate with you. This effort is made possible by the global 360 music platform of MySpace, and the dedication and talent of our incredible fans. Thank you. We look forward to hearing your submissions.”

Here’s how it works: By installing the Indaba Music-powered app on MySpace, fans have access to five stems from “The Catalyst” that they can use to re-arrange and re-imagine the song using either their own Digital Audio Workstation or with Indaba’s free, Web-based software. Once submitted, users can vote for their favorite versions and help the band in their quest to identify new talent and ultimately pick a winner.

“Linkin Park, Featuring You” is just the beginning of a much larger partnership between the band and MySpace Music that will provide Linkin Park fans with recognition worldwide with access to live shows, exclusive content and premieres as well as opportunities to connect and interact with the band in ways that only MySpace Music can offer.

Be sure to get your entries in by July 25th and don’t forget to spread the word about the contest to your friends around the world–and go buy the new single on August 2nd.

Earlier this week, the three companies filed amicus briefs in support of Google and YouTube, which are defending themselves against a $1 billion copyright lawsuit by Viacom. In the briefs, they urge the judge presiding over the case to dismiss Viacom’s suit, claiming to do otherwise is to violate protections given Google under the Digital Millennium Copyright Act.

From the briefs:

[Viacom's] legal arguments, if accepted, would retard the development of the Internet and electronic commerce, create uncertainty for service providers regarding their legal exposure for alleged infringements, and inhabit the growth and development of user-centric online models that, day after day, make the Internet and the world more democratic.

The expression of support by Yahoo (YHOO), Facebook and eBay (EBAY) for Google follows a similar move by Hollywood. Earlier this month, Warner Bros., NBC Universal, Disney, the Screen Actors Guild and Directors Guild of America filed amicus briefs of their own arguing, as Viacom (VIA) has, that Google (GOOG) is not protected by the DMCA, which shields Internet service providers from liability for copyright violations committed by users.

The friends of the court in this case, then, are aligned on both sides. All that remains is to determine whether the DMCA protects YouTube. And Viacom is confident that the court will determine that it does not.

“The courts have been clear that creating and building a Web-based business on the intellectual property of others is illegal,” a Viacom spokesperson told Bloomberg. “That is exactly what YouTube did in its formative years. Nothing in this case threatens the principles of the DMCA or the ability of legitimate Internet-based businesses to flourish.”

U.S. PATENT NO. 6,999,800 Method for power management of a smart phone
A method for power management of a smart phone having a power system, a mobile phone system operated in a standby, sleep, connection or off mode, and a PDA system operated in a normal, sleep or off mode

U.S. PATENT NO. 7,716,505 (granted yesterday!)
Power control methods for a portable electronic device
A power control method for a portable electronic device. The portable electronic device comprises a power supply unit and a volatile memory for storing data when the power supply unit supplies power thereto. First, the portable electronic device is set to enter a deep sleep mode. Then, data accessed from the volatile memory is transferred to a non-volatile memory. Finally, except for maintaining sufficient power to restore the device, the power supply unit is turned off.

U.S. PATENT NO. 5,541,988
Telephone dialler with a personalized page organization of telephone directory memory
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed dialling of the selected number.

U.S. PATENT NO. 6,058,183
Telephone dialler with a personalized page organization of telephone
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed.

U.S. PATENT NO. 6,320,957
Telephone dialler with easy access memory
An advanced telephone dialler has been described, incorporating a fast retrieval and dial telephone directory. The system simplifies the use of the telephone directory by using a single sliding or rotary key for scanning and selection of the name and number to be dialled and one button for speed dialling of the selected number.

Example A: Time Magazine, which is asking $4.99 a week for its app–the same price you’d pay if you bought the paper edition at a newsstand.

The electronic version of the weekly does contain some bonus features, like extra photos and video clips. And some iPad users seem to be okay with it: As I type this, the app is ranked No. 16 on the iTunes “top paid” list.

But to hear the digerati tell it, Time Inc. is crazy to ask users to pony up full price for a digital good that’s available for free on the Web–even for Apple’s (AAPL) iPad browser. What are the people at Time Warner’s (TWX) magazine unit thinking?

I asked them and got this response:

We are offering a compelling, robust and beautiful product. The production of this high quality, fact-checked reporting takes resources. We believe there is a real value to this product and as consumers experience it, they will agree. We are currently only offering single copy sales, just like at your local newsstand–and, the price is the same as the physical newsstand. We will soon be offering subscriptions–both digital subscriptions and print/digital bundled subscriptions. We anticipate these subscriptions will be discounted off the newsstand price.

Two notes:

• We’re less than a week into the great iPad experiment and none of this pricing is set in stone. So it’s entirely possible that Time Inc. will eventually lower the price for some of its iPad apps. But the company can’t do that if it starts low to begin with.
• Note that the publisher says it will offer subscriptions at a discount from newsstand prices–not from paper prices. That’s because magazine publishers famously give away their subscriptions for a fraction of their cost. If you Google “Time magazine subscription,” for instance, the first thing you’ll see is a $20-per-year offer, (“Save 92% of the cover price!”). I wouldn’t be surprised at all to see a scenario whereby the publisher asks subscribers to pay more for a tablet subscription than for a paper-and-ink version, at least for some titles.

In your review of the new Quicken for Mac, you didn’t mention if it can print checks, as the prior 2007 version does. I have heard it doesn’t. Is this true?

A:

Yes. Among the features Intuit (INTU) omitted in the new, stripped-down Quicken Essentials for Mac was the ability to print checks. In addition, as I noted in my review, the new product cannot track individual investment transactions, perform electronic bill paying, or export data to TurboTax—all of which the prior Mac version could do, despite its generally poor reputation.

Q:

I have a Mac laptop with the Intel Core 2 Duo chip. Can I run Quicken for Windows on my Mac? Thank you.

A:

Yes, if you install Windows on your Mac. Many hard-core Quicken fans do this, since the Windows version of the program is superior.

Q:

Are there any laptops with screens measuring 19 inches or larger?

A:

A cursory search of available laptops from major manufacturers didn’t turn up any models with screens that large. But a number of companies offer laptops with screens that measure 18.4 inches.

You can find Mossberg’s Mailbox, and my other columns, online for free at the All Things Digital web site, walt.allthingsd.com.

• News Corp. CEO Rupert Murdoch tried to lower expectations that his Fox broadcast network would hire Conan O’Brien.
• Murdoch hinted that his book publishing unit is in line to get a new deal on e-books from Amazon, just as Macmillan has demanded (as will other publishers).

On the second point, here’s my on-the-fly transcription and paraphrasing of Murdoch’s comments about Amazon (AMZN), Apple (AAPL) and e-book pricing. It’s one of the most candid descriptions you’ll hear from a top executive about Big Media’s reluctance to embrace digital distribution at the expense of its existing system and revenue:

“We don’t like the Amazon model of $9.99….We think it really devalues books and hurts all the retailers of hardcover books. We’re not against electronic books; on the contrary, we like them very much” because they cost us less to distribute, “but we want some room to maneuver.” The Apple deal…“does allow some flexibility and higher prices” though e-books will still be lower than print versions. And now Amazon is willing to sit down with us again and renegotiate.

UPDATE: Here’s a more complete transcript from Seeking Alpha:

We don’t like the Amazon model of selling everything at $9.99. They don’t pay us that. They pay us the full wholesale price of $14 or whatever we charge. We think it really devalues books and it hurts all the retailers of the hard cover books. We are not against [inaudible] books. On the contrary we like them very much indeed. It is low cost to us and so on. But we want some room to maneuver in it. Amazon, sorry Apple in its agreement with us which has not been disclosed in detail does allow for a variety of slightly higher prices.

There will be prices very much less than the printed copies of books but still will not be fixed in a way that Amazon has been doing it. It appears that Amazon is now ready to sit down with us again and renegotiate pricing.

Again, it’s impossible to stress how scarring the music labels’ experience has been for Big Media. And they’re determined not to repeat the experience. Their takeaway, though, seems to be that they can stave off digital distribution by keeping prices high and inventory relatively scarce. Hard to believe consumers are going to go for that.

Earlier

A first glimpse at News Corp.’s fourth-quarter earnings (which, due to the company’s weird fiscal calendar, is technically the company’s Q2 for 2010): Pretty good. And much better than a year ago (thankfully). After factoring out one-time charges, the company posted earnings of 25 cents on revenue of $8.7 billion.

The Street was looking for earnings of 20 cents on revenue of $8.23 billion, and analysts were also hoping the company would boost its earnings forecast, due in part to a bump from the ginormous success of “Avatar.” No word on guidance in the earnings release, though.

I’ll pick through the release for other worthwhile nuggets for the next few minutes. And then the real show begins at 4:30 Eastern, when the company’s earnings call–easily the most entertaining one in its peer group due to the censor-free presence of CEO Rupert Murdoch–begins. We’ll be looking for commentary on his battle/negotiation with Google (GOOG), upcoming content deals with Apple and the iPad, his thoughts on paid content in general, a dash of political commentary or two, and an update on the turnaround effort at MySpace.

From the release: A pretty nice quarter at most of the conglomerate’s divisions, including the previously battered broadcast TV and newspaper groups. News Corp. says print revenue at The Wall Street Journal was up five percent and ads on the Journal’s digital network were up 17 percent.

MySpace and the company’s other digital properties, shuffled into the “other” category, don’t get much of a mention, but don’t seem to have done much, not surprisingly.

But News Corp does mention that digital media earnings were down $32 million compared with a year ago, “principally due to lower search and advertising revenue.” And the company lost $29 million on “digital media dispositions”–i.e., the fire sale/giveaways of properties like Rotten Tomatoes and Photobucket.

Here’s the breakdown by segment (click table to enlarge):

Liveblog

CFO Dave DeVoe: “Extremely pleased” with the quarter.

Movies: Revenue up due to decent DVD sales (no MGM problem here). Also high costs due to “Avatar,” but big profits from the movie will be coming in during the next couple quarters.

Broadcast TV: Local ads are improving; the telecom, fast food, finance categories are all improving.

Cable: Revenue is up 18 percent. Affiliate revenue is up 21 percent (more money for Fox News subs), and there was a “single-digit” boost in ad dollars.

Newspapers: Journal dollars are up, operating costs down. Ad revenue got better as the quarter progressed.

Books: Revenue up, expenses down.

“Other”/MySpace: Digital media revenue down, but cost-cutting helped trim losses.

News Corp. is boosting its dividend by 25 percent.

Guidance: The company’s operating income growth rate is expected to grow from single digits to the high teens. Better than anticipated: Film group, TV and cable. But revenue goals for digital media, including MySpace, will take longer than anticipated.

Murdoch sings the praises of content. [I will not argue with him, for now]. “Avatar” is awesome, he says, a “harbinger of fundamental change in the industry.” Also really good: “Alvin and the Chipmunks.” Fun to hear Rupe say “Alvin and the Chipmunks.”

WSJ is the No.1 paper in U.S. in terms of circulation, influence, quality. WSJ.com is a “digital model for newspapers around the world.”

Fox News Channel’s audience is both “loyal and lucrative.” Roger Ailes is doing an “admirable job” [translation: Bite me, Michael Wolff--the author of a recent Murdoch biography].

Last year, Murdoch says, News Corp.’s pay-to-play ideas sounded nutty, but now “the content clan has gathered around our ideas.” Consumers must pay and will pay “to be entertained and informed.” All those awesome new gadgets being made in China and sold at the Consumer Electronics Show need content or they’re worthless. Content, content, content. Get it? Content, content, content.

Murdoch says he’ll be wringing more dollars from cable operators. And “when it comes to online news, we’ll be changing that model too,” adding that News Corp. is in “substantive conversations with device makers on developing subscription models” to deliver content. And don’t forget about 3-D!

Not performing well but “long-term growth drivers”: Sky Italia satellite service. Also Sky Deutschland. And MySpace is “not yet where we want it.” In the last quarter, however, MySpace “started to see signs of traffic stabilization.”

Shout-outs for Chase Carey and other managers (but not by name).

Q&A

Question: How big a deal is retransmission consent in coming years? $40 million a month? $100 million a month?

Chase Carey: No numbers, but it’s going to be a “transforming event.” We have two of top 10 distributors done, more coming. It’s a three- or four-year process to knock these deals out.

Q: Does this fix the broadcast model?

Carey: “Yes, I guess you could say simplistically, it fixes it.”

Q: What’s the timing on an “Avatar” DVD, and what about a sequel? Also, how do TV ads look this year?

Murdoch: For “Avatar,” we think about 60 percent of profits will be in the next six months. Which means the DVD will be coming “as soon as possible,” but the movie will stay in cinemas for a while because we’re doing huge dollars in theaters still. Sequel? “Very early talks about it. Jim has ideas for one. We haven’t come to any agreement with him….Being Jim Cameron, I wouldn’t hold your breath for an early one.” Asked about the economics of a future release (“Will you keep the same revenue split?”), Rupe sort of rumbles and growls and sort of doesn’t have much to say. “Ask anybody; it is very easy to drop a $100 million in a hurry on a film, and we’d like to lay off some of the risk.”

Carey: TV trends for this year are “positive.”

Murdoch: TV stations will be up 18 or 19 percent, but last year was terrible. We’re still down compared with two years ago. Hard to see more than a quarter in advance. In newspapers, it’s hard to see more than a few weeks.

[Missed a question on Sky Italia here.]

Q: What are growth prospects for cable networks? They’ve been driven a lot recently by new subscriber fees. How much longer can you get those boosts?

Murdoch: Overall, “we think we have great potential for growth. Quite a long way to go yet.” Look at how NBCU’s USA is growing.

Carey: In the U.S., we’re moving to “quality over quantity”–we can wring more out of foreign exchange, etc. Fox News is only getting more powerful; it has “great upside.”

Q: Regarding newspapers, what growth came from organic increase versus currency fluctuations?

The majority is from foreign exchange.

Q: Does your guidance assume that the “Avatar” DVD is coming in the next two quarters?

Murdoch: “Yes, but it won’t be 3-D” [which I don't think the analyst was asking about].

Q: Back to retransmission consent: You’ve been getting more and more money from cable guys. Why can’t you get $4 or $5 per subscription for Fox broadcast subs?

Murdoch: “We’re modest people.”

Carey: Hyuk, hyuk. Real answer: It takes time. “We try to approach this constructively. We’ve built businesses with [cable guys], we’ve built valuable cable channels” [translation: patience!]. We want to extract more without killing the cable guys.

Murdoch: That said, we’re asking for the same thing [for broadcast channels] that the cable networks are getting, which “certainly won’t kill the cable companies.”

Q: Please talk about value of film libraries (i.e., MGM). They’re generating big operating profits for cable now. How long will this last?

Murdoch: Regarding the MGM auction, “you can count us out of that one altogether” because others will pay more than we’re willing. And we’re not pursuing the Miramax catalog at all.

Carey: A film library by itself, without new stuff coming through, is a “depreciating asset.”

Q: On guidance: You say the ad market getting better, etc., but it sounds like you’re saying Ebidta growth is slowing.

Murdoch: “We honestly do not have any visibility about the last quarter.”

Q: On books/e-books/Apple, what’s going on with that?

Murdoch: We don’t like the Amazon model of $9.99….We think it really devalues books and hurts all the retailers of hardcover books. We’re not against electronic books; on the contrary, we like them very much, lower costs to us, but we want some room to maneuver. The Apple deal does allow “some flexibility and higher prices” though e-books will still be lower than print. And now Amazon is willing to sit down with us again.

Press Q&A

Q: What’s up with plans to charge for newspapers on the Web?

Murdoch: “Not ready to announce yet [long pause]. We won’t be ready yet to make an announcement.” A “lot of talks with a lot of people.” There will be more to say within the next two months, Murdoch adds.

Q: Are you still going to fall $100 million short on the Google deal?

Murdoch: Yes. People using social networks don’t use search a great deal. Facebook has seen this, too. It’s “really too early to make confident predictions…but from going down, we’re beginning to go up.”

Q: Can we get some details about Time Warner Cable (TWC) deal?

Nope.

What about Conan O’Brien on late night?

Murdoch: If the programming people can show us we can do it and make a profit on it, we’ll do it in a flash. I’m sure there have been conversations with Conan, but “if you mean real negotiations, no.”

[Missed two questions here.]

Q: Another late-night question: If you do go into negotiations with Conan, how do you placate your affiliates?

Murdoch: It’s a different deal than NBC. They screwed up 10 pm, which reduced the lead-in to local news. Our affiliates run syndicated programming at 11:30, though, so it will take time to adjust there.

Call ended. This one seemed short to me.

More or less redundant disclosure: News Corp. (NWS) owns this Web site.

A: Sadly, Microsoft killed Outlook Express—its free, fast and simple Windows email program—long before Windows 7 came out. In Vista, it was replaced by something called Windows Mail. Now, there’s no email program at all built into Windows 7, unless a PC maker chooses to include one. But Microsoft offers for download a free product called Windows Live Email that is the latest successor to Outlook Express. You can get it, alone or as part of a suite of free “Essentials” programs that used to be routinely part of Windows, at: windowslive.com/desktop.

I was told that Apple is developing its own version of the Kindle e-book reader. I wanted to purchase a Kindle for Christmas, but now I’m not sure whether I should wait for an Apple version.

A: I have never heard any Apple official say or hint that the company is developing a direct competitor for the Kindle, or is planning to make any dedicated e-book reader. What you may be referring to is that some Web sites have been speculating that the much-rumored forthcoming Apple touch-controlled tablet would be mainly intended to be an e-book reader. I haven’t any evidence of this either.

The iPhone and iPod Touch already can run a free Kindle app from Amazon that allows you to read Kindle e-books on those devices without needing to own a Kindle itself. And Barnes & Noble, which has also announced a dedicated e-reader, has a similar iPhone app. So I assume that any general-purpose Apple tablet would likely be able to run such an app as well and function as an e-reader—along with performing other tasks.

But that’s different than producing a dedicated reader with a screen and controls designed primarily for book reading and a companion electronic book store, something Apple currently lacks. It’s entirely possible Apple is going into the e-book business, but I know of zero hard evidence that this is the case.

Do you have any recommendations about switching an existing 64-bit laptop from Vista to Windows 7? I totally dislike Vista but I don’t know if the switch can be done.

A: Yes, it can, in most cases, unless your PC’s manufacturer for some reason isn’t supporting or recommending the upgrade of your particular model. Just make sure you get the comparable version of Windows 7 (say, 64-bit Windows 7 Home Premium if you are currently using 64-bit Vista Home Premium) so you can do a direct, in-place upgrade that will allow your programs and files to remain in place.

You can also do an in-place upgrade if you opt to move up to the costlier Ultimate version. I would also advise backing up your irreplaceable personal files before you begin the process.

You can find Mossberg’s Mailbox, and my other columns, online for free at the All Things Digital web site, http://walt.allthingsd.com.

Write to Walter S. Mossberg at walt.mossberg@wsj.com

Depends on who you ask, of course.

Executives at Veoh say Judge A. Howard Matz has given them a new lease on life, and at least some of the company’s investors are doing some chest-beating. Universal, the world’s largest music label, says it’s confident it will win an appeal.

You can get the same split opinion by asking two different companies that happen to be locked in a similar fight. Executives at Google’s (GOOG) YouTube, which is trying to fend off a copyright suit filed by Viacom (VIA), say the Veoh ruling bolsters their case. You can guess what Viacom says.

The gist of the fight: Universal says Veoh didn’t try hard enough to keep illegally uploaded material off the video site; Veoh says it made a good-faith effort. Matz agreed with Veoh and tossed out Universal’s claims.

Even if you disregard the posturing, it’s fair to say there’s a genuine debate over the ruling’s meaning. Veoh, along with some of my bloggy colleagues, is treating the decision as the final word on Web copyright disputes, or at least those that involve the Digital Millennium Copyright Act.

And Matz certainly slapped Universal around. But it’s worth noting that copyright owners have lost Web cases in the Ninth District before, but ultimately won on appeal. Ask Grokster, the now-defunct file-sharing network that dissolved after a 2005 Supreme Court ruling.

You can read all of Matz’s judgment at the bottom of this post. But this excerpt, in which he argues that simply having illegal material on your site isn’t a crime, and neither is knowing about it (at least, in a general sense), gives you a good idea of Matz’s thrust and tone:

No doubt it is common knowledge that most websites that allow users to contribute material contain infringing items. If such general awareness were enough to raise a “red flag,” the DMCA safe harbor would not serve its purpose of “facilitat[ing] the robust development and world-wide expansion of electronic commerce, communications, research, development, and education in the digital age,” and “balanc[ing] the interests of content owners, on-line and other service providers, and information users in a way that will foster the continued development of electronic commerce and the growth of the Internet.”

Legal debate aside, the ruling does give a practical benefit for Veoh. It allows the company to fetch a higher price on the auction block.

CEO Dmitry Shapiro has been shopping the site to bidders over the summer, and as of a few months ago, he was willing to accept less than the $70 million investors like Time Warner (TWX), Goldman Sachs (GS) and former Disney (DIS) CEO Michael Eisner have poured into the site.

Selling a Web video site in 2009 is a tough challenge without a handicap, but the lawsuit was a big one. It was a huge time-and-money suck–Veoh may have spent as much as $6 million fighting the case in the last two years–and more important, the unresolved case was a huge liability. Who wants to buy a lawsuit?

Now, Shapiro says, Veoh’s options include not selling at all. He insists that some of Veoh’s existing backers are willing to recapitalize the company and that new investors might join in as well.

I’ll take him at his word, but if I had to bet, I’d wager that Veoh ends up getting acquired sooner than later. Maybe quite soon–the company has a board meeting today.

Wonder what they’ll talk about?

VEOH –

Still here? How about that? You get a bonus video! (But be warned: Pacino chews up a lot of scenery here, and there is some impassioned cursing.)

If you’re in a rush, the takeaway is that he’s not very impressed with Amazon’s (AMZN) device, and that all things being equal, he thinks Apple’s e-reader is at least as good. He’s not talking about the yet-to-appear iTablet, of course. Like a lot of other people, he’s fond of  Apple’s (AAPL) current iPhone/iPod touch line:

Amazon, with its listmania lists and its sometimes inspired recommendations and its innumerable fascinating reviews, is very good at selling things. It isn’t so good, to date anyway, at making things. But, fortunately, if you want to read electronic books there’s another way to go. Here’s what you do. Buy an iPod Touch (it costs seventy dollars less than the Kindle 2, even after the Kindle’s price was recently cut), or buy an iPhone, and load the free “Kindle for iPod” application onto it.

Oddly, Baker doesn’t make a reference to Kindlegate, even though the story broke a couple of weeks ago. If you’re looking for a summary of where things stand on that one and have five minutes to spare, you can listen in to the chat I had with NPR’s “On the Media,” which aired over the weekend. You can hear the full show here.

One last note: I’m stepping out for a couple weeks and going semi-off the grid, so if all goes well you won’t be hearing from me till the second week of August. If all goes really well, I may even read an ink-and-paper book. Meantime there will be plenty of fresh new stuff from Walt, Kara, John and Katie over at the mothership. See you soonish.