Napster no more and BT's shrinking world

NEWS The Financial Times, which carries the story on its front page, claims the judgement "could have an immediate impact on Napster's operations and big implications for the emerging law of cyberspace copyright." The panel of three judges ruled that an injunction granted by a lesser court last July, halting Napster's operations altogether before being quashed, was too harsh. Nonetheless, restrictions imposed yesterday - Napster can be held liable if it knows music is covered by copyright - are severe enough to fundamentally alter the site's outlet to output. Napster was disappointed but defiant. Bertlesmann was bullish. Between them, they intend to "pursue every avenue in the courts to keep Napster operating." The music industry united in hailing the verdict a victory and will continue to profit from pressing overpriced CDs, leaving music lovers the world over to mourn the death of free downloads... BT is to axe twenty per cent of its BTopenworld staff, according to the Guardian. A spokesman for the company's main internet business last night confirmed around 200 job cuts following a Q3 operating loss of £107m on revenue of £68m. It's further bad news in a struggling sector, as BTopenworld houses its dial-up narrowband internet offering and, more significantly, the company's broadband services. The bungled unbundling of the local loop, for which the incumbent telco has been widely criticised, is seeing the UK lagging behind the rest of Europe in its DSL offerings. With the announcement of Openworld's cutbacks, we can expect even slower progress in the high-speed race. Staff have been told they will be found positions elsewhere in the company... Meanwhile, Italy's fourth largest mobile operator, Blu, in which BT has a 21 per cent stake, is up for sale following its withdrawal from the 3G licence auction in October. The Financial Times reports the deal could be worth up to E3bn (£1.91bn) and 'squabbling shareholders' - including Benetton, Autostrade and Edizone - expect BT to sell out before the company is bought up... Is telecoms the sector to get out of, then? Amstrad has just unveiled a deal which will see it selling mobile handsets in the Far East, tells The Telegraph. The agreement, with Amstrad working with Haier CCT - a joint venture between Hong Kong telecom manufacturer CCT Telecom and China's largest state-owned domestic appliance maker Haier Group - involves design, development and distribution in this enoromous potential market. Amstrad shares lifted at the news...