BetaNews Staff

Amazon Sponsoring Web Services Contest

Amazon is attempting to drum up interest among developers for its Web Services offering by sponsoring a contest which looks for the best business venture that makes use of its technologies. A first prize of $50,000 cash, $50,000 in web service credits, and a possible financing offer will be awarded to the winner, while others could receive up to $5,000 in credits for their entries. All qualifying entrants receive up to $25 in web service credits for participating.

Web Services from the retailer actually has nothing to do with e-commerce on the site: rather, the engineering and technology back end is made available for developers to use in whatever form they would like. Over 265,000 developers have signed up to use the service since it was launched in July 2002, the company said. More information on the contest can be found on the company's website.

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News Corp: We're Staying on iTunes

Ending speculation that it would follow NBC Universal's lead in pulling its programs from Apple's iTunes, News Corp president Peter Cherin said the company had no plans to do so. He did, however seem to agree with NBC on one thing: that networks should have more control over what is charged for their programming. Cherin's comments were made to Reuters during a stop in Poland, where the media conglomerate is relaunching a television channel.

"Right now, we have a perfectly good relationship with Apple," he told the news wire. Cherin's comments are no doubt good news for Apple, and may help stem the tide of content provider discontent Apple has been riding over the past several months. It began last year with Apple's insistence to keep 99 cent music pricing, which may have led to Universal's canceling of its long-term contract. This was soon followed by NBC Universal's announcement that it would pull its television programming from the service.

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Vodafone Looks to Take On iPhone in UK

Preparing itself for the eventual release of Apple's iPhone in the UK, Vodafone on Tuesday unveiled a new music store that allows the unlimited download of tracks to compatible phones. While the British cell phone carrier was thought to be an early favorite, it now appears that O2 has won the contract for the country. Vodafone's service includes about one million tracks and is available for $4 per week.

According to the carrier, most users will not need to upgrade their phones in order to take advantage of the service. However, it features new phones in its store including Nokia's N81 and N95 devices. Other devices will also be offered from Samsung and Sony Ericsson, and most will support the music store and other interactive features such as eBay, MySpace, and YouTube access.

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Microsoft Launches Own 'Babel Fish'

While Altavista has largely disappeared from the minds of most Internet users since the emergence of Google, the Web property does still have a very popular service: its Babel Fish translator. Now, Microsoft is testing its own translation offering under the Windows Live umbrella.

Like Babel Fish, Windows Live Translator is based on technology from Systran. Users can input a block of text to translate, or select a Web site to translate. There is an option for "computer related content" which keeps the service from translating technology-related words. Little else is known about Live Translator, but Microsoft frequently tests new offerings under Windows Live, some of which survive while others don't.

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Skype Users Warned of New Windows Worm

Skype users should be wary of a new worm that is making its way through the network via the application's chat feature, the company said Monday. The worm spreads when users click on a link sent via IM either from an unknown user, or a contact who has been infected. The link appears to be a .JPG image, however when clicked, it asks the user to run or save a .scr file. When run, the program then accesses the Skype application in order to infect others.

F-Secure and Kaspersky Labs have issued updated definition files to detect the worm, Skype said. "We would like to encourage our users to ensure that they are running anti-virus software on their computers and to download the latest anti-virus updates in order to provide the best protection against this and other viruses," Villu Arak wrote in the Skype blog on Monday. Additional instructions on handling the worm can be found in the post.

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Apple Says it Sold 1 Million iPhones

Apple said it sold its one millionth iPhone on Sunday, some 74 days after its debut. The sales numbers for the device make it the best selling phone model debut ever, and ranks near the top debuts of any electronic device in history. In comparison, it took the iPod two years to reach the same milestone. Brisk sales of the phone are likely to continue: last week the company reduced the price of the 8GB model to $399, while discontinuing the 4GB version.

"We can't wait to get this revolutionary product into the hands of even more customers this holiday season," CEO Steve Jobs said. Not everybody is in agreement about the numbers, however. iSuppli estimated about 500,000 units were sold as of the end of July. In order for Apple to reach that one million number, it would have had to sell 500,000 phones in the past six weeks.

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AOL to Drop Netscape.com Digg Clone

A little over a year after it relaunched Netscape.com to much fanfare as a social news site very similar to Digg, AOL confirmed Thursday it is pulling the plug, reverting back to a more mainstream Netscape portal. AOL will keep the Digg-like site alive, but at another currently undecided location.

Although Jason Calacanis, the man who was tasked to build the site, has long touted successes of the new Netscape.com, the site largely failed to catch on among AOL's visitor base. According to the company, its users wanted a more editorially driven experience on Netscape.com, not stories picked by a community. AOL says the move will not affect the Netscape Browser, although it's likely that integration with the social news site will be removed from future updates.

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Firefox Tops 400 Million Downloads

Less than two years after it crossed the 100 million mark, total downloads of Mozilla's Firefox Web browser have now passed 400 million, although the number does not represent total installations. Since the release of Firefox 2 last October, the browser has continued to take market share from IE.

Mozilla is now working on version 3 of Firefox, which is currently in its alpha stages of development. The update has seen a number of delays and a beta release is not due until the fall, but that hasn't slowed adoption. According to the company, Firefox usage in Slovenia is nearing 50 percent market share, which would put it over Internet Explorer for the first time anywhere in the world.

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Parts of Patriot Act Ruled Unconstitutional

Parts of the Patriot Act having to do with the disclosure of Internet records were struck down as unconstitutional Thursday. The American Civil Liberties Union had challenged portions of the revised law, which would have allowed the government to seize records of ISPs without informing the customers or obtaining a court order. Central to the ACLU's argument was that the new law that would have allowed the government to use "national security letters" to compel businesses to turn over customer information without a court order.

U.S. District Judge Victor Marrero agreed, saying that the courts had the right to oversee any government searches, and that the new law was unconstitutional in the way that it did not respect checks and balances and the separation of powers.

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Jobs Apologizes, Apple to Give iPhone Customers $100 Credit

Responding to a large amount of negative feedback from existing iPhone customers who felt slighted by Apple's decision to lower the price by a third to $399, CEO Steve Jobs apologized Thursday and said the company will offer a $100 credit for purchases from Apple's retail store or online store.

In an open letter to customers, Jobs said it was the right decision to lower the price because "now it will be affordable by even more customers" in time for the holiday season, adding that in the world of technology there will also be an upcoming price cut or product update. However, he acknowledged that Apple should have done a better job taking care of early adopters. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these," Jobs wrote. Details of the credit are still being worked out and will be announced on Apple's Web site next week.

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Vudu Joins On-Demand Movie Crowd

There's a new entrant in the growing on-demand movie space, but Vudu takes a slightly different take that may spur adoption or spell its doom. Customers will be able to stream movies over the Internet to their living room, but must first shell out $399 USD for the Vudu hardware.

With broadband finally reaching speeds where on-demand movies over the Web is possible, there's no shortage of companies hoping to cash in. Movielink, which was recently acquired by Blockbuster, is the market leader, but Netflix, Apple, Microsoft and Amazon have all joined the race as well.

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Motorola Begins Selling RAZR 2

While the now $399 Apple iPhone will dominate the news Thursday, Motorola has chimed in to remind everyone that its RAZR 2 is now available through wireless carriers across the United States. But its $299 to $349 price tag won't likely bring out long lines.

The RAZR 2 V9 is offered by AT&T while the CDMA V9m is sold by Verizon, Sprint and Alltel. T-Mobile will likely sell the RAZR 2 V8, but the phone is not yet listed on the carrier's Web site. Motorola is hoping to bring back the glory days of the original RAZR by adding features such as Windows Media Player, 2GB of on-board memory and a full-HTML browser. But the company faces stiff competition from LG, Samsung and now Apple.

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California Appeals Video Game Law Ruling

California Governor Arnold Schwarzenegger said Wednesday that he had appealed a court decision that struck down the controversial violent video game law in his state. The appeal was filed in federal court for the Northern District of California. The law would have prevented the sale or rental of "ultra-violent" video games to anyone under 18, and would have required clear labeling of such games.

The legislation

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Apple Cuts iPhone Price by $200

Apple said Wednesday it is scrapping the 4GB iPhone in favor of a single 8GB model, while dropping the price substantially. The surprise announcement came after news of new iPod models, including the iPod Touch. The iPhone will now cost $399 USD.

At that price, the iPhone will only cost $100 more than the 8GB iPod Touch and the same as the 16GB iPod Touch. Although Apple could see a sales boost from those who felt the iPhone was too expensive at $499 and $599, the price cut may have the unfortunate effect of upsetting current customers, who paid $200 more just two months ago or less.

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Apple Introduces Wi-Fi iTunes Store

With its new iPod Touch sporting wireless capabilities, Apple on Wednesday introduced the iTunes WiFi Music Store, which will allow users of the device to purchase and download songs directly to the device. The service will not only work with the Touch, but also for the iPhone through an update that will be provided later this month. For Starbucks aficionados, new integration could prove a godsend.

When near a Starbucks with Wi-Fi, Touch and iPhone users would be able to see the songs that are playing and download them through a special Starbucks section that would appear. Additionally, users would be able to view the last ten songs played and also be able to buy those songs as well.

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