HP CREATES COMMITTEES FOR THE FUTURE
In a move that UC-Berkeley law professor calls a great innovation in corporate governance, the Hewlett-Packard's board of directors is creating a subcommittee tasked with helping the company understand emerging technologies. The subcommittee will be looking at such developments as Linux, open-source software, manufacturing logistics, and the use of Intel's Itanium microprocessor in HP servers. One member of the subcommittee, board member and nuclear physicist George Keyworth, explained the rationale for the move by saying: "When the Internet came along in the mid-1990, I think we very much missed the boat. Boards have got to become more aware of the business itself, and the business vulnerabilities and opportunities. This technology subcommittee represents our focus on strategy, the need to measure that strategy and the degree of alignment between the company's technical community, the board of directors and the top leadership." HP is also creating a strategic advisory group of external consultants, including well-known high-tech visionaries Vint Cerf, Alan Kay, Joel Birnbaum and others. Kay says, "I see HP as the company that could round off this technology revolution that got started in the 1960s. They're big enough, they have no software religion, they do consumer and business products, and they have consulting services." (San Jose Mercury News 18 Dec 2002) Link

AOL PATENTS INSTANT MESSAGING TECHNOLOGY
AOL Time Warner has quietly won a U.S. patent for its ICQ instant messaging technology, representing a potential goldmine for the media giant. The broadly worded patent defines AOL's IM application as one that enables users to chat with and identify one another across a specific "communications network," opening up the possibility for AOL to collect royalties from rivals. ICQ, which was developed in the mid-1990s by a group of Israeli scientists at a company called Mirabilis, was the first breakthrough chat application. It filed a patent for its technology in 1997 and was acquired by AOL in 1998 for $287 million. (Reuters 19 Dec 2002) Link

VERIZON CLOSE TO SEALING DEAL ON WIRELESS LICENSES
Verizon Wireless is in final stage of negotiations over the purchase of almost all of the radio-wave spectrum licenses owned by Northcoast Communications, a Long Island wireless company backed by Cablevision. The move could vault Verizon into the No. 1 position among U.S. wireless carriers, based on the number of subscribers, and would add critical calling capacity in busy markets where Verizon already offers service, such as New York and Boston. Talks between the two parties are still continuing, but people close to the situation say the final price will be about $700 million, providing Cablevision with a much-needed financial boost to its bottom line. (Wall Street Journal 19 Dec 2002) Link

SONY, MATSUSHITA TO DEVELOP LINUX SYSTEM
Sony and Matsushita Electric are teaming up to develop an operating system based on Linux technology that will be incorporated into their digital consumer electronic products, such as televisions, DVDs and microwave ovens. The decision is likely to increase competitive pressure on Microsoft. Computer heavyweight IBM and several other high-tech companies have also embraced open-source software, particularly Linux, in their offerings. Matsushita and Sony say they are considering expanding the use of their jointly developed OS with other interested electronics companies, including Hitachi, IBM, NEC, Philips, Samsung and Sharp. The source code will also be made available free to the public to encourage its broader use throughout industry. (AP 18 Dec 2002) Link

IBM WINS $2.5 BILLION OUTSOURCING DEAL
Deutsche Bank has awarded IBM a 10-year, $2.5 billion contract under which IBM will provide the bank with computing power and services. As part of the deal, 900 Deutsche Bank will become IBM employees. Deutsche Bank predicts it will save about $1 billion over the life of the contract. (AP/San Jose Mercury News 19 Dec 2002) Link

SCAM THE CHILDREN
Federal prosecutors have indicted the owner and employees of a Staten Island, New York company called Connect2 Internet Networks, and charging it with conspiring to steal millions of dollars from the federal E-rate program that helps pay for Internet technology for schools and libraries. (New York Times 19 Dec 2002) Link