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NEW YORK - The popular online hangout MySpace has won a $230 million judgment over junk messages sent to its members in what is believed to be the largest anti-spam award ever.

A federal judge in Los Angeles ruled against a notorious “Spam King,” Sanford Wallace, and his partner, Walter Rines, after the two failed to show up at a court hearing, MySpace told The Associated Press on Tuesday.

Wallace earned the monikers “Spam King” and “Spamford” as head of a company that sent as many as 30 million junk e-mails a day in the 1990s. He left that company, Cyber Promotions, following lawsuits from leading Internet service providers such as Time Warner Inc.’s AOL, only to re-emerge in a spyware case that led to a $4 million federal judgment against him in 2006.

“MySpace has zero tolerance for those who attempt to act illegally on our site,” said MySpace’s chief security officer, Hemanshu Nigam. “We remain committed to punishing those who violate the law and try to harm our members.”

Rines and Wallace created their own MySpace accounts or took over existing ones by stealing passwords through “phishing” scams, Nigam said.

They then e-mailed other MySpace members, he said, “asking them to check out a cool video or another cool site. When you (got) there, they were making money trying to sell you something or making money based on hits or trying to sell ring tones.”

MySpace said the pair sent more than 730,000 messages to MySpace members, many made to look like they were coming from trusted friends, giving them an air of legitimacy. Under the 2003 federal anti-spam law known as CAN-SPAM, each violation entitles MySpace to $100 in damages, tripled when conducted “willfully and knowingly.”

In court papers, MySpace said the activities resulted in bandwidth and delivery-related costs, along with complaints from hundreds of users. The company also said some of the outside Web sites contained adult material, potentially harming teens who use MySpace.

The judgment is a big victory for MySpace, although service providers often have a tough time collecting such awards. But even if the News Corp.-owned site never collects, it hopes the judgment deters other spammers.

“Anybody who’s been thinking about engaging in spam are going to say, `Wow, I better not go there,’” Nigam said. “Spammers don’t want to be prosecuted. They are there to make money. It’s our job to send a message to stop them.”

The Los Angeles-based company described the amount of the award as a “landmark.”

John Levine, a board member for the anti-spam advocacy group Coalition Against Unsolicited Commercial Email, said that past spam judgments he knows of have been in the tens of millions of dollars.

He said he would be surprised, though, if MySpace ever collected.

“The giant judgments are all defaults, which means they don’t necessarily even know how to find the spammer,” Levine said.

There was no telephone listing for Wallace in the Las Vegas area, where he moved to in 2004 to pursue night club promotion work. Service was disconnected for two listed numbers for Rines in Stratham, N.H., his last known address; a third number in Stratham was unlisted.

U.S. District Judge Audrey B. Collins awarded the amounts sought by MySpace: $157.4 million jointly against Rines and Wallace and an additional $63.4 million against Rines under CAN-SPAM — plus $1.5 million more against the pair under California’s anti-phishing law and $4.7 million in attorneys fees. MySpace said it was entitled to another $3 million from Rines and Wallace under a different section of CAN-SPAM.

Collins also issued injunctions barring similar activities in the future.

MySpace has another anti-spam case pending against a high-profile defendant, Scott Richter, who it claims gained access to MySpace profiles using stolen passwords and then sent spam bulletins from those accounts.

MySpace said the junk messages from Wallace and Rines came after Richter’s.

(This version CORRECTS amount of judgment in headline and story to conform with itemization in court order.)

WASHINGTON (Hollywood Reporter) - The Grand Ole Opry and MTV may be at opposite ends of the music spectrum, but they are part of a coalition urging federal regulators to stand up to a frequency grab by Microsoft and Google that could render wireless microphones useless.

In papers filed Tuesday at the Federal Communications Commission, a coalition that includes the Opry, Country Music Television, the Country Music Assn. and MTV Networks contends that allowing millions of wireless devices to use the same frequencies as wireless microphones would be a “catastrophe.”

“We know all too well that there is no 'second chance' to redo a live performance,” said Opry music director and broadcast producer Steve Gibson. “The white spaces proposals being considered by the FCC could turn 'Music City' into a silent city unless they get it right. As it stands, these proposals will not provide critical protection to the wireless microphone systems that are integral to every show.”

While the fight over the use of so-called “white spaces” — the vacant areas between broadcast channels — has been raging between broadcasters and the high-technology companies, the live music industry has been quietly concerned over the problem the new unlicensed devices could cause.

Tuesday's filing marks the first time the Opry, CMT, CMA, MTVN, Fitzgerald Hartley (management for Vince Gill and LeAnn Rimes), SGTV (producer of the Dove Awards) and SeisMic Sound (audio engineers for the CMT Video Music Awards and the Dove Awards) have raised their voices in unison to oppose the development.

A coalition of high-tech companies, including Microsoft, Intel, Google and Dell, want to use white spaces as a way to connect such products as digital cameras and music players to the Web.

Proponents of the technology argue that TV-spectrum-based Internet service could be less expensive and more accessible than current phone and fiber-optic lines, forcing other high-speed Web service providers to lower their prices.

But broadcasters have argued that the devices being tested that are supposed to seek out the white spaces simply don't work. Their arguments have been backed up by tests at the FCC, though the companies keep trying.

Reuters/Hollywood Reporter

SAN FRANCISCO (Reuters) - Online classifieds leader Craigslist.com filed a countersuit on Tuesday against business rival eBay Inc, alleging eBay used its minority stake in Craigslist to steal its corporate trade secrets.

In a lawsuit filed in California Superior Court in San Francisco, Craigslist challenged allegations in an eBay suit filed in Delaware state court in April that accused Craigslist of discriminating against eBay as a shareholder.

EBay's suit in Delaware Chancery Court charged Craigslist had used “clandestine meetings” to dilute eBay's 28.4 percent stake in Craigslist to 24.85, or less than a quarter of the company.

In addition to unfair competition and fraudulent business claims, the countersuit accuses eBay of copyright infringement and using misleading advertising on Google Inc to run ads for its rival Kijiji site that appeared to be Craigslist ads.

The lawsuit demands that eBay restore all shares of Craigslist owned by eBay or for the court to require eBay to divest its holdings in Craigslist. The suit asks eBay to disgorge profits tied to the business and for punitive damages.

EBay spokeswoman Kim Rubey responded to Craigslist's lawsuit against eBay, saying: “We regret that Craigslist felt compelled to resort to unfounded and unsubstantiated claims in order to divert attention from actions by Craigslist's board that unfairly diluted our minority interest.”

EBay, the world leader in online auctions and payment services, took a minority ownership stake in Craigslist nearly four years ago as part of a strategy to buy up classified advertising services both in the United States and Europe.

In 2004, eBay began to expand into the market through the acquisition of online classified businesses Marktplaats and later, LoQuo and Gumtree. In 2005, eBay launched its own free online classifieds site named Kijiji in nearly a dozen markets in Europe and Asia. A year ago, it entered the United States.

Craigslist and eBay grew out of the same early rush to create Web businesses in Silicon Valley in the mid-1990s.

But their paths quickly diverged as eBay went on to dominate online auction markets, becoming a multibillion company, while Craigslist stayed true to its uncommercial ethic by not charging for most of its local listings.

Craigslist operates with only a few dozen employees. Its headquarters is located in a modest, century-old Victorian house located in a residential neighborhood of San Francisco. It relies on volunteers to run sites in 567 cities worldwide.

They compete directly in the United States and a dozen other countries, with Kijiji tailoring its ads to young families in contrast to Craigslist's open flea-market style.

Craigslist's complaint alleges a plot by San Jose, California-based eBay to use its position as a minority shareholder and its position on the board to pressure Craigslist into a full-scale acquisition deal by eBay.

Barring that, Craigslist argues eBay used its position to gather competitive information that led to the launch of eBay's rival classifieds business. It charges eBay code-named this its “Craigslist killer” in internal strategy discussions.

“In the months leading up to the launch of its competing Kijiji site … eBay used its shareholder status to plant on Craigslist's board of directors the individual responsible for launching and/or operating Kijiji,” the latest suit alleges.

It also alleges eBay used its position on the Craigslist board to pressure the company to provide it with key details of its expansion plans and operating performance.

“Using the pretext that the information was necessary for Craigslist board-related matters, eBay made constant demands for confidential information in excess of what was required for that purpose,” Craigslist alleges.

Craigslist has until Monday to respond to eBay's original lawsuit that seeks to protect its minority shareholder rights.

Rubey quoted from Craigslist's own complaint to suggest that both parties recognized that the right of the other to compete with one another. However, the Craigslist lawsuit says eBay would relinquish some rights if it chose to compete with Craigslist on online job listings, its sole source of revenue.

The Craigslist complaint can be found at http://blog.craigslist.org/2008/05/unlawful-and-unfair/.

(Editing by Tim Dobbyn and Andre Grenon)

Transcript of interview that President Bush gave Tuesday to Politico magazine and the Internet portal Yahoo in the Oval Office, as transcribed by the White House. Some questions were sent to the president from online readers.

Q: Good morning, Mr. President.

President Bush: Michael, welcome.

Q: Thank you for having us into this amazing place.

Bush: Glad you’re here.

Q: Congratulations, father of the bride.

Bush: I am the father of the bride, and was real pleased with the way the wedding went. It was an amazing experience, Mike, to see a little girl I dearly love be so happy. It was I think the wedding went exactly the way she hoped it would go.

Q: When you took her arm, Mr. President, what were you thinking?

Bush: I was thinking this is one beautiful bride, and Henry is a lucky man. It was you know, you can imagine, the setting was beautiful by our lake.

Q: A sunset.

Bush: The sun set, came down around about the time of the vows.

Q: Ninety-two degrees?

Bush: It cooled off a little bit. But it didn’t matter how hot it was.

Q: Mr. President, what was your toast?

Bush: The toast was to the families and friends that were there; the toast was to the Hagers in raising a good man in Henry; the toast was to my beautiful girl.

Q: Mr. President, we understand you had a little homework assignment, you watched Steve Martin’s “Father of the Bride.”

Bush: I did. (Laughter.)

Q: Did you pick up any tips there?

Bush: Yes, which is to write the check and be happy.

Q: Mr. President, the one thing we don’t see in here is a computer, and we know that you went cold turkey off email for security reasons. What are you looking forward to when you finally get your computer back?

Bush: Emailing to my buddies. I can remember as governor I stayed in touch with all kinds of people around the country, firing off emails at all times of the day to stay in touch with my pals. One of the things that I will have ended my public service time with is a group of friends, a lot of friends. And I want to stay in touch with them and there’s no better way to communicate with them than through email.

Q: Mr. President, we know you’re a man of intense faith. And I wonder, what was a moment in this room over the past eight years when you needed that most?

Bush: Michael, I’d say daily. I mean, part of the faith walk is to understand your weaknesses and is to constantly try to embetter yourself and get closer to the Lord. And that’s a daily occurrence. Obviously there’s been some tough moments in here. When you know that somebody lost their loved one as a result of a decision that I made, that’s a tough moment. If you’re a faithful person you try to empathize with the suffering that that person is going through. On the other hand, there is a knowledge that the good Lord can comfort during these moments of grief. And that’s what I ask for in my prayer.

The Oval Office is a place where there’s been, obviously, a lot of amazing experiences over a seven-and-a-half year period. My presidency is one where I’ve had to make some very tough decisions. I guess some presidencies are kind of were real smooth, there were no real big issues. Well, that’s not the way mine is.

Q: Consequntial. That’s what you want

Bush: Consequential if that’s how it turns out to be, that’s a good word, because I didn’t want to come to Washington, D.C. and just hold the office for the sake of holding it. I wanted to come to Washington, D.C. and help be a transformative President. And I think history, when they look back, will say this is a fellow who knew how to make decisions, and made some tough ones, stood by them, wasn’t driven by the latest opinion poll, but was driven by some core principles from which he would not deviate.

Q: This is the last question, Mr. President. You talked about some tough decisions — what was the happiest moment you’ve had in this amazing room?

Bush: You know, Michael, that’s a good question. One of the most interesting moments, of course, was right after the inauguration. And my dad was upstairs at the White House preparing for the inaugural balls. And I said to him, let’s go on over to the Oval Office — I hadn’t been in the Oval Office as President yet. And so I came over here before he got here, and he walked through that door right there and it was a happy moment to see my dad come in the Oval Office. I love him dearly.

Here I put — this is where I put the President, the most influential President. And I tell people that a natural choice for the most influential President would be my dad, because I wouldn’t be standing here without his unconditional love, so I say it — his portrait hangs in my heart, and Abraham Lincoln hangs on the wall as the most influential, substantial, transformative President. He was a great president.

Q: Do you think the first President Bush is proud of you?

Bush: Oh, yes, no question he is. And I’m proud of him. Look, I tell people — and this is an interesting thing — it’s harder to be the son of a President than to be the President. In other words, when people get after Dad it would cause all kinds of emotions, none of them very good, in my being. I didn’t like the unfair criticism. I thought at times he wasn’t treated well. And when that happened, I didn’t react positively because I loved him a lot. And now the roles are reversed.

Q: You know the feeling.

Bush: Yes, he’s sitting there complaining about this editorial or that — I said, man, I don’t even pay attention to it, because I don’t. But, yes, he’s very proud of me, you can imagine — and proud of Jeb and he’s proud of all his children for different reasons.

Q: Mr. President, thank you for sharing the people’s house with us.

(Interview moves to Roosevelt Room)

Bush: Mike, glad you’re here.

Q: Mr. President, thank you very much for having us into the Roosevelt Room for the first online interview. In the spirit of the Internet, I wonder if we could ask a question from one of our users, Steve Bailey, of New York, who says: With oil at $126 a barrel, pushing up the price of everything — even food — what can your administration do to help people right now?

Bush: I appreciate Steven’s concerns. With the price of gasoline going up, it’s like a tax. I wish I could give Steven a quick answer. In other words, it took us a while to get to where we are — very dependent on oil, and in a world in which demand is greater than oil. So my answer to Steven is that the best thing we can do is to increase supply, and to drill for oil and gas in environmentally friendly ways at home, and build more refineries. Steven probably doesn’t know this, but we haven’t built a new refinery since 1976, and if we’re truly interested in relieving the pressure on our consumers, then we ought to have a very active domestic policy now.

Q: Mr. President, as you know, as a possible solution, Senator McCain, Senator Clinton have talked about suspending the federal gasoline tax this summer. You never said an absolute “no” to that. Is it something you would consider or do you think it’s a bad idea to consider?

Bush: I’ll consider it. And there’s all kinds of ideas — they’re trying to pass a deal to stop filling the Strategic Petroleum Reserve; we’ll look at that.

The truth of the matter is that in order for there to be a substantial change either consumers have to change their habits — which we’re encouraging through alternative tax of automobiles — or there has to be an increase of supply. And both of them have to go hand in hand in order to achieve less dependence on this very unsettled oil market.

Q: Mr. President, I wonder if in your eight years in office what the changes have been, in your view, of climate change?

Bush: I think it’s been more clearly defined as a problem. But what hasn’t changed is the realistic notion that new technologies are going to be the solution, and the fundamental question is how do you grow the economy at the same time, and at the same time encourage new technologies. And my administration has done more for the new technologies necessary to change our lifestyles without sacrificing wealth than any other administration.

Q: Mr. President, for the record, is global warming real?

Bush: Yes, it is real, sure is. But the solutions — having said that, the solutions have got to be measured and realistic — you can’t have a solution to global warming unless China and India are part of any international pact. It’s one of the reasons I didn’t accept what’s called the Kyoto Protocol, and therefore was labeled as anti-environment. I’m a realistic guy. If the major emitters of greenhouse gases are not a part of a solution, then those who are part of a solution are acting in a way that’s simply not going to — it will affect their own economies, but it won’t affect the overall global warming issue.

So, yes, I put forth a very realistic, straightforward program that makes sense.

Q: Mr. President, acknowledging those constraints, you’re an oil man — some people say that climate change, global warming could have been your Nixon-to-China. Do you wish you’d done more?

Bush: I did what I think is necessary to actually work, Michael. I mean, I could have signed a — I could have supported a lousy treaty and everybody would have went, “Oh, man, what a wonderful sounding fellow he is.” But it just wouldn’t have worked. I don’t think you want your president trying to be the cool guy and not end up with policies that actually make a difference.

So the policies I’ve outlined are policies that will actually make a difference: nuclear power for generating electricity; battery driven cars; ethanol. There’s a variety of initiatives — clean coal technology — all of which will help us sustain our economic vitality and at the same time be better stewards of the environment.

Q: Mr. President, turning to the biggest issue of all, Iraq. I wonder if you — various people and various candidates talk about pulling out next year. If we were to pull out of Iraq next year, what’s the worst that could happen, what’s the doomsday scenario?

Bush: Doomsday scenario of course is that extremists throughout the Middle East would be emboldened, which would eventually lead to another attack on the United States.

The biggest issue we face is — it’s bigger than Iraq — it’s this ideological struggle against cold-blooded killers who will kill people to achieve their political objectives. Iraq just happens to be a part of this global war. Iraq is the place where al-Qaida and other extremists have made their stand — and they will be defeated. They’ll be defeated through military action, but they’ll also be defeated as this young democracy takes hold. They can’t stand to live in a free society, that’s why they try to fight free societies.

The United States pulling out of Iraq or pulling out of the Middle East or not maintaining a forward presence would send all kinds of signals throughout the Middle East. And it would shake everybody’s nerves, and it would embolden the very same people that we’re trying to defeat.

Q: Mr. President, I’m going to surprise you — there’s a question from a user, Bruce Becker, and he asks: Do you feel that you were misled on Iraq?

Bush: I feel like — I felt like there were weapons of mass destruction. You know, “mislead” is a strong word, it almost connotes some kind of intentional — I don’t think so, I think there was a — not only our intelligence community, but intelligence communities all across the world shared the same assessment. And so I was disappointed to see how flawed our intelligence was.

Q: And so you feel that you didn’t have all the information you should have or the right spin on that information?

Bush: No, no, I was told by people that they had weapons of mass destruction — as were members of Congress, who voted for the resolution to get rid of Saddam Hussein. And of course, the political heat gets on and they start to run and try to hide from their votes. But intelligence communities all across the world felt the same thing. This was kind of a common assessment.

So “mislead” means, do I think somebody lied to me? No, I don’t. I think it was just, you know, they analyzed the situation and came up with the wrong conclusion.

Q: Mr. President, you haven’t been golfing in recent years. Is that related to Iraq?

Bush: Yes, it really is. I don’t want some mom whose son may have recently died to see the commander-in-chief playing golf. I feel I owe it to the families to be as — to be in solidarity as best as I can with them. And I think playing golf during a war just sends the wrong signal.

Q: Mr. President, was there a particular moment or incident that brought you to that decision, or how did you come to that?

Bush: No, I remember when de Mello, who was at the U.N., got killed in Baghdad as a result of these murderers taking this good man’s life. And I was playing golf — I think I was in central Texas — and they pulled me off the golf course and I said, it’s just not worth it anymore to do.

Q: Mr. President, you’re headed later today to the Middle East. The prospects for brokering peace between Israelis and Palestinians look bleak. I wonder what the best is you can hope for, and why should Americans back home care about your efforts over there?

Bush: It’s a great question. Americans at home ought to care for the advance of free societies throughout the Middle East, after all, this is the center of anti-Americanism and hatred. In other words, the people that attacked us on 9/11 came from this part of the world. By far the vast majority of people aren’t haters, and by far the vast majority of people don’t hate America. But there are enough to be able to recruit if forms of government repress people. In other words, if there’s hopelessness — there’s nothing more hopeless, by the way, than becoming a suicide bomber. And yet, these ideologues require hopeless situations.

So it’s the advance of freedom throughout the Middle East which ought to be interesting — which ought to say to the American people it’s the best way to keep us secure.

No, we have seen — we’ve witnessed this type of history before, Michael. In Europe it was the advance of freedom that now makes Europe whole, free and at peace. But that wasn’t the case throughout the 1900s. In Japan, democracy came along and that enemy of ours is now an ally. In other words, freedom is transformative. And the big challenge in the 21st century is to advance freedom in the Middle East, for our security.

And you said about the Israeli-Palestinian issue? It’s been tough for a long time. But I do believe we’ve got — we’re on the right track to defining a Palestinian state, what it looks like, so that the moderate people, the reasonable people in the region have something to be for.

Q: Mr. President, I know you’re going to hate this, but I’m hoping that we may twist your arm and talk about baseball for just a moment. (Laughter.) Mr. President, you’re a Major League Baseball team owner again. Everyone is a free agent. You have a Yankees-like wallet. Who is your first position player? Who’s your pitcher?

Bush: That’s a great question. I like Ottley from the Philadelphia Phillies. He’s a middle infielder, which is always — you know, they say you have strength up the middle — there’s nothing better than having a good person up the middle that can hit. And Roy Halladay from the Toronto Blue Jays is a great pitcher. He’s a steady guy, he burns up innings. And I’m sure I’m leaving some other good ones out, but those _

Q: We thought you were going to go A-Rod, Josh Beckett.

Bush: Josh Beckett is good, yes, he’s real good, too. I mean, look, that’s a tough question to answer on the fly like this, Michael.

Q: Now, Mr. President, I wonder if you think that Major League Baseball is doing enough to combat steroids use, and specifically, would you favor a blood test to check for human growth hormone. As you know the players union says it’s an unwarranted _

Bush: Yes, look, I think what they need to do is to come to an agreement and to assure fans like me that the sport is clean. I mean, I _

Q: But what would that take?

Bush: Well, I haven’t studied all the particulars and all the testing. But I do know they need to get this era behind them quickly. Baseball is a fabulous sport. I used to say it’s a sport played by normal-sized people. It turns out some of these normal-sized people are obviously very strong and very quick, but nevertheless, normal-size — you don’t have to be a huge guy to play baseball. And it’s a great family sport, and it needs to be cleaned up.

Q: And there haven’t been enough normal-sized people.

Bush: Well, there’s — yes, there are a lot of normal-sized people. I mean, there’s a lot of little dudes who can play the game and play it well.

Q: Now, Mr. President, you and the First Lady appeared on American Idol’s charity show, “Idol Gives Back.” And I wonder who do you think is going to win? Syesha, David Cook, or David Archuleta?

Bush: Michael, I can’t tell you. I’ll be frank with you, I’m usually asleep by that time of night. We did appear on it because we wanted to thank the “Idol” show for supporting causes such as Malaria No More, which is a real passion of mine and Laura’s, which is to help eradicate malaria, or at least reduce the infection rate in half in 15 major countries — or affected countries in Africa. And we’re making some good progress.

Q: All right. Mr. President, who does the better impression, Will Ferrell of you, or Dana Carvey of your father?

Bush: Dana Carvey.

Q: And speaking of impressions, our friend, Robert Draper, author of “Dead Certain,” said you do a great impression of Dr. Evil from “Austin Powers”. (Laughter.)

Bush: That’s awfully — you mean this — yes. That was a really good movie, too, the first one.

Q: Mr. President, I know you’re not going to believe this transition, but the Congress and Democrats now have been in charge for the Capitol for 18 months. I wonder if you care to give them a grade.

Bush: Well, one thing is for certain, Michael, that I’ve laid out a very aggressive agenda: a trade agreement with Colombia to help our economy continue to grow; making sure we got the tools necessary to protect our country from attack; supporting our troops in harm’s way. And there hasn’t been much action. And we got a housing crisis, and I proposed a reasonable set of reforms. And so I would call them stalled. I would call them, so far, good at verbiage and not so good at results.

Q: Now, Mr. President, President Carter recently told Charlie Rose the next President could change America’s image in 10 minutes. Here’s what he said: “I think the next President could change the image of this country around the world in 10 minutes by making an inaugural speech that would start off and say, ‘As long as I’m President we will never torture another prisoner, as long as I’m President we will never attack or invade another country unless our own security is directly threatened.’”

Bush: Yes, well, what he ought to be saying is, is that America doesn’t torture. If the implication there is that we do now, then he’s wrong. And you bet we’re going to protect ourselves by the use of military force. What he really is implying is — or some imply — you can be popular; if you want to be popular in the Middle East just go blame Israel for every problem. That will make you popular. Or if you want to be popular in Europe, say you’re going to join the International Criminal Court.

Popularity is fleeting, Michael. Principles are forever.

Q: Mr. President, I’m getting the hook here. If I can ask you one quick political question. You have a clear eye. I wonder if at this point you feel sorry for Senator Clinton.

Bush: I feel like this primary has been a long, hard campaign. I remember what it was like in 2000, and I was exhausted. And my primary ended pretty quickly, compared to this one. And so I — both those candidates have got to be just worn out. They haven’t had time to get their feet on the ground or rest. So I know how they feel — kind of.

Q: Mr. President, looking ahead, are you worried that through no fault of the candidates, that America may be in for a kind of ugly conversation about race this fall?

Bush: No, I’m not. I think most Americans are open-minded people, and they’re going to pick the President who can keep America safe and keep taxes low. And so I think — my own judgment is, is that race will only enter in if it’s provoked by the press.

Q: Mr. President, as a final question — and thank you so much for taking this time with us — the scale of the disasters in China and Burma is amazing. I wonder how the United States can go about getting aid into those closed regimes.

Bush: I talked to Hu Jintao and if he — I told him if he needs aid he’s got it. Thus — we’d get him some money, but thus far, he feels like he’s in pretty good shape. And the relief — and they’ve got a pretty good infrastructure in dealing with problems.

The place that really needs help is Burma. And Admiral Keating is there now. I told President Hu Jintao today, of China, if you get — if you’re in touch with the Burmese, tell them that we’re genuine in our efforts to want to help. We’ve got some ships off the coast of Burma now, and so we’ll see if Keating and Henrietta Fore, who runs AID, will get a better response from the government than we have gotten so far. We just want to make sure that the aid we give is given to the people — that it’s not squandered, not hoarded, but it actually gets to the suffering people.

We’ve been disappointed by the response. It’s taken these people too long to move. It’s almost as if they’re in a state of denial. But we’ll see. We’re beginning to make some progress there in terms of getting our aid in.

Q: Mr. President, thank you very much for your time. Good luck on your trip.

Bush: Thank you, sir. Thank you.

Q: Thank you, sir.

Bush: It’s been a pleasure.

SAN JOSE, Calif. - Online classifieds giant Craigslist countersued its minority owner, eBay Inc., on Tuesday, alleging the online auctioneer is violating federal and state antitrust laws.

EBay attempted to quash competition with a series of actions relating to its own classifieds site Kijiji, which launched last year in the U.S., according to Craigslist’s complaint, filed in state Superior Court in San Francisco.

EBay internally calls Kijiji the “Craigslist killer,” the complaint claims.

San Jose, Calif.-based eBay said the allegations are unfounded and unsubstantiated. It claims Craigslist is trying to divert attention from eBay’s own lawsuit, filed in April, which alleges that Craigslist founder Craig Newmark and Chief Executive Jim Buckmaster engaged in a series of “clandestine transactions” intended to dilute eBay’s stake unfairly.

The lawsuits pit two of the world’s top Web sites against each other. EBay ranks 17th in popularity, according to traffic ranking site Alexa, while Craigslist ranks 45th.

The latest complaint outlines a fractious four years since eBay purchased a roughly 28 percent stake in Craigslist from an unnamed former shareholder who solicited outside bids. The terms of the deal were never disclosed, but Craigslist’s complaint said it believed that shareholder’s stake had not been “properly issued.”

At the time, Craigslist and eBay had agreed that if either party engaged in competitive activity, they would lose certain rights, such as the right to appoint a board member.

But eBay named a representative to Craigslist’s board who was a Kijiji insider, actions Craigslist claims violate the federal Clayton Antitrust Act and California law prohibiting participation on the board of a competitor.

EBay also asked for confidential Craigslist information — such as launch dates for new sites and site traffic statistics — as it secretly planned to launch Kijiji, which violates federal and California laws against unfair competitive activity, the complaint says.

EBay infringed Craigslist’s trademark by placing misleading ads for Kijiji on Google using Craigslist’s name, the complaint said.

EBay also engaged in business interference, false advertising, phishing attacks, trademark infringement and trademark dilution, and broke its duty to shareholders, the complaint alleges.

Craigslist, based in San Francisco, wants eBay to divest from Craigslist, stop using its name in advertisements for eBay and pay damages.

Craigslist says it’s constantly been pressured to sell a higher stake to eBay, despite initial assurances by eBay’s former chief executive Meg Whitman that the eBay was content with its minority stake.

Following the purchase of a Netherlands classified site, eBay executive Garrett Price said at a Craigslist board meeting, according to the complaint: “We just purchased the largest classifieds site in the Netherlands for $290 million, what do you think we would pay for the largest classifieds site in the United States?”

Two king-pins in the technology industry announced Tuesday a merger agreement valued at $13.9 billion, with Hewlett-Packard Co. (NYSE: HPQ) set to acquire computer consulting firm Electronic Data Systems Corp. (NYSE: EDS) in an effort to compete more aggressively with rival IBM in the technology services business.

The deal, which is set to close later this year, will more than double HP's revenue derived from I.T. services, which the company says amounted to $16.6 billion in fiscal '07.

The acquistion will produce a new services group under the EDS moniker with an HP tagline. Known as “EDS — An HP Company,” the services group will be based in EDS's current headquarters in Plano, Texas, with Ronald A. Rittenmeyer, the current CEO of EDS, continuing at the helm.

Enough To Beat IBM?

Combining forces with EDS makes HP “a lot more competitive by having a whole lot more services personnel,” according to Roger Kay, principal analyst with Endpoint Technologies. “IBM is the gold standard. This gives them a better shot at it.”

HP's roots in services go back to its 2002 acquisition of Compaq, which itself bought Digital Equipment Corporation (DEC) back in 1998. “They have a pretty good services group, but they wanted to compete with IBM,” Kay said. “This puts them closer to that goal.”

One question is how well the companies will integrate, but Kay doesn't expect many problems on that front. HP CEO Mark Hurd is “known as good at integrating,” Kay said.

'Significant Premium' for Shareholders

The new EDS will provide a broad array of enterprise-oriented consulting services, such as IT outsourcing of services for the data center, networking services, managed security services, etc. The companies will offer application development, modernization and management, integration, as well as related technology services.

In addition, the 'new' EDS will handle business process outsourcing, including health claims, financial processing, customer-relationship management (CRM), and human-resources outsourcing.

Taking the Hill

Together HP and EDS are targeting a wide range of industries — everything from government to health care to energy. Other sectors include manufacturing, financial services, transportation, communications, consumer industries, and retail.

EDS was founded in 1962 by Ross Perot, who started the company by buying unused time on a life-insurance company's IBM 7070 mainframe. The following year, EDS invented the facilities management agreement by signing a five-year, set-price contract with Frito Lay. Perot left the company in 1986 when it was acquired by General Motors, and later ran for the U.S. presidency as an independent candidate in 1992. In 1996, EDS was spun out from GM to become an independent, publicly traded company.

The original incarnation of EDS under Perot was a “hard-charging, take-that-hill kind of outfit,” recalled Kay, who once interviewed for a job with the company. “I was impressed with their efficiency if not their humanity.”

Under the terms of the merger agreement, HP will pay $25 for each share of EDS common stock held at the closing of the merger.

SAN FRANCISCO (Reuters) - Top video game publisher Electronic Arts Inc (ERTS.O) issued an annual profit outlook on Tuesday that fell short of Wall Street forecasts as a drive to improve quality jacked up costs. Its shares fell 3.7 percent.

The quality drive has been a centerpiece of Chief Executive John Riccitiello's strategy to bring growth back to EA after years of stagnation and increasingly tepid responses by gamers to its products.

Riccitiello, who has also sought to drive growth through acquisitions, reiterated his view that EA's $2 billion bid for Take-Two Interactive Software Inc (TTWO.O) fully accounted for the strong debut of that company's “Grand Theft Auto 4.”

Although EA posted higher-than-expected profit and revenue for its fourth fiscal quarter ended in March, analysts voiced concern with their first glimpse of management's forecasts for its 2009 fiscal year.

“EA for a few years was choosing the timing of the game over the quality of the game. Now EA's shifting to a model where quality is more important,” said Evan Wilson, an analyst with Pacific Crest Securities.

“However, maximizing quality is not always maximizing profit,” Wilson said. “This is a do-or-die year.”

EA said it expected a profit excluding items of $1.30 to $1.70 per share, below the average $1.74 expected by analysts.

Of particular concern was EA's expected operating margin of 12 percent to 14 percent for the year, up from 8 percent last year but below the 15 percent many analysts had anticipated.

That reflected the costs of delays to games, including the highly anticipated “Spore,” as well as “Warhammer Online” that EA hopes will take on the popular “World of Warcraft.”

“This is a mixed bag here, but it's pretty consistent with what we've been seeing from EA this year,” said Todd Mitchell, an analyst with Kaufman Bros. “They have a pretty decent top-line story but they have no bottom-line story.”

EA's fourth-quarter profit excluding special items was 9 cents a share on revenue that rose 50 percent to $919 million, driven by sales of “Rock Band” and “Burnout Paradise.”

The company had been expected to show a profit of 1 cent per share on revenue of $840 million, according to the average expectations of Wall Street analysts on Reuters Estimates.

EA said fiscal 2009 revenue would grow by about $1 billion, or 25 percent, as it rolls out “Spore” and “The Sims 3.”

EA said it finished the quarter with about 21 percent of North America's video game market, up 5 percentage points from a year ago, and it expected to take more share as it outpaces the broader industry's growth of 15 percent to 20 percent.

Apart from Take-Two, EA's main competitors are “Guitar Hero” publisher Activision Inc (ATVI.O) and France's Ubisoft (UBIP.PA).

Take-Two has rebuffed EA's $25.74-a-share offer as too low.

EA said revenue growth would come mostly in the second half of the fiscal year, helped by “Spore” and “The Sims 3.” It also touted its upcoming all-new franchises such as “Dead Space.”

Analysts said the company needs a couple big breakout hits that can attain the status of its “Madden” or “Need for Speed” games, which sell several-million units a year.

“I'm increasingly convinced that earnings leverage comes from unit volumes in this business more and more so,” Kaufman Bros' Mitchell said. “They need to bring three or four more titles up to those big volumes.”

Including special items such as stock-based compensation and restructuring costs, EA said its net loss for its fourth quarter was $94 million, or 30 cents per share, compared with a loss of $25 million, or 8 cents per share, a year earlier.

(Editing by Braden Reddall)

By Jonathan Amos
Science reporter, BBC News

A plan for a manned spacecraft has been announced by the European firm EADS.

Its Astrium division has designed a variant of its space station freighter that could also transport astronauts.

Limited details were released in Bremen, Germany, on Tuesday; further information and a mock-up are expected at the Berlin Air Show this month.

Europe does not currently possess its own human space transportation system and is reliant on the Americans and the Russians to get its people into orbit.

European Space Agency (Esa) boss Jean-Jacques Dordain has spoken frequently of his desire to see an independent system; and the US space agency (Nasa) chief, Mike Griffin, has also urged Europe to build its own crew carrier.

Now, EADS Astrium and the German Space Agency (DLR) have put ideas forward on how this could be achieved by as early as 2017.

They propose to adapt the technology contained in Europe’s new space station freighter, known as the Automated Transfer Vehicle, to make a crew ship capable of carrying three people.

The ATV, which ferried just under five tonnes of supplies to the orbiting platform in April, is packed with sophisticated navigation, rendezvous and docking technologies.

It also has a pressurised section that is “human rated” in the sense that, once docked to the 340km-high station, astronauts can move around inside it safely in just T-shirts.

But the ATV was not built with the intention of transporting humans across space, and a fit-for-purpose capsule would have to be developed to take the place of the current cargo section.

In addition, the freighter is a use-once-and-throw-away vehicle - it has no capacity to re-enter the Earth’s atmosphere intact. Heat-shield technology would therefore also need to be developed for the capsule, to help it survive the immense temperatures experienced when falling to Earth.

Astrium senior executive Evert Dudok and DLR boss Johann-Dietrich Worner told German journalists that the concept could be realised without spending billions of euros.

They envisage a version ready for unmanned testing by 2013, with the first manned flight four or five years later.

The current ATV is launched atop an Ariane 5, the rocket which at one stage was going to loft Europe’s mini-shuttle known as Hermes until the spaceship project was cancelled in the 1990s.

The concept announced on Tuesday has not yet been put formally to European partners who would need to support the venture if it were to proceed under the aegis of Esa.

The next biennial meeting of European space ministers, when such major decisions are taken, will take place in November in The Hague.

Jonathan.Amos-INTERNET@bbc.co.uk

NEW YORK - The popular online hangout MySpace has won a $234 million judgment over junk messages sent to its members in what is believed to be the largest anti-spam award ever, The Associated Press has learned.

A federal judge ruled against two of the Internet’s most prominent spam defendants, Sanford Wallace and Walter Rines, after the two failed to show up at a court hearing Monday.

Wallace has earned the nicknames “Spamford” and “spam king” for his past role as head of a company that sent as many as 30 million junk e-mails a day in the 1990s.

It’s a big victory for MySpace, although service providers often have a tough time collecting such awards. But even if the News Corp.-owned site never collects, the company hopes the judgment will deter other spammers.

“Anybody who’s been thinking about engaging in spam are going to say, `Wow, I better not go there,’” MySpace’s chief security officer, Hemanshu Nigam, said. “Spammers don’t want to be prosecuted. They are there to make money. It’s our job to send a message to stop them.”

There was no telephone listing for Wallace in the Las Vegas area. Service was disconnected for two listed numbers for Rines in Stratham, N.H.; a third number was unlisted.

PLANO, Texas - Eight months into his tenure as CEO of Electronic Data Systems Corp., Ronald Rittenmeyer is overseeing the sale of the company, something he says he never planned.

“It just came together,” Rittenmeyer said Tuesday during an interview.

The sale to Hewlett-Packard Co. is a milestone for a company that was started on a shoestring in 1962 by H. Ross Perot, who quit a sales job at IBM to work for himself. The company has remained independent for all but a few years when it was owned by General Motors Corp.

EDS will stay in Plano and keep “EDS” in its name, officials said. It even plans to continue sponsoring the annual EDS Byron Nelson pro golf tournament.

The company, which runs call centers and computer systems for big companies and government agencies, has a larger technology-services business than HP. Mark Hurd, HP’s CEO, said EDS is “more mature” in that regard and has capabilities that HP’s services unit lacks.

The impact of the deal on EDS’ 137,000 employees is uncertain. Rod Bourgeois, an analyst with Sanford C. Bernstein & Co., said he expects some EDS jobs to disappear as the companies combine work forces.

In a conference call with analysts Tuesday, Hurd, in California, and Rittenmeyer, who was in New York, repeatedly used the word “synergies” to describe the benefits the combined company would see as it cuts overlapping costs.

“In terms of job cuts, we are continuing to streamline our work force at EDS,” Rittenmeyer said during the conference call. “We’ve been doing that for some time … there are always job adjustments.”

In an interview with The Associated Press, Rittenmeyer said, “Employees who do a good job, who are good performers, don’t have to worry about anything.”

The CEO said the company is constantly evaluating employees and shedding underperformers.

“All this does is provide a catalyst for us to look perhaps a little deeper, a little wider,” he said in the interview.

EDS practically invented the industry that came to be known as information-technology outsourcing. Perot, who went on to run for U.S. president in 1992 and 1996, hired many military veterans who generally came to work in white shirts, ties and short hair cuts.

Perot sold EDS to GM in 1984 for $2.5 billion. GM later bought out Perot’s remaining shares for another $700 million, but it spun off EDS in 1996 for $500 million.

By then, it had been surpassed by IBM in technology-services revenue.

Rittenmeyer’s predecessors Michael H. Jordan and Dick Brown each cut thousands of jobs and moved thousands more to low-cost countries, especially India. EDS now has 45,000 workers in what it calls “best-shore” locations, and plans to increase that number.

EDS has been the subject of takeover speculation for years. Deutsche Telekom AG was reported to be looking at it last year. Earlier rumors centered on Dell Inc. Neither company ever confirmed the reports.

Shareholders will vote on the HP deal. Rittenmeyer declined to say whether there were other offers.

“There are no obvious competing bids that may emerge,” said David Grossman, an analyst with Thomas Weisel Partners, citing the $25 per share that HP will pay, which is about 30 percent higher than EDS shares traded Monday before news of the deal leaked.

The shares topped $70 in 2000 and 2001, but they haven’t been at $25 since last July. Analysts said the EDS board might have decided a sale was the quickest way to get the price up.

“The board had a whole series of deliberations and conversations,” beyond the challenge EDS faced lifting the stock price on its own, Rittenmeyer said in the interview. “I’m comfortable that our board made a decision with shareholders in mind first.”

After Brown arrived in 1999, the company won many huge contracts and earned more than $1 billion a year from 2000 through 2002. But it lost $1.7 billion in 2003 due partly to a money-draining contract with the Navy, the stock plunged and the company faced shareholder lawsuits and a Securities and Exchange Commission investigation into its accounting practices.

Jordan, a retired Westinghouse CEO, was brought in to fix the problem contracts and cut costs. After two years of small profits, earnings grew in 2006 and 2007, and new work was coming in. Jordan stepped down in September, and Rittenmeyer was promoted from chief operating officer.

Civic leaders in Plano, where EDS moved from neighboring Dallas in 1993, are worried about the uncertainty surrounding a major taxpayer and supporter of its symphony and other nonprofits.

“The concern we’d have locally is the potential impact on the housing market with a loss of jobs,” said Jamie Schell, the incoming chairman of the local chamber of commerce. “But maybe the result will be a more stable company.”

For now, “it appears to be a great deal for the shareholders,” said another chamber director, Jim Boswell, “and I’m sure many EDS employees living in Plano own EDS stock.”