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COPYRIGHTS Software maker pays $30M, ends piracy claims LOS ANGELES (AP)-New York-based MetaMachine Inc., the firm behind popular online file-sharing software eDonkey, has agreed to pay $30 million to avoid potential copyright infringement lawsuits from the recording industry. MetaMachine was one of seven technology firms to receive letters from the recording industry last fall warning them to shut down or prepare to face lawsuits. Since then, the operators of BearShare, i2Hub, WinMX, Grokster and Kazaa have reached similar agreements. Under terms of the latest agreement, MetaMachine and its top executives, Sam Yagan and Jed McCaleb, agreed to cease distributing eDonkey, eDonkey 2000, Overnet and other software versions. The company also agreed to take measures to prevent file-sharing by people using previously downloaded versions of the eDonkey software. PATENTS Billing software provider settles infringement suit NEWPORT BEACH, CALIF. (AP)-Medical billing software provider TriZetto Group Inc. has said that it has agreed to pay $15 million to settle a software patent dispute with McKesson Information Solutions LLC, a unit of drug distributor McKesson Corp. The lawsuit alleged that TriZetto’s Facets, QicLink and ClaimFacts offerings infringed one of McKesson’s patents. As part of the settlement, TriZetto will pay McKesson a one-time royalty fee for a license that covers past and future use of TriZetto products and services by all existing TriZetto customers. TriZetto customers with maintenance agreements will continue to receive software upgrades that include clinical editing capabilities. The company will continue to include its clinical editing functionality in versions of Facets sold to new health plan customers with 100,000 or fewer members and in versions of QicLink sold to any new customers. PRICE-FIXING Lufthansa, American, United settle class action CHICAGO (AP)-United Airlines and American Airlines have disclosed settlements of a class action stemming from an investigation into alleged price collusion among carriers in the air cargo industry. Unlike Lufthansa A.G., which said it would pay $85 million to settle pending lawsuits in the case, both U.S. carriers said they are not required to make any payments. More than a dozen airlines have been under investigation by U.S. and European Union officials into suspected price-fixing in the air cargo industry on surcharges for fuel, security and insurance. Investigators had found that the surcharges had apparently originated among European carriers, with U.S. companies then setting their own charges in line with competitors. REGULATORY ACTION Red Cross fined $4.2M over blood-safety breach WASHINGTON (AP)-The U.S. Food and Drug Administration ordered the American Red Cross to pay $4.2 million for violating blood-safety laws. The record fine is on top of $5.7 million the Red Cross already has been assessed by the FDA since a court settlement reached in 2003. The latest fine is for violations that include failing to reject donors who had traveled to malarial areas and allowing blood and related products to be distributed without proper testing. The FDA stressed it had no evidence of serious health problems resulting from the violations. The fine stems from Red Cross recalls carried out between 2003 and 2005 that could have been prevented, the FDA said. The recalls involved about 12,000 units of blood and blood products. TAXATION GlaxoSmithKline settles IRS dispute for $3.4B WASHINGTON (AP)-The Internal Revenue Service has announced that it has settled a dispute with the pharmaceutical giant GlaxoSmithKline PLC under which Glaxo will pay $3.4 billion. The agreement covers a transfer pricing dispute for the tax years 1989 through 2000. It also settles tax issues for the 2001-2005 period. The dispute involves intercompany transactions between Glaxo and certain of its foreign affiliates relating to various pharmaceutical products. Under the settlement, Glaxo will also abandon its claim seeking a refund of $1.8 billion in overpaid income taxes. The IRS said that transfer pricing was an accounting method requiring that related parties engage in transactions at arm’s length to ensure the proper reporting of taxable income. TRADE SECRETS Toshiba pays $288M to settle flash chip dispute TOKYO (AP)-Japanese electronics company Toshiba Corp. has settled an intellectual property dispute over flash memory chips with U.S. semiconductor maker Micron Technology. Toshiba will purchase some of Micron’s semiconductor technology patents and also license patents previously owned by Lexar Media Inc. for $288 million. Lexar, which was acquired by Micron earlier this year, had demanded that Toshiba halt U.S. imports of flash memory chips because, the American company claimed, they infringed on its intellectual property rights.

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