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This time last year the music industry was ready to celebrate. Compact disc sales were up for the first time in years, peer-to-peer file-sharing networks were reeling from lawsuits, ringtone sales were proving unexpectedly profitable, and legitimate (paid-for, that is) downloads were rising. But this year, Jim Urie, president of Universal Music Group, told The Wall Street Journal that Christmas 2005 was "a bleak holiday season at the end of a bleak year."

On December 16, Congressmen James Sensenbrenner (R-WI) and John Conyers (D-MI) introduced HR">http://static.publicknowledge.org/pdf/HR-4569-DTCSA-Analog-Hole.pdf">HR 4569, a bill "to require certain analog conversion devices to preserve digital content security measures"—in other words, to mandate that electronic devices and software manufactured after a yet-to-be-specified date respond to a copy protection system or watermark embedded in a video signal and pass that along when converting the signal to analog or vice versa. It also mandates copy protection for analog signals. This is referred to as "plugging the analog hole," since analog signals, even those converted from protected high-definition digital sources, are currently "in the clear" or open for copying. (Standard-definition signals can be protected by systems like Macrovision, but no such protection exists for high-definition signals.)

Monster Cable has begun shipping a new series of "SuperDiscs"—specially remastered, limited edition CD/DVD combinations and special release DVDs—designed to excite audio consumers about high-quality multichannel music possibilities.

ShoreView Industries, Inc. has acquired MartinLogan Ltd., the Lawrence, KS–based manufacturer best known for its line of high-end electrostatic loudspeakers. Transaction terms have not been disclosed.

In this age of the major record labels maximizing music profits at all costs, even if it involves installing spyware on consumers' computers, www.Magnatune.comhttp://www.magnatune.com">www.Magnatune.com; stands apart. The website offers entire albums' worth of music of high quality for download in a choice of formats, from highest-quality MP3 (three times the size of iTunes MP3 files) to CD-quality WAV files. It also gives 50% of the money it collects directly to its artists. Magnatune founder John Buckman, 36, who divides his time between London and Berkeley, chose the site's motto: "Internet Music Without the Guilt: Magnatune, the open music record label."

Nagra USA: The Kudelski Group has announced that Nagra USA, Inc. has appointed John R. Quick of Tempo Sales & Marketing its national sales manager for the United States. Quick was formerly national sales manager for Aerial Acoustics and has experience in high-end A/V sales, system engineering, project management, and control systems integration.

There have been even further developments on the Sony BMG root kit debacle since the last time we updated">http://stereophile.com/news/112105sonys/">updated you. The reports that Sony artists were unhappy that the company had been caught compromising consumers' computers were confirmed by Newsweekhttp://businessweek.com/technology/content/nov2005/tc20051122_343542.ht…;. That magazine reported that Trey Anastasio's Shine, which was released on November 1, the day after the story broke, sold 15,000 copies in its first week, but plummeted to 7,000 by week two, when the story was all over the press. Since then, all 52 albums with the XCD "protection" have been pulled. Patrick Jordon, director of marketing at Red Light Management, which reps Anastasio, said, "It's been damaging, and certainly we're going to discuss that with the label."