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An old adage has it that "when Sony sneezes, the whole electronics industry catches cold." If that's so, there could be an epidemic brewing. Sony's profits plunged an astounding 98% in the first quarter of its current fiscal year. Thomson, Samsung, and some large retailers also reported big drops.

As digitally recorded music moves through the recording and production chain, it can be handed off to a variety of studios, musicians, producers, record label executives, and mastering engineers. Sometimes this is done with a recordable CD or DVD, sometimes with a portable hard disk, and sometimes via a high-bandwidth Internet connection. Somewhere along the way, a good percentage of those files (some estimate up to 80%) get copied in an unauthorized manner and quickly end up on">http://www.stereophile.com/news/11585/">on the Internet or on the street as pirated CDs before any official discs are released.

Bertelsmannhttp://www.bertelsmann.de">Bertelsmann; may escape the legal wrath of its music industry peers, thanks to a decision rendered by Germany's top court on July 25. The Federal Constitutional Court in Berlin ruled to block delivery of a $17 billion lawsuit brought by other members of the recording industry over Bertelsmann's financial support of Napster. The block is good for at least six months and could be permanently renewed upon full examination of the lawsuit. Bertelsmann has already filed in US federal court in New York to have the suit dismissed.

Will the threat of lawsuits have any effect on the file-sharing phenomenon? The music industry hopes and prays that it will. As of July 19, the Recording Industry Association of America (RIAA) had sought and obtained "at least 871 federal subpoenas against computer users . . . with 75 new subpoenas being approved each day," according to an Associated Press report.

While the Recording Industry Association of America (RIAA) is working overtime to jail file traders, members of the US Congress are introducing bill">http://www.stereophile.com/news/11691/">bill after bill targeting with criminal prosecution the 60 million Americans engaged in Internet file sharing.

More than 70 producers, engineers, and representatives from consumer and professional equipment manufacturers, record companies, and recording studios recently came together in Europe to discuss new ways to promote and establish Super Audio CD. After a two-day conference in London, the attendees say they have agreed to establish the Super Audio Forum to foster a "supportive environment for the exchange of knowledge and marketing information, as well as providing a platform for industry-wide collaboration."

Brian Damkroger ponders the Class&#233">http://www.stereophile.com//amplificationreviews/878/">Classé Omega monoblock power amplifier. "The Classé Omega is expensive, costing $25,000/pair," notes BD. But he also finds the amp a "drop-dead-gorgeous, massive, industrial-art chunk of aluminum and steel set off with a subtle mix of curves, contours, finishes, and textures." And then there is that Classé sound.