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The new policy will allow businesses to place trademarked terms directly in the copy of text advertisements that run in the U.S. starting next month, the company announced in a blog post on Thursday. The move, which Google said will improve the quality of its advertisements, comes as advertisers have begun bidding less money for the individual search terms that their ads appear alongside and as Google's revenue growth slows in the dismal economic climate. Until now, Google has forbidden companies from placing trademarked terms in their advertising copy unless they owned the trademark or had explicit permission from the trademark owners. Brand owners have historically had serious concerns about Google's policy with regards to trademarks, said Eric Goldman, Associate Professor of Law at Santa Clara University School of Law.

In a new tack against piracy, Microsoft Corp. will make a series of investments in the Chinese city of Hangzhou, which has promised to clamp down on illegitimate software. Microsoft will build two new technology centers and make other investments in the wealthy city on China's east coast, with the aim to establish a model city where intellectual-property rights have greater protections than elsewhere in China. In October, Microsoft started sending out software updates that turned users' computer wallpapers black if they had a pirated Windows operating system, a move that sparked anger among some Chinese users.

We found it rather ironic that, just as French President Nicolas Sarkozy was so adamant about passing a three strikes law to kick file sharers off the internet, he was being accused of copyright infringement himself, specifically for using music from the US band MGMT at an event and in two online videos without securing a license. Now, you might hope that this would cause Sarkozy to rethink his stance on copyright infringement. Instead, it looks like his political party has simply agreed to pay up and make the issue go away, while still pushing for the three strikes law. It sounds like they paid about 30,000 euros, which is a lot more than the single euro that Sarkozy's party initially offered (yes, seriously). No word on whether or not this counts towards the number of strikes on Sarkozy's internet connection.

April 1, 2009: China's powerful State Administration of Radio, Film and TV has tightened its grip on the biz by ordering all online content providers to apply for a license before broadcasting material on the Internet.

Spammers have already written software able to match humans at some CAPTCHAs. But when CAPTCHAs finally fail, their co-creator Luis von Ahn at Carnegie Mellon University says there will be reason for celebration as well as concern. Software that can solve any text-based CAPTCHA will be as much a milestone for artificial intelligence as it will be a problem for online security.

How many children today are becoming Socrates' nightmare, decoders of information who have neither the time nor the motivation to think beneath or beyond their googled universes? Will they become so accustomed to immediate access to escalating on-screen information that they will fail to probe beyond the information given to the deeper layers of insight, imagination, and knowledge that have led us to this stage of human thought? Or, will the new demands of information technologies to multitask, integrate, and prioritize vast amounts of information help to develop equally, if not more valuable, skills that will increase human intellectual capacities, quality of life, and collective wisdom as a species?

Alleged file-sharer Joel Tenenbaum has a new ally in his battle against the record labels: Radiohead manager Brian Message. Tenenbaum, a grad student currently being sued for allegedly sharing seven tracks on Kazaa, intends to have Message testify that file-sharing can help the music industry, according to his lawyer, Charles Nesson of Harvard Law School.

As the impact of digital advertising on consumer privacy comes under scrutiny, AT&T is taking a stance in support of stricter standards. In its testimony Thursday at a House subcommittee hearing on the issue, the telecommunications heavyweight is expected to advocate more transparency and consumer control in the fast-growing field of targeted ads.

BERLIN (Reuters) - The German cabinet backed a new draft law Wednesday that would make it harder to access child pornography online and easier to prosecute those who use it. The bill will oblige Internet providers to block access to child porn sites by installing a "stop" sign when people try to enter them, the German ministries for justice, families and the economy said in a joint news conference.

TROY, N.Y. -- A former New York state tax department worker was accused of stealing the identities of thousands of taxpayers and running up more than $200,000 in fraudulent charges. Walter Healey gathered credit card, brokerage account and Social Security numbers that he used to open more than 90 credit card accounts and lines of credit between 2006 and 2008, prosecutors said.

Privacy advocates urge people who want to set up a personal health record online to read the fine print. Deven McGraw, director of the health privacy project at the Washington-based Center for Democracy and Technology, said sites like the Mayo Clinic Health Manager aren't currently covered by national laws that specify cases in which health care systems can access and share information without patients' consent.