In a letter to customers this week, Microsoft Chairman Bill Gates made a promise to design software that is interoperable with other systems. Although Redmond is traditionally known for its closed formats and code, Gates said communication between applications is critical for business.

He also took a swipe at open source, saying such development hinders interoperability.

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The recording industry's latest assault on file sharing has netted an unusual suspect: a deceased great-grandmother from West Virginia. In a lawsuit filed in January, the RIAA accused 83-year old Gertrude Walton of sharing over 700 pop, rock and rap songs under the alias "smittenedkitten."

What the RIAA didn't know is that Walton had passed away in December following a long illness. Her daughter, Robin Chianumba, has lived with Walton for the past 17 years and told the Charleston Gazette that her mother refused to even have a computer in the house.

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As part of its monthly "Patch Tuesday" next week, Microsoft is preparing to issue 13 security fixes, which range in severity from moderate to critical. Nine of the updates pertain to flaws specifically to Windows, while the others cover SharePoint, Microsoft's .NET Framework, Office and Windows Media.

Per its security policy, Microsoft is not releasing any specifics on the vulnerabilities until their release on February 8; however, the company makes some exceptions. Businesses and governments signed up with Redmond programs will receive early access to upcoming security announcements, and Microsoft recently called on external beta testers to help improve the quality of its patching process.

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Google has taken live on its homepage a new service for locating local businesses, which scours millions of Web pages and crosschecks the results with the Yellow Pages data. Google Local was previously part of the company's Google Labs development sandbox, but has now been deemed ready for widespread use.

One example cited by Google is using the service to find an auto parts store within walking distance. Google Local shows results on an area map, and can limit results to a specific distance from a user's starting point. For frequent local searchers, Google remembers the location in which to look.

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Hot off the heels of SBC's proposed acquisition of AT&T, Qwest is reportedly in talks to buy AT&T business rival MCI for $6.3 billion. Talks between the two companies have been going on for months, although the discussions have become more serious this past week, according to The Wall Street Journal.

A deal is far from assured, however, as Verizon has also been eyeing MCI for an acquisition. But MCI -- formerly named WorldCom before it emerged from bankruptcy -- is an attractive purchase for any number of telecommunications companies, with a worldwide network that reaches 140 countries. MCI also handles a large portion of global Internet traffic following its buyout of UUNet.

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In its latest effort to unseat online music leader iTunes, Napster has turned its focus back to subscriptions. The digital music store is launching what it calls "Napster to Go," which allows customers to copy an unlimited number of songs to portable devices for a flat monthly fee of $14.95 USD.

Previously, Napster users could only transfer individually purchased tracks to portable players, which made the subscription offering unappealing to the rapidly growing portable music market. But Napster to Go makes use of Microsoft's "Janus" digital rights management that enables subscription content to move beyond the PC.

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In an effort to fend off the growing threat of governments considering open source software due to continued security flaws in Windows, Microsoft has launched a new initiative to keep governmental organizations in the loop. Through its Security Cooperation Program (SCP), Microsoft will provide information on vulnerabilities not yet available to the public.

The SCP is intended to open lines of communication between Redmond and government officials to "address threats to national security, economic strength and public safety." Governments will receive warning of critical security incidents, advanced notice of Microsoft software updates, as well as details of Microsoft's approach to fixing problems.

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After acquiring Linux companies SuSE and Ximian, and reorganizing its business around the open source platform, Novell is developing its first client software for Linux desktops. The Novell Client connects to NetWare and the company's Open Enterprise Server, which is currently in beta testing.

Novell previously made inroads into the development of a Linux based client, but after outsourcing the project, it was never completed nor released. However, with the final release of Open Enterprise Server due this month, customers have requested a way to connect to Novell services from Linux workstations.

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While the new MSN Search was the center of attention Tuesday, Microsoft developers have silently refreshed the MSN Toolbar Suite, which includes the company's Desktop Search Beta. The updated release offers a number of minor fixes and performance improvements, including better indexing of e-mail attachments.

In the initial beta, a number of MSN Desktop Search users received antivirus warnings each time an e-mail attachment was cataloged, due to the software creating a temporary file. Developers note, however, that "no virus would occur as a result of this because the file wasn't opened, but it was annoying to get the pop-ups."

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The beta tag has been removed and Microsoft's revamped MSN Search engine has officially gone live. Two years in the making, the new search has been built from the ground up and touts a simplified interface promising more-relevant results, instant answers to questions, as well as a bevy of search tools.

Redmond developers began working from scratch on the new search engine in March 2003 through a collaboration with Microsoft Research. According to Ken Moss, general manager of MSN Search Development and Testing, it has been a long process to bring Microsoft's new search to fruition.

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Further fueling the flames of speculation that surround Google's future plans, the search giant has recently become an ICANN-accredited domain registrar. Google will be able to directly sell seven top-level domains, but it is currently unclear where the company's specific intentions lie.

Google has yet to make any announcements about becoming domain registrar number 895, but that hasn't stopped the rumor mill. Google offers a special AdSense service for domain sellers to make money from unused Web addresses, and the company could also benefit by offering low-cost domain names to its Blogger user base.

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Jupiter Research senior analyst Joe Wilcox has blasted recent media reports that claim Microsoft has opened up its Office file formats.

The reports state that Microsoft has reached an agreement with the state of Massachusetts to ease the licensing restrictions on its closely held Office XML formats. The compromise comes in response to the state's new "Open Standards" policy, which, much to the chagrin of Microsoft, favors the purchasing of open source and open standards software.

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As expected, board members have signed off on a deal in which SBC Communications will acquire AT&T for approximately $16 billion in stock. The transaction was approved late Sunday night following meetings between directors of both companies.

If given regulatory approval, the merger is expected to close in the first half of 2006. The deal will create the largest telephone company in the United States, vaulting SBC over current market leader Verizon.

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With the much-anticipated G5 PowerBooks yet to be seen, Apple has refreshed its current PowerBook line with speedier processors and faster DVD burning. Apple's portables now top out at 1.67 GHz and feature two new technologies: a scrolling touchpad and motion sensor to protect the PowerBook's hard drive in case of a fall.

Dubbed the "Sudden Motion Sensor," which Apple says is patent-pending, the feature senses changes in position and acceleration. If the PowerBook is dropped, the hard drive heads are instantly locked to protect data from being lost. IBM has included such technology in its ThinkPad notebooks since late 2003.

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Apple has edged out Google to become the most influential brand of 2004, according to a survey of 2,000 advertising executives, brand managers and academics. After selling almost 5 million iPods in the fourth quarter alone, Apple bested Ikea and Starbucks to lead both the global and North American rankings.

Sony, meanwhile, topped brand awareness in Asia, but its global impact continued to dwindle. The company has recently been endeavoring to reposition itself and fix mistakes after losing the portable audio market to Apple. Pixar, which is also helmed by Apple CEO Steve Jobs, rounded out the North American rankings following the incredible success of its latest animated films.

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