DoS Attack Maims Web Servers

Monday's denial-of-service attack crippled nine of 13 global Internet servers. Microsoft points to Asia as the hotspot for software piracy.... Vivendi sells its publishing businesses.... and more.

Nine of the 13 computer servers that manage global Internet traffic were crippled by a powerful electronic attack on Monday, officials said.

But most Internet users didn't notice because the attack only lasted an hour. Its origin is unknown, but the FBI and the White House are investigating.

One official described Monday's attack as the most sophisticated, large-scale assault against these crucial computers in the history of the Internet.

Seven of the 13 servers failed to respond to legitimate network traffic and two others failed intermittently during the attack, officials confirmed.

The FBI's National Infrastructure Protection Center was "aware of the denial-of-service attack and is addressing this matter," spokesman Steven Berry said.

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Piracy hotspots: Microsoft said software piracy is on the rise worldwide and China, Taiwan, Hong Kong, Malaysia and Indonesia are the hotspots in Asia where major counterfeiting thrives.

Katharine Bostick, Microsoft's senior corporate attorney, said penalties imposed by many governments are not tough enough, resulting in the growth of large-scale manufacturing and distribution of counterfeit products.

Bostick said data from watchdog body Business Software Alliance, in which Microsoft (MSFT) is a member, showed that the global piracy rate rose by one percent to 40 percent of software products sold in 2001.

She said software firms stand to lose an annual $11 billion in sales.

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Vivendi publishing: Vivendi plans to sell its European and Latin American publishing businesses to French media and defense conglomerate Lagardere SCA, raising badly needed cash to reduce its debts.

The sale would mark the breakup of Vivendi Universal Publishing's U.S. and European divisions. It would also ease fears among France's political and cultural establishment that its French-language publications would fall into foreign hands.

Vivendi (V) did not disclose the exact price of the sale, which excludes U.S. publisher Houghton Mifflin. But it said the deal values the businesses being sold at an estimated $1.22 billion including debt. Vivendi will in the end likely receive a little more than $980 million in cash for the sale.

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Paid vacation: Charter Communications placed COO David G. Barford on paid leave as a federal grand jury investigates the cable company's accounting practices.

Charter president and CEO Carl Vogel has assumed Barford's responsibilities on an interim basis, the company said. It was not clear what role Barford has in the grand jury's probe and a second company statement on the matter did not elaborate.

In August, Charter spokesman David Andersen said the subpoena sought documents related to how the company accounts for costs for current and former cable subscribers. Charter (CHTR) -- controlled by Microsoft co-founder Paul Allen -- is the nation's fourth-largest cable company, with 6.8 million customers in 40 states.

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Next-generation: Intel, the world's largest chipmaker, plans to have some 90 percent of its microprocessors made with its latest-generation manufacturing technology by the end of 2004, helping it to cut costs and boost production.

Intel (INTC) will start ramping up production of its Pentium and other microprocessors in the second quarter of 2003, using so-called 90-nanometer process technology, said CFO Andy Bryant in a webcast presentation to financial analysts and investors.

CEO Craig Barrett said he has sent a memo to employees outlining Intel's intent to trim its work force further in 2003, largely through attrition, if revenue does not pick up.

AP and Reuters contributed to this report.