Business Briefing
COURTS
FDA told to ease tobacco ad limits
The Food and Drug Administration must let tobacco companies use color and graphics in their advertising, a federal judge in Kentucky has ruled.
U.S. District Judge Joseph McKinley ruled that some marketing restrictions in the law giving the FDA authority over tobacco products violate tobacco firms’ free speech rights.
R.J. Reynolds Tobacco Co., Lorillard and other tobacco companies sued in August to block the restrictions, part of a law passed in June.
AVIATION
Mesa Air files for Chapter 11
Mesa Air Group filed for Chapter 11 bankruptcy protection, citing economic weakness in the airline industry as the primary reason.
The Phoenix company, which has 3,500 employees, said it would continue to operate without interruptions while it restructured, including its regional-service partnerships with US Airways, United Airlines and Delta Air Lines.
The weak economy has left Mesa with more aircraft than it needs, and the bankruptcy filing will enable the carrier to shrink its fleet to match travel demand, Chief Executive Jonathan Ornstein said.
TECHNOLOGY
Apple to acquire Quattro Wireless
Apple Inc. is buying mobile advertising company Quattro Wireless Inc. in a bet on the future of cellphone ads that steps up the competition with its rival Silicon Valley powerhouse Google Inc.
Apple Inc. already has an edge in the high-end cellphone market with its iPhone. In buying Quattro, it is getting into the business of selling the ads that appear on the device and other smart phones.
That market is still relatively small, but some forecasters expect big growth as consumers switch to phones with Web browsing and other advanced features.
Microsoft lowers price of Office
Microsoft Corp., set to release a new version of its Office word-processing, e-mail and spreadsheet software this year, said the package of programs would retail for as little as $99.
The cheapest version, Office Professional Academic, will be sold at campus bookstores for $99, while advanced business versions will cost $349 to $499. Previously, the cheapest retail version of Office had a list price of $149.
MUSIC
Lyrics site settles copyright lawsuit
Warner Music Group Corp. and two other music publishers reached an out-of-court settlement with the operator of a website that they said provided song lyrics without paying royalties to the writers.
Warner’s music publishing unit, Warner/Chappell Music, and publishers Peermusic and Bug Music accepted a settlement in their copyright-infringement lawsuit that forbids the LyricWiki website from reproducing licensed song lyrics, the National Music Publishers Assn. said.
LyricWiki operator Motive Force and its owner will pay the publishers $100,000 as part of the settlement agreement approved by a U.S. judge in Pittsburgh.
CORPORATE FINANCE
Del Monte unit seeks big loans
A unit of Del Monte Foods Co. plans to ask lenders for $1.1 billion in term and revolving loans, according to a regulatory filing. The proposal consists of $600 million of term loans and a $500-million credit line, the San Francisco company said.
The company is also seeking an accordion feature that allows it to borrow an additional $500 million, the filing said.
-- times wire reports
