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DRM-Free eMusic Comes to AT&T Mobile
Venture Business News | 2007/07/31 01:27

In a big win for independent labels, AT&T Mobile Music is offering nearly all of eMusic's 2.7 million digital tracks on compatible AT&T handsets. In addition to eMusic being notable for focusing exclusively on independent labels, eMusic's distinction over the last few years has been that it does not wrap its music in digital rights management (DRM).

In its first deal with a mobile network, eMusic announced on Tuesday that it will sell its independent-label music through AT&T Mobile Music.

After iTunes, eMusic is the largest online music seller. Nearly all of eMusic's 2.7 million songs will be available through the AT&T service, which initially will be compatible only with the Samsung Sync (A717 or A727) and the Nokia N75 handsets.

The new service will cost $7.49 monthly for access to five songs. Subscribing to eMusic from a PC costs $9.99 monthly for 30 downloads, a lower per-song cost. But the company said that the price-per-song difference relates to the additional expense of sending the music over a mobile network.

Discovering New Music

The majority of online music services provide a wide range of titles, emphasizing artists on major recording labels, while eMusic only provides music from independent labels. These labels can be small companies that handle several artists or musicians acting as their own label.

While most independent-label songs on eMusic are by obscure musicians, some are by well-known ones, such as Johnny Cash, Ray Charles, Miles Davis, Bob Marley, and Creedence Clearwater Revival.

On Monday, eMusic released a survey showing that 84 percent of its subscribers "felt they discovered music they would not otherwise have known about," and 61 percent said they buy music from the service they would not have otherwise bought.

Creating a mechanism for discovering new music is the single biggest obstacle remaining for independent-label musicians, observed Forrester analyst James McQuivey. For major labels, he said, this fan development is usually accomplished on the radio. Independent labels "haven't been a big player" in the music-over-cellphones market so far, he said, which could change with the eMusic-AT&T deal.

No Digital Rights Management

Gartner analyst Mike McGuire noted that, in addition to being notable for expanding the pool of available music to include the little guys, eMusic's distinction over the last few years has been that it does not wrap its files in digital rights management (DRM) technology. Without DRM, songs can shared more widely among devices and friends -- and McQuivey noted that there aren't any devices more sociable than a mobile phone.

Gartner's McGuire also noted that eMusic songs delivered over AT&T will be available in the AAC file format, which provides for small file sizes. But eMusic will also make an MP3 version of a purchased song available for download to a subscriber's computer, and those songs could be transferred from a computer to a phone.

When it was originally founded in 1998 as GoodNoise, the company noted that it was the first to sell music in MP3 format. Its ownership has traded hands a few times, and eMusic is now owned by Dimensional Associates, the operating company for New York-based investment firm JDS Capital.



Sidley Austin Elevates 11 to Chicago Partner
Law Firm News | 2007/07/30 14:25
Eleven lawyers in the Chicago office of Sidley Austin LLP are among the 36 associates and counsel elevated to partnership in the firm, which now has 659 partners in offices in the United States, Europe, Asia and Australia.

The new Chicago partners are Michael C. Andolina, Financial Services/Consumer Class Actions;
Jeannette K. Arazi, Structured Finance and Securitization;
John A. Chamberlin, Real Estate;
Anny C. Huang, Structured Finance and Securitization;
Kenneth P. Kansa, Bankruptcy/Corporate Reorganization;
Christopher P. Lokken, Investment Funds, Advisers and Derivatives;
Brian A. McAleenan, Communications Regulatory;
Daniel J. Neppl, Insurance/Reinsurance Disputes;
Clinton R. Uhlir, Insurance;
Robert L. Verigan, M&A and Private Equity; and
J. Randal Wexler, Securities Litigation and S.E.C. Enforcement.

"All of our new partners embody the client service values and collegial
culture of Sidley, in addition to being exceptionally talented lawyers,"
said Thomas A. Cole, chair of the firm's Executive Committee. "We are proud
to have them join Sidley's partnership."

   "It is gratifying to have these accomplished lawyers join Sidley's
partnership ranks because they truly deserve and have earned this honor,"
added Charles W. Douglas, chair of the firm's Management Committee. "They
have earned the respect of their clients and colleagues. We welcome them to our partnership and appreciate their continued dedication to the firm."
  
Michael C. Andolina, 34, is a partner in the Financial
Services/Consumer Class Actions practice. His practice includes a diverse
range of civil litigation matters at the trial and appellate levels in both
state and federal courts, with an emphasis on consumer fraud class action
defense and white collar civil litigation.
   Mr. Andolina, who had been an associate, received his J.D. from The
University of Chicago Law School. He received his A.B., magna cum laude,
Phi Beta Kappa, from Georgetown University.
  
Jeannette K. Arazi, 37, is a partner in the Structured Finance and
Securitization practice. Ms. Arazi's experience includes the representation
of commercial paper and medium-term note conduits and financial
institutions in the acquisition or financing of various types of assets
including trade receivables, motor vehicle leases, franchise loans,
timeshare interests and other financial assets.
   Ms. Arazi, who had been an associate, received her J.D., magna cum
laude, Order of the Coif, from the University of Minnesota Law School. She
received her B.A., magna cum laude, from Macalester College.
 
John A. Chamberlin, 37, is a partner in the Real Estate practice. His
practice includes commercial real estate transactions of all types,
including acquisitions, dispositions, financing and leasing transactions.
   Mr. Chamberlin, who had been an associate, received his J.D., magna cum
laude, Order of the Coif, from the University of Illinois College of Law
where he was notes editor of the Law Review. He received his B.A. from
Brigham Young University.
  
Anny C. Huang, 33, is a partner in the Structured Finance and
Securitization practice. Her practice includes representation of major
financial institutions, public and private corporations, institutional bond
holders, hedge funds and other creditors and investors in connection with
leverage financing for private equity, real estate and hedge funds, capital
call facilities, syndicated and structured loans, mezzanine financings,
collateralized debt obligations, securitizations, work-outs and
restructurings and single-currency, multi-currency and cross-border
transactions.
   Ms. Huang, who had been an associate, received her J.D. from Columbia
University School of Law where she was a Kent Scholar and served on the Law Review. She received her B.A. and B.S., with highest honors, from the
University of California - Berkeley.
  
Kenneth P. Kansa, 34, is a partner in the Bankruptcy/Corporate
Reorganization practice. Mr. Kansa's practice encompasses all areas of
corporate reorganization and bankruptcy matters, focusing on the
representation of various parties in complex chapter 11 cases.
   Mr. Kansa, who had been an associate, received his J.D. from the
University of Virginia School of Law, his M.A. from Cleveland State
University and his B.A. from George Washington University.
 
Christopher P. Lokken, 36, is a partner in the Investment Funds,
Advisers and Derivatives practice. He advises and represents clients in
federal securities, derivatives, futures related regulatory and corporate
matters with respect to alternative investment funds, including offshore
and domestic hedge funds, commodity pools and alternative asset strategy
funds sold on a retail basis in Japan.
   Mr. Lokken, who had been an associate, received his J.D., cum laude,
Order of the Coif, from Northwestern University School of Law where he was
coordinating articles editor of the Northwestern University Law Review. He
received his M.A. from the University of Chicago, and his B.A., with
distinction, from Indiana University.
 
Brian A. McAleenan, 34, is a partner in the Communications Regulatory
practice. His practice involves commercial and regulatory litigation and
related matters.
   Mr. McAleenan, who had been an associate, received his J.D., magna cum
laude, Order of the Coif, from the University of Illinois College of Law
where he was on the Law Review. He received his B.S., cum laude, from the
University of Illinois.
 
Daniel J. Neppl, 38, is a partner in the Insurance/Reinsurance Disputes
practice. He regularly arbitrates and litigates reinsurance disputes,
representing both ceding companies and reinsurers in the property and
casualty areas in matters involving both traditional and non-traditional
reinsurance. Prior to joining the firm, Mr. Neppl clerked for the Honorable
C. Thomas White, Chief Justice of the Nebraska Supreme Court.
   Mr. Neppl, who had been counsel, received his J.D., cum laude, from
Creighton University School of Law, where he was executive editor of the
Creighton Law Review. He received his B.S., with honors, from the
University of Iowa.
  
Clinton R. Uhlir, 35, is a partner in the Insurance practice. He
focuses his practice on the representation of issuers, underwriters and
purchasers of financial products and the structuring, creation and
operation of structured investment vehicles (SIVs), asset-backed commercial
paper (ABCP) conduit programs, derivative product companies (DPCs),
including credit derivative product companies (CDPCs), and other types of
structured finance operating companies (SFOCs).
   Mr. Uhlir, who had been an associate, received his J.D. from The
University of Chicago Law School and his A.B., cum laude, from Princeton
University.
  
Robert L. Verigan, 32, is a partner in the M&A and Private Equity
practice. His principal areas of practice include mergers and acquisitions,
corporate finance and venture capital/private equity investments. He has
also worked with issuers and underwriters in a variety of initial and
follow-on public offerings, including over a dozen S-1 offerings and
private placements of securities.
   Mr. Verigan, who had been an associate, received his J.D., cum laude,
from The University of Chicago Law School. He received his B.A., cum laude,
from Duke University.
  
J. Randal Wexler, 34, is a partner in the Securities Litigation and
S.E.C. Enforcement practice. His practice focuses on complex internal
corporate investigations, corporate accounting fraud and the defense, both
individual and corporate, of complex securities fraud class actions and
related violations of ERISA.
   Mr. Wexler, who had been an associate, received his J.D., cum laude,
from The University of Michigan Law School. He received his B.A. from Yale
University.
  
Sidley also named the following to partnership in its other offices:
Brussels -- Arnoud R. Willems; Frankfurt -- Jerome S. Friedrich; Hong Kong
-- Charles Allen; London -- Jonathan Edge, Theresa D. Kradjian and Paul
Matthews; Los Angeles -- Aimee M. Contreras-Camua, Sandra S. Fujiyama,
Kelly L.C. Kriebs, Jennifer A. Ratner and Robert M. Stone; New York --
Laura M. Barzilai, Madeleine J. Dowling, Lynn A. Dummett, Isaac S. Greaney,
Joseph Kelly, Dennis M. Manfredi and Aryeh H. Zarchan; San Francisco --
Teague I. Donahey; Tokyo -- Akira Nakazawa; Washington, D.C. -- Kevin J.
Campion, Mark B. Langdon, Eric A. Shumsky, Eric M. Solovy and John K. Van
De Weert, Jr.
   Sidley Austin LLP is one of the world's largest full-service law firms,
with more than 1,700 lawyers practicing in 16 U.S. and international cities
including Beijing, Brussels, Frankfurt, Geneva, Hong Kong, London,
Shanghai, Singapore, Sydney and Tokyo. In 2006, Sidley was named to Legal
Business' Global Elite, their designation for "the 15 finest law firms in
the world." Sidley was again named the number one law firm for overall
client service by BTI, a Boston-based consulting and research firm, in
2007. BTI has also named Sidley to their Client Service Hall of Fame as one
of only two law firms to rank in the Client Service Top 10 for six years in
a row.
   For purposes of the New York State Bar rules, this press release may be
considered Attorney Advertising and the headquarters of the firm are Sidley
Austin LLP 787 Seventh Avenue, New York, NY 10019, 212.839.5300 and Sidley
Austin LLP One South Dearborn, Chicago, IL 60603, 312.853.7000. Prior
results described herein do not guarantee a similar outcome.


Dentist's Practical Joke Leads Him to Court
Breaking Legal News | 2007/07/30 10:18
For the purposes of a practical joke, an oral surgeon exploited the vulnerability of a patient under general anesthesia and had to pay her $250,000 as settlement. Then, he sued the insurance company that refused to defend his egregious behavior. As a result of the high court's ruling Thursday, he now gets back the $250,000, plus another $750,000 for damages and attorney fees. The jokester wins.

The Supreme Court ruled 5-4 in favor of Robert Woo, who had sued Fireman's Fund Insurance Co. The company refused to defend Woo under his policy because it said the not-very-funny practical joke Woo played on his patient did not qualify as "dental services."

Woo's surgical assistant had asked him to replace two of her teeth with implants. Woo, who often teased the assistant about her pot-bellied pig, had the implants made — as well as two extras in the shape of boar tusks. While the assistant was sedated, Woo removed her oxygen mask, put the tusks in her mouth and took pictures, some with her eyes pried open.

The employee was so unnerved when she saw the photos, she did not return to work and sued.

The most stunning aspect of the decision was the majority's opinion: "We conclude that Fireman's had a duty to defend under Woo's professional liability provision because the insertion of boar tusk flippers in [the patient's] mouth conceivably fell within the policy's broad definition of the practice of dentistry."

The general practice of dentistry includes humiliating vulnerable patients?

Thank Justices Mary Fairhurst, Richard Sanders, Bobbe Bridge, Tom Chambers and Susan Owens for that wisdom. They overturned a state Appeals Court ruling that sided with Fireman's.


Man Extradited from India Due in Court Today
International | 2007/07/30 09:51
A delivery driver extradited from India is due in court charged with the kidnap, rape and murder of Southampton teenager Hannah Foster.

Hannah, 17, was killed as she walked home from a night out in the city with friends in March 2003. Her strangled body was found at the side of a road outside the city.

Maninder Pal Singh Kohli, 39, who has always protested his innocence, left Britain two days after her death and was arrested in India in July 2004.

It followed a trip to the country by Hannah's parents, Trevor and Hilary Foster, to appeal for information.

Following over 100 court appearances, Kohli lost his battle against extradition. Also charged with false imprisonment, manslaughter and perverting public justice, he arrived at Heathrow airport from Delhi on Saturday.

He was taken to Alton police station in Hampshire and is due to appear before Southampton magistrates for a remand hearing on Monday.


Colorado Springs Church Undergoes Legal Battle
Legal Spotlight | 2007/07/29 10:30
The Gothic Revival tower of Grace Church and St. Stephen's Parish stands as a monument to staid tradition - but this sanctuary has turned into a battleground.

Rebellious parishioners left the American Episcopal Church this spring, protesting its acceptance of gay unions and other departures from orthodoxy, to join a Nigerian Anglican diocese.

Now, the congregation is locked in a legal battle with the Colorado Diocese over ownership of the church, valued at $17 million.

The congregation also is trying to keep its conservative priest of 20 years, the Rev. Don Armstrong, in his pulpit, despite allegations of theft and fraud.

Tuesday, an Episcopal ecclesiastical court will weigh charges against Armstrong, who is accused by the diocese of stealing or misusing more than $500,000.

The battle for Grace Church is part of a global theological conflict within the worldwide 77-million-member Anglican Communion.

Liberal church members are pitted against conservative Anglicans in Africa, Asia and South America.

In Colorado, 14 congregations have moved to affiliate with African-led dioceses rather than the Episcopal Diocese in Denver.

Active membership in the American Episcopal Church has been in decline for four decades, hitting 2.3 million in 2004, according to church reports. Active membership in Colorado that year was about 33,000.

"The crisis of the Episcopal Church, the fault lines that run through that, run right through Grace Church," said Alan Crippen, a spokesman for St. Stephen's breakaway congregation.

"The Episcopal Church is dying," Crippen said. "It's dying in the United States. It's dying in Colorado. It's a denomination that's lost its relevance by accommodating the culture."

The split in the Anglican community widened in 2003 when the American church consecrated New Hampshire Bishop Gene Robinson, who is openly gay.

This past February, leaders of the worldwide Anglican Communion gave U.S. and Canadian churches an ultimatum: Stop blessing same-sex unions and consecrating openly gay bishops by Sept. 30 or face being asked to leave the Anglican Communion.

St. Stephen's Parish's breaking point came the night of March 26, hours after Armstrong had been charged by the diocese.

Nine of 10 church vestry members, the parish's lay leaders, voted to secede from the diocese and an American church they saw drifting left - away from Scripture and toward secular humanism.

"The people around that table believed the bishop was trying to destroy this parish," Crippen said.

Bishop Robert O'Neill, an outspoken liberal, had placed Armstrong on leave in the midst of the 2006 Christmas holidays. Although forbidden to have contact with parishioners, Armstrong defied the ban.

On the night of the vestry vote, Armstrong sent an e-mail to the senior warden, Jon Wroblewsi, saying of O'Neill: "He has no army and no keys and no authority - possession is nine-tenths of the law - and I have the microphone."

By Palm Sunday, Armstrong and parishioners had changed the church's locks.

About 250 exiled parishioners still loyal to the diocese had to worship at a borrowed church a few blocks away. Some 450 to 550 Armstrong followers held Grace Church.

"It was a big shock," said Tim Fuller, vestry member in the exiled parish. "This was done without consultation with the parish."

Before the split, Grace's rolls stood at about 2,000. Average Sunday attendance had been about 800 people, about the size of the congregation of St. John's Cathedral in Denver.

The diocese froze some parish bank accounts, Crippen said.

Breakaway parishioners filed a lawsuit on Good Friday asking the court to determine ownership of the parish's real and personal property.

Clash over motives

The breakaway group contends that it can better care for the property and that the diocese probably can't afford to keep Grace Church, Crippen said.

It costs $20,000 a month to run the church, he estimates. Programs and salaries aside, maintenance and utilities run about $8,000 monthly.

"That is a specious argument. You make that argument when the law is not on your side," said Lawrence Hitt II, chancellor of the diocese.

The parishioners can leave the Episcopal Church - but they can't take Grace Church with them, Hitt said.

The exit, he added, appears to be motivated less by theology and more by a desire to salvage Armstrong's ministerial career.

By late May, parishioners remaining at Grace with Armstrong had ratified the church vestry decision to join the African mission by a vote of 342 to 28.

The group chose to align themselves with the Convocation of Anglicans in North America, CANA, a mission of the 17-million-member Nigerian Anglican Church.

The Diocese of Nigeria, the largest, after Great Britain, of Anglican Communion's 38 provinces, holds itself out as a safe harbor for conservative congregations estranged from North American dioceses.

CANA, founded in 2005, now includes 37 churches in 15 states and the District of Columbia.

Another African group - the 7-year-old Anglican Mission in the Americas - with oversight from Rwanda's Anglican province, claims affiliation with 116 congregations in North America, including 13 in Colorado, from Cortez to Broomfield.

Altogether, at least 200 of 7,200 Episcopal congregations in North America have aligned themselves with overseas provinces.

"Within the Episcopal Church, there is a lack of ability to draw clear boundaries ... regarding what is true and faithful to what God has revealed," said associate pastor Rob Paris of the Wellspring Anglican Church in Englewood, which is affiliated with the Rwanda mission.

Among the questions of orthodoxy, the congregations have split on how literally to interpret Scripture, whether Jesus' resurrection was a physical fact or a spiritual symbol, and whether the Bible forbids homosexuality.

Whatever the reason for churches leaving, the Colorado diocese said the legal precedent in this state is very clear since the 1986 Colorado Supreme Court decision Bishop and Diocese of Colorado vs. Mote.

When a faction within an Episcopal parish seeks to secede from the Episcopal Church, the property of the parish is held in trust by the local church for the general church and may not be taken by the seceding faction.

A hearing on the Grace dispute is set for October in district court in El Paso County.

"We love the building, but it's not an idol for us. It's a home, a heritage, but at the end of the day, the church is not a building," Crippen said. "It's the people."

If the diocese gets the building, Crippen predicts, it likely will have to sell it. Hitt said there is no basis to that claim.

Still, Crippen worries that Grace Church could suffer the same fate as the former St. Mark's at 12th Avenue and Lincoln Street in Denver, where a congregation seceded a decade ago over ordination of women priests.

"It's a nightclub now," he said. "There are some who fear that might be our destiny."


Arnold & Porter Expands Latin American Practice
Law Firm News | 2007/07/28 14:26
The Law Firm Newswire - Arnold & Porter LLP announced today that international corporate lawyer Juan Manuel Trujillo has joined the firm as a partner in New York. Mr. Trujillo’s practice focuses on corporate transactionalwork, including project, structured, and cross-border finance, as well as restructurings, mergers and acquisitions, commercial arbitration, joint ventures and investment projects throughout Latin America and other emerging markets. Mr. Trujillo’s arrival further deepens Arnold & Porter’s historic strength in the region. He joins a recently expanded team of lawyers practicing in Latin America.

“Juan is a welcome addition to our international corporate practice, which has a thriving base in Latin America,” said firm Chair Thomas Milch. “We believe his expertise will be an ideal fit in New York, a vital center for international transactions.”

Mr. Trujillo served as the seller’s lead counsel in the sale of the largest mining company in Bolivia and Argentina. The multi-jurisdictional transaction was listed as one of the “20 Top Deals in Latin America” by LatinFinance in 2005. He also oversaw the debt restructuring of one of the largest commercial groups in Chile and the debt restructuring and joint venture negotiation of Mexico’s largest motor coach manufacturer. Mr. Trujillo advised the lenders in the acquisition financing for a controlling interest in thirteen airports located in Mexico.

He has represented clients in multiple financings of various power plants in Latin America, including the financing of a thermoelectric power plant in Brazil, selected as project finance deal of the year in 2002 by Project Finance magazine, and other project finance transactions in Mexico, Chile and Guatemala. Mr. Trujillo also advised a financial services client in connection with its $5.2 billion investment program, including credit facilities with the International Finance Corporation (World Bank), the Inter-American Development Bank, the European Investment Bank, and multiple commercial lenders. He has represented clients in joint ventures including a U.S. asset management company in a $420 million joint-venture with Brazil’s largest commercial bank and advised on another joint venture between the largest mining company in Bolivia and the Commonwealth Development Corporation in the UK.

Commenting on his arrival at Arnold & Porter, Mr. Trujillo said, “I am looking forward to joining a team that has exceptional breadth and depth of experience in Latin America, in both complex transactional matters and corporate dispute resolution.”

Earlier this year, Arnold & Porter expanded its platform in transactions and international arbitration in Latin America. In March, São Paulo-based international finance lawyer Gregory Harrington joined the firm to advise clients in the areas of capital markets, sovereign debt, and project finance; he moved to the Washington, D.C. office in early July. Last month, a significant international arbitration team led by partners Paolo Di Rosa and Gaela Gehring Flores joined the firm, along with international corporate lawyer Raul Herrera, who has extensive experience throughout Latin America and the Caribbean. They join an existing team of lawyers representing public and private sector clients throughout the region, including the central banks or ministries of finance of a number of Latin American countries.

Arnold & Porter LLP, an international law firm of approximately 600 attorneys, has offices in Washington, D.C., Northern Virginia, New York, Los Angeles, San Francisco, Denver, London, and Brussels. The firm, founded in 1946, maintains more than 25 practice areas spanning a broad spectrum of the law, with a primary focus on litigation, transactional matters and regulatory issues.


Court awards oral surgeon $750,000 in boar-tusk case
Court Watch | 2007/07/27 10:12

A local oral surgeon should have been backed by his insurance provider when an employee sued him for putting fake boar tusks in her mouth and taking photographs while he performed a dental procedure on her, the state Supreme Court decided today. The court ruled that Auburn dentist Robert Woo should have received legal defense from Fireman's Fund Insurance, restoring an original jury verdict to award the dentist $750,000 after it was overturned by an appeals court.

In a dissenting opinion, one justice wrote that today's decision "rewards Dr. Woo's obnoxious behavior and allows him to profit handsomely," while also calling the original incident involving his assistant "intentional offensive and likely tortuous conduct."

Woo will get $750,000 in damages, attorney fees, and is also reimbursed the $250,000 that he paid to settle the original lawsuit with his employee.

The eight-year legal jumble can all be traced back to a pot-bellied pig named Walter, owned by Woo's surgical assistant. The assistant, who worked for Woo for five years, talked frequently about Walter in the office, and about the abandoned pot-bellied pigs that she cared for, according to court documents.

Woo made several remarks, including how he would like to barbecue Walter, documents said. He went on a boar-hunting trip and brought back pictures of a dead boar to show the assistant. Woo claimed that his comments were just part of a "friendly working environment," documents said.

But then he pulled out the fake boar tusks.

The assistant needed to have two teeth replaced with implants, and Woo told her he could do it, documents said.

Woo prepared a pair of fake boar tusks and, while his assistant was sedated for the procedure, Woo removed the oxygen mask, inserted the tusks in her mouth and took photos without her consent. He later developed the pictures and showed them to employees, and later one of his other employees gave them to the assistant as a birthday present. The assistant was stunned.

So stunned that she filed a lawsuit with several complaints against the dentist, including invasion of privacy, infliction of emotional distress and medical negligence.

Woo sought defense with his insurer, Fireman's, who would not defend him because his actions did not fall under "dental services," documents said.

Woo settled with his assistant for $250,000 and then took his insurer to court. In June 2003, the King County Superior Court jury awarded the dentist $750,000, but that was overturned two years later by the state Court of Appeals, although it left the $250,000 settlement intact.



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