Washington fears 'desperate' Assad could use chemical arms

BEIRUT (Reuters) - Western powers are whipping up fears of a fateful move to the use of chemical weapons in Syria's civil war as a "pretext for intervention", President Bashar al-Assad's deputy foreign minister said on Thursday.

He spoke as Germany's cabinet approved stationing Patriot anti-missile batteries on Turkey's border with Syria, a step requiring deployment of NATO troops that Syria fears could permit imposition of a no-fly zone over its territory.

"Syria stresses again, for the tenth, the hundredth time, that if we had such weapons, they would not be used against its people. We would not commit suicide," Faisal Maqdad said.

U.S. President Barack Obama and other NATO leaders have warned that using chemical weapons would cross a red line and "there would be consequences". Assad would probably lose vital diplomatic support from Russia and China that has blocked military intervention in the 20-month-old uprising that has claimed more than 40,000 lives.

Maqdad said Western reports that the Syrian military was preparing chemical weapons for use against rebel forces trying to close in on the capital Damascus were simply "theatre".

"In fact, we fear a conspiracy ... by the United States and some European states, which might have supplied such weapons to terrorist organizations in Syria, in order to claim later that Syria is the one that used these weapons," he said on Lebanon's Al Manar television, the voice of Hezbollah.

"We fear there is a conspiracy to provide a pretext for any subsequent interventions in Syria by these countries that are increasing pressure on Syria."

UNCONTROLLABLE

Exactly what Syria's army has done with suspected chemical weapons to prompt a surge of Western warnings is not clear. Reports citing Western intelligence and defense sources are vague and inconsistent.

The perceived threat may be discussed in Dublin on Thursday when Russian Foreign Minister Sergei Lavrov and U.S. Secretary of State Hillary Clinton meet international Syria mediator Lakhdar Brahimi to try to put a U.N. peace process for Syria back on track.

The talks come ahead of a meeting of the Western-backed "Friends of Syria" group in Marrakech next week which is expected to boost support for rebels fighting to overthrow Syrian President Bashar al-Assad.

Brahimi wants world powers to issue a U.N. Security Council resolution calling for a transitional administration.

In addition to the possible use of chemical bombs by "an increasingly desperate" Assad, Clinton said Washington was concerned about the government losing control of such weapons to extreme Islamist armed groups among the rebel forces.

The United States is considering blacklisting one group suspected of ties to al Qaeda. U.S. officials confirmed that Jabhat al-Nusra, an influential rebel group accused of indiscriminate tactics that has advocated an Islamic state in Syria, was under review for blacklisting.

An explosion in front of the Damascus headquarters of the Syrian Arab Red Crescent killed at least one person on Thursday, Syrian state television said.

It blamed "terrorists from al Qaeda" -- a term often employed to refer to rebel forces.

Meanwhile, activists said the army pummeled several eastern suburbs of Damascus, where the rebels are dominant, with artillery and mortar fire. The suburbs have also been cut off from the city's water and electricity for weeks, rebels say, accusing the government of collective punishment.

COLLAPSE

Assad responded to past warnings about chemical weapons by taking steps to secure them, according to Israel's vice prime minister Moshe Yaalon.

"There is speculation that the chemical arsenal will fall into the hostile and irresponsible hands of the likes of al Qaeda or other terrorist groups. In the past, clear messages were relayed to Assad on a number of occasions, and in response Assad in fact gathered up the weaponry and separated the materials," Yaalon said on Wednesday.

Rebels say they have surrounded an air base 4 km (2-1/2 mikes) from the center of Damascus, a fresh sign the battle is closing in on the Syrian capital.

Maqdad, in his interview on Thursday, argued that reports of such advances were untrue: "What is sad is that foreign countries believe these repeated rumors."

But residents inside the capital say that the sound of shelling on the outskirts has become a constant backdrop and many fear the fight will soon come to Damascus.

The Western military alliance's decision to send U.S., German and Dutch Patriot missile batteries to help defend the Turkish border would bring European and U.S. troops to Syria's frontier for the first time in the 20-month-old civil war.

The actual deployment could take several weeks.

"Some countries now are now supplying Turkey with missiles for which there is no excuse. Syria is not going to attack the Turkish people," Maqdad said.

But a veteran Turkish commentator, Cengiz Candar of the Radikal newspaper, said Ankara fears Syria's 500 short-range ballistic missiles could fall into the wrong hands.

The government is "of the view that Syria was not expected to use them against Turkey, but that there was a risk of these weapons falling into the hands of 'uncontrolled forces' when the regime collapses", he wrote.

(Writing by Douglas Hamilton; Editing by Giles Elgood)

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Death toll from Philippine typhoon passes 280

NEW BATAAN, Philippines (AP) — Stunned parents searching for missing children examined a row of mud-stained bodies covered with banana leaves while survivors dried their soaked belongings on roadsides Wednesday, a day after a powerful typhoon killed more than 280 people in the southern Philippines.

Officials fear more bodies may be found as rescuers reach hard-hit areas that were isolated by landslides, floods and downed communications.

At least 151 people died in the worst-hit province of Compostela Valley when Typhoon Bopha lashed the region Tuesday, including 78 villagers and soldiers who perished in a flash flood that swamped two emergency shelters and a military camp, provincial spokeswoman Fe Maestre said.

About 80 people survived the deluge in New Bataan town with injuries, but between 50 and 319 others remain missing, according to varying estimates by government officials and the army.

The farming town of 45,000 people was a muddy wasteland of collapsed houses and coconut and banana trees felled by Bopha's ferocious winds.

On a roadside, dozens of mud-stained bodies were laid side-by-side, covered by cloth and banana leaves and surrounded by villagers. A man sprayed insecticide on the remains to keep away swarms of flies.

A father wept when he lifted a plastic cover and found the body of his child. A mother, meanwhile, went away in tears, unable to find her missing children. "I have three children," she said repeatedly, flashing three fingers before a TV cameraman.

Interior Secretary Mar Roxas, who visited the devastated town, said a day of searching by soldiers and volunteers did not turn up any of the 319 people reported missing in New Bataan.

"These were whole families among the registered missing," Roxas told the ABS-CBN TV network. "Entire families may have been washed away."

In nearby Davao Oriental, the coastal province first struck by the typhoon as it blew inland from the Pacific Ocean, at least 115 people perished, mostly in three towns that were so battered that it was hard to find any buildings with roofs remaining, provincial officer Freddie Bendulo and other officials said.

"We had a problem where to take the evacuees. All the evacuation centers have lost their roofs," Davao Oriental Gov. Corazon Malanyaon said.

Disaster-response agencies reported 13 other typhoon-related deaths elsewhere.

Unlike the previous day's turbulent weather, the sun was shining brightly Wednesday, prompting residents to lay their soaked clothes, books and other belongings out on roadsides to dry and revealing the extent of the damage to farmland. Thousands of banana trees in one Compostela Valley plantation were toppled by the wind, the young bananas still wrapped in blue plastic covers.

After slamming into Davao Oriental and Compostela Valley, Bopha roared quickly across the southern Mindanao and central regions, knocking out power in two entire provinces, triggering landslides and leaving houses and plantations damaged. More than 170,000 fled to evacuation centers.

The typhoon, one of the strongest to hit the country this year, had blown past southwestern Palawan province into the South China Sea by midday Wednesday and could head to either Vietnam or southern China, according to government forecasters.

The deaths came despite efforts by President Benigno Aquino III's government to force residents out of high-risk communities as the typhoon approached.

Some 20 typhoons and storms lash the northern and central Philippines each year, but they rarely hit the vast southern Mindanao region.

A rare storm in the south last December killed more than 1,200 people and left many more homeless.

The United States extended its condolences and offered to help its Asian ally deal with the typhoon's devastation. It praised government efforts to minimize the deaths and damage.

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Associated Press writers Jim Gomez, Teresa Cerojano and Oliver Teves in Manila contributed to this report.

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Software guru McAfee says to seek asylum in Guatemala

GUATEMALA CITY (Reuters) – U.S. anti-virus software guru John McAfee, who is on the run from police in Belize seeking to question him in a murder probe, has crossed into Guatemala and said on Tuesday he will seek political asylum there.

McAfee has been in hiding for three weeks since police in Belize said they wanted to question him as “a person of interest” about the murder of fellow American Gregory Faull, with whom McAfee had quarreled.

McAfee smuggled himself and his girlfriend, Samantha, across the porous land border that Belize shares with Guatemala. He stayed at a hotel in a national park before heading for Guatemala City on Monday evening.

“I have no plans much for the future now. The reason I chose Guatemala is two-fold,” McAfee told Reuters by telephone from Guatemala’s Supreme Court, flanked by his lawyer, former attorney general and lawyer Telesforo Guerra.

“It is a country bordering Belize, it is a country that understands the corruption within Belize and most importantly, the former attorney general of the country is Samantha’s uncle and I knew that he would assist us with legal proceedings.”

McAfee has denied involvement in the murder and told Reuters on Monday he would not turn himself in. He posted repeatedly on his blog www.whoismcafee.com while on the run, describing how he would constantly change his disguise to elude capture.

On Tuesday, he appeared with his hair and goatee died black, and wearing a dark suit and tie – a far cry from the surfer-style blonde hair highlights, shorts and tribal-tattooed bare shoulders he sported in Belize.

“(Guerra) is now attempting to get political asylum for myself and for Sam. I don’t think there will be much of a problem. From here I can speak freely and safely,” McAfee said.

TECH GENIUS, “BONKERS”

McAfee says he believes authorities in Belize would kill him if he turned himself in for questioning. Belize’s prime minister has denied the claim and called the 67-year-old paranoid and “bonkers.”

On the Caribbean island of Ambergris Caye, where McAfee has lived for about four years, residents say he is eccentric, impulsive, erratic and at times unstable, with a penchant for guns and young women.

He would often be seen with armed bodyguards, pistols tucked into his belt, and McAfee’s neighbor had complained about the loud barking of dogs that guarded his exclusive beachside compound.

His run-in with authorities in Belize is a world away from a successful life in the United States, where he started McAfee Associates in 1989 and made millions of dollars developing the Internet anti-virus software that carries his name.

There was already a case against McAfee in Belize for possession of illegal firearms, and police had previously raided his property on suspicion he was running a lab to make illegal synthetic narcotics.

McAfee says he has been persecuted for refusing to donate money to politicians, that he loves Belize, and considers it his home.

Guatemala is a canny choice to seek refuge. It has long been embroiled in a territorial dispute with Belize. Guatemala claims the southern half of Belize and all of its islands, or cayes, rightfully belong to it. There is no extradition treaty between the two countries.

A Guatemalan government source said there was “no reason” to detain McAfee because there was no legal case against him pending in the country.

Harold Caballeros, Guatemala’s foreign minister, said his government was unaware of any arrest warrant and would study McAfee’s asylum request once presented, saying its success would “depend on the arguments.”

Guerra told Reuters McAfee would return to Belize once his situation in Guatemala was made legal, citing the fact he had crossed into the country illegally to avoid capture by police in Belize.

“He can go to the United States, there is no problem with that,” he added. “We have asked the U.S. embassy for support with our (asylum) request.”

He said the asylum request would be formally presented on Wednesday.

The U.S. Embassy in Guatemala City said in a statement McAfee would have to work within the country’s legal framework, but declined to elaborate. “The embassy does not comment on the actions of American citizens, due to privacy considerations.”

(Reporting by Simon Gardner and Gabriel Stargardter; Editing by Kieran Murray and Eric Walsh)

Internet News Headlines – Yahoo! News

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Cashing in on Gangnam Style's YouTube fame

SEOUL, South Korea (AP) — As "Gangnam Style" gallops toward 1 billion views on YouTube, the first Asian pop artist to capture a massive global audience has gotten richer click by click. So too has his agent and his grandmother. But the money from music sales isn't flowing in from the rapper's homeland South Korea or elsewhere in Asia.

With one song, 34-year-old Park Jae-sang — better known as PSY — is set to become a millionaire from YouTube ads and iTunes downloads, underlining a shift in how money is being made in the music business. An even bigger dollop of cash will come from TV commercials.

From just those sources, PSY and his camp will rake in at least $7.9 million this year, according to an analysis by The Associated Press of publicly available information and industry estimates. But for online music sales in South Korea, he'll earn less than $60,000.

Here's how it works.

YOUTUBE

"Gangnam Style" with its catchy tune and much imitated horse-riding dance is the most-watched video on YouTube ever.

The viral video has clocked more than 880 million YouTube views since its July release, beating Justin Bieber's "Baby," which racked up more than 808 million views since February 2010. PSY's official channel on YouTube, which curates his songs and videos of his concerts, has nearly 1.3 billion views.

TubeMogul, a video ad buying platform, estimates that PSY and his agent YG Entertainment have raked in about $870,000 as their share of the revenue from ads that appear with YouTube videos. The Google Inc.-owned video service keeps approximately half.

PSY and YG Entertainment also earn money from views of videos that parody his songs.

Google detects videos that use copyrighted content. Artists can have the video removed or allow it to stay online and share ad revenue with YouTube. In the last week of September when "Gangnam Style" had around 300 million views, more than 33,000 videos were identified by the content identification system as using "Gangnam Style."

But since YouTube can be accessed from all over the world, wouldn't Asia be responsible for a significant chunk of the $870,000? The countries with the second and third-highest views of the video are Thailand and South Korea.

"Ads rates vary depending on which country the video is played. Developed countries have higher ad rates and developing countries lower," said Brian Suh, head of YouTube Partnership in Seoul.

And the country with the most views of "Gangnam Style?" The United States.

LEGAL DOWNLOADS, CDs

"Gangnam Style" has been downloaded 2.7 million times in the U.S. and has been the No. 1 or No. 2 seller for most weeks since its debut, according to Nielsen SoundScan.

The song sells for $1.29 on Apple's iTunes Store, the market leader in song downloads. Apple generally keeps about 30 percent of all sales, so the PSY camp could be due more than $2.4 million.

How much PSY keeps and how much goes to his managers, staff and record label is unclear. South Korean industry insiders said PSY likely gets 70 percent and YG Entertainment 30 percent for U.S. downloads.

But earnings from downloads in PSY's homeland are far from an embarrassment of riches.

South Koreans pay less than $10 a month for a subscription to a music service that allows them to download hundreds of songs or have unlimited access to a music streaming service. That makes the cost of a downloaded song about 10 cents on average. The average price for streaming a song is 0.2 cent.

PSY's cut for downloads is 14 percent. That falls to 7.5 percent for streamed songs. Yes, 7.5 percent of 0.2 cent. And that's before PSY's "Gangnam Style" co-composer take his share. The biggest cut goes to his agent and online retailers.

According to South Korea's national Gaon Chart, "Gangnam Style" was downloaded more than 3.6 million times and streamed around 40 million times as of November. That adds up to a little more than $61,000.

It's likely the fast fading music CD industry generated even smaller revenue. PSY's 9 percent cut from sales of 102,000 CDs in South Korea would earn him $50,000 or more, according to an estimate by Kim Dong-hyun, a senior manager at Korea Music Copyright Association.

As for many other parts of Asia, illegal downloads and pirated CDS are so pervasive that only a small minority are willing to pay up for the legal versions.

TV COMMERCIALS

PSY has been jetting around the world, performing on shows such as "The X-Factor Australia" and NBC's "Today Show," but such programs usually cover travel costs and not much else, said Gary Bongiovanni, editor-in-chief of concert trade magazine Pollstar.

It is television commercials that are the big money spinner for the most successful of South Korea's K-pop stars. PSY has been popping up in TV commercials in South Korea for top brands such as Samsung Electronics and mobile carrier LG Uplus.

Chung Yu-seok, an analyst at Kyobo Securities, estimates PSY's commercial deals would amount to 5 billion won ($4.6 million) this year.

The money is cool. The products not so much. PSY is now the face of a new Samsung refrigerator and a major noodle company.

THE FAMILY

A fact little known outside South Korea is that PSY's father, uncle and grandmother own a combined 30 percent of DI Corp., a company which makes equipment that semiconductor companies use to make computer chips.

It's a stretch to plausibly explain how the success of "Gangnam Style" will boost DI's profits but that doesn't matter to the South Korean stock market. Perhaps inspired by the pure power of pop, DI shares surged eightfold from July after PSY's hit reached No. 2 on the Billboard Hot 100 and No. 1 on the U.K. singles chart.

It was time to cash in for PSY's grandmother, who sold 5,378 shares for about $65,000.

The share price has fallen since then but is still about double what it was before the release of "Gangnam Style."

PSY's agent YG Entertainment has also done well. Its share price is up about 30 percent since mid-July. The value of CEO Yang Hyun-suk's stake has swelled to about $200 million, making him among the richest in South Korea's entertainment industry.

THE FUTURE

The question now hanging over PSY is whether he will replicate the blockbuster success of "Gangnam Style" or end up remembered as a one-hit wonder.

"When this slows down, what comes next for PSY?" said Nielsen analytics vice president David Bakula. "Is it the evolution of a new musical style, something audiences are going to be craving en masse, or is it something that's just a passing fancy?"

Analysts say "Gangnam Style" alone will not be enough to propel PSY into the ranks of musicians such as Adele and may not even be enough to make him the top-grossing K-pop star. That will depend largely on his upcoming album, which PSY said will be released in March.

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Ryan Nakashima contributed to this report from Los Angeles.

Youkyung Lee can be reached via Twitter: www.twitter.com/YKLeeAP

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Philippines death toll climbs, hundreds still missing after typhoon

NEW BATAAN, Philippines (Reuters) - Blocked roads and severed communications in the southern Philippines frustrated rescuers on Wednesday as teams searched for hundreds of people missing after the strongest typhoon this year killed at least 283 people.

Typhoon Bopha, with central winds of 120 kph (75 mph) and gusts of up to 150 kph (93 mph), battered beach resorts and dive spots on Palawan island on Wednesday but it was weakening as it moved west.

Hardest hit was the southern island of Mindanao, where Bopha made landfall on Tuesday. It triggered landslides and floods along the coast and in farming and mining towns inland.

Interior Minister Manuel Roxas said 300 people were missing.

"Entire families were washed away," Roxas, who inspected the disaster zone, told reporters.

Most affected areas were cut off by destroyed roads and collapsed bridges and army search-and-rescue teams were being flown in by helicopter.

Power was cut and communications were down.

According to tallies provided by the military and disaster agency officials, 283 people were killed.

Thousands of people were in shelters and officials appealed for food, water and clothing. Dozens of domestic flights were suspended on Wednesday.

The governor of the worst-hit province, Compostela Valley, in Mindanao said waves of water and mud came crashing down mountains and swept through schools, town halls and clinics where huddled residents had sought shelter.

The death toll in the province stood at 160. In nearby Davao Oriental province, where Bopha made landfall, 110 people were killed.

"The waters came so suddenly and unexpectedly, and the winds were so fierce," the Compostela Valley governor, Arthur Uy, told Reuters by telephone.

He said irrigation reservoirs on top of mountains had given way sending large volumes of water down to the valleys. Torrential rain often triggers landslides down slopes stripped of their forest cover.

Damage to agriculture and infrastructure in the province was extensive, Uy said.

STUNNED

Corn farmer Jerry Pampusa, 42, and his pregnant wife were marooned in their hut but survived.

"We were very scared," Pampus said. "We felt we were on an island because there was water everywhere."

Another survivor, Francisco Alduiso, said dozens of women and children who had taken shelter in a village centre, had been swept away.

"We found some of the bodies about 10 km (6 miles) away," Alduisa told Reuters. The only building left standing in his village was the school.

Another survivor, Julius Julian Rebucas, said his mother and brother disappeared in a flash flood.

"I no longer have a family," a stunned Rebucas said.

An army commander said two dozen people had been pulled from the mud in one area and were being treated in hospital.

About 20 typhoons hit the Philippines every year, often causing death and destruction.

Almost exactly a year ago, Typhoon Washi killed 1,500 people in Mindanao.

(Additional Reporting by Rosemarie Francisco and Manny Mogato; Editing by Robert Birsel)

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Typhoon pounds the Philippines, killing at least 7

MANILA, Philippines (AP) — One of the strongest typhoons to hit the Philippines this year barreled across the country's south on Tuesday, killing at least seven people and forcing more than 50,000 to flee from inundated villages.

Typhoon Bopha slammed into the Davao region at dawn, its ferocious winds ripping roofs from homes and its 500-kilometer- (311-mile-) wide rain band flooding low-lying farmland. The storm, packing winds of 160 kilometers (99 miles) per hour and gusts of up to 195 kph (121 mph), toppled trees, triggered landslides and sent flash floods surging across the region's mountains and valleys.

In the gold-mining province of Compostela Valley, the fierce wind and rain forced a wall of mud and boulders to cascade down on a house, killing three children. Their bodies were wrapped in blankets by their grieving relatives and placed on a basketball court in Maparat village.

"The only thing we could do was to save ourselves. It was too late for us to rescue them," said Valentin Pabilana, who survived the landslide.

A soldier died and 20 villagers were missing after a flash flood raced down a mountain in Andap town, washing away a truck, according to Compostela Valley Governor Arturo Uy and military officials.

In nearby Davao Oriental, a poor agricultural and gold-mining province about 1,000 kilometers (620 miles) southeast of Manila, an elderly woman was killed when her house was struck by a tree felled by howling wind, said Benito Ramos, an ex-army general who now heads the government's disaster-response agency.

A man died a few hours later when a tree knocked him down while he was traveling on a scooter on a road in Misamis Oriental province. One storm-related death was also reported on central Siquijor island, Ramos said.

He said the death toll was expected to rise once soldiers and police gain access to some far-flung villages isolated by floods, fallen trees and downed communications.

Regional disaster-response officer Liza Maso told The Associated Press by telephone that she was trying to confirm an army report that a flash flood washed away a truck carrying an undetermined number of people in New Bataan town, also in Compostela Valley.

While some 20 typhoons and storms normally lash the archipelago nation annually, the southern provinces being battered by Bopha are unaccustomed to fierce typhoons. A rare storm that took the area by surprise last December killed more than 1,200 people and left many more homeless and traumatized.

Officials were taking no chances this year, and President Benigno Aquino III made an appeal on national TV Monday for people in Bopha's path to move to safety and take storm warnings seriously.

"This typhoon is not a joke," Aquino said after meeting top officials in charge of disaster-response.

"But we can minimize the damage and loss of lives if we help each other," he added.

Aquino outlined preparations, including evacuations and the deployment of army search and rescue boats in advance. Authorities also ordered small boats and ferries not to venture out along the country's eastern seaboard, warning of rough seas with up to 4-meter (13-foot) waves.

In Compostela Valley, authorities halted mining operations and ordered villagers to evacuate to prevent a repeat of deadly losses from landslides and the collapse of mine tunnels seen in previous storms.

Bopha, a Cambodian word for flower or a girl, is the 16th weather disturbance to hit the Philippines this year. Forecasters say at least one more storm may hit the country before Christmas.

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Associated Press writer Teresa Cerojano contributed to this report.

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Yahoo sees several flaws in $2.7 billion Mexico ruling: source

SAN FRANCISCO (Reuters) – Yahoo Inc believes it has “numerous” grounds to appeal a Mexico City civil court‘s $ 2.7 billion preliminary judgment against the company, including both errors in procedure and in application of law, a person familiar with the matter told Reuters on Monday.

The ruling in the case, which involves allegations of breach of contract related to an online yellow pages listings service, was made by the 49th Civil Court of the Federal District of Mexico City, Yahoo said on Friday.

The case has perplexed many investors and tech-industry observers since Yahoo disclosed it, particularly given the large value of the “non-final” judgment.

The lawsuit was brought by Worldwide Directories S.A. de C.V. and Ideas Interactivas S.A. de C.V. against Yahoo and Yahoo de Mexico, Yahoo said.

The companies could not be reached for comment, although Carlos Bazan-Canabal, who describes himself as a founder of Worldwide Directories, told Reuters via email that he had contracted a U.S.-based law firm to handle the Yahoo case.

He declined to comment further on the matter.

Bazan-Canabal operates a number of web sites. He said on one that he joined Yahoo in 1999, adding that he is a former executive of Yahoo Mexico, and that he helped to launch that company. Yahoo could not immediately be reached for comment on this.

The details of the suit remained unclear on Monday. Documents from local courts in Mexico are not available for public consultation. Yahoo declined to comment.

Yahoo signed a commercial relationship with the two companies in 2002, the person familiar with the matter said. Yahoo terminated the relationship with the companies in 2009, the person said.

Yahoo’s appeal is expected to be heard by a panel of three judges in a superior court in Mexico City, the person said who was not authorized to speak publicly on the matter. It was not clear when Yahoo might file its appeal.

Yahoo’s most recent 10Q filing, which lists major ongoing legal proceedings, makes no mention of the lawsuit.

“We believe the $ 2.7 billion figure appears high based on the seemingly small size of Yahoo’s business in Mexico, but we believe shares could trade off modestly on the news,” wrote JP Morgan analyst Doug Anmuth in a note to investors following Friday’s announcement.

“It’s not clear how the Mexican court arrived at the $ 2.7 billion figure, but it would represent 40 percent of our projected 2012 year-end cash balance for Yahoo,” and equate to about $ 2.30 per share, he wrote.

Shares of Yahoo closed Monday’s regular session down 1.2 percent, or 22 cents, at $ 18.55.

(Additional reporting by Dave Graham in Mexico City and Sarah McBride in San Francisco; Editing by Bernard Orr)

Tech News Headlines – Yahoo! News

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Court upholds $319M verdict in 'Millionaire' case

LOS ANGELES (AP) — A federal appeals court on Monday upheld a $319 million verdict over profits from the game show "Who Wants to Be a Millionaire" and rejected Walt Disney Co.'s request for a new trial.

A jury decided in 2010 that Disney hid the show's profits from its creators, London-based Celador International. The ruling Monday by a three-judge panel of the 9th U.S. Circuit Court of Appeals found no issues with the verdict or with a judge's rulings in the case.

"I am pleased that justice has been done," Celador Chairman Paul Smith said in a statement.

Disney did not immediately comment on the decision.

The ruling comes more than two years after the jury ruled in Celador's favor after a lengthy trial that featured testimony from several top Disney executives. The company sued in 2004, claiming Disney was using creative accounting to hide profits from the show, which first ran in the United States from August 1999 to May 2002 and was a huge hit for ABC.

The jury found that Celador was owed $269.2 million, and a judge later added $50 million in interest to the judgment.

The appeals court determined the verdict was not "grossly excessive or monstrous" and that it was not based on speculation or guesswork.

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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