Realizing that they've lost their edge as the world's great evil empire, Disney has called on Apple overlord Jobs, who joined the board back in 2006, to help them steer a new path toward consumerist greatness. And, to that end, Jobs gave Disney access to his Apple Store blueprints and encouraged engineers to "think bigger," which means stores are no longer retail centers, but "Imagination Centers" that bubble with "Pixar-esque winks and nods."

Yes, gone are the days of plush toy displays and in are the days of video clips on demand, fake trees that sing happy birthday and, while they're at it, olfactory experimentation:

There will be a scent component; if a clip from Disney's coming "A Christmas Carol" is playing in the theater, the whole store might suddenly be made to smell like a Christmas tree.

Wow! This all sounds totally necessary!

Taken with Disney's plans for a brand-centric Comic-Con, it seems the company's poised to recreate the broken world in its own nightmarish image. And, in a move that would finally validate all those "Disneyfication" critiques of New York, Disney may open a new flagship store in Times Square. Sigh.

A wireless exec from Disney was at the recent invite-only "brain drain," according to a tipster who was at the meeting on Intel's campus in Santa Clara, Calif. As was John Faith, the head of MySpace Mobile. Alan Kay, a famous computer scientist attended, along with a host of other graybeards. So what did Intel show all the geeks it gathered?

Executives shared secret plans to build a new mobile device based on Intel technology that the chipmaker hopes to have on the market this year. The inspiration: the runaway success of Apple's iPhone. And the fear: that this will be a rerun of Intel's past failed attempts, like the dead-on arrival "ultramobile portable computer" concepts it showed off last year.

Devices based on Intel's design — they probably won't carry the Intel brand, except in the "Intel Inside" sense — will run Google's Android operating system. The design displayed at the summit also featured a "shitload" of variable resistance sensors, our source told us — a simple technology found in dials, touchscreens, and other input sensors. Apple uses a more complex touchscreen technology in its iPhone, suggesting Intel's approach might lead to cheaper touch-sensitive phones, or even devices that respond to the way they're held.

The résumés of the people in attendance suggested a serious effort — just about every major tech company in Silicon Valley was represented. And Intel has reason to gun for Apple's iPhone. Apple has bought its own chip-design subsidiary, allowing it to bypass Intel's industry-standard processors. But that's all we know so far. Has anyone else heard about this top-secret Intel summit? Fill us in on what you know.

(Photo via Buylabcoat.com)

At each pass, he faced incredible skepticism; a rational analysis would have predicted defeat. But he persevered. His legion of admirers — and critics — are now wishing him a full recovery now that he begins a six-month medical leave from Apple. And whatever suffering his present physical condition is causing, the mental anguish of acknowledging that he is not well enough to lead his company must be its own particular pain.

Every hero's strength is usually also a flaw. With Jobs, it is his relationship with the truth. That spirit of denial is exactly what has led him to reinvent industry after industry for the past three decades. But the truth about his own declining health — at first flatly denied, then grudgingly confirmed but downplayed, and now confirmed as grave — cannot be changed simply through the power of belief.

In 2005, two years after he was first diagnosed with pancreatic cancer, Jobs waxed philosophical about death in a commencement address he delivered at Stanford University:

Remembering that I'll be dead soon is the most important tool I've ever encountered to help me make the big choices in life. Because almost everything — all external expectations, all pride, all fear of embarrassment or failure - these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.

Therein lies the contradiction: In his health, Jobs does indeed have something to lose. And following his heart, which surely tells him to ignore the problem, in this matter is dangerous.

Jobs's track record, though, makes his defiance understandable. Having overcome so many other obstacles, why would he not think the aftereffects of cancer would prove trivial, too? Here's the career which helped feed Jobs's hubris:

1976 Jobs, a college dropout, founds Apple Computer with engineer Steve Wozniak. They introduce the Apple I, a personal computer for hobbyists.

1977 Apple introduces the Apple II, one of the first personal computers with a color display. Over the next 16 years, Apple sells more than 5 million units.

1984 Jobs, with a crew of self-described "pirates" pulled from other projects at Apple, introduces the Macintosh, a computer with a graphical user interface and a mouse.

1985 Apple's board fires Jobs. He founds Next Computer.

1986 Filmmaker George Lucas sells Pixar, then an animation-software startup, to Jobs.

1995 Pixar releases its first digitally animated feature film, Toy Story, and goes public; Jobs owns 80 percent, a stake worth nearly $600 million. (Pixar movies make regular appearances in Jobs's presentations for Apple, like this one in 1999.)

1996 Apple buys Next for $430 million; Jobs becomes an advisor to hapless CEO Gil Amelio.

1997 Having lost faith in Amelio, Jobs sells his entire stake in Apple. Amelio is forced out. Jobs becomes interim CEO.

1998 Jobs unveils the iMac.

2000 Jobs drops the "interim" bit and becomes Apple's CEO.

2001 A month after 9/11, to little notice, Jobs introduces the iPod.

2003 Apple launches the iTunes Music Store, with a little help from rock-star friends like Mick Jagger.

2005 The iPod Nano comes out, unveiled by Jobs as an aside at the launch of a now-forgotten iPod-phone combination.

2006 Disney buys Pixar; Jobs's stake is now worth $4.6 billion.

2007 Jobs unveils the iPhone.

2008 The MacBook Air and the iPhone 3G are announced. Observers notice Jobs's dramatic weight loss.

(Photos by AP and Getty Images)

Eric Garland, CEO of an online piracy research firm, told the Wall Street Journal Disney's investment in 56.com is "ironic" and "shocking." John Ball, Steamboat's managing director, says the company invested in part to help 56.com curb pirated videos. But 56.com is just one of six Chinese companies in Steamboat's portfolio, all of which aim to distribute movies and videogames online.

And that's the dirty secret of Disney and other media companies. They don't ultimately care about shows like Hannah Montana. What matters is their channels of distribution, through which such evanescent fare courses — and 56.com promises to be another one. Viacom isn't suing YouTube for $1 billion because it's upset about piracy. It's upset about piracy happening on a channel it doesn't own.

Litvack is a litigator first and foremost, says John Shenefield, the former head of the DOJ's antitrust unit who first hired Litvack in 1980. "He liked to litigate. He liked the rough and tumble, whereas some people who had served in that position liked to dot all the Is and cross all the Ts," Shenefield told CNET. "During a Christmas party, there was a skit and the person playing Sandy said, 'Fundamentally, I'm a litigator,' and everyone in the room knew exactly what he meant," another DOJ source said.

Some say Litvack likes to go to court too much, even when the laws he's prosecuting don't make sense. Along with being credited with building the case that broke up AT&T, Litvack is also known for prosecuting laws that, according to CNET, forbade "a manufacturer to have an agreement with a reseller that prohibited them from reselling a product at a higher or lower price than expressly stated in the contract." The Supreme Court eventually decided such laws were themselves anticompetitive and struck them down.

His strong opinions in the network neutrality debate may have something do with contributions from Internet service providers like Verizon and AT&T, which are respectively third and fifth on the list of largest contributors to his current re-election campaign, both ahead of oil industry services company Veco. He also counts News Corp. and Disney as top donors, and has championed broadcast flag provisions that would have required electronics manufacturers to bar users from recording digital audio or video flagged by rightsholders.

The investigation by the Department of Justice has been going on for four years, having raided the senator's remodeled home last year. But it's clear that corporations have known that Senator Stevens's vote has been for sale for some time now. The bad news alone might spell doom for the senator's re-election campaign, which would count as good news for open Internet advocates — the Democratic challenger, Anchorage mayor Mark Begich, is a strong supporter of network neutrality legislation.

The cable providers lined Canoe's pockets with $150 million to make it happen. Tough task, says the Wall Street Journal, which reports that TV programmers fear targeted advertising because it might create such value for advertising clients that they end up spending less to reach only exactly those who might buy their products. If it's a fear that sounds arcane and self-damaging, well, welcome to the contrived world of television advertising, Mr. Verklin. Oh, and here's your paddle.

Disney's ABC and ESPN are eager to have more control over their websites, as their destiny increasingly goes online, shrinking Wadsworth's empire. Adding videogames expands his authority into an especially fast-growing and lucrative area. Perhaps this is how Wadsworth has managed to hold onto power for so long — what serves his interestes in corporate politicking also happens to profit Disney..

The good news: You can wait and watch Made of Honor on your iPod in about three months! The bad news: It'll cost you $14.99 to download it. (Or $9.99 three months after that.) And for digital media that costs exactly nothing to reproduce, package or distribute, we think that amounts to little more than information highway robbery. And just in time for the studios to stonewall SAG on new-media revenues!

Or maybe they're not quite connected — yet. Conceding it would get paid for new media when studios got paid, the WGA settled its strike in February by negotiating for roughly 2% of studios' online grosses each year through 2011. But in an earnings call yesterday, Time Warner CEO Jeff Bewkes cited a 60%-70% profit margin during a VOD trial for Warner Bros. films on cable — more than twice the return on Time Warner DVD rentals. It's anyone's guess how that shakes out in terms of purchases, but with DVD sales last quarter at $3.5 billion, and with a fairly clear break between online and traditional media consumers, even a tenth of that revenue online would be enough for SAG president/time-bomb Alan Rosenberg to reinforce the hard line as the first round of negotiations come to a close Friday.

Moreover, as an observant tipster pointed out to us this morning, the markup on these downloads is pretty obscene, maybe even illegal. After piracy concerns were allayed in the last year, pricing was the only remaining sticking point for Apple — which wanted to keep purchases at $10 — and studios, which compromised at $15. Albums on iTunes cost an average of 40% less than their CD counterparts; but with online retailers and box stores pressuring DVD prices below $20, why should they get away with a difference as little as 15% in some markets — especially with no extra features or deluxe packaging? The courts have even addressed this before, but it usually applies to manufacturers complaining about suppliers, not the other way around. Someone! Get the FTC on the line!

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Here's what's odd: Pixar is now owned by Disney, which cleared everyone "currently associated" with the company of wrongdoing. That includes Steve Jobs, Pixar's former CEO, now a Disney board member, but leaves Mather out in the cold. So far out that Disney itself hasn't disclosed her legal jeopardy to its own shareholders — the people whose Mather's Pixar backdating most affected.

We've also heard talk of a deal with NBC Universal. And about four other rumored deals that will not happen. AOL, likewise, shows little sign of happening; debt-laden Time Warner wants cash, not stock, for AOL, and it's not clear how tacking AOL onto Yahoo would boost the latter's value higher than the Microsoft offer. Clever of Yahoo's bankers, though: Even talking up rival deals has to keep Microsoft scared.

Ripped copies of commercial DVDs have replaced screener copies, thanks to early-release DVDs from other world regions. Those DVDs, which skip the special features and image processing that go into American releases, were originally made to sell copies earlier in countries like Russia, where pirated screeners get ripped to DVD and are sold on the street. But by beating the pirates to the punch in the East, distributors helped viewers in the West get high-quality pirated movies before the Academy even got their screeners.

But that's not all the irony! Fear of piracy can also kill a film's Oscar chances. Baio noted in last year's piracy roundup that late and broken screeners probably killed Munich's Oscar shot in 2005, and that Crash won Best Picture after sending screeners to all the voters it could, while Disney took such anti-piracy pains that over a fourth of Academy voters didn't even watch its screeners, and Narnia only won Best Makeup.

Since some studios seem willing to kill their chances at an Oscar just to keep leaks off the Internet, I want to know: How many of you actually pirate movies online?