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top headlines

Napster set back in copyright lawsuit by music industry. A federal judge has rejected Napster Inc.'s defense against a music industry lawsuit that it is protected by digital copyright law. ASSOCIATED PRESS

Bill would enable employers to give workers computers tax-free. Workers who take advantage of their employer's gift of a free computer or cut-rate Internet access would not face income tax consequences under legislation introduced in the House. ASSOCIATED PRESS

Cambridge Incubator, Draper Fisher Jurvetson launch $100 Million fund. Cambridge Incubator announced today that it has named Scott Johnson as managing director and managing partner for the DFJ New England Fund I, which will target emerging e-businesses. PRESS RELEASE

Reuters to buy Boston's Yankee Group for $72.5 million. Reuters Group said it agreed to buy Boston-based technology research and advisory firm Yankee Group Research Inc from financial information publisher Primark Corp for $72.5 million cash. REUTERS

Microsoft readies 'measured' response. Microsoft's response to the government's breakup plan, due tomorrow, will likely question most of the government's basic assumptions and could send the case into weeks, if not months, of additional court proceedings. ASSOCIATED PRESS

Philippines 'Love Bug' suspect ordered freed. Philippine prosecutors said on Tuesday police did not have enough evidence to hold a man suspected of being a creator of the crippling "Love Bug" computer virus and ordered him set free. REUTERS

Experts differ on investing as economy slows. One thing is clear: We are heading into a period of rising interest rates and eventually, a slowing economy. Given this backdrop, where do you want to invest? What should you be buying and what should you avoid? BOSTON GLOBE

Napster loses preliminary court battle. In the latest battle over music copyright on the Internet, the Recording Industry Association of America scored a preliminary victory against Napster Inc., a technology company that enables users to trade music files for free over the Internet. BOSTON GLOBE

Canadians talk tech in Boston. Canadian Prime Minister Jean Chretien, accompanied by executives from 40 companies in Eastern Canada, was in Boston Sunday and yesterday to try to convince New England business owners and venture capitalists that Canada is not just about salmon, oil, and timber anymore. BOSTON GLOBE

Stone & Webster agrees to sell off most assets. Stone & Webster Inc. said last night that it plans to sell most of its assets and seek bankruptcy protection, ending a 111-year run for what was once the hottest technology start-up in town. BOSTON GLOBE

Mixed finish for stocks. Stocks drifted to a mixed finish in the quietest session of the year yesterday as investors worried about interest rates and took profits from a modest rally on Friday. Technology stocks fell. ASSOCIATED PRESS

Microsoft wins round in Java copyright dispute. Microsoft won a victory Monday in its battle with Sun Microsystems over the Java programming language as a federal judge dismissed Sun's claim that Microsoft had broken copyright laws. ASSOCIATED PRESS

LEGO's Spielberg product targets young moviemakers. LEGO, the venerable Danish toymaker, is launching a new product that will allow children to get in touch with their inner Steven Spielberg. REUTERS

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