The talks come as Apple is separately racing to offer a portable, full-featured, tablet-sized computer in time for the Christmas shopping season, in what the entertainment industry hopes will be a new revolution. The device could be launched alongside the new content deals, including those aimed at stimulating sales of CD-length music, according to people briefed on the project.

Apple is working with EMI, SonyMusic, Warner Music and Universal Music Group, on a project the company has codenamed "Cocktail", according to four people familiar with the situation.

The Financial Times' sources point out that the device will have a 10-inch touchscreen and run iPhone OS. The tablet will be able to connect to the Internet using Wi-Fi like the iPod touch, and—according to publishers—it will also have a book marketplace. Yes, that's Jeff Bezos' worst nightmare.

Like always, remember our rule about rumors: Don't trust them—although secretly I hope they are right. Or else:

[Financial Times via 9to5]

Roy, a New Hampshire resident, actually thought the letters she received from UMG's lawyers were either a joke or a scam and didn't respond for several months. Her reaction is pretty understandable; the RIAA simply directed her to a site where she could pay her "debt" with a credit card (which certainly seems like a scam) and, again, Roy did not own a damn computer.

UMG had mistakenly sued her due to the vast deficiencies in MediaSentry, the anti-piracy software the RIAA uses to track down pirates. MediaSentry incorrectly pinpoints IP addresses with not uncommon frequency, and this is obviously one such case. Roy mounted a case and UMG was forced to settle out of court, for fear that any decision at all would result in a precedent that could mean future suits could be thrown out as well. Unfortunately, the settlement does not include UMG paying Roy to apologize for being such a-holes about the whole thing, and neither side will receive any money. [Recording Industry vs. The People via Electronista]