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NEWS STREAM

Taksim Square Peaceful After Clashes Last Night; Do We Really Own Our Digital Content?; Brazil Struggles To Be Ready For World Cup 2014; CNN Takes A Look At Playstation 4; Brian Provinciano On Being An Independent Game Developer

Aired June 12, 2013 - 08:00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong. And welcome to News Stream where news and technology meet.

We're watching the situation in Turkey after another day of violent anti-government protests.

And one year to go until the 2014 World Cup kicks off. Is Brazil ready?

And, do you really own the books, games, and movies you download? We'll look at ownership in the digital age.

Now, Turkey's prime minister is supposed to meet leaders of the anti- government protests that have engulfed his country for nearly two weeks. But according to one organizer, most of those protest leaders have bailed out of the talks saying negotiations now would be fruitless.

Now this comes after a day and night of violent confrontations between protesters and police in central Istanbul's Taksim Square.

Now Karl Penhaul is in Istanbul. He joins us now live on the line. And Karl, what have you seen today?

KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT: Kristie, well what a difference a day makes. I'm just coming into country right now, but the scene right now is in stark contrast to what my colleagues were seeing yesterday throughout the day and throughout the night. Taksim Square here behind me at this time of day yesterday was the scene of running clashes between the rainbow coalition of protesters and riot police. Those clashes intensified. They ebbed and flowed. And then towards evening, as people left work and turned out in solidarity to the protest, the clashes came to a head and lasted right through until the early hours of this morning.

But now things are very calm, the police have taken up positions underneath the opera house. And in fact, they've unfurled large Turkish flags down at the opera house, very much a battle of symbols to try to show that they are in charge. But being around Gezi Park, the protesters are still assembled there, but very much milling around at this stage. And even when the riot police units of riot police decide to cross the square on foot, there is no sense that a confrontation is about to happen.

But very much this speaks to the nature of what has been going on for almost the last two weeks. Still, both sides very much measuring one an other and still no sense that one or the other side has the strength to push their opponents out of this area definitively, Kristie.

LU STOUT: So the situation at this moment this day is calm, quite in contrast to that very dramatic confrontation we saw last night.

And Karl, we know that later today protest leaders are scheduled to sit down for talks with the Prime Minister Erdogan. Is that still going to happen? And what will come out of those talks?

PENHAUL: From what we've talked to protest leaders here on the ground in Gezi Park near Taksim Square to describe those people meeting prime minister Erdogan in Ankara later today as protest leaders, maybe somewhat of a misnomer. It isn't really clear what kind of representation they are taking from Istanbul to Ankara.

It also must be said that the prime minister is also seeking to meet with some of the country's top artists, writers, singers to talk about the Taksim Square protests. And that seems to be some kind of populist move to talk to figures that the wider population know and quite possibly love. But really no sense that dialogue is going to break the deadlock here.

What seems to be shaping up over the next few days is that much of the dialogue will still be done in the streets, because already Prime Minister Erdogan has been calling on his supporters from his Justice and Development Party to stage counter demonstrations over the weekend, really a show of force. Erdogan trying to show the protesters that his supporters still outnumber the protesters, Kristie.

LU STOUT: Yeah, and how much street action should we expect in the days ahead? I'm trying to get a sense of how strong is the support for the prime minister and also the sense of momentum in the anti-government protest movement and whether or not they are energized, especially after the scenes we saw last night.

PENHAUL: I think talking to my colleagues here who have been following this over the last two weeks to talk of a gathering momentum among the protesters is really not necessarily the way we can describe it. They've been describing it much more as an ebb and flow. There's a hardcore of protesters from various groups, a rainbow coalition as I put it, camping out in Gezi Park, but then others who come in solidarity after their work day is finished. They put work first and then turn out. And that really depends much on the day.

And yesterday, for example, that there were heavy clashes in the course of the day. And then in the evening the numbers swelled into the tens of thousands.

So no sense, really, that the solidarity protesters that come after work have had their heads bowed by the level of violence that they've seen in the square, really quite the contrary, that seems to be galvanizing them into turning out. There's still a sense that they need to come out and very much this whole issue that started off about plans to develop Gezi Park really that now at this stage is a symbol and has become a symbol for much wider discontent against the government of Prime Minister Erdogan, something that Turkish experts say is really now starting to polarize society, Kristie.

LU STOUT: Indeed. Karl Penhaul joining us live from Istanbul, thank you so much for that.

Now let's map this out for you now. And the clashes have been centered here at Taksim Square. It is the central part of Istanbul. It is the city's main square. Now it's also a popular attraction for tourists, because the arts community and many restaurants are based all around it.

And just across the street is Gezi Park. It is one of the last green spaces in central Istanbul. And the protests originally began over the government's plan to demolish it and to build development that includes a shopping mall.

Now police are trying to keep the protests from spreading beyond these areas, because the road along the west side of the park is a major thoroughfare for the city.

Bu as we've told you, the demonstrations have spread far beyond Istanbul with thousands of people expressing anger at the government on a variety of issues. We have seen protests in the capital Ankara.

Now police fired tear gas at apparent demonstrators there on Tuesday night. And there have also been anti-government demonstrations in the cities of Adana and Izmir.

And according to Turkey's semi-official Anadolu News Agency, protests have swept 67 of the country's 81 provinces.

Now the American man who says that he is behind a major U.S. intelligence leak is believed to be staying in a safe house, that's according to one Guardian journalist who interviewed Edward Snowden.

Now Snowden's exact location remains a mystery since he checked out of his Hong Kong hotel on Monday. And U.S. intelligence officials are still trying to find out how the computer technician accessed so many secrets.

(BEGIN VIDEO CLIP)

MICHAEL HAYDEN, FORMER NSA AND CIA DIRECTOR: I'm more surprised that a low ranking fellow, working apparently on an NSA contract in Hawaii gets access to such a sensitive program as PRISM and access to FISA applications and FISA orders. I can't actually remember a time when I actually had a FISA order in my hand.

(END VIDEO CLIP)

LU STOUT: Now, U.S. intelligence agencies are reviewing security measures in light of the leaks. And the case against Snowden is said to be building steam. Joe Johns has more.

(BEGIN VIDEOTAPE)

EDWARD SNOWDEN, NSA LEAKER: Sitting in my desk --

JOE JOHNS, CNN CRIME AND JUSTICE CORRESPONDENT (voice-over): Investigators are asking, where in the world is the man at the center of the scandal, former intelligence contract worker Edward Snowden?

Members of Congress were told at a briefing at the Capitol that the National Security Agency doesn't know.

A real irony says former Justice Department official Andrew McBride.

ANDREW MCBRIDE, FORMER JUSTICE DEPARTMENT OFFICIAL: On one hand, the NSA is collecting all of this information, and we have liberties on the other hand, they don't know where this guy is?

JOHNS: Chief both the national security agency and the U.S. cyber commander, Keith Alexander, is heading to Capitol Hill and can expect a grilling this afternoon.

At least one member says he was surprised by the scope of the surveillance program.

REP. BRAD SHERMAN (D), CALIFORNIA: I did not know one billion records a day were coming understand the control of the federal executive branch.

JOHNS: It's part of the growing outcry for the government to make more information available to the public about its secret phone and Internet tracking program. And it's not just politicians. Internet giants, Google, Microsoft and Facebook, are calling for greater transparency, and permission to tell the public what they gave out.

And lawsuits are threatening, including the ACLU challenging the constitutionality of the phone program. Suspected leaker Edward Snowden says he wants that debate.

SNOWDEN: The public needs to decide whether these programs or policies are right or wrong.

And I'm willing to go on the record to defend the authenticity of them and say I didn't change these. I didn't modify the story. This is the truth. This is what's happening. You should decide whether we need to be doing this.

JOHNS: While a law enforcement official says there's no time frame for when charges will be filed, legal experts say the most likely charge is unauthorized disclosure of classified information under the Espionage Act.

MCBRIDE: There's one felony that pretty clearly applies and that's the disclosure felony which has a 10-year max. So you can stack those up any way you want, under the sentencing guidelines, basically, he's looking at 10 years.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: And you heard Joe mention the recent response from Tech companies. Now they have been hitting back at assertions that they provide the NSA with direct access to their data. Google posted this on its official blog. It wants permission to publish more national security requests for data saying, quote, Google has nothing to hide.

Now a Justice Department spokeswoman said officials have received Google's request and are reviewing it.

Now Twitter's general counsel says he agrees with Google and adds that Twitter supports efforts for more transparency. Now Twitter has not been named as a company involved in the NSA's PRISM program.

Now concerns are not limited to the U.S. The EU's justice commissioner says this case shows why a clear legal framework for the protection of personal data is not a luxury, but a necessity. Now she says -- now she has asked that the U.S. attorney general for detailed explanations about PRISM.

Now, a 94-year-old Nelson Mandela, he remains hospitalized in intensive care for a fifth straight day. And family members are visiting the Pretoria hospital with the former South African president is being treated for a recurring lung infection. A government spokesperson says that the elderly statesman remains in serious, but stable condition. And people around the world are offering prayers for the anti-apartheid icon.

You're watching News Stream. And still ahead, a breakdown in communications. Now promising talks between North and South Korea have been called off, dashing hopes of a new thaw.

Plus, can you be too plugged in? A CNN correspondent finds out what happens when you're wired on the road.

And countdown to the kickoff. We are live in Brazil to check on preparations for the World Cup.

(COMMERCIAL BREAK)

LU STOUT: Welcome back. You're watching News Stream. And you're looking at a visual version of all the stories we've got on the show today.

We began in Turkey, which has seen two weeks of sometimes violent anti-government protests. And later, we look at the issue of digital ownership and whether you actually own games that you buy for Microsoft's new Xbox One.

But now we turn to the Korean peninsula.

Now the first high level talks between North and South Korea in years have been called off. Apparently the two sides couldn't agree on the makeup of the delegations. Diana Magnay has been following developments from Seoul.

(BEGIN VIDEOTAPE)

DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT: Things have been especially tense between North and South Korea for the past few months since really the North Koreans conducted a nuclear test in February and then you had a tightening of sanctions and then that very war-like rhetoric coming from the North in April when they threatened nuclear warfare against South Korea and the U.S. if they were provoked.

So these talks were really billed as an attempt to try and regain trust between both sides, agreed upon by the North last week. But the talks broke down, really, because neither side could agree on the level of delegates the other side was planning to send to the talks.

RYOO KIHL-JAE, SOUTH KOREAN UNIFICATION MINISTER (through translator): We cannot bring a result that our people were expecting, but I think it is one of the pains we have to go through for a new relationship between South Korea and North Korea. North Korea should show sincerity for a new relationship between the two Koreas in the future.

MAGNAY: What they were going to be talking about, well, economic cooperation. First and foremost, the restarting of the Kaesong Industrial Complex, that's this shared economic zone between North and South, the only real example of concrete cooperation between the two where South Korean factories employ 50,000 North Korean workers. It's a very important source of hard currency for North Korea.

But the complex was shut down on North Korea's initiative when relations between both sides deteriorated.

The head of the Association of South Korean Firms at Kaesong had this to say.

HAN JAE-KWON, KAESONG INDUSTRIAL COMPLEX COMPANIES ASSOCIATION (through translator): Businessmen at the Kaesong Industrial Complex who have been waiting for the normalization of the complex don't know how to express our grief over the meeting's cancellation. First of all, we urge North Korean authorities to come and attend high level talks for the normalization of the Kaesong Industrial Complex as soon as possible.

MAGNAY: Last Friday, the telephone hotline between North and South Korea was reestablished, but since those talks broke down on Tuesday, South Korea says that it's twice tried to reach the North, but the North has failed to respond.

Diana Magnay, CNN, Seoul.

(END VIDEOTAPE)

LU STOUT: Now Pope Francis has touched off a controversy with comments reportedly made. And according to this website, the leader of the Roman Catholic Church has said, quote, "gay lobby exists inside the Vatican." Now the website published notes from a private meeting that Pope Francis had with Catholic officials from Latin America and the Caribbean. And he's quoted as saying, "in the curia, there are holy people, but there is also a stream of corruption."

Now the curia refers to the church's central bureaucracy.

And the website reports that the pope went on to say that the gay lobby has been mentioned and it is true it's there. We need to see what we can do about it.

A Vatican spokesman told CNN it has no official comment on the private meeting.

Now handsfree technology has allowed you to talk on the phone while you drive, but what if you could have your text messages read out to you and reply with your voice through a computer? Up next on News Stream, we'll show you why that could be a driving distraction.

(COMMERCIAL BREAK)

LU STOUT: Coming to you live from Hong Kong, you are back watching News Stream.

Now when Apple unveiled the latest version of the iPhone and iPad operating system, they didn't just give it a new look, they also added the ability for your iPhone to control a car's entertainment system. Take a look.

(BEGIN VIDEO CLIP)

EDDY CUE, SENIOR VICE PRESIDENT, APPLE: So now when you make a phone call it's going to look something like this. Call John Appleseed. Or, play get lucky. Or go to maps, get directions, or even get your iMessages read to you and you can dictate a response all eyes free.

(END VIDEO CLIP)

LU STOUT: All right, now having your car read out your text, it should keep your eyes on the road, but is it safe? Chris Lawrence finds out.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): We all thought hands- free would allow us to combine the morning commute with the demands of staying connected.

YOLAND CADE, AAA: Making the decision to talk hands free and interact with this technology does pose a considerable risk.

LAWRENCE (on camera): Right here?

(voice-over): But I wanted to get a firsthand look.

(on camera): Let's drive.

(voice-over): So, researchers wired me up to see if I could still drive.

UNIDENTIFIED MALE: So this is measuring your background mental workload.

LAWRENCE: Making hands three calls --

(on camera): Good. I'm out of here on the driving test.

(voice-over): And using new voice-to-text technology.

VOICE: We should get together sometime soon. OK. What would you like to say?

LAWRENCE (on camera): How about Sunday?

(voice-over): One message seems simple enough.

(on camera): Next message.

VOICE: Text from Courtney.

LAWRENCE (voice-over): Until you realize they just keep coming.

VOICE: Your next message is loading. Message from Psychology Survey, text from Victoria. Are you busy tonight?

LAWRENCE: Does 8:00 work for you?

(voice-over): And the more I tried to multitask, the less my brain could do.

CADE: How your driving performance deteriorated, your brain activity really, really was reduced and transformed, during the process of trying to perform tasks behind the wheel.

LAWRENCE: It's hard to disconnect. I get it. My daughter's in day care and catches every cold known to man, my wife works ten hours a day, and she's nine months pregnant, and my bosses at CNN, they want what they want when they want it. So, when can I put this down?

UNIDENTIFIED MALE: We also collected your brain waves while you were driving.

LAWRENCE (voice-over): And those prove that even when I wasn't using my hands, my brain was still engaged in conversation.

UNIDENTIFIED FEMALE: Siri, do I have any text messages?

LAWRENCE: And the automakers and app designers are not making it easier, adding features like Facebook and Twitter to our dashboards.

CADE: This really is a serious looming public safety crisis for us.

UNIDENTIFIED MALE: When I'm trying to look out for the red and the green light and listen to the message and keep my eye on the pylons, I mean, it was tougher than I thought it was.

Chris Lawrence, CNN, Washington.

(END VIDEOTAPE)

LU STOUT: A very powerful lesson there.

Now CNN is diving into the world of comic books as we take a look writers, artists, films and characters in this global industry.

Now in part three of our week long series, we focus on Stan Lee, the comic book legend who started it all -- Spider-Man, Iron Man, X-Men and The Hulk just to name a few.

Now he wants to create superheroes for China and India. Neil Curry has more.

(BEGIN VIDEOTAPE)

NEIL CURRY, CNN INTERNATIONAL CORRESPONDENT: Stan Lee loves a cameo. He frequently pops up in superhero movies featuring the characters he co- created 50 years ago.

STAN LEE, COMIC BOOK LEGEND: I should be on that list. I am Stan Lee.

UNIDENTIFIED MALE: Yeah, nice try, buddy.

LEE: I think that audiences throughout the world love superheroes. I mean, you could go back to the time of the Odyssey. There have been superhero -- whether it's William Tell, or no matter -- El Cid, every type, every nationality, every culture has had superheroes and it just occurred to us at Pow! Entertainment, why don't we create a superhero with a Chinese background?

ERIC MIKA, CEO, MAGIC STORM ENTERTAINMENT: Traditionally, China has had their superheroes, but not in the classic sense of the Hollywood superhero that we imagine.

LAN SHI, ACTOR/CO-PRODUCER: In China, we have one to four ancient stories about heroes like martial arts or traditional characters like Monkey King and also Chinese now really proud of their real-life hero in sports like Yao Ming or Liu Xiang and they are all very proud of being Chinese now.

MIKE: What I've observed since the Olympics is more and more the acceptability of the Chinese culture, that there is a possibility that a single individual can be a superhero and possess these wonderful powers that motivate them to do good things.

SHI: I think before we think it's very far from us. I mean, the superhero is just western superhero. But now people, because knowing them more and more so they're willing to have a superhero happen to be Chinese, that's what we're creating.

CURRY: Chinese investment in Iron Man 3 produced additional scenes for the Asian market featuring Chinese locations and actors alongside Hollywood star Robert Downey, Jr. This helped secure distribution in China, which strictly controls the number of international movies on its screens.

The Annihilator is intended to be a full co-production with a big budget and a Chinese actor in the lead role.

LEE: Let me say that while, of course, we're doing this in conjunction with our Chinese friends, we're not forgetting the rest of the world. And it occurred to us it would be really great to have an Indian superhero. And we came up with Chakra.

SHARAD DEVARAJAN, CEO, GRAPHIC INDIA: The character we're creating is called Chakra The Invincible. Chakra is really about a young kid named Raju Rai (ph) who is in Mumbai who through a series of events helps create an Iron Man type suit that activates the chakras of the body.

The concept of the hero, the concept of the superhero has been around for thousands of years. You know, they've been around for thousands of years in our mythologies and our culture, in our way that we have, you know, heroes and gods with super bows and super powers. So I felt that the introduction of the concept of what we've called the western superhero was not that far of a stretch.

India doesn't look at heroes and villains as so black and white maybe as what we'd see in the west. I think that, you know, we have a much more gray kind of respect for the divine and diabolical may exist within the same god.

I think what we're trying to do is create heroes that are a lot more nuanced. We don't think of Spider-Man necessarily as an American hero, we think of him as a global hero today, just as we wouldn't think of Harry Potter as a British hero, we would think of him as a global hero. So our hope is that Chakra really can get involved to that level where, you know, ultimately kids around the world can connect with him regardless of where he is.

CURRY: While he hopes the world will embrace Chinese and Indian superheroes, Stan Lee is certain of one thing.

LEE: Well, Americans of course will enjoy the movie, because I'm going to try to see if I can't have a cameo in it.

(LAUGHTER)

CURRY: Now into his 90s, the comic book king continues to stand shoulder to shoulder with his beloved superheroes.

LEE: You know, I guess one person can make a difference. Enough said.

CURRY: Neil Curry, CNN.

(END VIDEOTAPE)

LU STOUT: Now we are now just 12 months away from the football World Cup in Brazil. And as excitement builds, we'll see if the country's main stadiums are going to be ready in time.

And then we go to Serbia where football fans have come under scrutiny for some very ugly behavior.

All that and more next on News Stream.

(COMMERCIAL BREAK)

LU STOUT: I'm Kristie Lu Stout in Hong Kong, you're watching News Stream and these are your world headlines.

Now Turkey's prime minister is scheduled to meet leaders of anti- government protests today, but according to one protest organizer, most of those leaders will not be attending the meeting because of the violence in Istanbul on Tuesday. Riot police confronted thousands of demonstrators in central Istanbul's Taksim Square. And a protest leader tells CNN the organizers who will meet Prime Minister Recep Tayyip Erdogan are friendly with the government.

Now just a short time ago, South African President Jacob Zuma told parliament that Nelson Mandela is responding better to treatment for a recurring lung infection. Earlier, officials said his condition remains serious, but stable.

Now family members are visiting the former South Africa president as he spends a fifth day in the hospital.

A strike by French air traffic controllers is causing major disruption for travelers in Europe for a second day. Hundreds of flights have been canceled, including half of all scheduled services in and out of Charles de Gaulle Airport in Paris.

Britain's Guardian newspaper says Edward Snowden is believed to be hiding in what it calls a safehouse. U.S. officials have said that they don't know where to find the American computer technician. The FBI is preparing a case against him for leaking information about the National Security Agency surveillance of telephone and internet data.

We are exactly one year away from the 2014 World Cup in Brazil. The tournament will take place in 12 stadiums across the country. Now the opening match kicks off in Sao Paolo, but that arena is one of six still under construction. So people are asking will Brazil be ready?

Well, let's bring in Paula Newton. She joins us from outside one of the world's most popular football stadiums. And Paula, just how ready is Brazil?

PAULA NEWTON, CNN CORRESPONDENT: Well, you know, it depends on who you speak to and where you are. I'm right here in Rio. I have Maracana Stadium behind me. This will be the site of that final World Cup match, which of course Brazil hopes to win.

You know, there have been a lot of hiccups, there have been a lot of challenges, but in many ways, Kristie, this game, football, is coming back to where many people believe its heart and soul is. And for that reason, FIFA has a lot at stake, this country has a lot at stake. And so it is not without its challenges, especially when you talk about this is the largest country in South America. There are 12 different host cities.

Kristie, I have to tell you, though, the most fascinating is the one that is in the city of Manaus in the Amazon. I want you to take a look at this right now. The problem is, wait until you see its state of readiness.

(BEGIN VIDEOTAPE)

NEWTON: It's one of South America's most unique cities with the Amazone Rain Forest as its backyard. This is Manaus, Brazil. And in 2014, it will also be one of Brazil's 12 host cities for the FIFA World Cup.

Around the city, you can see this rendering of what the stadium will look like. But like many of Brazil's World Cup venues, reality it is still very much under construction.

MIGUEL CAPOBIANGO NETO, COORDINATOR, MANAUS WORLD CUP MANAGEMENT UNIT (through translator): We started the construction of the Arena d'Amazonia in June of 2010. We started destroying the first stadium that was here before, and since then we've been building this arena that will be the beauty of the World Cup.

Right now, we're about 65 percent done. So we'll finish in December of this year.

There really is no option other than to be done by then, because having the Amazon as a backdrop is both a blessing and a curse.

The rainy season will start in December, giving Manaus only six months to finish instead of a full year.

Now to help save time, parts of the stadium, like the roof, are being built in other locations from Portugal to Germany to southern Brazil and then assembled in Manaus.

NETO (through translator): These logistics give us a big headache, so we need very good planning to have everything here at the right imte.

NEWTON: Manaus's mayor Arthur Virgilio admits he, too, is a little worried, but knows too much is at stake for his city not to be ready and that they can't just rely on the attraction of the Amazon.

ARTHUR VIRGILIO, MANAUS, BRAZIL MAYOR: Nature is OK, nature is OK. We have to do the part of men as it gets -- god gave us his part, it's OK. We have to do ours now.

NEWTON; The stadium will take advantage of those natural resources so abundant here by implementing eco-friendly solutions into the design. They are also using material from the original smaller stadium that once stood in the very same spot, that's to cut down on the amount of waste.

NETO (through translator): When we thought about building this arena, we thought about sustainability by saving the rain water, using sunlight and using the wind.

NEWTON: In this city of nearly 2 million people, infrastructure, though, is also a question mark. But the city hopes scheduled improvement projects meant for the World Cup, like expanding the airport and improving electricity supplies, will continue to benefit Manaus long after 2014.

(END VIDEOTAPE)

NEWTON: Of course, they do have to get the entire stadium finished, first, but Kristie I think with many here, whether it's on the football pitch or off, never count Brazil out. You know, we have less than an hour to go now to the official countdown to the one year clock of the World Cup. Certainly FIFA officials, local officials are a bit apprehensive, but they're also incredibly excited.

I should say, Kristie, Pele will -- the Brazilian football great -- will also be at that announcement -- Kristie.

LU STOUT: Very exciting, and good to hear. And Paula, I understand that Brazil has its own version of the infamous vuvuzela? But we might not hear this instrument there at the World Cup? Why is that?

NEWTON: You know -- I really have to show you a shot of this. It's called the cashiola (ph). And of course, FIFA had said given it its blessing. The local officials here in Brazil have come up with it. And it's kind of a tambourine type of instrument. The problem is, Kristie, that during a test match it actually became a security problem when fans who were issued the cashiola (ph), it's like a tambourine instrument, threw it onto the pitch. And now it has been definitively absolutely banned.

So we'll wait to see whether they try to come up with something else to compete with that vuvuzela which sound was incredible from South Africa and who would ever forget those sounds from that stadium, or whether they just decide, look, I think we better play it safe and not introduce that kind of an instrument that could possibly be a security risk at the stadia.

But, you know, Kristie, they don't really want to say that there are going to be security problems there, hoping that despite all these hiccups, whether it has to do with the instruments or the stadium problems, that these matches will go off without a hitch.

As I said, the Confederation's Cup is starting on Saturday. That is the festival of champions. It's a good warmup event for the World Cup. Eight nations from around the world competing, including Brazil. And that will certainly give us the guide in the next two weeks.

LU STOUT: Well, here's wishing that all the organizers there in Brazil the best of luck. But Brazil deserves its own noisemaker for the World Cup. Let's hope something can be agreed upon.

Paula Newton joining us live from Rio, thank you.

Now let's turn to European football now and the problem of racism in the game. As Pedro Pinto reports from Belgrade, it has been under scrutiny, particularly after an incident there last year.

(BEGIN VIDEOTAPE)

PEDRO PINTO, CNN SPORTS CORREDSPONDENT: Belgrade, Serbia, home to some of the world's most passionate football fans, but fans whose reputations have sometimes been called into question. Along with many countries in Eastern Europe, Serbia have been charged and punished for racist chanting and abuse over the past two years.

Most notably, the ugly scenes against England's under 21s in October when defender Danny Rose was taunted with monkey chance. The Serbian FA was eventually fined $99,000 for the disturbances.

But just how valid is the negative reputation of Eastern European fans?

Savo Milosevic is a familiar face to football fans. The striker had spells in England and Spain as a player in the 90s. And now, he holds an important role at the Serbian FA as a technical director.

Tell us in your words, from your perspective, what happened at the end of that game between England and Serbia.

SAVO MILOSEVIC, TECHNICAL DIRECTOR, SERBIA FA: In that game, I think one player, in this case Nikovic (ph) started everything. He had some arguing during the game with -- I don't remember the name of the guy, English guy, number 3.

PINTO: Danny Rose, I think.

MILOSEVIC: Danny Rose. They were arguing during the game. And he was then -- we saw that our coach so that he called out Nikovic (ph) from the bench. But after the game he came onto the pitch and started everything. And that's how it started everything.

PINTO: There was a lot of aggression on the field, but if you listen to what Danny Rose said, if you listen to what Tom End (ph) said, there was some racial abuse as well from the supporters. Did you hear that?

MILOSEVIC: No.

PINTO: You didn't?

MILOSEVIC: From the YouTube video I've watched, I've seen that there were some monkey chants going on at the end. And that is why your federation was fined, correct?

MILOSEVIC: Not for racism. We're fined for the...

PINTO: ...for the violence.

MILOSEVIC: ...for the violence.

PINTO: As far as the coverage that this got overseas, a lot of people talked about racism. So what was your reaction to that?

MILOSEVIC: Well, I think people made out of this much bigger problem that we actually have. We don't have a strategy to fight against racism in the FA of Serbia, we also we don't have a strategy in our government to fight against racism simply because we don't consider it as a problem here.

PINTO: But is it a problem for the handful of black footballers in Serbia either on the pitch or on the street?

(END VIDEOTAPE)

LU STOUT: Join Pedro Pinto for a CNN special World Sport Presents Racism in Football. That's Saturday morning at 9:00 am in London, 10:00 in Berlin, midday in Abu Dhabi right here on CNN.

Now time to get your global weather forecast and a focus on the fires burning in the western part of the U.S. Mari Ramos joins us for that. She joins us from the world weather center -- Mari.

MARI RAMOS, CNN INTERANTIONAL CORRESPONDENT: Hey, Kristie. This is an area that long has suffered from drought. And these fires are really taking a toll on the region.

I want to start you off first of all showing you right here on Google Earth the many fires that are burning in this area. This one near Colorado Spring, Colorado is called The Black Forest fire. And it's the one that's getting the most attention, because of the five fires that are burning in this area, this one is covering more than half of the more than 12,000 acres that have already burned across areas. This is about 30 square kilometers.

More than 5,000 homes have been evacuated, and this is the reason why. Look at these pictures. This is from that particular fire. And look at that, this is just one of those many homes that have been burned to the ground. Over 1,000 people had to be evacuated from in and around these areas, because the fires are moving so quickly.

There is a high fire risk again as we head through the day today. The winds were slightly lower in the overnight hours, but the national weather service has said that this area right here of Colorado has something called explosive fire conditions. What that means is that if there's a fire already burning or a new fire were to start, it would spread at an explosive rate. Extremely fast, and would be very hard to control. That is what firefighters are up against again today.

One of the main concerns, of course, is the wind. The wind expected to pick up across this area again throughout the day today and then, also, as we head through the day tomorrow.

Now the western part of the U.S., as we head farther to the west, we're still looking at the potential for more fires.

Come back over to the weather map. The drought is a huge concern. Look at these areas in the bright red. These are the areas that are still under that extreme drought. And in Colorado, including that area of Colorado Springs where this fire is burning is in that -- still in that red shaded area. But as I showed you, it includes many parts of the western U.S. as well.

Now, again, extensive, or potentially explosive fire conditions across other portions of the U.S. through Nevada back over into Arizona and parts of New Mexico, California this time around now so bad. But strong winds up to maybe 80 kilometers per hour. Low relative humidity and near record high heat will continue to be a concern.

Nothing in the way of rain expected there. The stronger storms will actually be moving throughout the day today and tomorrow across the Great Lakes with the potential for some severe weather there. And then over toward the East Coast of the U.S. as we head through the day on Thursday.

Let's go ahead and switch gears here and talk about the weather across Europe with this last minute that I have for you. Again, the situation, an emergency flood situation across Europe. This is one of those many dykes that burst flooding many homes across the area. It is a fight, really, against time even though across some parts of eastern Germany the water is starting to go down.

I want to take you along the Danube River here, because it's still critical as it -- from Hungary and into Serbia.

From this town, Baja here. Next door to is is a town called Bata. And we have video to show you from that area, pretty dramatic stuff coming out of here as well, that familiar scene of sandbags and hundreds and hundreds of volunteers trying to keep the river at bay. The Danube cresting now in this area, expected now to move farther south to Belgrade. It should be getting -- the crest should be getting there by the beginning portion of this weekend, or toward the end of the weekend, something we'll continue to monitor closely.

Come back over to the weather map, let's go ahead and take you farther to the north here along the Elbe River. The crest now just south of Hamburg. Here, the water level, Kristie, over 9 meters high, or about 9 meters high. This is so significant because it's -- the normal level is less than 3 meters. So we're looking at an extremely high water level and the potential for more flooding until that bulk of the water reaches the North Sea.

Back to you.

LU STOUT: Yeah, very scary just how high that water level is there. Mari Ramos with the very latest. Thank you.

And you're watching News Stream. Still to come, it sounds like a riddle, can you own something that doesn't physically exist? That's part of the big debate over digital ownership.

You may have a huge iTunes library, but you have limited rights. This week's fast forward is straight ahead.

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LU STOUT: You're watching News Stream. And let's return to our visual rundown. In a few minutes, we'll show you a hands on test of Sony's new PS4. But before we turn to the Playstation, let's talk about the new XBox in our fast forward segment, and a brewing controversy over whether you truly own the games you buy for the new XBox.

Now Microsoft put out a statement clarifying its policy of games for the XBox One. Microsoft says you can sell games, but only to participating retailers and game publishers can choose to block it if they want to.

But the biggest indicator of where they're going is right here in the title, how games licensing works on XBox One, not owner, but licensing.

Now restrictions on what you can do with digital content is known as DRM. It's short for digital rights management. Now DRM is what stops you from just copying a Kindle book file and giving it to everyone you know or playing iTunes movies on computer you haven't authorized.

But do we actually own those items? Are they ours to sell? Let's bring in the managing editor of The Verge, and I should add, a former copyright lawyer.

Nilay Patel joins me now live from New York. Nilay, it's good to see you.

And Nilay, in this digital age, what exactly do I own and what do I not own?

NILAY PATEL, MANAGING EDITOR, THE VERGE: You own very little. I mean, that's just the reality on this, especially as the products we buy become an ever more integrated combination of hardware and software. The software piece of it is under copyright law. And the copyright law is rapidly falling behind. The restrictions on what consumers could do with copyrighted items used to be tied one-to-one with the physical nature of those items, right?

So you would buy a CD and the things you could do with it were limited by the fact that you only had one of them. Now when you buy an iTunes MP3, or a file, rather, the things you can do with it are not limited by its physical nature. You can copy it any number of times. You can distribute it to millions of people. And that really scares the publishers, that really scares the content creators. And they are trying to enforce, they are trying to recreate the restrictions of the physical world in the digital. And I think they've gone a little too far.

LU STOUT: And there is a big backlash, an anti-DRM backlash among consumers. We know that Sony is capitalizing on it with its how to share games video. In fact we have it. Let's take a look at it.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This is how you share your games on PS4.

UNIDENTIFIED MALE: Thanks.

(END VIDEO CLIP)

LU STOUT: Simple, cheeky, making a point.

Now given the consumer backlash about digital rights management. Nilay, do you think the law will change?

PATEL: I think the law really needs to catch up with the fact that what you just saw there, somebody handing a game to somebody else is not actually reality, right, that it might be reality for the world of video games and a world of other physical items, but we're not buying movies like that anymore. We're certainly not buying music like that anymore. And if you look at, you know, the third kind of major gaming platform in the world, which is the smartphone, we're not even buying games like that anymore.

So if you're going to spend, you know, $10,000 on iTunes over the course of your lifetime, you probably need to find a way to realize the value of that and sell it or even something as simple as pass it on when you die. And we haven't solved those challenges at all, because the law still understands physical items. We're still trying to move physical things around.

You have a great record collection, you can give it to your kids when you pass away. You have a huge iTunes library, it's actually very unclear what you can do with it.

And there are court cases pending in the United States. They don't seem to be going very well for people who think that you should be able to transfer digital goods. And, you know, the big features of the Xbox One and the Playstation 4 are you're going to be able to buy the games online, you're going to be able to stream the games without having to go to the store and buy them. And you're still paying $60 for the games.

So you need to be able to find a way, especially for these markets of teenagers and younger people who are buying this stuff, to make them keep spending without having to say you can never, ever sell these games again.

LU STOUT: Yeah, just for sake of ease of use from the consumer's perspective, let's hope for change here.

Nilay Patel of The Verge, thank you so much for joining us. Really appreciate it.

PATEL: Thanks for having me.

LU STOUT: Now, Sony has unveiled its latest gaming console, but how does it measure up to the competition? Coming up next on News Stream, we go hands on with the Playstation 4 and get a review. Stick around for that.

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LU STOUT: Welcome back.

Now Sony showed up the Playstation 4 this week at gaming's biggest event of the year, the E3 show in Los Angeles. And CNN Money's Adrian Covert is there with some hands on impressions of the PS4.

(BEGIN VIDEOTAPE)

ADRIAN COVERT, CNN MONEY: We're here at E3 where we got to check out the Playstation 4, which is Sony's next generation console that's expecting to go toe-to-toe with the XBox One later this year.

Though they didn't have the full array of accessories on display, they did have a few playable demos and they had the controller for the public to check out.

Many of the games, including Black Light: Retribution are faster, smoother and more dynamic than ever before. But if you want to compare this prop of games to previous generations of consoles, the leap in graphics and gameplay are less pronounced than before.

When it comes to the controller, this may just be the best controller that Sony has ever made. And that's important, because it's how you spend most of the time interacting with the console. Everything from the ergonomics to the triggers to the joysticks feel like they've been crafted to really cater to core gamers.

And speaking of core gamers, that really seems to be Sony's focus with the Playstation 4. Unlike the XBox One, which is trying to cater to a mainstream demographic with a device that can stream movies, play games and do a little bit of everything else, Sony really wants to be about the games. And that's why they've gone ahead and made decisions to not require an internet connection all the time, or to allow gamers to use any used game they want in any console they want.

It seems like little details, but those are the details that matter to real hardcore gamers.

When it comes to the real benefits of the Playstation 4, the impact of what's been improved might not be immediately felt right now, but years down the road what they're doing with cloud technologies and the ability to share gameplay footage and connect with your friends is something we might come to appreciate.

But for now, the Playstation 4 might not feel quite like the future to everyone.

(END VIDEOTAPE)

LU STOUT: Adrian Covert there.

Now this week, we're not just bringing you a look at games from E3, we're also looking at the people who make games. And today, we'll hear from an independent game developer who quit his job in a major studio to work on the game he always wanted to make.

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BRIAN PROVINCIANO, RETRO CITY RAMPAGE CREATOR: I'm Brian Provinciano, developer of Retro City Rampage.

Retro City Rampage is an open world game that plays homage to everything that I grew up with as a child. So the video games, the pop culture of the 80s and 90s, we've been to this crazy open world kind of a toon town.

Independent developer differentiates itself mainly because you're wearing so many hats. When you're working for a big studio, they've got different roles filled by all sorts of different people. And when you're a smaller studio or an independent, you're filling a lot of those roles yourself, if not all of them.

I love the creative freedom, and that's something that I -- the bigger the game that I was working on for other studios, the less creative freedom I had to the point where when I was working on a huge $30 million game, I felt like a cog in the machine. I was just so small because there were I think 150 people on that team or something. And so when I'm creating my own games, I have complete creative freedom and I can make decisions based on whatever I want to do.

I feel like games are -- especially independent games -- are much like song writing, that's what I compare them to a lot, because it gives us a voice. And it's an interactive medium, but we can talk to the player while they're playing it.

The first game I remember playing was Super Mario Brothers 1. And it was really exciting because I didn't have a Nintendo at the time. So I would go to friend's houses and play it. And it was always a big treat when I'd be able to do that.

My parents were actually really concerned that video games might hinder my future. I'm really happy now that I've been able to show them that I've been able to make a great career out of this and it all worked out.

(END VIDEOTAPE)

LU STOUT: All right. Good stuff.

And Brian also told us that the team that made Retro City Rampage was made up of just five people.

Now tomorrow we'll hear from a game developer at the opposite end, a man behind some of the most popular gaming blockbusters of the last few years.

And that is News Stream. World Business Today is next.

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