Business briefs

The Palo Alto-based technology company's National Identity System software runs on Microsoft systems including the .Net line of servers and database software. The system captures and stores demographic and biometric data so agencies or customs offices throughout a country can access an online registry.

Government agencies in Israel, Poland, Slovakia and Bulgaria already use some HP software, executives said. The Italian Ministry of Interior uses HP's technology to provide electronic national identity documents for all citizens.

Investment bank Morgan Keegan estimates that organizations will purchase $4.8 billion in identity management systems this year. But consumer groups and politicians worry about the privacy implications.

This week Prime Minister Tony Blair's government urged parliament to pass legislation to introduce Britain's first national ID card since World War II.

Venture capitalist suspected of fraud

SAN JOSE - A Silicon Valley venture capitalist was arrested and may enter a plea next week after allegations he defrauded Eastman Kodak Co., U.S. Bank and two smaller companies of nearly $9 million.

Palo Alto resident Moses Joseph, 45, was arrested Tuesday and sent to the Santa Clara County jail after a court hearing in his personal bankruptcy case. He's charged with eight felony counts of grand theft, two counts of perjury and one count of falsifying documents.

If convicted of all criminal counts, Joseph could be sentenced to more than sixteen years in state prison.

Santa Clara County Superior Court Judge Robert Ambrose set bail at $10 million. But Joseph's attorney said Friday afternoon the bail amount was "excessive," and he will seek to reduce it at the next hearing, scheduled for Thursday afternoon.

Joseph's attorney, John Cahners of Palo Alto law firm Cahners & Samuels, would not discuss other details of the case Friday afternoon because he said he hasn't yet determined whether he'll continue to represent Joseph.

The complaint charges Joseph with stealing $3.7 million dollars from Kodak in 2001 in a fraudulent investment scheme.

Knight Ridder drops fees for some Web ads

SAN FRANCISCO - Most of newspaper publisher Knight Ridder's Web sites have stopped charging people to post classified ads for household items and other merchandise, a switch designed to attract more traffic and spur more sales off-line as well as online.

The San Jose-based company dropped the online classified fees Friday in 22 of the 27 newspaper markets served by one of its Web sites. Previously, selling merchandise online for more than $200 cost $4.95 per month.

The giveaway applies only to online classified ads featuring merchandise. Online classifieds in most other categories, including real estate, automotive and help wanted, will continue to cost money to display.

As part of the pricing shift, Knight Ridder will start charging for classified ads featuring pets - a category that had been free under a test program introduced in November.

Knight Ridder, which publishes 31 daily papers nationwide, is following the lead of Craigslist.org, a Web site that has been letting anyone post online ads at little or no cost for years.

First started in San Francisco, Craigslist now offers classified ads in 105 cities in 21 countries.