• National retailer Borders Group reported a 10.4% increase in sales for Q2 2007. With the help of the latest Harry Potter book, U.S. comp store sales were up 4.6%. Music sales "continued to decline," though no hard number was given in the release. I listened to the conference call, and unless I zoned out at some point, music sales were not mentioned. (Earnings release)

• Music and video distributor Handleman reported a loss of $17.7 million for the quarter ended July 28, 2007. Revenues were up 14% even though last year's loss was only $5.9 million. The company's music category revenues decreased by $13.8 million versus last year. (Press release)

• Sony has another rootkit problem, this time from a USB drive that contained software that installs a hidden directory. (The Register)

• Jupiter's Mark Mulligan on Nokia's new mobile music store, Ova: "So was it worth the wait? Well the devices were, the latter two Xpress Music devices in particular from a music perspective. The three way sync is also a nice, innovative alternative to dual delivery. But beyond that, the music service is a disappointment. The music subscription service is a PC only streaming service that does not support portable downloads and as such is a generation behind current offerings. And it begs the question, why is a mobile handset manufacturer launching a music subscription service which does not support portable downloads or mobile streaming? Similarly the download service is essentially a ‘me too’ offering, based around 99 cents, windows DRM wrapped single track downloads." (Mark Mulligan's blog)

• Ween has signed to Rounder Records.

• Curb Records has signed 16-year-old Ashley Gearing, who is in studio with producer Bryon Gallimore. (Country Standard Time)