(Reuters) - A divided U.S. federal appeals court rejected Electronic Arts Inc'seffort to throw out a lawsuit by former collegiate athletes who accused the company of using their images in video games without permission.

By a 2-1 vote, the 9th U.S. Circuit Court of Appeals said EA's use of the athletes' likenesses in its NCAA Football and NCAA Basketball games did not deserve protection as free expression under the First Amendment of the U.S. Constitution.

Samuel Keller, the former Arizona State University quarterback, and eight other plaintiffs had claimed that EA used their identities and likenesses without compensation.

The decision upheld a ruling by U.S. District Judge Claudia Wilken in Oakland, California and sets the stage for Keller to seek class-action status on behalf of other athletes.

"It says that athletes do have a right of ownership in their images, even after they leave college," said Robert Boland, a sports law professor at New York University's Tisch Center. "While it doesn't change the status of athletes now in college, it begins to shape their financial rights in their images."

EA plans to appeal.

Wilken also oversees a four-year-old antitrust lawsuit led by former UCLA basketball star Ed O'Bannon, among the plaintiffs in the Keller case, over whether athletes should share in profit from the National Collegiate Athletic Association's broader use of their names and likenesses.

Billions of dollars may be at stake in that case.

In a separate decision on Wednesday, using a different legal test, the same 9th Circuit panel unanimously upheld another judge's dismissal of National Football League Hall of Famer Jim Brown's trademark case against EA over the use of his likeness in its Madden NFL video game.

RECREATING A QUARTERBACK

Writing for the Keller majority, Circuit Judge Jay Bybee said EA's games lacked "significant transformative elements" to defeat the athletes' right-of-publicity claims, and that NCAA Football "literally recreates Keller in the very setting in which he has achieved renown."

The judge noted that in the 2005 edition, Arizona State's virtual starting quarterback shared Keller's height, weight, facial features, hair color and style, home state, playing style, school year, skin tone, throwing arm, uniform number and visor preference.

He said the case recalled No Doubt's successful 2011 court challenge against Activision Blizzard Inc'suse of its likeness in its "Band Hero" video game, whose expressive elements were "manifestly subordinated" to a desire to "commercially exploit" the pop group's fame.

Circuit Judge Sidney Thomas dissented, saying the majority view threatens all realistic depictions of actual people, even if those depictions are incidental.

"This logic jeopardizes the creative use of historic figures in motion pictures, books, and sound recordings," he wrote. "Absent the use of actual footage, the motion picture 'Forrest Gump' might as well be just a box of chocolates."

In the Brown case, Bybee concluded that the likeness of the former Cleveland Browns running back was "artistically relevant" to Madden NFL, and that Brown did not show that EA explicitly misled consumers about his involvement in the game.

"As expressive works, the Madden NFL video games are entitled to the same First Amendment protection as great literature, plays, or books," Bybee wrote.

The 9th Circuit took more than a year to decide both cases. The Keller decision echoed a May 21 ruling by a federal appeals court in Philadelphia that revived a similar lawsuit against EA by former Rutgers University quarterback Ryan Hart. EA is based in Redwood City, California.

ANTITRUST CASE

"We're pleased with the outcome regarding Jim Brown's likeness, but equally disappointed with the ruling against First Amendment protection in the Keller case," EA spokesman John Reseburg said. "We believe the reasoning in Judge Thomas' dissent in that decision will ultimately prevail as we seek further court review."

Steve Berman, a lawyer for Keller, in an email said he is "pleased with the win" in his case and will pursue class certification. "No reasonable person can dispute they use the players' likeness (and) doing so violates the law," he said.

Ronald Katz, a lawyer for Brown, had no immediate comment on the decision against his client.

The O'Bannon antitrust lawsuit seeks to force the NCAA to give athletes a cut of its profits from broadcasts, memorabilia sales and other business activities featuring them.

Wilken in June heard oral arguments on whether to certify a class of thousands of athletes. She has yet to rule.

The NCAA did not immediately respond on Wednesday to a request for comment.

On July 17, the NCAA said it will not renew a contract that expires next June to license its name and logo for EA's college football game. EA stopped producing NCAA Basketball in 2010.

In afternoon trading, EA shares were up 0.3 percent at $26.16.

The cases are In re: NCAA Student-Athlete Name & Likeness Licensing Litigation, 9th U.S. Circuit Court of Appeals, No. 10-15387; and Brown v. Electronic Arts Inc in the same court, No. 09-56675.

(Reporting by Jonathan Stempel in New York; editing by Andrew Hay and Kenneth Barry)

WASHINGTON (Reuters) - U.S. consumer credit rose less than expected in June, Federal Reserve data showed on Wednesday, as loans for items such as cars and education increased while credit card use fell by the most in a year.

Total consumer installment credit increased by $13.8 billion to $2.8 trillion. Economists polled by Reuters had expected consumer credit to rise $15 billion during the month.

"I think this report speaks to a well-functioning credit marketplace," said Ezra Becker, vice president of research and consulting at TransUnion in Chicago.

"Lenders are offering more credit, and consumers are using it without an over-reliance on credit."

Non-revolving credit, which includes loans for cars and college tuition, rose by $16.5 billion. Revolving facilities, which mostly measure credit card use, declined by $2.7 billion, the most since June 2012.

The report does not cover borrowing for homes, which has grown more expensive as mortgage rates rise on expectations the Fed will scale back its bond-buying program by the end of the year.

Still, demand for consumer lending strengthened across the board in the second quarter, including in the housing sector, according to the Federal Reserve survey of bank senior loan officers released Monday.

There were no signs in the Fed's report that higher bond yields were having a noticeable adverse affect on bank loans.

Non-revolving credit has been strong in recent years, driven by student loans that are issued by the government as part of the health care reform legislation.

Analysts worry a rapid rise in interest rates could undermine the economy's already sluggish recovery from the 2007-09 recession.

(Reporting by Paige Gance; Editing by Andrea Ricci and James Dalgleish)

The 30-year-old Kovalchuk walked away from the $77 million that was left on the 15-year contract he signed with New Jersey in 2010, including guaranteed annual salaries of at least $11 million over the next four seasons.

The Devils announced the news Thursday afternoon, saying that Kovalchuk alerted Lou Lamoriello, the team's president and general manager, earlier this year that he wanted to return home to Russia with his family after 11 seasons in the NHL.

"This wasn't a decision made by the New Jersey Devils," a testy Lamoriello said at the end of a conference call with reporters less than an hour after the retirement was announced.

Lamoriello refused to disclose anything about his conversations with Kovalchuk relating to the surprising retirement.

He also didn't clarify whether Kovalchuk planned to play in Russia's KHL next season as is expected or whether the Devils would retain his rights if he reconsidered his retirement, deferring to the NHL.

"All I know is that he will not be playing here at his desire," said Lamoriello, who built the Devils' three Stanley Cup championship teams and had hoped Kovalchuk would be the centerpiece of a fourth.

Lamoriello said Kovalchuk's retirement wasn't related to anything physical. The forward had back problems during the 2011-12 season and missed 11 games this year because of a shoulder injury.

"This decision was something I have thought about for a long time going back to the lockout and spending the year in Russia," Kovalchuk, the No. 1 overall pick in the 2001 draft, said in a statement. "Though I decided to return this past season, Lou was aware of my desire to go back home and have my family there with me. The most difficult thing for me is to leave the New Jersey Devils."

Kovalchuk was to earn $11.3 million in each of the next two seasons and $56 million over the next five years. Lamoriello said Kovalchuk didn't receive a signing bonus, so the team isn't seeking to recover any money from him.

"I am never surprised about anything that happens in this game today," Lamoriello said.

The defection means the Devils have lost a top player after each of the past two seasons. Zach Parise signed as a free agent with Minnesota after New Jersey's run to the 2012 Stanley Cup finals.

Kovalchuk's exit now deprives the Devils of a star outside of aging goalie Martin Brodeur, who is far from his prime now that he is 41.

Lamoriello wouldn't say whether the team would've done anything different had the Devils known of Kovalchuk's decision before the NHL free-agent signing period began last week.

New Jersey lost forward David Clarkson, who signed with Toronto after posting 30 goals during the 2011-12 season and 15 while playing in all 48 games during this lockout-shortened campaign.

The Devils did re-sign forward Patrik Elias and added some punch to the lineup by reaching deals last week with free agents Ryane Clowe and Michael Ryder.

"We're going to put the best possible team we can on the ice," said Lamoriello, who insisted his main focus is on moving forward.

Lamoriello wouldn't say whether the retirement soured him on Kovalchuk's four seasons with the club, but he gave the clear impression that he was miffed.

The Devils gave up a lot to get Kovalchuk from Atlanta in 2010 and maybe even more to keep him after he became a free agent following that season.

New Jersey sent defenseman Johnny Oduya, then rookie forward Niclas Bergfors and junior prospect Patrice Cormier, and a first-round selection in the 2010 draft to the Thrashers for Kovalchuk and defenseman Anssi Salmela.

After the season, the Devils signed Kovalchuk to a 17-year, $102 million contract that the NHL ruled circumvented the salary cap. The league subsequently fined New Jersey $3 million and took away two draft choices: a third round pick in 2011 and next year's first-round pick.

In tying up a huge chunk of money in Kovalchuk, the Devils also didn't have as much to offer Parise and possibly Clarkson the past two years to try to keep them with New Jersey.

Kovalchuk spent his last four seasons with the Devils. His best was the 2011-12 campaign in which he scored 37 goals. He had 11 goals in 37 games this season.

Kovalchuk scored 417 goals and 399 assists in 816 career NHL games. His best seasons were 2005-06 and 2007-08 when he scored a career-high 52 goals. He had three other 40-goal seasons.

He represented Russia at three Olympic Games, nine World Championships, one World Junior Championship and the 2004 World Cup.

Kovalchuk played in the KHL with SKA St. Petersburg during the recent lockout and was selected as team captain. He could be rejoining that club soon.

He participated in the KHL All-Star game before returning to New Jersey after the lockout. The Devils, however, failed to qualify for the playoffs in the season after they were Eastern Conference champions.

In New Bataan township, which was ravaged by Typhoon Bopha last week, refugees, rescuers and aid workers took a break from a grueling search for bodies and survivors to watch the fight on a big TV screen only to be disappointed by their hero's sixth-round knockout.

The fight took place Saturday night in Las Vegas, or Sunday in the Philippines. Town spokesman Marlon Esperanza said hundreds of villagers, most of whom lost their homes to mud- and rock-laden flash floods, packed the local gymnasium used as a temporary shelter. Many had hoped Pacquiao would triumph and share his earnings with the typhoon victims.

"People were really dismayed," Esperanza told The Associated Press by telephone. "It was like they were hit by another typhoon."

Elementary math teacher Constancio Olivar said people were cheering for Pacquiao in the sixth round, then fell silent when Marquez landed a shot flush to the jaw ofPacquiao, who fell heavily to the canvas and remained motionless for some time.

"It was like a double blow for me this disaster and this defeat," said Olivar, whose house was destroyed in the storm. "We were all crestfallen. Everyone fell silent, stunned. It was like we saw a tsunami."

In Manila, President Benigno Aquino III's spokesman Edwin Lacierda said Pacquiao's defeat "cannot set aside the many honors Manny has given to the Filipino people."

"Nothing has changed, the Filipino people continue to admire and support Manny," he said.

Boxing analyst Ronnie Nathanielsz said the defeat could demoralize Filipinos, particularly those in the typhoon-hit areas on the main southern island of Mindanao where Pacquiao is from.

"It's a double tragedy," he said. "People were looking at Pacquiao winning to give them some joy, some hope, some satisfaction. It didn't happen. On top of that, their anguish is further heightened as a result of his loss. ... This is like (Bopha) took a U-turn and came back to hit us with a Pacquiao knockout."

Nathanielsz said Pacquiao, who trained for two months, may not have spent enough time for physical conditioning unlike Marquez, who spent twice as many months preparing for the fight.

"The problem is when you get older, everything else must flow from the basic foundation of strength and conditioning. If you are not in condition, you have a problem," he said.

At the Baclaran Central Elementary School hall in the Manila suburb of Paranaque, where hundreds watched the fight, government employee Jacqueline Gabriel said she was dismayed by Pacquiao's performance.

"Pacman is weaker now," she said, using Pacquiao's nickname. "He is no longer like what he used to be. ... He should retire now."

But factory worker Charlie Cerillo, 37, said Pacquiao, who is also a congressman, should not retire yet.

"He should not have been a congressman. He should focus on sports and if he wants to be a congressman, he should focus on being a congressman," he said.

Pacquiao's mother, Dionisia, said that if it was up to her, she wanted her son to stop boxing.

"I want him to rest now, to relax," she told DZMM radio. "If he wants to be a politician, let him serve and pour everything into that. ... Only God will make him stop."

North Korea said on Sunday it had accepted a South Korean offer to hold talks on resuming reunions of families separated by the Korean War, three days after an overture by South Korean President Park Geun-hye.

North Korea and South Korea are technically still at war after their 1950-53 conflict ended in a truce, not a peace treaty.

"We reiterate ICRC willingness to offer our support in an advisory capacity for family reunifications. We have many years of experience working in this area," ICRC spokesman Ewan Watson said in Geneva.

Maurer, making the first visit in 21 years by an ICRC president to reclusive North Korea, will stay until August 23, and will go to South Korea from August 26-27. The ICRC said he would and hold talks with officials "at the highest levels" in both countries.

"It would be fantastic if contact between separated family members was regular," Watson said. "We understand it runs into the thousands of separated family members who don't have contact with each other."

The North and South agreed last week to reopen a jointly-run industrial complex inside the North, which was abruptly closed in April at the height of tensions, when the North threatened to launch a nuclear attack on the South and on the United States.

There have been no family reunions for nearly three years, with grieving family members falling in number due to old age.

Previous reunions have been largely token and highly choreographed. North Korea wants to hold the next one at its Mount Kumgang resort while the South wants it to take place at the neutral border village of Panmunjom.

(Reporting by Stephanie Nebehay; Editing by Kevin Liffey)

(Photo: )

"I'm running for mayor because I want to extend the economic growth of the last decade to all New Yorkers," said Hidary. "We must expand our economic base by ensuring that New York is the leading city in the world to start and grow a business and to gain the skills necessary for the jobs of today's marketplace.This is a plan that resonates with people on all sides of the political spectrum.As I visit communities all across our great city, I hear a unified message - the voters want an alternative to party politics and want a mayor who will focus on giving them the opportunity to realize the American dream."

Hidary's platform is highlighted by his forward thinking positions on reforming education and expanding job opportunities to all New Yorkers. Hidary believes that New York schools must move beyond the current culture of over testing and offer students blended learning incorporating team-based work, multimedia and creative projects. "By utilizing methods that have proven to develop creative thinkers and problem solvers, students will be better prepared for the 21st century job market," said Hidary. "We are long overdue for a paradigm shift in public education. As mayor, I will make sure our children our prepared for the jobs of the future."

Hidary wants to bring the factors that have led to economic growth in lower Manhattan and downtown Brooklyn to all five boroughs. With micro financing, encouraging more shared office space for small businesses, and providing business mentorship, all New Yorkers will have access to the resources necessary to start and grow a business.

The Hidary campaign is in the field now with its first poll of the election cycle. Many insiders point to Hidary as the most credible threat to challenge the eventual Democratic nominee.

Joining Hidary on the Jobs and Education line are 20th district council candidate Martha Flores Vazquez, 16th District council candidate Walter Newsome and 18th district city council candidate William Russell Moore. Hidary will face the winner of the Democratic and Republican primaries in the November 5th general election.

Contact:

Henry de Koninck

201 341 8786

SOURCE JackForMayor.com

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan eased to 3.93 percent last week. That's down from 3.98 percent last week but is still the highest level since April 2012.

The rate on the 15-year mortgage fell to 3.04 percent from 3.10 percent. That's the highest since May 2012.

Freddie Mac surveys lenders across the country on Monday through Wednesday each week. Bernanke's comments during a news conference Wednesday afternoon weren't fully reflected in the latest rates.

Concern that the Fed will wind down its bond purchases has pushed mortgage rates higher in recent weeks. Mortgage rates are still low by historical standards, helping sustain the housing recovery that began last year. But a spike in long-term interest rates could drive them higher quickly.

The Fed has been buying $85 billion worth of Treasury and mortgage bonds a month since late last year. The purchases pushed long-term interest rates to historic lows, making mortgages and other consumer and business loans cheaper.

Mortgage rates are expected to rise because they tend to follow the yield on the 10-year Treasury note. The yield on the 10-year note climbed in early trading Thursday to 2.39 percent, its highest level in 15 months. That's up from a low of 1.63 percent last month.

And the yield could go even higher based on Bernanke's remarks that the Fed will begin tapering later this year and could end the program in the middle of next year, provided the economy shows continued strength.

The average mortgage rates do not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year mortgages rose to 0.8 point from 0.7 point. The fee for 15-year loans was unchanged at 0.7 point.

The average rate on a one-year adjustable-rate mortgage declined to 2.57 percent from 2.58 percent. The fee for one-year adjustable-rate loans was steady at 0.4 point.

The average rate on a five-year adjustable-rate mortgage was unchanged at 2.79 percent. The fee slipped to 0.5 point from 0.6 point.

(Reuters) - Students at all Boston public high schools may soon be able to obtain free condoms at the front office - as long as they sit through a few minutes of counseling about safe sex - under a policy due to be voted on Wednesday by the school board.

Condoms are already available in 19 high schools with on-site health centers. The policy, up for a vote by the Boston School Committee, would expand distribution to all 32 high schools in the system.

Parents would have the right to exempt their children.

Several U.S. urban districts, including New York and Los Angeles, make condoms widely available in high schools. So do many suburban school districts around Boston.

The proposed expansion in Boston would not cost the district anything since the condoms are donated by public health agencies, district spokesman Lee McGuire said.

So far, it has drawn little opposition.

The Archdiocese of Boston issued a statement calling condom distribution "misguided," but has not organized formal protests. No one testified against the policy at a public hearing this month, and McGuire said he expected little controversy at the Wednesday vote.

Bill Albert, chief program officer of the National Campaign to Prevent Teen and Unplanned Pregnancy, said parents often fear easy access to contraception will encourage teens to have sex earlier or more frequently. Studies have shown that isn't the case, he said.

"That is one they can cross off their worry list," Albert said. "The science is absolutely clear."

It's less clear, Albert said, whether students consistently practice safer sex when they have access to free condoms.

The condom policy is part of a broader wellness initiative in Boston schools, including expanded sex education, better nutrition and more physical activity for students.

(Reporting by Stephanie Simon; Editing by Richard Valdmanis; Editing by Gary Hill)

Last week the average rate on the 30-year fixed mortgage held steady at 3.55 percent, slightly above the record low of 3.49 percent that was reached in July. Meanwhile, the average rate on the 15-year fixed mortgage, a popular refinancing option, dipped to 2.85 percent from 2.86 percent.

Cheap mortgages have helped the housing market recover this year. Sales of new and previously occupied homes are well above last year's levels.

Home prices are increasing more consistently this year, largely because the supply of homes has shrunk while sales have risen. And the number of Americans who owe more on their mortgages than their homes are worth declined in the second quarter.

Still, the housing market has a long way back. Home sales are below healthy levels. And many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks.

The report is expected at 10 a.m. Eastern.

TORONTO (Reuters) - Just over a year ago, Prem Watsa said Research in Motion Ltd, now re-named BlackBerry, was a "Canadian success story," a good buy and a likely turnaround story, despite declining market share.

BlackBerry's fortunes have only deteriorated since then, but Watsa, chief executive of top BlackBerry shareholder Fairfax Financial, is an old hand at looking wrong today and right tomorrow.

Fairfax, both an insurance holding company and Watsa's investment vehicle, was on the losing end of bets against the market in the mid 2000s as Watsa waited for the U.S. mortgage industry to collapse.

The company's stock fell by 50 percent between mid-2003 and mid-2006 as Watsa's purchases of credit default swaps flattened profits, while rivals feasted on a housing-fed bull market.

But when the market began to weaken in 2007, Fairfax began notching up investment gains, pulling in billion-dollar profits in 2007 and 2008. Then with markets still reeling and other investors licking their wounds, Watsa started to plow money back into equities, bringing another strong year in 2009.

Since their 2006 low of C$100, Fairfax's shares have more than quadrupled, and the stock is up 100-fold over 28 years.

Indeed, Watsa had already shown his investment chops by selling stock ahead of the 1987 stock market crash and buying Japanese puts - or rights to sell stocks at guaranteed prices - ahead of the Tokyo market's collapse in 1990.

CANADA'S BUFFET?

Often called Canada's version of Warren Buffet, Watsa preaches a long view that suggests it may be too early to assess his decision to take on a leading 10 percent stake in BlackBerry.

As it sits now, BlackBerry has not been a turnaround story under Watsa's watch. Since January 2012, a period when Fairfax has raised its stake in the company from just over 2 percent to just under 10 percent, BlackBerry's share price is down about 25 percent.

"Prem invests for the long term," said Paul Holden, an analyst at CIBC World Markets who follows Fairfax. "He's held his major stake now for what I would say is a fairly short period of time relative to his investment horizon, so I would say it's probably too early to put any score on that investment."

Watsa stepped down from the BlackBerry board on Monday, citing a potential conflict of interest, as the company said it was exploring the sale of itself and other options.

Holden said Fairfax, with a market capitalization of C$8.7 billion, would be too small to purchase BlackBerry outright. The smartphone maker has a market capitalization of C$5.8 billion.

But others said the signs that Watsa could be working behind the scenes were a positive.

"We have a lot of respect for the investment acumen and long-term track record Prem Watsa has established at Fairfax," said Todd Johnson, a portfolio manager at Winnipeg-based BCV Financial, which owns Fairfax debt.

"Hearing the announcement from BlackBerry accompanied by Prem's departure from the board should indicate something will happen this time on the strategic front."

LOW PROFILE

Watsa, who was born in 1950 in Hyderabad, India, and trained as a chemical engineer, has a public profile that has at times bordered on the reclusive since he took over Fairfax in 1985. For his first 15 years at the company, he barely spoke to a reporter, and he only started holding investor conference calls in 2001.

Fairfax has generally not been known as an activist investor, but Watsa has not shied away from a fight, launching a $6 billion lawsuit against a group of hedge funds in 2006, accusing them of conspiring to the drive the company's shares down so they could be shorted.

A short position enables an investor to profit when a stock drops.

To be sure, not all Watsa's moves have been golden. Fairfax had to write off most its investment in Winnipeg-based media company Canwest in 2009 as the company filed for bankruptcy protection.

It also wrote down a significant investment in publisher Torstar in 2008-09 and took losses on its holding of forestry company Abitibi Bowater.

Speaking last year, Watsa suggested investors looking for a short-term rebound in BlackBerry might be disappointed.

"Is it going to turn around in three months, six months, nine months? No," he told reporters. "But if you're looking four, five years ... We make investments over four or five years."

(Reporting by Cameron French; Editing by Janet Guttsman and Steve Orlofsky)