AIMSTER FOUNDER APPEALS RULING ON BANKRUPTCY.(BUSINESS)

ALBANY -- John Deep, the Cohoes resident whose Madster file-sharing service was shut down by court order, is fighting to retain his protection under Chapter 13 bankruptcy.

On June 1, not long after his case was dismissed in U.S. Bankruptcy Court in Albany, Deep filed an appeal for reconsideration of the judge's order. Deep, who is representing himself, claimed that the dismissal, among other things, would not serve the interests of legitimate creditors.

Bankruptcy Judge Robert Littlefield dismissed the case May 21. A hearing on Deep's appeal will be held July 8, according to court documents.

Deep has faced protracted legal battles over several years regarding his Aimster and Madster programs, which allowed the sharing of computer files used to trade songs via the Internet. The main attack came from the Recording Industry Association of America, which has gone after software companies and listeners who download music for free.

Deep could not be reached for comment Thursday.

-- Alan Wechsler

STOCKHOLDER VOTE ADVANCES MTI'S FUEL CELL AMBITIONS

COLONIE -- Shareholders at Thursday's annual meeting of Mechanical Technology Inc. approved a $10 million private placement with Fletcher International Ltd.

The money from the deal, which could end up yielding an additional $28 million, is being used to finance the development and launch of MTI MicroFuel Cells Inc.'s methanol-powered miniature fuel cells.

Fletcher is part of investment adviser Fletcher Asset Management Inc. of New York City.

At the annual meeting, held at The Century House in Latham, MTI also unveiled to investors its new Mobion technology, which has let the company shrink its prototypes and integrate them into portable electronics.

``The Mobion system cracks the code,'' said William Acker, president and chief executive of MTI Micro.

Shares of MTI (Nasdaq: MKTY) closed Thursday at $6.25, up 8 cents.

-- Sara Clemence

APPLIED NANOWORKS SELLS NANO-SCALE ABRASIVES

WATERVLIET -- Applied NanoWorks Inc. has begun selling a group of nano-scale abrasives for use in semiconductor manufacturing.

The products, known as Pinnacle AF Nano-Oxides, are smaller than 10 nanometers.

``As semiconductor manufacturers try and squeeze more and more chips onto a wafer, they need to get everything smaller and smaller, which means they need smoother and smoother polishing in order to maintain and improve quality,'' said Eric Burnett, president of Applied NanoWorks.

The company, founded last year, has four employees. It is selling in small amounts -- a kilogram or less -- and is in the process of trying to figure out how to scale its manufacturing to meet future expected demand, he said.

-- Sara Clemence

PROFESSIONALS TO JOIN TECHAPALOOZA SEPT. 17

TROY -- The annual TechaPalooza isn't just for geeks anymore.

This year, a broader range of the region's professionals are invited to mingle over pints of Tech Valley Nano Ale amid tunes of cult-rock band NRBQ, organizers said this week. The TechaPalooza BATS (Business Arts Technology Science) Festival will be held Sept. 17 at Revolution Hall on Fourth Street in Troy. Technology companies, artists and community organizations will have tables inside the exhibition hall. Outside, an informal mixer will be held under a large tent.

``It's a healthy environment when you have software engineers talking to musicians,'' said Robert Millis, publisher of the Tech Valley Times, a monthly newspaper that is organizing the event with the Tech Valley Chapter of the Alliance of Technology and Women.

-- Joshua Hurwit