Sunday, August 26, 2012

What the Apple v. Samsung Verdict Means for the Rest of Us

By Christina Bonnington August 24, 2012 | 10:05 pm |
Like Samsung, other handset makers with iPhone lookalikes may find themselves ensnared in litigation with Apple
Image: Jon Snyder/Wired

SAN JOSE, CALIFORNIA — The jury in the landmark intellectual property case Apple v. Samsung ruled overwhelmingly in favor of Apple on Friday, awarding the iPhone maker approximately $1.05 billion in damages. Although that figure is impressive on its own, the jury’s Apple-friendly design and utility patent rulings could have an even larger effect on the mobile industry and the world’s consumers. That means you.

Samsung was quick to issue a comment to that effect. “Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” Samsung said in an official statement. “It will lead to fewer choices, less innovation, and potentially higher prices.”

Indeed, since the jury deemed Apple’s iPhone-related design patents and user interface patents infringed across such a wide spectrum of products, other handset makers — Android manufacturers, in particular — may find themselves in Apple’s sights for future patent litigation.

“The result will likely be an increase in costs to Android users because of licensing fees to Apple,” Houston-based intellectual property lawyer Steve Mitby told Wired. In layman’s terms: expect Android phones to cost more. “This will drive many Android consumers over to Apple. Next to Samsung, the biggest loser today is Google.”

Android handset makers could also find themselves having a difficult time designing around some of these patent claims. But as Apple’s closing arguments showed, it’s not impossible: products like the Nokia Lumia and Xperia Arc S were cited as models of functional alternative designs to that of the iPhone. Perhaps we could even be pleasantly surprised by the influx of diversity to the smartphone space. But unfortunately, you can’t really “force” invention.

“Big leaps forward are rare; most innovation occurs in increments,” Indiana University law professor and author of Illuminating Innovation: From Patent Racing to Patent War Lea Shaver told Wired via email. “Allowing companies to take a good product and make it better and cheaper is good for consumers. But the patent lawyers won today.”

That said, many of the UI features that were found to violate Apple patents have since been adjusted in more recent updates of Samsung’s user interface, and in Android. That’s part of why the jurors were asked not to update the devices used in evidence. Android users don’t need to worry about, say, their phones suddenly failing to work properly or powering up with a completely redesigned UI update.

Samsung will almost certainly appeal the jury’s decision in the case to the Federal Circuit, the Washington, DC-based appeals court that hears IP-related appeals. “The Federal Circuit has a history of scaling back big damages awards, which may spell trouble for Apple’s $1 billion in past damages,” Mitby said. ”However, on the core issues of infringement and validity, the Federal Circuit is less likely to reverse. So even if Samsung is able to reduce the monetary award, the jury’s decision spells trouble for the future of Samsung’s product line –- which is an even bigger financial issue for Samsung.”

And that’s not all. Apple plans to file a temporary injunction against Samsung’s infringing products. If granted, Apple could ban its key competitor from the market for months, if not years. In that instance, it would be far cheaper, and far wiser, for Samsung to continue pouring money into its attorneys’ pockets in an effort to overturn the ruling as soon as possible, rather than write a billion dollar paycheck to Apple and lose out on millions in sales of flagship products. But the whole process — appeals, injunctions — will move slowly, so don’t expect Samsung products to disappear from store shelves overnight.

“The court is going to be busy with this post-trial discussion and various motions for weeks, maybe longer,” Shaver said. Samsung then gets 30 days to file an appeal, and it will probably use all of that time. “Appellate courts work slowly… Just to hear from the Federal Circuit could take a year and a half. This is a case it would not surprise me if the Supreme Court takes, so there may not be a truly final decision for years.”

Curiously, the jury didn’t find any design infringement on Samsung’s Galaxy Tab products, so all those iPad copycats you see cropping up are safe (for now).

Regardless, today’s decision is a resounding win for everyone on team Apple.

“The lawsuits between Apple and Samsung were about much more than patents or money. They were about values,” Apple spokesperson Katie Cotton told the New York Times. “At Apple, we value originality and innovation and pour our lives into making the best products on earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung’s behavior willful and for sending a loud and clear message that stealing isn’t right.”

Unfortunately, consumers will begin inadvertently paying the bill for upholding these values at some point. “When companies turn to litigation rather than innovation, consumers lose,” Shaver said.


Friday, August 24, 2012

Man who shot John Lennon denied parole for 7th time

By the CNN Wire Staff

August 23, 2012 -- Updated 1459 GMT (2259 HKT)


John Lennon
 
 
 
 
Mark David Chapman was denied parole on Thursday for the seventh time.
Mark David Chapman was denied parole on Thursday for the seventh time.
STORY HIGHLIGHTS
  • He was last up for parole in 2010 but was told that to release him would be "inappropriate"
  • Chapman, 57, is serving a sentence of 20 years to life in prison
  • He gunned down John Lennon in Manhattan apartment on December 8, 1980
(CNN) -- Mark David Chapman, the man convicted of killing former Beatle John Lennon, has been denied parole for a seventh time, according to the New York Department of Corrections.
He was last up for parole in 2010, when he was told his "discretionary release remains inappropriate at this time and incompatible with the welfare of the community," according to the state's Division of Parole.
He was also denied parole in 2000, 2002, 2004, 2006 and 2008.
Chapman, 57, is serving a sentence of 20 years to life in prison and is being held at the Wende Correctional Facility in Alden.
He is in protective custody in a single-person cell, corrections spokeswoman Carole Claren-Weaver said, and is allowed out three hours per day.
Since his transfer from Attica this year, Chapman has reapplied to participate in a state program called "family reunion," which allows inmates to spend more time with family members.
Chapman has not had an infraction since 1994. It is not clear whether he currently has legal representation.
The British singer-songwriter Lennon was gunned down outside his Manhattan apartment on December 8, 1980.

Thursday, August 23, 2012

Your Money: Trashing your ex on Facebook may cost you


In this photo illustration, a Facebook logo on a computer screen is seen through a magnifying glass held by a woman in Bern May 19, 2012. Picture taken May 19, 2012. REUTERS/Thomas HodelWed Aug 22, 2012 1:21pm EDT

(The author is a Reuters contributor.)

By Geoff Williams

(Reuters) - The old maxim goes: If you can't say anything nice, don't say anything at all. For divorcing spouses, that may actually constitute legal advice in these days where Internet and social media sites have become a significant part of many people's daily lives. Divorce is an emotionally charged topic, but letting it all out in a public forum can lead you right into court, sued for libel or having a harsher judgment levied against you in a divorce settlement.

"You give up so much privacy, and if you don't understand the consequences of it, you can really have problems," says Adam Swickle, a divorce attorney in Fort Lauderdale, Florida. "The Internet is a dangerous place to comment on your divorce."

According to a 2010 survey conducted by the American Academy of Matrimonial Lawyers, 81 percent of their members said that they had seen an increase in the number of cases using social networking evidence during the last five years. So if you use social media sites frequently, and you're in the midst of breaking up a marriage, consider the following:

1. What you write can get you sued.

"You can call someone an idiot or a jerk, and you're okay because it's your opinion," Swickle says. "We have freedom of speech in this country. Even if it affects your reputation, if it's the truth, you can't sue for it."

But where you might get in trouble is if you lie, warns Swickle. For instance, if you call your ex a deadbeat dad who is behind on his child support payments, or an abusive alcoholic, and none of this is true - and he or she can prove it isn't true - then you could be successfully sued for libel. But those cases are rare because they're hard to prove, says Swickle.

It's also hard to prove that a barrage of Facebook or blog posts are, say, harassment or even a form of Internet stalking, says Jacqueline Newman, the managing partner at a New York City matrimonial and divorce law firm. She says that you'd have to show evidence of damages.

But she recommends that if you have an ex who is going off the deep end, ask your lawyer to talk to your ex's lawyer. "The hope is that the lawyer will be able to control the client and explain to the client that all of this ranting online isn't going to be beneficial to their case," says Newman.

2. Even if legal, some statements can hurt you.

Short of libel, there's still a lot of trouble that you can get into. Newman once had a client who wrote a blog post trashing her soon-to-be ex. "She said he was a liar, a cheat, a thief and couldn't be trusted," Newman says.

While it may have felt good for Newman's client to get all of that off her chest, the blog was read by her client's husband's boss. "It had a direct impact on his career which therefore had a direct impact on his financial ability to provide for her and their children in the future," says Newman. "It was a very expensive blog for both of them."

Also, those rants, missives and photographs are now often getting handed over in paper form to a grim-faced judge who is deciding which parent is the more deserving of full custody, or how much alimony should be shelled out.

"Judges don't like reading those blog posts, tweets or Facebook status updates," Newman says. "Especially if you have children. These things don't go away, and a judge will tell you that your children will learn to tweet, and they'll read what you write in the heat of the moment. It's awful. Loose fingers can be worse than loose lips."

3. Even if nothing you write is negative, it can still hurt you.

"In a divorce case, there's nothing better for the other side when you have someone claiming they have no money for spousal or child support, and yet they're talking on Facebook about the vacation they just took," Swickle says.

If you are concerned about your ex discussing you on social media, you can try to work protections into your settlement. "How much teeth that will have in litigation is another question," says Newman, "but someone might be scared enough that they don't want to find out."

During a high-profile court case, the judge also might decide on his or her own that nobody should be blabbing on social media and issue a gag order, in which neither party can talk about their case to the public. That happened earlier this year with former Dallas Cowboys star Deion Sanders when he was going through a turbulent divorce with his wife, Pilar. Deion wrote tweets relating to his divorce, which was in violation of the gag order, Pilar's attorney, Peter Schulte, argued at the time.

4. An apology may be in order.

If you've trashed an eventual ex on the Internet and regret it, these two words might rescue you: I'm sorry.

"You can't unring a bell," Swickle says, "but just like a newspaper, you can print a retraction. You can say that yesterday you were angry and what you wrote really isn't true, please ignore it. It's the smart thing to do, and it may take you out of a problem."

In fact, earlier this year, a Cincinnati-based photographer, Mark Byron, criticized his eventual ex-wife on Facebook and blocked her access so she wouldn't see it. Nevertheless, she did, and then so did a judge, who ordered Byron to post an apology to his wife for the next 30 days - or face jail.

Byron posted the apology for the next 26 days, stopping a little early after deciding his free speech was being derailed. The judge, who had been criticized in the press for trampling on Byron's free speech, disagreed with that assessment but didn't send him to jail.

(Follow us @ReutersMoney or here
Editing by Beth Pinsker Gladstone and Andrew Hay)

Wednesday, August 22, 2012

Apple As Most Valuable U.S. Company Ever Has Room To Grow

By Peter Burrows and Danielle Kucera - Aug 22, 2012 8:01 AM GMT+0400



Apple Inc., already the most valuable U.S. company in history, has room to grow further as its stock trades at a discount to the Nasdaq Composite Index and the company prepares an upgrade to its best-selling iPhone.
Investors value Apple at 15.4 times trailing 12-month earnings, while the average company in the 2,495-member Nasdaq trades at 16.5 times, according to data compiled by Bloomberg. The company rose to a record $665.15 on Aug. 20, giving it a market value of $623.5 billion, the highest-ever for a U.S.- based company.
A man talks on a cellular phone in front of an iPad window display at an Apple Store in San Francisco. Photographer: Justin Sullivan/Getty Images
Audio Download: Misek Says Product Launches to Propel Apple
The Apple Inc. logo is displayed on the facade of a store in San Francisco, California, U.S.. Photographer: David Paul Morris/Bloomberg
Apple’s profit growth has outpaced its share increase, contributing to the lower price-to-earnings ratio. While the stock has jumped more than 80-fold in the past decade, earnings per share have gained more than 300-fold to $28.05 a share last fiscal year from 9 cents in 2002. Projections for further gains reflect optimism that Chief Executive Officer Tim Cook will use $117.2 billion in cash to keep growing in markets such as mobile devices, while pushing into new ones, including televisions.
“Apple has more fundamentals backing the company’s market cap,” said Shaw Wu, an analyst at Sterne Agee & Leach in San Francisco. “They have a lot of earnings, and lot of cash, which a lot of companies can’t really claim.”
Shares of Cupertino, California-based Apple would be worth more than $703 if the company were valued on par with the rest of the Nasdaq. Analysts, on average, are predicting that the stock will increase to $736.70 (AAPL) in 12 months, data compiled by Bloomberg show.

Cash, Execution

“People spend a lot of time thinking about the market cap,” said Peter Karazeris, an equity analyst at Thrivent Financial for Lutherans, which owns Apple stock. “I expect the market cap to go up, but it will because of execution and cash generation -- not because of the multiple.”
Successful companies often trade at lower multiples than smaller rivals, if only because it harder for them to maintain fast growth rates, said Anand Srinivasan, a senior analyst at Bloomberg Industries.
Investors’ attitudes toward Apple in the coming months will hinge on the success of the next iPhone. The company will unveil a revamped version of the handset on Sept. 12, two people with knowledge of the company’s plans said last month. The company will probably sell as many as 250 million units over the life of the device, analysts at FBR Capital Markets said.
Besides the iPhone, Apple plans to unveil a smaller, cheaper iPad this year, people familiar with the plans said in July. The company also is in talks with at least one large U.S. cable company about teaming up to carry live television and other content through an Apple-designed device, a person with knowledge of the plans said last week.

Product Reliance

The pace of Apple’s profit and share-price increases will hinge on the company’s ability to keep cranking out best-selling products, said Dan Morgan, a senior portfolio manager at Synovus Trust Co. in Atlanta.
“There’s a lot of people like me who are concerned that they’re driving growth almost purely through new products,” Morgan said. “What happens when its markets mature? I think of Apple as this consumer-products dynamo that has kept coming up with stuff that college kids want to buy -- and that the rest of us then want, too. But how long can that continue?”
Apple’s newer products, the iPhone and the iPad, accounted for more than 60 percent of revenue in the last fiscal year, while the iPod’s share has shrunk to 6.9 percent.
Maintaining profit margins could also be a challenge as Apple enters the market for TVs, where margins are thinner than for other electronics.

Business Adoption

Still, Apple is reliant on more than just new products. It’s also gaining share among new customer groups, notably corporations. The number of iPhones in the Fortune 500 has more than doubled and the number of iPads has more then tripled in the past year, Apple executives said during a call with analysts last month.
Apple is expanding its sales force to take better advantage of this opportunity, and working more closely with companies that want to focus their in-house software development on mobile apps for these devices rather than on traditional PCs.
“Apple has made huge inroads in the enterprise,” said Maribel Lopez, founder of Lopez Research, a technology consulting and market research firm. “Every company I talk to that has a mobile strategy has an Apple strategy. It’s been a huge mind shift.”

‘Profitable Approach’

Barring unforeseen macroeconomic headwinds, Apple should be able to grow without endangering its premium brand position with consumers, said Giri Cherukuri, an portfolio manager at Oakbrook Investments in Lisle, Illinois. Rather than create lower-priced versions with lower-quality parts, the company has expanded its market to lower-income shoppers by selling older-model iPhones and iPads at reduced prices.
Since the price Apple pays for the electronic parts in these products falls even faster than the price Apple charges, “it’s a more profitable approach,” he said. “It’s a better strategy to address these markets with older models at cheaper prices, rather than with cheaper models.”
In terms of market capitalization, Apple ranks ahead of next-largest Exxon Mobil Corp. by more than $200 billion. Microsoft held the No. 3 spot yesterday with $258.2 billion, even after trading as high as $616.3 billion on Dec. 27, 1999.
Ten years ago, General Electric Co. (GE) held the top spot, with a market value of $321.4 billion. The Fairfield, Connecticut- based company has since fallen to No. 8 as declines in its shares during the financial crisis prove difficult to reverse.
PetroChina Co. became the world’s first company to be valued at $1 trillion, when the shares almost tripled on its first day of trading in Shanghai in 2007. It’s now the world’s fourth most-valuable company with a market capitalization of $253.1 billion.
To contact the reporters on this story: Peter Burrows in San Francisco at pburrows@bloomberg.net; Danielle Kucera in San Francisco at dkucera6@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Nokia’s $39 Phone Rebound Wins More Time For Comeback Bid


By Adam Ewing - Aug 22, 2012 1:26 PM GMT+0400
Nokia Oyj (NOK1V), burning cash as it struggles to revive its smartphone business, is winning time for the recovery effort by gaining more customers for another product: basic mobile phones it sells for $39.
By adding features such as quicker Web and online games to its Asha handsets popular in faster-growing economies including India and China, Nokia boosted its share of the basic-phone market to 35 percent last quarter -- the highest in two years. Unlike the smartphone division, the basic-phone business is profitable and unit sales are increasing.
Nokia Asha 305 phones. Source: Nokia
July 19 (Bloomberg) -- Martin Garner, a mobile analyst at CCS Insight, discusses handset maker Nokia Oyj's efforts to turn around its loss in revenue and market share. He talks with Linzie Janis on Bloomberg Television's "Countdown." (Source: Bloomberg)
Nokia's Asha 311 phone. Source: Nokia
A Nokia Oyj Asha 303 smartphone is seen on display at the Mobile World Congress in Barcelona, Spain. Photographer: Chris Ratcliffe/Bloomberg
Stephen Elop, chief executive officer of Nokia Oyj. Photographer: Henrik Kettunen/Bloomberg
The more than 70 million cheaper handsets Nokia sells each quarter is providing relief for Chief Executive Officer Stephen Elop as he tries to stem revenue declines and recover from five quarters of losses. The basic-phone division is also winning over first-time users who may stick with Nokia when upgrading to a more expensive device.
“Nokia’s Asha models are selling quite well and that is good news for them since it gives the company a bit more time to get its smartphone business on track,” said Teemu Peraelae, who helps manage $1.5 billion including Nokia shares at Alfred Berg Asset Management in Helsinki.
Nokia’s cheaper phones outsold its smartphones 7-to-1 last quarter and, at 2.29 billion euros ($2.86 billion), brought in 49 percent more revenue for the Espoo, Finland-based company.

Asha Demand

Shares of Nokia have advanced 66 percent since it reported second-quarter results July 19 and rose 2 percent to 2.32 euros at 12:18 p.m. Helsinki time, gaining for a sixth day. They are still down 89 percent since Apple Inc. (AAPL) introduced the iPhone in 2007, a debut that started Nokia’s decline in smartphones.
If Nokia’s smartphone strategy fails, the basic-phone unit may become the company’s most attractive asset for an acquirer because it remains profitable and has a dominant market position in many emerging markets, said Sami Sarkamies, aNordea Bank AB (NDA) analyst in Helsinki. A buyer would also benefit from Nokia’s strong relationship with carriers in growth economies, he said.
Nokia’s Asha phones are gaining users in the developing markets because they resemble smartphones, yet cost a fraction of the price, Anshul Gupta, an analyst at research firm Gartner Inc. in Mumbai, said in an interview. Some Ashas have full- length touch screens similar to Nokia’s higher-end models and Apple’s iPhone. The underlying operating system is less sophisticated, making them cheaper to build.

India Shoppers

“They have almost all the features a smartphone should have like an application portal to download apps, a touch interface, social-networking integration -- so these devices are completely like a smartphone,” Gupta said.
Nokia added touch-screen handsets to the Asha line in June to meet the surging demand for smartphone features. The Asha 305, retailing at 65 euros, is Nokia’s cheapest full-length touch-screen phone. The Asha 311, featuring a faster touch screen and a 1-gigahertz processor, costs 95 euros.
The company on average sells basic phones for 31 euros each, compared with 151 euros per smartphone.
The 305 and 311 are seeing “fantastic traction” among customers, said Sathish Babu, who owns handset retailer Univercell with about 500 outlets across southern India.
“The new Nokia phones are doing very well,” Babu said in an interview, adding today’s younger shoppers demand slimmer phones with vibrant colors and full touch screens. “The more stock that comes in the more my sales go up and it’s even cannibalizing into other brands. With the touch screen, the balance is tilting toward Nokia now.”

‘Myopic Focus’

Nokia CEO Elop, commenting in an e-mail, attributed rising sales to its devices’ “bold design” and new colors. Nokia’s basic-phone sales climbed 2 percent to 73.5 million units in the second quarter from a year earlier, even as the global market for such devices fell 15 percent to 211 million units, according to research firm Strategy Analytics.
Nokia’s share of the basic-phone market rose to 35 percent last quarter from 29 percent a year earlier. In smartphones, the fastest-growing and most valuable market segment, Nokia, the former leader, has slumped to less than 10 percent.
“People forget how significant it is that we’re selling a million phones a day,” Peter Skillman, head of mobile-phone design at Nokia, said in an interview. “There’s almost a myopic focus on smartphones.”

Samsung Competition

Features helping Nokia’s basic-phone sales include browser data-compression technology, which lowers the cost of Web surfing, Skillman said. Nokia is also benefiting from demand for phones that let users insert two SIM cards, a feature many consumers in developing countriesneed to make it easier to switch service between carriers as they travel, he said. This month, Nokia said Asha users get Zynga Inc. (ZNGA)’s “Draw Something” and “Zynga Poker” games for free.
Such features are important for a company whose biggest markets last year were China, which made up almost 16 percent of revenue, and India with 7.6 percent.
Nokia’s success in basic phones isn’t guaranteed, as ZTE Corp. (000063), Huawei Technologies Co. and other manufacturers are entering the cheaper market segments with phones using Google Inc. (GOOG)’s Android operating system.
Samsung Electronics Co., which passed Nokia as the biggest handset maker overall this year helped by smartphone sales, also pushes basic touch-screen phones under the Star and Champ names.
The intensifying competition caused Nokia to reduce the average selling price of its basic phones 14 percent last quarter, dragging down revenue even as unit sales rose. Profit margins on Nokia’s cheaper phones also narrowed.
“It’s been a slippery slope for Nokia’s feature phones, but they did see an improvement in volumes in the second quarter unlike their smartphone business,” said Janardan Menon, a Liberum Capital Ltd. analyst in London. “Competing more effectively with low-end smartphones will be key to any recovery.”
To contact the reporter on this story: Adam Ewing in Stockholm at aewing5@bloomberg.net
To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net