Business, Financial & Legal - Page 142

If you haven't noticed by now, Microsoft are going through a period of change. This is something I truly applaud the Redmond-based company of doing, as it really is required as the competition has changed, and is constantly changing at every turn.

We've now had Microsoft CEO Steve Ballmer putting pen to paper, or finger to keyboard, on a new letter to shareholders explaining that Microsoft now sees its own devies as crucial to the company as anything else. He adds that there's a "fundamental shift" in how the company's employees works and he says that investors should expect Microsoft to periodically make "specific devices for specific purposes", like Surface, or Xbox.

This new shift in strategy doesn't mean Microsoft are ditching Windows, it is actually looking like it's quite the opposite - they're listening to their customers, and shifting toward a new era of energy that looks to help all areas of Microsoft's business. This includes Windows, Office, tablets, gaming, phones and more. Microsoft are looking to deliver premium hardware experiences on all devices. Ballmer says "it truly is a new era at Microsoft. We see an unprecedented amount of opportunity for both this year and the long term...I couldn't be more excited and optimistic."

It's time for another update in the ongoing legal battle between Kim Dotcom, founder of MegaUpload, and the US Government. Kim Dotcom and his lawyers requested that the case against him and his company be dismissed upon the grounds that he does not have a United States-based address at which he could be served.

Of course, the courts didn't exactly let him off this easy. In fact, they went as far to say that the absence of a U.S. address under criminal law "does not require a result so extreme as dismissal" of an indictment. It looks like, for now, Kim Dotcom and his lawyers will have to continue fighting the charges brought by the US Government.

Those charges, for the uninitiated, include criminal copyright charges that claim Kim Dotcom encouraged users to upload pirated content to the service so that he could make money from the advertising and premium subscription fees. Megaupload argues that they fall within the safe harbor provision of the DMCA.

From time to time, software giant Microsoft ask Google to remove links from their search engine for webpages that display or distribute copyrighted material. Most of these copyright holders use automated systems to identify and inform Google and other sites of infringements.

As with most things, these automated tools aren't perfect, and Microsoft's latest filings show this. Back in July of this year Microsoft were trying to stem the distribution of its leaked Windows 8 beta listed 65 "infringing" websites, reports Torrent Freak.

Over half of these sites had nothing to do with the beta release of their OS, with Microsoft's automated software accidentally reporting that CNN, Wikipedia, Buzzfeed, BBC, The Huffington Post, TechCrunch, The Washington Post, Real Clear Politics, Rotten Tomatoes, AMC Theaters and various websites belonging to the United States government were infringing on Microsoft's copyrights - look at that list!

In case you didn't already realize that all of these patent wars between various companies was hurting not just consumers, and businesses, but it's also hurting innovation. This innovation stops you from getting better, thinner, more exotic products, and now The New York Times has chimed in with a piece on the subject.

The Times' piece covers the fact that big companies usually strong arm small start-ups with an extensive patent portfolio that usually ends up with an acquisition, and if the smaller company isn't acquired they're sued.

The Times' piece also reveals that the smartphone industry spent a whopping $20 billion (or so) on patent litigation in the past two years. Companies such as Apple and Google have spent more money on legal battles than research and development in the past twelve months. Splitting this up, we find Apple spending around $3 billion on R&D last year, with another $4 billion to be spend this year. Those numbers may seem large, but they are far less than most other technology companies.

Samsung have have a great year for 2012, but according to Interbrand's latest data, they're really climbing up the ladder when it comes to the value of their brand.

Interbrand gives the world's top companies a brand value, with multiple points of data used to create this "brand value". As you can see from the chart above, Samsung climbed from 17th place in 2011, to 9th place this year. Apple really ramped up the ladder where last year they were 8th and now they're 2nd.

Coca-cola smashes the list sitting at number one both years in a row. What's surprising is that Samsung have overtaken huge companies such as Pepsi, American Express, HP, Disney, Nokia and more. Facebook sit all the way down that list at 69th place.

You might be waiting an extra week or three for that new iPhone 5 that you ordered. At 1PM October 5 Beijing time, Foxconn workers went on strike over new quality control standards implemented by Apple and Foxconn. It seems that Apple wanted to reduce the number of iPhone 5s coming with scratches from the factory and tightened quality standards.

Unfortunately, they didn't provide any additional training to workers to meet these new standards. Workers were frustrated by the fact that they couldn't meet these new standards and started beating up quality control inspectors. These inspectors, in turn, went to their management where the managers turned their back on the issues.

This led to a strike of about 4,000 workers and quality control managers, bringing the iPhone 5 production to a halt. The watchdog group China Labor Watch has the following to say about the incident:

We haven't heard much about Megaupload recently. We last left the saga with Kim Dotcom's extradition hearing being pushed off all the way until March of 2013. Now, a user of the Megaupload service has been granted a hearing by the United States court regarding whether or not he should be able to access his stored data.

Kyle Goodwin originally filed a motion back in May with the Electronic Frontier Foundation supporting his request. In the most general of terms, his motion asked the courts to figure out a way to allow users to get back their data from the shut-down servers, arguing that many users hosted legitimate content using the service.

"The Court stated today that it will hold a hearing to find out the details about Mr. Goodwin's property - where it is, what happened when the government denied him access to it, and whether and how he can get it back," says EFF attorney Julie Samuels.

Samsung is a giant when it comes to electronics. Producing a wide array of electronic gadgets, toys, and tools, Samsung has been growing in popularity and quality. The latest smartphones coming out of the company are incredibly brilliant--just ask Anthony Garreffa how much he likes his Galaxy S III!

Due to the smashing success of the Galaxy S III, along with its television division and other smartphone sales, Samsung is estimating record breaking profits of $7.3 billion for the third quarter. The finalized earnings report is due out on October 26, so the real number could be higher or lower than this estimate, though it shouldn't vary by too much.

The estimate places the total consolidated sales at $46.7 billion, which is a huge sum of money. Samsung has to be happy that these figures didn't come out during its trial with Apple as the damages awarded could have come in even higher than the $1 billion that the jury awarded Apple.

If it wasn't so crazy, you'd think I was making this up...and I wish I was. But, no, I'm not. The following is a completely true political attack on a Democrat candidate using her playing of the popular game World of Warcraft as the focus. For some reason, the Republican incumbent believes that this makes her unfit for office.

Now, I don't want to start any political debates between Republicans and Democrats. Instead, I would like to take this moment to point out how absolutely ridiculous this claim is. The fact that a candidate plays World of Warcraft almost shows that he/she is more in touch with current life than the opposition.

"I think it's weird that I'm being targeted for playing online games," Lachowicz said. "Apparently I'm in good company since there are 183 million other Americans who also enjoy online games. What's next? Will I be ostracized for playing Angry Birds or Words with Friends? If so, guilty as charged!"

Google is sharpening its job axe in anticipation of slicing more jobs out of the Motorola Mobility division. During the second quarter, Motorola reported an operating loss of $233 million. Google slashed 4,000 jobs (roughly 20 percent) of Motorola's workforce in August as a way to trim down costs, and it looks as though they are trimming some more.

"Motorola has continued to refine its planned restructuring actions and now expects to broaden those actions to include additional geographic regions outside of the U.S.," Google said in a statement.

What this should be read as is "we're cutting more jobs." But cutting jobs is only one part of the restructuring plan. After all, cutting jobs costs money as Google's upping of its estimated severance costs proves. Google upped the estimate 9 percent to $300 million, not exactly cost saving in the short term.

Apple have just signed off on a deal with Australian-based Microlatch, where they'll work on fingerprint recognition technology. Ex-Commonwealth Bank head, and now major Microlatch investor, David Murray, claims that the help Apple are after, is related to mobile payments using near-field communications (NFC) technology.

Microlatch has patented fingerprint technology that is said to meet banking security standards, all without the need for central processing - something Murray calls a "self-registering" system. The iPhone 5 may not have NFC technology, but with this latest deal it looks like Apple are one step closer to an NFC filled future.

We already have Passbook in iOS 6, with this possibly the start of Apple's NFC journey. Apple's iPhone 5S might sport NFC tech, but would they be too late to the game? Or will they do it in a way that really beats their competitors' NFC-based smartphones?

Quite the surprise today, with news that Cliff "CliffyB" Bleszinski has decided to leave game developer, Epic Games. Epic Games are the development team behind huge titles such as the Unreal series, and Gears of War series of games.

Bleszinski has been with Epic for over 20 years, and had influence on some of those most memorable games of our time such as Jazz Jackrabbit, Unreal, Gears of War, and more. Tim Sweeney, Epic's founder, CEO and technical director, had the following to say:

Bleszinski also had a personal note to his colleagues, which said:

Lenovo, who is a Chinese computer-maker, are set to start manufacturing PCs in the US next year. The company will build a production line in Whitsett, North Carolina, that will allow the the company to be more responsive to US corporate clients' demand for flexible supplies and product customization.

With the production of PCs in the US, the cost will be higher, but it will improve the image of Lenovo in the US. At the moment, they're fourth in market share in regards to shipment numbers. Lenovo's North American President, David Schmook, has said:

Lenovo will start by investing just a couple of million dollars, and hiring around 100 or so people, but this is just the beginning. Lenovo sitting at number four, will have something to brag about when comparing themselves against the top three, who are made up of HP, Dell and Apple. All three of these companies don't make PCs in the US. Lenovo are quick to state that the production line also isn't just a quick publicity stunt to throw them into the headlines, with Schmook adding:

Steve Jobs and Steve Wozniak were two completely different people, and it really shows with Wozniak's latest comments on Apple. Wozniak recently did an Ask me Anything (AmA) on Reddit, where he responded to a question regarding Apple's current practices, and he had some colorful words for the company:

He continued, where he pointed out that years ago Apple released software on competing platforms such as Windows, where they released iTunes onto Microsoft's popular OS. But, they're not so happy to play well with others now, as we don't see iTunes on Android, he continued:

If you work at Apple, you will be happy to find out that Tim Cook does appreciate you. And to show appreciation for all of your hard work this year, Mr. Cook is offering you three additional paid days off. Most people will be getting these days off the week of Thanksgiving, though retail and some others will have to take them at another time.

In addition to giving these extra days of paid vacation, Cook issued an e-mail thanking employees for their hard work and everything they do. This break is similar to the one that was announced by Cook during last year. Just how much this will boost spirits and affect productivity has yet to be seen, but it must have worked well last year for the company to be doing it again.

The full letter Tim Cook sent out is below:

The Thailand floods were a tragic event, hitting hard drive manufacturers Seagate and Western Digital pretty hard. At the time, hard drive prices went up quite significantly, and are only returning close to pre-flood levels now. How are things business-wise for HDD manufacturers? Well, in a word - great.

Some new numbers from IHS iSuppli have said that the HDD market for PCs has fully recovered, and is set to hit an all-time high. IHS iSuppli expect internal hard drives to smash through 524 million units shipped this year, beating the previous record by 4.3%.

Where is this increased demand coming from? The firm thinks that the boost in shipment numbers is thanks to the impending release of Windows 8, as well as Ultrabooks. While we're close to pre-flood HDD prices, we're still not there yet but IHS iSuppli have said that HDD prices aren't expected to drop below pre-flood levels until, wait for it, 2014. By 2016, if IHS iSuppli's predictions become reality, we're looking at HDD shipments reaching 575.1 million by 2016.

I'm sure all of our readers know of the patent wars going on between Samsung and Apple. In case you don't, a brief history: Apple sued Samsung saying their patents were being infringed upon by Samsung products. Judge Koh granted a sales ban of the Galaxy Tab 10.1 at the start of the trial. A jury found Samsung guilty to the tune of just over $1 billion. However, they found that the Tab 10.1 didn't infringe on a single patent.

Meanwhile, the Samsung Galaxy Tab 10.1 is still banned from being sold in the United States. Judge Koh had previously felt that overturning the ban fell out of her jurisdiction as Samsung had appealed to a higher federal court. That court has now ruled that Judge Koh can rule on the sales ban, either reversing it or keeping it in place.

Theoretically, the device should no longer have been banned, or even banned in the first place as the jury found it to not infringe. The sales ban is expected to be lifted as soon as Judge Koh rules on the matter. Samsung was quick to jump onto the court, filing a request to have the ban dissolved:

Tim Cook has taken a moment to step down from his high horse and issue a letter to Apple customers saying, "We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better." What??? Apple is apologizing for something they did? I thought everything they did was always perfect.

As Cook suggests, the Maps app will get better as more customers use the app as it will help to crowdsource bugs, locations, and some of the other issues that people have experienced with the new mapping app. In his letter, Cook details an interesting statistic: "In just over a week, iOS users with the new Maps have already searched for nearly half a billion locations."

No doubt half of those searches were people looking for mistakes! If you're interested in reading the full-text of the letter, it is below for your enjoyment:

With everything that Megaupload founder Kim Dotcom has gone through, you'd think there'd be an apology thrown at him before now. But, better late than never, right? New Zealand Prime Minister, John Key, has apologized to the Megaupload founder over an "unacceptable" stuff up by the NZ government spies leading up to the arrest of Dotcom.

The PM also ordered Government Communications Security Bureau (GCSB) agents to review their cases going back three years, where they'll have to check whether there were other instances of communications being intercepted unlawfully. Dotcom's apology arrived as a report into the illegal monitoring on the Megaupload founder, which blamed the GCSB agents for not knowing New Zealand immigration laws, and relying on incorrect information from the police. Mr Key told reporters:

The GCSB is actually forbidden from spying on New Zealanders, or permanent residents, had been requested by the police last year to monitor Dotcom, who is wanted in the United States on Internet piracy charges. The GCSB agents questioned the police, asking if they could legally monitor Dotcom, where the report stated that they could do so, even though Dotcom was a German national, held a NZ residence VISA at the time. Mr Key adds:

Samsung have been busy dodging Apple shaped bullets for a while now, but it looks like LG are now joining in on the fight. LG Display, who are the second largest maker of LCD panels in the world, have filed a lawsuit against Samsung over patent violations.

LG announced the lawsuit during a press conference in Seoul, where they've claimed that Samsung are infringing on no less than seven patents in relation to organic light-emitting diode (OLED) technology. LG said that they've filed a damage suit in order to protect technologies that took a very long time/man power to develop, as well as to promote fair competition.

LG's lawsuit orders Samsung Electronics and Samsung Mobile Display to halt the use of the patents in question, and on top, pay damages for products already on the market that use the infringed patents. We don't know how much LG is asking for in terms of damages, but the company have named five products in the suit including the Galaxy S line of smartphones, and the Galaxy Tab 7.7 tablet.