Business

Potential sanctions against Samsung

From Florian Mueller’s patent blog:

Three months ago I saw a filing by Nokia that related to some discussions with Samsung considered so secretive that it wanted even the very title of a document to be sealed. It was clear that Nokia and Samsung were talking about something that also related somehow to the 2011 Nokia-Apple settlement, about the terms of which nothing was known except that Apple described it, at a very high level, as “merely a ‘provisional license’ for a limited ‘standstill’ period”. One could figure that Nokia and Samsung wouldn’t talk about some other patent agreement without talking about some sort of patent deal between them — a license or an outright purchase.

On Wednesday evening local time, Magistrate Judge Paul S. Grewal of the United States District Court for the Northern District of California, whose writing style is well-liked by various patent litigation watchers including me, entered an order that finally sheds light on this. The order came down after a hearing held yesterday on a request by Apple (and possibly also one by Nokia) for sanctions against Samsung (and/or its outside counsel) for violation of a protective order, i.e., for illegal disclosure of (in this case, extremely) confidential business information.

I must say that I’m shocked.

The big question here is this:

So how did Samsung’s executives get access to contracts that were meant to be used only by its outside counsel (marked as “Highly Confidential — Attorneys’ Eyes Only”) for the purposes of litigation with Apple and absolutely positively not for the pupose of gaining unfair advantages in licensing negotiations with anyone (not with Apple, and much less with third parties like Nokia), when such disclosure would constitute an unbelievably serious violation of court rules?

It will be interesting to see how this plays out. These are pretty serious accusations.

Reinventing Microsoft

Big days of change are clearly ahead for Microsoft. The Board of Directors has some big decisions to make as the largest activist investors are applying pressure to see their particular agenda enacted.

The main issue is that Ballmer himself is leaving Microsoft in the next 12 months — he offered a tearful goodbye to employees at last week’s annual companywide meeting — and finding a new CEO to execute such a dramatic shift in the company’s strategy while maintaining its existing 16 billion-dollar businesses will be no easy task.

That task has been made substantially more difficult in recent days by activist investors — reports surfaced last week that a group made up of “three of the top 20 investors” was pushing for Ford CEO Alan Mulally to take over the top spot, and yesterday news leaked that Microsoft’s board was seriously considering him. At the same time, “three of the top 20 investors” were also credited yesterday with pushing to remove Bill Gates from the Microsoft board, which he currently chairs. That would include his removal from the CEO search committee, which is presumably moving forward on the Mulally recommendation at the same time. None of that feels particularly suited to a smooth transition.

Every time I hear someone complaining about Apple’s lack of innovation or pending doom or the crime of having too much cash, I just think about Microsoft, Dell, and Blackberry and thank heavens for Tim Cook and the rest of the team.

Apple confirms iMessage issue, says fix in the works

There’s a reported fix that works for some, though not 100%:

AppleInsider reported on Monday that a simple procedure has successfully eliminated the bug for many users: Disable iMessage in Settings -> Messages, Reset the iPhone’s Network Settings under Settings -> General -> Reset Reenable iMessage.

While the method worked, and continues to work, for most iPhone owners afflicted with the iMessage bug, some have reported that the message failures reappeared after a few hours, forcing them to repeat the steps above.

There’s conjecture that the upcoming 7.03 update will contain this fix. Let’s hope so.

GoPro marketing video

This is just great marketing. If nothing else, skip to 3:51 to see the awesome lions. Wow.

Addy lets you build a custom URL for custom directions

Addy is a startup that lets you embed your own customized turn-by-turn directions (Go about a mile, make a left at the pizza place with the green awning, my house is at the top of the hill, last house on the right) behind a custom URL.

For instance, if you were having people over to your home, an Addy could include details about nearby stores for food and drinks, a buzzer code, and parking instructions.

Good idea.

Judge rejects Apple’s motion against Lodsys

Back in May, 2011, a number of small Apple developers using Apple’s in-app payment system received a legal complaint from Lodsys, threatening a lawsuit if the developer didn’t agree to license a specific Lodsys patent.

Within months, that brought a legal challenge by Apple, which saw a clear threat to its ecosystem. Apple had already paid to license Lodsys patents when they were in the hands of an earlier owner—Intellectual Ventures. So Apple went to court, arguing that Lodsys can’t demand additional payments by threatening iOS developers.

Now, after two years of litigation, it’s back to square one. The East Texas judge overseeing Lodsys’ systematic patent attack on app developers has refused to even consider Apple’s motion. Instead, he allowed the patent-holding company to settle all its cases—and then dismissed Apple’s motion as moot. By doing so, US District Judge Rodney Gilstrap—who has inherited the patent-happy East Texas court that once belonged to patent-troll favorite T. John Ward—has enabled Lodsys to threaten developers for months, and perhaps even years, to come.

This is infuriating.

The problem seems to be that all of the iOS developers mentioned in Apple’s complaint have, quite understandably, settled with Lodsys.

Judge Gilstrap ruled that Apple’s motion only applied to the seven defendants in the case. If they were out, the case was done. He ignored the Apple and developer arguments about the widespread nature of Lodsys’ campaign, declining to see any broader issue.

While Apple’s legal challenges continue, Lodsys continues to sue developers. In the meantime, Lodsys is getting countersued by companies they have pursued, such as Martha Stewart Living Omnimedia.

Lodsys had demanded Stewart pay $20,000—$5,000 for each of its iPad apps. Instead, Stewart sued Lodsys in Wisconsin, where Lodsys CEO Mark Small lives. (Lodsys’ official office, like so many patent-holding companies, is just an office suite in Marshall, Texas.)

Despicible situation.

Chart showing costs of different cable channels

NPR:

Here’s how the cable business works: Cable companies pay monthly fees to media companies for every channel they carry as part of basic cable. And then, of course, they pass those fees onto you, the subscriber. As the chart below shows, those fees vary widely — from $5.54 per month per subscriber for ESPN, all the way down to $.05 per month per subscriber for CMT Pure Country. In other words, if you have cable, you’re paying at least $5.54 per month for ESPN — even if you never watch it.

Apple overtakes Coca-Cola as most valuable brand

InterBrand does this study every year.

Apple Inc.’s brand value jumped 28 percent to $98.3 billion, Google Inc. (GOOG) is now in second place at $93.3 billion, and Coca-Cola Co. has slipped from the top seat after 13 years to third place at $79.2 billion.

The annual study, closely watched by the industry, determines a brand’s value by examining its financial performance, role in influencing consumer buying and ability to secure earnings. The Top 10 is rounded out in descending order by IBM, Microsoft, GE, McDonald’s, Samsung, Intel and Toyota.

Pretty interesting.

China change brings huge opportunities for Xbox One, PS4, and Apple

A single change made by China’s State Council will bring huge repercussions to the video game industry.

For the past 13 years, the sale of video game consoles was banned in China. China’s State Council has now decided that video game consoles can be sold across the entire country so long as the foreign companies establish sales and production operations in Shanghai’s new free trade zone.

The only caveat here is that PS4 and Xbox One may not see the benefits of the new market for a few years. The new policies will roll out over the course of the following three years. It’s still a savvy move on China’s part. Console manufacturers and game developers would love to leverage China’s population of 1.4 billion people as new customers, and China would love to get its new trade zone brimming with successful, modern businesses.

At the same time, Apple shifted their China iPhone release policy.

The iPhone 5 sold around five million units through the opening weekend, while the 5S and 5C sold around nine million units combined during its opening weekend, with the 5S significantly outselling the 5C. Did the addition of a new, somewhat gaudy gold color and an easily-bypassed fingerprint scanner really make four million sales worth of a difference? Perhaps, but the 5S (and 5C) was the first time Apple began selling iPhones in China on release day, rather than after a long delay.

Editorial aside, the point is worth noting that China is opening up their markets and Apple was quick to take advantage of that fact. This is a huge change to the tech sector and, I think, just the tip of the iceberg.

Vesper and feature requests

John Gruber talks about future plans for Vesper with incredibly refreshing honesty. Devs and product marketing managers, this is worth a read (and worth emulating). So great.

The Popinator

Sometimes a product comes along with awesomeness that defies logic. Great piece of marketing. Yeah, I know, this was from a year ago, but new to me.

Major League Baseball to roll out Apple’s iBeacon tech in stadiums

This is very smart.

In a bid to make the ballpark experience more engaging for fans, Major League Baseball plans to roll out Apple’s new iBeacons technology to deliver targeted information and offers based on a fan’s location within the park, according to a new report.

Plan on seeing this in place at the beginning of next season. Brilliant!

Crazy sales data and the beating heart beneath

This is an interesting take on the Phone sales data.

If this single product were its own company in the Standard & Poor’s 500-stock index, IPhone Inc. would outsell 474 of those companies—ranking between Wells Fargo (WFC) ($90.5 billion) and Marathon Petroleum (MPC) ($84.9 billion). The iPhone’s $88.4 billion in annualized revenue tops 21 of the 30 component companies in the Dow Jones industrial average—it would be the ninth-biggest stock in the Dow 30.

I’ve been an Apple fan since the Apple II days, have watched the company go through the wringer, teeter on the edge, bear a lot of trash talk. To watch this success unfold is incredibly gratifying to me. And, I’m sure, to the rest of the community.

I think this long time underdog status is part of the reason Apple fans are so enthusiastic about new product rollouts. Samsung can easily see the quality of the product, but I think they can’t see the beating heart underneath it all.

Quick-charge replacements for AAA batteries

Slow release ultra capacitor technology, assuming it successfully makes its way to market, should be a real boon for small devices. Filling an ultra capacitor with power is like filling a glass of water. Happens in seconds, not hours.

But using capacitors to provide a steady flow of energy is something new. Still, like other capacitors, the new ones can be recharged quickly. The remote control can recharge in five minutes and run for many hours, maybe even days, depending on how often it is used to change channels, Mr. Sund said. And unlike the lithium-ion batteries used in phones, laptops and, now cars, capacitors do not lose storage space with age.

Doesn’t seem to be any barriers for remote controls and cameras. Key is, can they make this technology small enough to squeeze into an iPhone, yet still have it carry enough power to be useful.

Complete Jonathan Ive, Craig Federighi Businessweek interview

This is the complete text of Businessweek’s interview with Jonathan Ive and Craig Federighi, parts of which appeared last week. Every bit as revealing as the Cook interview. I get a real sense of the excitement these two have working with each other. Clearly, they love what they are doing. This from Ive:

I have always found—and I know the ID team has always found—that the discoveries you make when you are lucky enough to sit next to somebody who represents a completely different expertise, those discoveries can be really profound, and they’re really exciting.

Federighi on process:

We would prototype. We would review how it felt. Did it really work in the way we hoped it did once it was in our hands? We would get versions of it that we would live on, and then we would get together and we’d say, “I’m using it and I like this, but this bit is not coming together quite the way we wished,” and we’d iterate. So a lot of those conversations are just driven by perfecting the product together.

Ive on the emergence of parallax:

One of the things that we were interested in doing is, despite people talked about this being “flat,” is that it’s very, very deep. It’s constructed and architected visually and from an informational point of view as a very deep UI, but we didn’t want to rely on shadows or how big your highlights could get. Where do you go? I mean, there is only so long you can make your shadows.

It wasn’t an aesthetic idea to try to create layers. It was a way of trying to sort of deal with different levels of information that existed and to try to give you a sense of where you were.

There’s so much great stuff here. Interesting to hear their back and forth on complexity and collaboration, on working for Tim Cook, and the changes Tim Cook brought to Apple’s supply chain. Brilliant read.

Fake reviewers snared in NY Attorney General sting

Nineteen companies caught writing fake reviews on websites such as Yelp, Google Local and CitySearch have been snared in a year-long sting operation by the New York Attorney General, and will pay $350,000 in penalties.

Wow.

Tough times for Apple analysts

Tim Cook’s promise to “double-down on security” seems to be working, at least as far as analysts are concerned.

Fast forward to this year’s iPhone lauch: Munster, after observing iPhone 5c & 5s launch day lines and taking notes, reiterated his firm’s prediction of weekend sales of 5 to 6 million, detailed as “2.5 million iPhone 5s” and “3 million units” of iPhone 5c.

In parallel, KGI analyst Ming-Chi Kuo predicted sales of 6 to 8 million.

When Apple announced sales of 9 million iPhones over the weekend, Munster told Bloomberg, “When I saw that 9-million number, I basically fell out of my chair.”

This from a guy who is traditionally on the high side when it comes to predicting Apple unit shipments.

LucasFilm pushes the boundaries with real-time rendering

LucasFilm is working on a real-time rendering system that captures character movements on a soundstage and, in real-time, incorporates those movements in video. This is a remarkable achievement and, in my mind, carries significant implications for film and video game production.

As you watch the video, notice the convergence of technologies. At about :41, the director swaps out one character for another with the push of a button, while the video plays live. At 1:55, you get a real taste of the ability to capture subtle facial movements, transferring them to a live character. There’s so much more. Just watch.

Chaos Computer Club hackers trick iPhone fingerprint scanner

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Interesting, but required a bit of Mission Impossible trickery to make it work.

The CCC started by photographing a fingerprint with 2400 dpi. Next the image was inverted and laser printed at 1200 dpi. To create the fingerprint mask Starbug finally used, latex milk was poured into the pattern, eventually lifted, breathed on (for moisture), and pushed onto the sensor to unlock the phone. In this sense, it’s hard to definitively state the hackers “broke” the TouchID precautions, because they did not circumvent the security measure without access to the fingerprint.

This does raise a fair question, though. How usable are the fingerprints we regularly leave on our phones? How susceptible is the iPhone 5s to this technique?

LinkedIn customers allege company hacked e-mail addresses

the company appropriated their identities for marketing purposes by hacking into their external e-mail accounts and downloading contacts’ addresses.

That’s a pretty serious charge. Given the process by which LinkedIn grows their user base (an expanding tree of referrals), you might be tempted to see this as true. I’m skeptical. Seems so easy to detect. A foolish move, if the charge is true. I hope this is not the case. We shall see.

Here’s LinkedIn’s public response to the suit.

Samsung films people waiting in line at Apple iPhone rollout

Samsung sent out a film crew to film the excitement and anticipation of the crowds waiting for their new iPhones. The most telling part of the article was this quote:

“Other companies release new phones, but there’s not as much passion and heat [from buyers],” a Korea-based producer from Samsung Broadcasting Center/Cheil Worldwide, who asked not to be named, told CNET at the iPhone launch. “It’s only Apple. Why? We’re curious.”

Ask us, we’ll tell you.

Grand Theft Auto V generates $1B in three days

One billion dollars in 3 days. Wow. For comparison, it took Call of Duty: Modern Warfare 3 16 days to hit $1B, back in January 2012. Then Call of Duty: Black Ops 2 hit $1B in 15 days this past December. 3 days is astonishing.

Grand Theft Auto has been keeping Take-Two afloat during the down times, as the series has an extremely long tail (the volume of sales over time following release). Not only does a new release spike revenues, but it also incentivizes gamers to investigate the back catalog (sometimes spurring purchases of already owned games on new platforms). GTA V will be even more significant should the title see staggered releases on PC and next-generation platforms (as I suspect it will). At this point, Call of Duty is going to have a nearly impossible time beating GTA’s sales this year, ending a four-year streak.

With numbers like these, it is no wonder that Apple has added support for game controllers into iOS 7. Will game controller support be the force that erodes the chasm between iOS devices and traditional consoles like the Xbox and PlayStation? Time will tell.

Tim Cook visits Apple Stores, tweets about it

I love that Tim Cook did this. What a great surprise for folks queueing up to buy the iPhone 5s. Phil Schiller and Eddie Cue also made the rounds of the Palo Alto area stores. Fantastic.

Marketing lesson

I wouldn’t normally buy a product like this. But this ad is spot-on perfect. Hits all the right notes. So well done, I had to share. There’s a lesson here on how to sell your product effectively.

Tim O’Reilly, “How I failed”

Tim O’Reilly has long been one of my heroes. He’s one of the leading lights in all manner of publishing, and a major force behind the maker movement (people learning how to build things, teaching others). A righteous dude.

This blog post is a thoughtful look back at his successes and his failures. An important read, especially if you are building a business.

USB condom

When you plug your smart phone into a USB cable, your device will try to pair with the device on the other end of the cable. If the only thing on the other end of the line is your personally owned USB charger, no worries. But if you plug into a public charging station or a stranger’s USB charger, you are opening yourself up to malware. The device on the other end can pair with your phone and cause all sorts of mischief.

The soon-to-be-released USB condom is a dongle that sits on the end of your USB cable and prevents data transfer, meaning you can safely charge your device without fear of contracting malware.

I like the idea of the device, though I think a better answer is a USB cable with a switch built in, to toggle between data and charge-only modes.