Legal

Apple, Google, Intel, Adobe to pay $324 million to settle conspiracy lawsuit

Reuters:

Four major tech companies including Apple and Google have agreed to pay a total of $324 million to settle a lawsuit accusing them of conspiring to hold down salaries in Silicon Valley, sources familiar with the deal said, just weeks before a high profile trial had been scheduled to begin.

And:

The case has been closely watched due to the potentially high damages award and the opportunity to peek into the world of Silicon Valley’s elite. The case was based largely on emails in which Apple’s late co-founder Steve Jobs, former Google CEO Eric Schmidt and some of their Silicon Valley rivals hatched plans to avoid poaching each other’s prized engineers.

In one email exchange after a Google recruiter solicited an Apple employee, Schmidt told Jobs that the recruiter would be fired, court documents show. Jobs then forwarded Schmidt’s note to a top Apple human resources executive with a smiley face.

Glad that’s over. I can’t imagine this would be anything but a giant distraction.

Samsung buys two patents to compete in its patent war with Apple

The Verge:

After weeks of playing defense against five Apple patents, Samsung this week went after Apple with two of its own patents: one it says is infringed when people make FaceTime calls, and another that covers the photo gallery feature found on iPhones, iPads, and some iPods.

Trouble is, the five Apple patents are actually Apple patents. Samsung’s two patents are both purchased patents, not Samsung innovations.

Samsung’s portrayal in the media

Yesterday, USA Today ran the linked article discussing Samsung slugging it out with Apple for customers. To me, it read almost like a love letter to Samsung, full of appreciation for a scrappy underdog. For example:

In this escalating slugfest, Samsung has become tech’s Joe Frazier to Apple’s Muhammad Ali, less flashy but tenacious in battering its opponent with a flurry of new products. Apple’s product arsenal remains select — by design.

I find this sort of assessment hard to digest. Did Samsung copy Apple’s design efforts? A federal jury certainly ruled that to be the case. And based on what I’ve read, this seems to be a fair finding.

So why the love for Samsung? Where’s the indignation? I just don’t get it. Samsung as Joe Frazier? Really? Yeesh.

Apple’s war on Samsung has Google in crossfire

New York Times:

Some features in Samsung devices that Apple objects to are part of Google’s Android operating system, by far the most popular mobile operating system worldwide, running on more than a billion devices made by many manufacturers. That means that if Apple wins, Google could have to make changes to critical Android features, and Samsung and other Android phone makers might have to modify the software on their phones.

The emails that led to accusations of an Apple and Google wage-fixing cartel

From Mark Ames at PandoDaily:

Back in January, I wrote about “The Techtopus” — an illegal agreement between seven tech giants, including Apple, Google, and Intel, to suppress wages for tens of thousands of tech employees. The agreement prompted a Department of Justice investigation, resulting in a settlement in which the companies agreed to curb their restricting hiring deals. The same companies were then hit with a civil suit by employees affected by the agreements.

This week, as the final summary judgement for the resulting class action suit looms, and several of the companies mentioned (Intuit, Pixar and Lucasfilm) scramble to settle out of court, Pando has obtained court documents (embedded below) which show shocking evidence of a much larger conspiracy, reaching far beyond Silicon Valley.

Confidential internal Google and Apple memos, buried within piles of court dockets and reviewed by PandoDaily, clearly show that what began as a secret cartel agreement between Apple’s Steve Jobs and Google’s Eric Schmidt to illegally fix the labor market for hi-tech workers, expanded within a few years to include companies ranging from Dell, IBM, eBay and Microsoft, to Comcast, Clear Channel, Dreamworks, and London-based public relations behemoth WPP. All told, the combined workforces of the companies involved totals well over a million employees.

More info in the post.

Judge decides Pandora will pay ASCAP 1.85% of annual revenue – Win for Pandora, loss for songwriters

From Billboard:

“This rate is a clear defeat for songwriters,” Sony/ATV Music CEO Martin Bandier says. “This rate is woefully inadequate and further emphasizes the need for reform in the rate court proceedings. Songwriters can’t live in a world where streaming services only pay 1.85% of their revenue. This is a loss, and not something we can live with.”

Samsung files appeal against first patent trial verdict

With surprising speed, Samsung has now officially filed a notice of appeal over the final judgement in the first Apple vs. Samsung patent trial from 2012. The last ruling in the case was handed down yesterday, when Judge Lucy Koh ruled in Samsung’s favor that sales injunctions on the products it was found guilty of infringing Apple patents with were not warranted in the interests of competition. Apple is likely to appeal that portion of Judge Koh’s rulings.

In the original trial (and the limited damages retrial), none of Samsung’s original counter-claims against Apple were given the time of day by the two juries in the case; all were dismissed due to prior art, while Apple won judgements against Samsung to the tune of nearly $1 billion in penalties against the Korean electronics firm (originally Apple was awarded just over $1.05 billion, but a portion of the damages was re-calculated in a juried damages retrial, with the result being $929 million instead).

Will this never end?

Apple’s iPad is targeted in new patent troll lawsuit

A patent troll by the name of Penovia LLC has filed a patent infringement lawsuit against Apple. The lawsuit claims that Apple’s iPad infringes their acquired patent that’s about a maintenance technique that monitors office machine status without personal attention. This is the typical type of case that the Federal Trade Commission is now studying to find ways to assist tech companies from having to waste their time fighting such suits.

When I see the phrase “acquired patent”, I see red. In my opinion, this type of lawsuit is destructive and serves simply to line someone’s pockets. This needs to be fixed.

The tweet that cost $105,000

This is one lesson I’m passing along to my kids. Goes right up there with our discussions on piracy.

South African detectives race to Apple HQ for help cracking Oscar Pistorius’ iPhone passcode

Three South African investigators are racing against the clock to secure crucial information from Oscar Pistorius’ iPhone 5 before his trial starts on Monday.

The detectives have flown to Apple’s headquarters in Cupertino, California to request help in unlocking the iPhone’s passcode, as prosecutors want to access its SMS and WhatsApp messages as evidence for the trial.

Sure seems like they waited ’til the last possible minute for this.

Google roadblocks distracted driver legislation

Google is lobbying officials in at least three U.S. states to stop proposed restrictions on driving with headsets such as Google Glass, marking some of the first clashes over the nascent wearable technology.

This angers me. If someone is killed because a driver was distracted by something on Google Glass, why is that any different than someone killed by careless texting? If your focus is held by an interaction with Google Glass, your focus is not on the road.

TekSavvy ordered to ID alleged movie downloaders

This article starts in a chilling way:

A Canadian internet service provider has been ordered to hand over the names and addresses of about 2,000 customers who allegedly downloaded movies online.

We’ve heard this sort of thing before. The pursuit of copyright protection can take on the nature of a patent troll using scare tactics to grab money from the guilty and innocent alike. But this case took an unexpected turn, thanks to case management judge Kevin Aalto.

Pandora suit may reshape the music industry’s century old royalty rules

As the music industry races toward a future of digital streams and smartphone apps, its latest crisis centers on a regulatory plan that has been in place since “Chattanooga Choo Choo” was a hit.

Since 1941, Ascap and BMI, the two giant licensing organizations that dominate music publishing, have been governed by consent decrees with the Justice Department. These agreements were made to guarantee fair royalty rates for songwriters and for the radio stations, television networks and even restaurants and retail shops that play their music.

But with the industry struggling to make money from digital music, this system has come under attack. The streaming service Pandora is squaring off against Ascap in a closely watched trial over royalty payments. Big music publishers like Sony/ATV and Universal are calling on the government to overhaul the system, and technology companies are accusing the publishers of trying to skirt federal rules meant to protect them.

The outcome could reshape the finances of a large part of the industry.

Another potential game changer for an already disrupted market.

Apple speaks out against patent trolls

Apple takes on the patent trolls. There are quotes from a public filing with the FTC as well as from an amicus brief on a patent fees case. Apple makes its position quite clear.

U.S. court finds Samsung to infringe one Apple patent, declares one Samsung patent invalid

In a summary judgment order entered late on Tuesday (January 21, 2014), Judge Lucy Koh, the federal judge presiding over two Apple v. Samsung patent cases in the Northern District of California, found Samsung’s Android-based devices to infringe an Apple patent on word recommendations (autocomplete) and declared a Samsung patent on multimedia synchronization invalid.

This spells trouble for Samsung.

Court rules Yelp must ID negative reviewers, no constitutional protection

This is a big deal.

In a decision that could reshape the rules for online consumer reviews, a Virginia court has ruled that the popular website Yelp must turn over the names of seven reviewers who anonymously criticized a prominent local carpet cleaning business.

The case revolves around negative feedback against Virginia-based Hadeed Carpet Cleaning. The owner, Joe Hadeed, said the users leaving bad reviews were not real customers of the cleaning service — something that would violate Yelp’s terms of service. His attorneys issued a subpoena demanding the names of seven anonymous reviewers, and a judge in Alexandria ruled that Yelp had to comply.

Unwanted Google+ invitation gets man arrested

Wow. Yesterday, we posted this little doozy, Jim’s classic reaction to Google’s new default that allows people on Google+ to send you email, even if they don’t have your email address.

While digging into that story, I ran across this little gem. Seems Thomas Gagnon got slapped with a restraining order by his former girlfriend. Then she got a Google+ invite, attributed to him.