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     Jul 7, 2012


<IT WORLD>
Nexus in eye of patent storm
By Martin J Young

HUA HIN, Thailand - The wrapper is barely off Google's new Nexus 7 tablet and the company is already attracting patent infringement claims from rivals. Finnish handset-maker Nokia claims that the Nexus takes advantage of WiFi technology covered by its own patents. A Nokia spokesperson said the company "has more than 40 licensees, mainly for its standards essential patent portfolio, including most of the mobile device manufacturers. Neither Google nor Asus is licensed under our patent portfolio."

It is unlikely that Nokia will adopt Apple's heavy handed approach by filing a patent infringement claim; more likely the company will request that Google and Asus obtain the proper licenses.

Apple meanwhile has wasted no time in developing a rival tablet

 

that will come in the shape of a smaller, cheaper iPad.

An appeal by Samsung against Apple's newly secured ban on Galaxy Tab 10.1 sales in the US was rejected by a US court this week. The South Korean company is frustrated by the outcome in favor of Apple, which sold 13.6 million iPads in the first quarter, compared with 1.6 million Samsung tablets, giving it a 7.5% market share.

"Samsung is disappointed with the court's decision that denied our motion to stay [the ban]. We believe today's ruling will ultimately reduce the availability of superior technological features to consumers in the US," Samsung said.

An Apple patent claim against Taiwanese smart-phone maker HTC was rejected by a UK high-court this week. The ruling stated that HTC did not infringe on Apple's photo management patent while deeming invalid three other Apple patent claims for slide-to-unlock, multi-touch and multilingual keyboard capability.

Following the decision, HTC said, "We remain disappointed that Apple continues to favor competition in the courtroom over competition in the marketplace."

In China, Apple has paid US$60 million to settle a trademark case with Shenzhen-based Proview Technology over the use of the name iPad in the People's Republic. Apple claimed that it acquired the iPad name in China in 2009 when it bought rights from a Proview affiliate in Taiwan for around $55,000. A mainland China court ruling in December found that Proview Shenzhen, which registered the iPad trademark there in 2001, was not bound by that sale, even though it was part of the same company.

With barely enough time to catch a breath following this dispute Apple has been hit with another one. A household chemical company called Jiangsu Xuebao has sued Apple in Shanghai for allegedly infringing its "Snow Leopard" trademark. Apple originally used the moniker "Snow Leopard" for a distribution of Mac OS X in 2009. The current version is called Mountain Lion.

The Chinese company is seeking about $80,000 in damages and an official apology from Apple. The outcome of the Proview case appears to have set off a digital avalanche from businesses in China trying to cash in on the world's most valuable technology company.

Internet
Software giant Microsoft could see its first quarterly loss in 20 years by absorbing a $6.2 billion charge on an acquisition that failed to generate any revenue for the company. In its efforts to catch advertising juggernaut Google, Microsoft bought Internet advertising company aQuantive Inc in 2007 for around $6.3 billion. The acquisition was the company's largest until it bought out Skype for $8.5 billion last year.

A technical loss in the second quarter is now likely for Microsoft. Analysts had previously predicted a profit of $5.3 billion.

Microsoft blamed the setback on a disappointing performance from its advertising division, which has failed to make a dent in Google's market share. Since it bought aQuantive, Microsoft's online division has reported losses totaling nearly $9 billion. Google on the other hand earned $9.7 billion on nearly $38 billion in revenue last year, most of it from advertising.

Google's share of the US search advertising market has risen to 78% from 74% in 2010. Yahoo's has fallen to less than 5% from 10% and Microsoft's search advertising market share has remained at 7%.

Security
An Internet blackout could be looming for thousands of users next week as malware that may have infected machines over a year ago attempts to redirect browsers to fraudulent websites. In an effort to quash the threat, the US Federal Bureau of Investigation will shut down temporary DNS servers that replaced fraudulent servers operated by hackers. DNS, or distributed naming system, associates various information with domain names assigned to each of the participating entities.

The outage will occur for those that are still infected with the DNSChanger Trojan. A website has been setup by the FBI to test systems for infection and offer advice on cleaning the malware (see here). Following last year's arrest of six Estonian nationals for the creation of the malware, the FBI setup clean temporary Internet servers that would prevent infected users from losing access to the web once the DNSChanger botnet was shut down.

The FBI was initially planning to shut down their provisional servers in March, but a US district court ruled that they were to remain operational until July 9. It is estimated that more than 250,000 computers are still infected and using rogue servers world-wide.

Martin J Young is an Asia Times Online correspondent based in Thailand.

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)





<IT WORLD>


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(24 hours to 11:59pm ET, Jul 5, 2012)

 
 


 

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