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     Aug 18, 2012


Samsung fires back
By Martin J Young

HUA HIN, Thailand - Apple and Samsung continued to wage their patents war in a US court this week and it was the South Korean electronics giant's turn to fire some salvoes at the world's most valuable tech company in its defense.

The company called witnesses to testify that the technology used on mobile devices such as touch screens, zoom, and the ability to drag icons across a screen, were all in use in the market well before the Apple iPhone or iPad were introduced.

Samsung is trying to turn the tables on Apple and give it some of its own medicine as it called a Harvard computer scientist who told the jury that Apple infringed three Samsung patent phone features: photo attachments to email, bookmarking digital photos, and background music during other functions. Another witness

 

produced a Hewlett Packard TC1000 tablet, with a very similar design to the iPad, that was introduced in 2002.

Arguments were put forth that design patents for features such as flat screens, the placement of the speakers or rounded corners are so "functional" and "basic" that Apple has no patent rights to them. Apple is seeking US$2.5 billion in damages for Samsung's alleged patent infringement, it claims that Samsung sold 22.7 million smart-phones and tablets that infringe on Apple patents, which generated $8.1 billion in revenue.

It all appears to be a case of sour grapes, or in this case sour Apples; according to research firm Gartner, Samsung increased its sales lead over Apple and all other smartphone makers in the second quarter resulting in a sales increase of almost 30% for the period.

The judge presiding over the case at the US District Court for the Northern District of California in San Jose, Lucy Koh, reportedly told media, "I'm going to make one more request that CEO's from both sides speak by phone. I see risks here for both sides."

It was reportedly suggested by the judge that the two tech companies might want to settle the case as the testimony shows that both might have infringed on each other's patents.

The multi-million dollar patent war was instigated by Apple in April 2011, since then both companies have filed at least 30 lawsuits against each other in at least 12 courts, nine countries, and four continents involving smart-phone and tablet patents.

Samsung, not to be perturbed, launched a new Galaxy Note 10.1 tablet in the US and United Kingdom this week. The iPad-rivaling device has been renamed and re-engineered so as not to fall foul of more Apple litigation. It also boasts a higher specification such as split screen, quad core processor, more memory and a digital pen.

Social
Facebook, in its efforts to impress investors and follow Internet juggernaut Google, has started testing a new advertising model. It has gradually been introducing ads to users by displaying them based on personal preferences and what they "like", but this model has proven disappointing in terms of returns for the social network.

The new system is more aggressive and will offer businesses the chance to display their content as news feeds on users' pages regardless of whether those users have subscribed to them or not, or clicked the "like" button. Companies will be able to drop their prime content on to feeds on smartphones and computers across the entire network.

Facebook stated "We think this will make it easier for businesses to reach more people", which naturally it will. However, there are hundreds of businesses that have already spent thousands of dollars building up fan bases on platform by buying "likes" to reach a targeted audience.

This could be a dicey game for the social giant, the digital carrot being the promise of increased advertising revenue and the stick being a potential loss of existing advertisers and an increasingly disgruntled membership that doesn't want to see their pages filled with non-relevant and invasive advertising.

Facebook stock has plummeted 46% since its May 17 initial public offering.

Internet
Google swallowed up another chuck of the online world this week when it purchased travel brand Frommer's for around US$25 million. The search giant's targets are clear; it wants to start creating content in terms of web-based travel reviews and make revenue from online bookings. Its competition in this arena is TripAdvisor.com, which does exactly that.

The Frommer's deal follows last year's $151 million acquisition of Zagat Survey, whose reviews and ratings of millions of hotels, restaurants and businesses have since been incorporated into Google+ listings. The company intends to amalgamate the two properties, display the information on Google Maps, and become the trusted guide and booking agent for travel, accommodation, and local business information.

Google already has its own flight booking service following the $700 million 2010 buyout of flight-data company ITA Software, which powers the flight-booking tools of numerous websites.

The escalating concern from competitors now is that Google will give preference to its own web properties and enterprises above its rivals in organic search results, this should also be a concern for consumers unless they're happy with a dwindling choice.

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.)





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