Apple reportedly hires LG's former OLED TV expert

Apple has reportedly hired a display expert with ties to LG and Samsung, and whose most recent work included efforts on OLED technology for TV sets.

According to a report from the OLED Association, Apple has wooed James (Jueng-Gil) Lee, a display and semiconductor technology expert who's had stints at LG Display, Samsung, and now-defunct flat panel design company Candescent Technologies.

The hire, which Apple has not confirmed, comes while many have their eyes on the company to create its own TV set. Reports have gone back and forth between claims of a more advanced set top box and a full-fledged TV set, though many believe it will be the latter.

Even with the expertise in TV technology, the rumored hire is worth taking with a grain of salt. All of Apple's portable products (short of the
iPod shuffle) use screens, and Apple is frequently changing the types of display technology it uses. With that said, any expertise in large displays would be of obvious benefit in the in-house development of TV set.

(via 9to5Mac)

Apple HDTV rumor roundup

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Einhorn's hedge fund to Apple: Show me the money

"Show me the money" might have been the most famous line from the old Tom Cruise movie "Jerry Maguire," but that's exactly what a big Apple shareholder wants.

Greenlight Capital, a hedge fund run by David Einhorn, today filed a lawsuit and issued a letter to Apple shareholders, urging them to support his push to get Apple to share more of its cash with investors.

"Apple is a phenomenal company ... but Apple has a problem," Einhorn said during an interview on CNBC. "It has sort of a mentality of a depression. In other words, people who have gone through traumas -- and Apple's gone through a couple traumas in its history -- they sometimes feel they can never have enough cash."

He compared the company to his grandmother who wouldn't even leave messages on his answering machine because she didn't want to get charged for the phone call. Einhorn said he understands that Apple wants a large cash hoard to be strategic, make acquisitions, and be secure, but he believes issuing high-yielding preferred shares to existing shareholders would allow Apple to share the value on the balance sheet but still hold a large amount of cash.

Greenlight's letter to shareholders noted the fund in May of last year introduced the idea that Apple could distribute preferred stock to current shareholders. Since that time, the fund has talked with Apple about the idea, but Apple ultimately rejected the idea.

Apple's latest proxy statement, which details items up for a vote at its February 27 shareholder meeting, includes a proposal that would eliminate "blank check" preferred stock.

Einhorn's suit, filed in federal court in Manhattan, seeks an injunction to prevent Apple from bundling that provision with several other items. Rather, he wants each item to be voted on separately.

Here's the full Apple proposal, No. 2 on the roster:

To amend the Company's Restated Articles of Incorporation to (i) eliminate certain language relating to the term of office of directors in order to facilitate the adoption of majority voting for the election of directors, (ii) eliminate "blank check" preferred stock, (iii) establish a par value for the Company's common stock of $0.00001 per share and (iv) make other conforming changes as described in more detail in the Proxy Statement.

Greenlight's letter said it notified Apple yesterday that it would vote against Proposal No. 2. Apple said it would reconsider the idea of preferred stock but refused to withdraw the proxy provision where Apple wants to block preferred stock from its charter.

We've contacted Apple and Greenlight/Einhorn and will update the report when we hear back.

Apple has long faced questions about what it will do with its massive cash stockpile. It reinitiated a dividend last year and also has plans to buy back stock. But as of the December quarter, Apple still had $137 billion in cash and securities on its books.

At the same time, Apple's shares have come under pressure amid worries about competitive pressure. The company reported record results in its latest quarter, but the numbers weren't as strong as Wall Street expected. Shares, down 36 percent since their peak of $705.07 in September, today grew nearly half a percent to $456.80.

Here's Einhorn's full letter:

February 7, 2013

VOTE AGAINST PROPOSAL 2 AT THE FEBRUARY 27 ANNUAL MEETING TO PROTECT YOUR INVESTMENT IN APPLE

Oppose Apple's Effort To Restrict The Company's Ability To Unlock Substantial Shareholder Value

Dear Fellow Apple Shareholder,

Greenlight Capital, Inc. (and affiliates, "Greenlight") has been a significant shareholder of Apple Inc. ("Apple" or the "Company") since 2010. We believe Apple is a phenomenal company filled with talented people creating iconic products that consumers around the world love. We are long-term shareholders of Apple.

However, like many other shareholders, Greenlight is dissatisfied with Apple's capital allocation strategy. The combination of Apple's low (and shrinking) price to earnings multiple and $137 billion (and growing) hoard of cash on the balance sheet supports Greenlight's contention that Apple has an obligation to examine all options to create and unlock additional value.

We understand that many of our fellow shareholders share our frustration with Apple's capital allocation policies. Apple has $145 per share of cash on its balance sheet. As a shareholder, this is your money. Though Apple recently commenced paying a common dividend and initiated a nominal share repurchase program, we believe that there is much more that the Board should do for shareholders.

We believe that it is important for shareholders to send Apple's Board the message that the current capital allocation policy is not satisfactory, and that after considering all options, Apple's Board should act to unlock the latent value of Apple's balance sheet and franchise. If you share our frustration, please join us in blocking the Company's effort to restrict its value creation options by voting AGAINST Apple's plan to amend its corporate charter in Proposal 2 to eliminate preferred stock.

Send Apple And Its Board A Message That We Want Apple To Change Its Capital Allocation Policy To Unlock Value For Shareholders -- VOTE AGAINST PROPOSAL 2

At a May 2012 investment conference, Greenlight introduced the idea that Apple could unlock several hundred billion dollars of shareholder value by distributing to existing shareholders a perpetual preferred stock.

Since then, Greenlight has had discussions with Apple encouraging the Company to distribute perpetual preferred stock as an innovative method of rewarding all shareholders for the Company's strong balance sheet and substantial cash flows. Put plainly, Greenlight is encouraging Apple to distribute a perpetual, high-yielding preferred stock directly to shareholders at no cost. This would enable shareholders to own and separately trade the new preferred shares and Apple's existing common shares. Importantly, Greenlight believes these preferred shares represent a simple, low-risk way to reward shareholders without compromising the financial and strategic flexibility of the Company, or forcing the company to incur tax on repatriating its offshore cash balances.

Greenlight suggested an initial preferred share distribution, whereby dividends could be funded on an ongoing basis by a relatively small percentage of the Company's operating cash flow. Apple rejected the idea outright in September 2012. Yesterday, after Greenlight notified Apple of its intention to vote against Proposal 2, Apple said it would reconsider the idea, but refused to withdraw the proxy provision where Apple seeks to eliminate preferred stock from its charter.

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The recent, severe under-performance of Apple's shares, which are down approximately 35% from their peak valuation, underscores the need for the Company to apply the same level of creativity used to develop revolutionary technology for its consumers to unlock the value of its strong balance sheet for its shareholders.

We believe our suggestion of distributing perpetual preferred stock, while innovative, is also quite simple. Apple could distribute high-yielding, tax efficient preferred stock to existing shareholders at no cost. This new type of easily tradable preferred security would allow Apple to take advantage of the market's appetite for yield while preserving future operating and strategic flexibility. Importantly, we believe this strategy would require no immediate use of cash other than the ongoing dividend, and would not pose any maturity, re-financing, balance sheet, or default risk.

For example, Apple could initially distribute to existing shareholders $50 billion of perpetual preferred stock, with a 4% annual cash dividend paid quarterly at preferential tax rates. Once a trading market is established and the market recognizes the attractiveness of a highly liquid, steady yielding instrument from an issuer backed by Apple's unmatched balance sheet and valuable franchise, the Board could evaluate unlocking additional value by distributing additional perpetual preferred stock to existing shareholders. With this conservative action, Greenlight believes the Board could unlock hundreds of billions of dollars of latent shareholder value.

Assuming Apple retains its price to earnings multiple of 10x and the preferred stock yields 4%, our calculations show that every $50 billion of perpetual preferred stock that Apple distributes would unlock about $30 billion, or $32 per share in value. Greenlight believes that Apple has the capacity to ultimately distribute several hundred billion dollars of preferred, which would unlock hundreds of dollars of value per share. Further, Greenlight believes additional value may be realized when Apple's price to earnings multiple expands, as the market appreciates a more shareholder friendly capital allocation policy.

Apple's Attempt To Remove A Potential Means Of Value Creation Should Concern ALL Shareholders

As holders of more than 1.3 million Apple shares, Greenlight is alarmed that Apple is attempting to eliminate preferred stock from its corporate charter, hindering its ability to unlock value for shareholders. This is an unprecedented action to curtail the Company's options. We are not aware of any other company that has ever voluntarily taken this step. Furthermore, over 90% of the S&P 500 companies have the flexibility to issue similar preferred shares.

Apple is attempting to package this provision with two positive corporate governance reforms that we would normally support. Apple is asking shareholders to approve or disapprove of all three changes in a single bundled vote.

We believe that the Securities and Exchange Commission ("SEC") proxy rules require that Apple provide for a separate vote on each matter presented to its shareholders for approval at the shareholder meeting. This 'unbundling' rule is designed to permit shareholders to express their vote on each individual matter and to not be forced to vote on a combined package of items. This prevents companies from forcing shareholders to approve matters that they might not vote for if presented independently.

In our view, Apple's Proposal No. 2 violates the SEC's 'unbundling' rule because it ties together three separate matters (majority voting for directors, elimination of preferred stock, and establishing a par value for the Company's common stock) into one proposal. Apple should be required to unbundle these items into separate proposals to allow the shareholders to make an independent choice on each matter. Accordingly, Greenlight has initiated a legal action in the U.S. Federal District Court for the Southern District of New York seeking to have the Company unbundle the various components of Proposal 2 so that shareholders can rightfully vote on each individual provision as mandated by SEC rules.

We cannot support the two desirable governance reforms at the expense of limiting Apple's ability to potentially unlock hundreds of billions of dollars of shareholder value. Importantly, in its current form, voting AGAINST Proposal 2 does not affect the 'majority voting' reform in the short-term, as Board members have already agreed to resign from the Board if they fail to receive a majority of votes cast "for" their election. As a result, we will vote AGAINST Proposal 2 in Apple's proxy and we urge you to vote AGAINST the proposal, as well.

Proposal 2 Is Value Destructive, Impedes The Board's Flexibility, And Does Not Merit Shareholder Support

Your vote is extremely important, regardless of how many shares you own. Apple shareholders of record as of January 2, 2013 are entitled to vote at the annual meeting. Proposal 2 requires the affirmative vote of a majority of the outstanding shares. If you were an Apple shareholder on the record date, you can still vote AGAINST Proposal 2, even if you already voted your shares.

Greenlight is not asking for your proxy card, so please do not send us your proxy card. If your Apple shares are held in your own name, please vote AGAINST Proposal 2. If you hold your Apple shares in "street name" with a bank, brokerage firm, dealer, trust company or other nominee, only they can exercise your right to vote with respect to your shares and only after receiving your specific instructions. IT IS CRITICAL THAT YOU PROMPTLY GIVE INSTRUCTIONS TO YOUR BANK, BROKERAGE FIRM, DEALER, TRUST COMPANY OR OTHER NOMINEE TO VOTE "AGAINST" PROPOSAL 2. If you have any questions about voting your Apple shares, please call our proxy solicitor, D.F. King & Co., Inc., toll-free at (800) 949-2583 (banks and brokerage firms should call (212) 269-5550), or email apple@dfking.com.

Thank you for your consideration and support.

Sincerely,

David Einhorn, Greenlight Capital

Josh Lowensohn contributed to this report.

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ITC decision on Apple v. Samsung spat to come in August

The International Trade Commission's final ruling on a spat between Apple and Samsung is due this August, following a review of an earlier decision.

The judge presiding over the patent case (which was filed by Apple against Samsung in July 2011) last night said he plans to to issue final decision in the case on August 1, following an updated initial determination that's subject to a review.

Last October, the ITC said that Samsung infringed on four of Apple's patents with a handful of its mobile devices. Late last month the U.S.-based group said that decision would be reviewed following petitions by both companies for a second look.

Technology companies in recent years have increasingly turned to the ITC to settle their disputes. Companies can pursue an ITC case in parallel with civil lawsuits, and the threat of an embargo on products typically forces companies to settle more quickly.

This ITC case is part of a much wider spat between Apple and Samsung, which are involved in legal confrontations around the globe. Perhaps the largest has been the U.S. trial between the two in a San Jose, Calif., federal court, which wrapped up last August and favored Apple, but has yet to be entirely laid to rest.

(via FOSS Patents)

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5 consequences of Dell's $24.4 billion deal to go private

Will Dell PCs make a comeback?

(Credit:
Dell)

Dell's $24.4 billion deal to go private is a sign of the times. The PC market is collapsing, Microsoft is trying to save it, and the IPO isn't what it used to be.

The company is about to get a major transformation. Once the deal is completed (with a $2 billion loan from Microsoft as part of the financing), it will be owned by Silver Lake Partners and Dell founder Michael Dell. But what exactly does going private mean for the company? What impact will it have on the markets?

Here are a few potential consequences of the deal:

1. Dell be nimble, Dell be quick

Part of the reason Dell decided to go through the trouble of a leveraged buyout was that it would help it become a nimbler company. Without the public markets, analysts, and the Securities and Exchange Commission to answer to, Dell CEO Michael Dell can theoretically make quicker decisions that will let it respond to Apple and Google.

It remains to be seen whether Dell will actually become more nimble -- it is still a multibillion-dollar corporation, after all -- but if Dell didn't do anything drastic, it was never going to make a significant recovery.

There is another potential benefit to going private: Dell can now implement long-term strategies that may eat up short-term profits. Dell would be hammered on the public markets for declining profit margins, even if they were going to help long-term, but the company will face no such problem as a private entity.

Michael Dell

(Credit:
Dell )

2. Microsoft's awkward relationship with OEMs becomes more awkward

One of the most interesting parts of the deal is that Microsoft chipped in a $2 billion loan to help get the deal done. In the past, Microsoft just offered the software (Windows) and the OEMs provided the hardware to go with it. Microsoft didn't play favorites or hold stakes in any of its partners.

Of course, that was thrown out the proverbial window (ha) when it created its own competing hardware -- the Surface
tablet. It resulted in strained relationships with HP, Dell, and many of its longtime partners, and I doubt the Dell deal will help, even if Microsoft promises total independence.

3. Can anyone stop the decay of the PC ecosystem?

Let's face it: the PC ecosystem is in free fall. Sales dropped by 6.4 percent from the fourth quarter of 2011 to the fourth quarter of 2012. Dell itself was down a mind-blowing 20.8 percent from the last holiday quarter. This isn't a new phenomenon -- PC growth has been declining since the iPad was released.

Dell's move would not have come if the foundations of the PC ecosystem weren't crumbling.
Windows 8 sales are lagging, despite what the people in Redmond would like you to believe. The move to privatize could give it leeway to try riskier strategies, such as adopting other operating systems (despite Microsoft's $2 billion loan).

I doubt this move will change the state of the PC ecosystem, though. Everyone sees the decline, and PC tablets probably won't be enough to stem it.

4. Michael Dell's legacy

Michael Dell is one of the most successful entrepreneurs of our generation. He created a multibillion dollar company from his garage and became a billionaire in the process. He strongly identifies with the company that bears his name. But his return to the helm after he stepped down as CEO in 2004 has not been smooth, and it certainly can't be compared to Steve Jobs' return to Apple.

Some speculate that Michael Dell is preparing to step down as CEO, but I don't see the evidence. Why step down when you have the greatest opportunity in your life to make an impact at the company you founded?

The company going private will define his legacy, and he knows it. If the privatization deal succeeds, he will be known as one of the great CEOs of our time. If he can't turn things around, he will be a footnote in the history books.

5. Is this the beginning of the end of the IPO?

In the past, the IPO was the culmination of an entrepreneur's hard work, building an empire from the ground up. But now, companies are finding ways to avoid the IPO and the regulatory nightmare that accompanies it.

It's well-known that Mark Zuckerberg never wanted to take Facebook public, but essentially had no choice. And who can blame him? Quarterly financial reports, stock market roller coasters, and hostile takeovers just aren't fun.

Dell's move to privatize just underscores how burdensome being a public company actually can be. And with recent SEC rule changes making it easier to stay private for longer, why go public?

Let's be clear: most companies will still go public, because the early investors expect it. But don't be surprised if that mindset changes over the next decade. We may have to rewrite all the rules of the IPO if this trend continues.

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Privacy groups tell U.S. to stop lobbying EU on data law changes

A coalition of privacy groups has written to leading U.S. politicians to seek assurances that policymakers "advance the aim of privacy" in Europe, rather than hinder the development of new European data protection and privacy laws.

The Electronic Frontier Foundation (EFF), the American Civil Liberties Union (ACLU), the Electronic Privacy Information Center (EPIC), and more than a dozen other groups are seeking to meet with U.S. Attorney General Eric Holder, U.S. Secretary of State John Kerry, and U.S. Acting Secretary of Commerce Rebecca Blank, to ensure that new European data law proposals are bolstered and not weakened.

When made final, the European Union's Data Protection Regulation will govern the data and privacy laws of Europe's 27 member states.

In the letter (PDF) sent today, the 18 groups claim that U.S. and European citizens' privacy and personal data are "being abused by both the commercial sector and governments" and that the "line is increasingly blurred as personal data passes between both with few restrictions."

While European politicians continue to debate ever-amended drafts to the new EU Data Protection Regulation -- which seeks to replace an outdated 1995 directive -- U.S. policymakers are "mounting an unprecedented lobbying campaign to limit the protections that European law would provide," the letter states.

"The U.S. should not stand in the way of Europe's efforts to strengthen and modernize its legal framework," the letter states.

Administration 'working to protect' the lobby?
The new EU data protection and privacy law is meant to further protect the 500 million-plus European citizens' rights in an ever-globalizing world and borderless cloud.

A major concern is the extra-territorial effect of U.S. law on European citizens, notably with the FISA Amendments Act 2008 and sections of the Patriot Act for monitoring communications between Americans and foreigners.

One leading U.S. consumer protection and privacy organization warned that EU officials are being pressured by the U.S. to weaken the proposed privacy protections in the EC's draft data protection laws.

Center for Digital Democracy Executive Director Jeff Chester told ZDNet that despite the pro-privacy tone from President Obama, his administration is "working to protect the U.S. data lobby."

The privacy groups also noted that government access to communications data under the U.S. Electronic Communications Privacy Act (ECPA) "must be pursuant to a rigorous legal process."

The letter notes that updating ECPA -- in which authorities need only a subpoena approved by a federal prosecutor, rather than a judge, to obtain electronically stored messages six months old or older -- "would be a good start for the strengthening of U.S. law and policy" to bring the country in compliance with international human rights norms.

EU 'fed up' with U.S. lobbying
A year ago, EU Justice Commissioner Viviane Reding said the lobbying effort had been "absolutely fierce" and unprecedented in scale, according to The Telegraph.

On Sunday, the head of an influential pan-European industry group criticized "intensifying pressure from U.S. lobbyists on behalf of Google and Facebook," in order to suit the needs of Silicon Valley technology companies, according to the Financial Times of London.

Jacob Kohnstamm, chairman of the EU's Article 29 Working Party -- a group of data protection officials from each of the EU's member states -- said European lawmakers are "fed up" with U.S. lobbying.

In sharp words aimed at the Americans, he said: "You're not going to change your Fourth Amendment because of a business model in Europe, are you?"

The European Parliament is expected to vote on the draft regulation around the end of April, according to the EC.

Read more
of "Privacy groups call on U.S. government to stop lobbying against EU data law changes" at ZDNet.

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How can Amy Poehler help Best Buy during the Super Bowl?

Can she help?

(Credit:
Best Buy/YouTube Screenshot by Chris Matyszczyk/CNET)

In the first quarter of today's Big Game featuring big people doing big things to each other, Amy Poehler will be trying to do big things for Best Buy.

Unlike the players -- who will probably be tied 3-3 in a dull defensive battle when Amy appears -- Poehler has one shot to give the Best Buy brand a shot in arm. Or perhaps a shot at redemption.

Best Buy has been crossing some turbulent oceans recently, so securing the services of one of America' funniest actors is a pleasant coup.

The company has released a sneak preview (embedded here) of Poehler asking questions that are sweetly self-referential, so it may be that this theme will continue during today's spot.

More Technically Incorrect

The idea seems to be that whatever questions you have, those nice people in blue polo shirts will have the answer for you.

In order to reinforce this dream, Best Buy has co-opted the hashtag #infiniteanswers on Twitter.

Naturally, there have already been slight setbacks with this strategy.

For example, a twitterer called Jonathan has already offered: "#infiniteanswers not at your Willimar MN location I have seen smarter things come out of a dead animal."

Worse, another tweeter, Billy Byler seemed to be experiencing a little humorous bile: "Every answer was 'Not sure. Check Amazon.' @BestBuy: Amy Poehler visited us & had A LOT of questions. http://youtu.be/PcmW8HCuLo8 #infiniteanswers."

Can you win them over, Amy? Can you?

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Forty years ago, the Ohm F speaker was a game-changer; it still is

The Ohm F speakers

(Credit:
Ohm)

Lincoln Walsh died a year before his radically innovative speaker technology made its commercial debut in the Ohm Acoustics F in 1972. The speaker featured an omnidirectional Walsh driver that projected a massive stereo soundstage. At the time of its introduction the $900 per pair Ohm F was hailed as one of the greatest speakers of all time by the international press. It sounded like nothing else, and the single 12-inch, truncated cone driver produced bass, midrange and treble frequencies (37Hz to 17kHz). The driver had a titanium top section, aluminum midband and paper bottom, with a single voice-coil at the top of the driver. Even today, bona-fide full-frequency drivers like that are rare. The Ohm drivers and cabinets were made in Brooklyn.

According to Ohm's President John Strohbeen, the early production Fs had "functionality issues." "They needed 300 watts to get going, and 301 to blow them up," Strohbeen said with a chuckle. Ohm couldn't repair them, so they replaced broken drivers under warranty. The engineers kept redesigning the driver to improve reliability, but it was the introduction of ferrofluid-cooled voice coils that cured the F's reliability woes.

Unlike box speakers that project sound forward, the F radiated bass, midrange and treble frequencies in a full 360-degree pattern. The sound quality was so far ahead of what was available from conventional box speakers the F remained in production for 12 years, until 1984, but by that time the price had more than quadrupled to $3,995 per pair!

The Ohm Acoustics factory is still in Brooklyn, and still offers factory upgrades on the F speakers. That's remarkable -- how many companies do you know that still service 40-year-old products -- but that's what separates high-end audio from mainstream gear. Ohm currently offers a complete line of Walsh omni-directional speakers, with prices starting at $1,400 per pair. Ohm sells factory direct, with a very generous 120-day home trial period.

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Netflix launches all 13 episodes of 'House of Cards'

Netflix users who want to tune into the new "House of Cards" series can watch all 13 episodes as of today.

Based on a BBC miniseries, "House of Cards" is a drama that takes place in the political underbelly of Washington, D.C., with all the elements designed to lure in viewers -- sex, greed, and corruption. The series stars Kevin Spacey as a Washington congressmen with Robin Wright as his wife who "stop at nothing to conquer everything," according to the show's description.

Co-producted by Spacey and Oscar-nominated director David Fincher, the show found a place on Netflix after the company reportedly outbid HBO and other networks.

Why release all episodes in one shot? Netflix CEO Reed Hastings explained the strategy in the company's recent fourth-quarter earnings report.

Imagine if books were always released one chapter per week, and were only briefly available to read at 8pm on Thursday. And then someone flipped a switch, suddenly allowing people to enjoy an entire book, all at their own pace. That is the change we are bringing about. That is the future of television. That is Internet TV.

"House of Cards" is Netflix's second attempt at an original series following "Lilyhammer," which premiered in February of last year. And there's more to come.

The fourth season of "Arrested Development" will stream on Netflix in May, with all 14 episodes available on the same day. A supernatural thriller named "Hemlock Grove" will debut in April, followed later in the year by a series from "Weeds" creator Jenji Kohan called "Orange is the New Black" and the second season of "Lilyhammer."

And Netflix is aiming to fill its streaming airwaves with even more original shows.

In an interview this week with GQ, Netflix's chief content officer Ted Sarandos said he hopes to make at least five new series a year. His dream would be an original show created by Warren Beatty. He's also "warming up" Jodie Foster, who directed an episode of "Orange is the New Black," to develop a series.

To attract Hollywood producers, Sarandos promises them a large audience and real money but without the usual network hassles, such as meddling executives, pilot episodes, and no full-season commitments.

Of course, Netflix itself is paying real money to bring in these original shows, and the profit has to be worth the investment.

That means Netflix needs to promote them as a way to convince non-subscribers to sign up, just as HBO, Showtime, and other cable networks promote their shows.

Will the strategy work? It's a bold move on Netflix's part. But if it pays off, the company could achieve Sarandos' goal "to become HBO faster than HBO can become us."

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U.S. court denies Apple request to reconsider Samsung Galaxy Nexus ban -- Reuters

Score one win for Samsung.

The Federal U.S. Circuit Court of Appeals in Washington, D.C., has denied Apple's request to reconsider a prior ruling that refused to impose a sales ban on Samsung's Galaxy Nexus smartphone, Reuters reported.

The two companies have been embroiled in litigation for months, each accusing the other of patent infringement. Apple won a big victory last year, but it hasn't seen as much success in getting Samsung products banned in the U.S. In October, the U.S. Court of Appeals for the Federal Circuit overturned a sales ban on Samsung's Galaxy Nexus phone, saying the district court in California "abused its discretion" in imposing a preliminary injunction on
Galaxy Nexus sales.

We've contacted Apple and Samsung and will update the report when we hear back.

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Samsung to be fined $900 over plant gas leak -- report

Samsung will be fined for belatedly reporting a fatal hydrofluoric gas leak to authorities, according to a new report.

The gas leak reportedly occurred sometime on Sunday (the exact timeline is not easily determined, due to conflicting reports out of Korea) at a Samsung semiconductor facility south of Seoul. Several hours later, Samsung contacted crew members from a maintenance company to clean up the leak. Five crew members arrived on the scene and started to clean up the spill. However, one of the individuals, who was reportedly not wearing a full hazmat suit, died due to exposure. Four other individuals who were wearing their full protective gear were sent to a hospital, but fully recovered, according to reports.

Korea-based Yonhap News, citing sources within the police office assessing the fine, reported today that investigators have determined that Samsung took too long to alert law enforcement to the spill, and the company has been assessed a fine of up to 1 million Korean won (about $900).

For its part, Samsung has remained tight-lipped on the leak, but reportedly told Yonhap in a statement on Monday that it believed the leak was "minimal."

Samsung is one of the leading semiconductor makers in the world, and produces chips for a wide range of companies including Apple. It's not clear what processors were in production at the time of the accident.

CNET has contacted Samsung for comment on the news. We will update this story when we have more information.

(Via Engadget)

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Internet, social media least trusted industries for privacy

Internet and social media ranked bottom on a list of the most trusted industries for privacy, according to the Ponemon Institute.

Released yesterday, Ponemon's "2012 Most Trusted Companies for Privacy" was compiled from a survey of U.S. adults asked to name the five companies they trust the most to protect the privacy of their personal information.

Based on more than 6,700 responses, several tech players were absent from the top 20 after being on it in past years.

Apple failed to make the top 20 for the first time in four years. Google, Best Buy, Facebook, Yahoo, Dell, and AOL also were gone from the top 20 after scoring good or decent grades in the past.

Those results aren't surprising as many of those polled expressed concern about certain technologies. A full 59 percent of the respondents said they feel their privacy rights are diminished or undermined by social media, smart mobile devices, and geo-tracking tools.

Almost half of the people surveyed said they received one or more data breach notifications over the past two years. And 77 percent of those said such notifications hurt their trust in the organization reporting the breach.

A majority of those polled said they've shared personal information with an organization they didn't know or trust, with most admitting they did it for the convenience of online shopping. And only 35 percent feel they have control over their personal information, a percentage that has dropped steadily over the past seven years, the report said.

Identify theft was seen as the most significant threat to privacy, followed by government surveillance and data breaches.

And what do people expect from companies that use their personal information?

Security protection was named the most important feature. But a majority also said they don't want their data shared without their consent and they want the ability to be forgotten.

On a more positive note, Hewlett Packard took second place in the rankings, just behind American Express.

Amazon was third, followed by IBM in fourth. eBay grabbed ninth place, with Intuit rounding out the top ten.

Among other technology providers, Microsoft and Mozilla joined the list for the first time, ranked 17 and 20, respectively. Verizon, AT&T, and WebMD also numbered among the top 20.

Conducted in December, the survey received responses from 6,704 people.

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Newegg wins in key 'shopping cart' lawsuit

Newegg last week won an important ruling that could have a profound impact on e-commerce.

A U.S. Court of Appeals for the Federal Circuit last week ruled (PDF) that Newegg has not violated patents held by Soverain related to the function of shopping carts and other e-commerce technologies. The court found that Soverain's claims -- that Newegg was violating its patents through its online shopping cart -- were "invalid for obviousness."

Ars Technica was first to report on the judgement.

Soverain does not actually operate an e-commerce business. Instead, the company has acquired a wide array of patents across e-commerce that it has used to win judgement against several online retailers, including Victoria's Secret and Avon. In 2007, the company also won a verdict against Newegg on the claims that have now been overturned by the higher court.

What Soverain has been seeking (and receiving) from online retailers is nothing to scoff at. The company wins damages against the online retailers that it defeats, plus a "running" royalty of 1 percent of sales for the right to use its patents.

As Ars Technica points out, however, the Federal court's ruling could effectively alter Soverain's future. The company's patents, which in some cases, date all the way back to the 1990s, are now being called invalid because they're "obvious." It might not take long, therefore, for companies that it defeated in court to appeal judgements based on that ruling. The company has also brought lawsuits against a slew of other companies that are still pending and might be scuttled by this deal.

Here's what Newegg's chief legal officer, Lee Cheng, had to say to Ars Technica about Soverain:

Lo and behold, I unveil to you the world of--shopping cart! And this shopping cart--unlike all the shopping carts used for hundreds, if not thousands of years--should be paid for based on the total dollars of transactions in the shopping cart.

It's very common in troll cases for them to say, "Our widget is so critical, we deserve a penny on every dollar." But what they have is a completely commodity functionality that could be coded any one of dozens of different ways. I mean, come on. Let's not stretch credibility.

CNET has contacted Soverain for comment. We will update this story when we have more information.

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Kutcher went on Jobs' fruitarian diet, landed in the hospital

Did the fruit help?

(Credit:
JBeylovesyou/YouTube Screenshot by Chris Matyszczyk/CNET)

Actors are lovely people.

Until they take themselves seriously, that is.

Then, eccentricities are magnified, intentions are doubted and sanity is questioned.

What to make, you see, of Ashton Kutcher's revelation that, in some actorial attempt to be as much like Steve Jobs as he could, he became a fruitcake?

This is the technical term for someone who decides to go on a fruitarian diet, which involves only allowing fruits, nuts, and seeds inside you -- something that Jobs himself tried.

As the entirely unseedy US Weekly digests it, Kutcher was so dedicated to pursuing his craft that pursuing this diet put him in hospital.

I am sure the producers of "jOBS" were delighted with his dedication, as he was sent to ER just two days before shooting started.

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"I was like doubled over in pain and my pancreas levels were completely out of whack, which was completely terrifying, considering everything, Kutcher told US Weekly.

Terrifying, indeed. And, perhaps, not wholly unsurprising.

Still, it doesn't seem to have been as terrifying as playing Jobs.

Kutcher emoted: "It's portraying a guy who just passed away that is really fresh in people's minds, that people are really passionate about, and care about, and have an opinion about -- that's really scary. Especially portraying a guy that I really admire . . . it's terrifying, it's terrifying!"

My colleague Casey Newton, who witnessed the movie on Friday, seems to have been less terrified and more numbed at the experience, although he seemed reasonably enamored of Kutcher's performance.

I'm sure it was the fruit that got him closer to the man.

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Oppo BDP-105: Not your average Blu-ray player

The Oppo BDP-105 Blu-ray, SACD, and DVD-Audio player

(Credit:
Oppo)

Even by Oppo's high standards the BDP-105 is an extraordinary Blu-ray player. Sure, it's loaded with up-to-the-second features -- 4K upscaling, 2D-to-3D conversion, and a high-quality USB 2.0 digital-to-analog converter -- but what really makes the Oppo special is the sound. Pop the cover and look inside and you'll see why. Most of the 17-pound component's chassis space is devoted to the audio circuitry. That's nice, but the audio advantages will be completely irrelevant if you connect the BDP-105 to your receiver with a HDMI cable (the digital-to-analog conversion would then be handled in the receiver). The 105 was designed for buyers still using older $1,000 or $2,000 receivers from the days before HDMI connectivity, that would like to hear the Blu-rays' high-resolution DTS Master Audio or Dolby TrueHD soundtracks at their best. Since the audio won't be transmitted over the HDMI cable, you would run audio cables between the 105's seven- or five-channel analog outputs and the AV receiver's analog inputs.

The BDP-105 has 7.1/5.1 analog output jacks

(Credit:
Steve Guttenberg/CNET)

Or you could forgo the receiver entirely and hook up the BDP-105 directly to a five- or seven-channel power amplifier. That approach would produce better sound quality, but would lack the connectivity, flexibility, and convenience of today's better receivers. Still, the BDP-105/power amp combo would sound better and be more powerful than most top-of-the-line receivers. The 105's connectivity options won't match any decent receiver, but its connectivity suite is a lot more extensive than most Blu-ray players. The Oppo has two HDMI inputs, so you can connect external devices such as set-top boxes and network streaming devices, three USB 2.0 ports, coaxial and optical digital inputs for satellite boxes, televisions, video-game consoles, etc., and there's a built-in headphone amplifier. The BDP-105's extensive bass management options are on par with a lot of AV receivers. The player's digital volume control is easy to use.

For my listening tests, I hooked up the BDP-105 ($1,199) with an assortment of self-powered Audioengine and Emotiva monitor speakers, and a Hsu subwoofer. With this setup I didn't need to use an AV receiver or separate power amp, but the Raconteurs' "Live at Montreux" Blu-ray was vivid and very live sounding. The system's freewheeling dynamics were really impressive, and the surround mix on King Crimson's "Red" DVD-A projected a remarkably seamless wrap-around soundstage. Each instrument was precisely focused in a near 360-degree sound environment.

The BDP-105 has full speaker setup and bass management options, just like an AV receiver.

(Credit:
Steve Guttenberg/CNET)

Classical music on SACD was just as impressive, the front three speakers produced a three-dimensional soundstage with lots of depth, and string tone was top notch. Dramatic movies on Blu-ray and DVD sounded great. I plugged headphones into the BDP-105, but the sound wasn't special, Schiit Audio's $99 Magni headphone amp was a lot better.

The $499 Oppo BDP-103 shares most of the BDP-105's features, but lacks the upgraded digital-to-analog converters, so if you're planning on using HDMI to connect the player to your receiver, buy the 103, and save $700. You can use the 103's 7.1 analog outputs with an old high-end receiver lacking HDMI connectivity, but the 103's digital converters are a step down from the ones in the 105.

The BDP-105 is an update of the Oppo BDP-95, and the new one has lots of features the old player lacks, but the two players sound about the same. Oppo still has 95s in stock and sells them for $799.

Oppo sells direct and offers a 30-day money-back guarantee, and the return shipping is free.

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Samsung unveils rugged Galaxy phone for the outdoor type

Galaxy Xcover 2

(Credit:
Samsung)

Samsung has created a new smartphone that can handle the great outdoors and even spend time underwater.

Announced today, the Galaxy Xcover 2 is built as a durable and rugged device, according to Samsung. The phone is both dustproof and sandproof.

It can also hold its breath underwater, at least at a depth of around three feet for up to 30 minutes. You probably won't be making too many phone calls under the water, but the Xcover 2's camera can come in handy if you want to snap photos of life under the sea.

The phone provides Google map information and an enhanced GPS/GLONASS feature. Combing both the U.S.-based GPS and Russia's GLONASS can track your location more accurately, according to Samsung.

The camera's LED flash is bright enough so it can be used like a torch in dark conditions. The 1,700mAh battery boasts a capacity of 570 hours. To get in shape, the phone includes a Cardio Trainer Pro app so you can set up and monitor a personalizing training program.

Outfitted with
Android 4.1 Jelly Bean, the Xcover 2 is powered by a 1GHz dual-core processor. The 4-inch screen offers a WVGA display.

A 5-megapixel autofocus camera is found in the back, while a VGA camera faces front. The phone is equipped with Bluetooth version 4.0, which Samsung says can detect other Bluetooth devices up to 164 feet away.

Samsung has not yet announced where or when the phone will be available, nor how much it will cost. But the timing is right for the company to show off the Xcover 2 and reveal more details at next month's Mobile World Congress in Barcelona.

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Pebble smartwatch app clocks in for iOS, Android

Owners of the new Pebble smartwatch can now download an iOS or Android app to get even more out of the watch.

Available today, the iOS and Android versions offer a dashboard for your Pebble watch. You start by pairing your phone or
tablet with your watch via Bluetooth. Once they've been paired, the app offers several handy features.

You can install custom watch faces onto the Pebble. You can receive notices when new software updates are available for the Pebble. You can send test messages to your watch. You can also access how-to guides and contact Pebble tech support from your iOS device.

Of course, in order to use the app, you first need to buy the watch. So, what is the Pebble watch and how do you get one?

The $150 Pebble is a smartwatch, meaning it obviously does more than just tell the time.

The watch can sync with iPhones and
Android phones to notify you of incoming calls, e-mail, instant messages, and calendar appointments. The display uses e-paper technology, so you can more easily see it in direct sunlight. The watch also has the ability to run mobile apps, once such apps become available.

Like many innovative products, the Pebble kicked off through a Kickstarter campaign, which proved to be a true money maker. Last May, the watch easily hit its goal of $100,000 in funds, then went on to generate a total of $10.2 million from eager backers.

And now the watch is finally off the assembly line. The Pebble people announced yesterday that the first 500 units are being shipped to the earliest Kickstarter backers. But more are expected soon. The company said its factory is making 800 to 1,000 Pebbles per day and is striving to reach full capacity of 2,400 a day.

People who didn't get in on the Kickstarter action and want the watch can preorder one for $150 at Pebble's Web site. But you'll naturally have to wait until the backers get theirs.

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Apple, Google, others agreed not to poach workers, reveal e-mails

Apple, Google, Intel, Adobe, and other companies had agreements in place during the mid-2000s not to steal employees from each other and other technology players.

A series of e-mails posted today by The Verge point to a paper trail of non-poaching agreements among a variety of companies.

The revelation follows a civil lawsuit filed in 2011 by five workers against Apple, Google, and others alleging that the companies purposely tried to keep down wages through non-poaching agreements.

In one case made public yesterday, then Palm CEO Edward Colligan said he received a call from Apple CEO Steve Jobs in 2007 suggesting a non-poaching agreement between the two companies. After pointing out that such an arrangement was "likely illegal," Colligan said Jobs suggested that if Palm didn't agree, Palm could face patent infringement lawsuits from Apple.

But the reported exchange between Jobs and Colligan seems to be the tip of the iceberg.

In one e-mail displayed by the Verge, Jobs asked Google CEO Eric Schmidt to stop recruting people from
Apple's iPod group.

In another message, a senior staffing stategist at Google told Schmidt that a recruiter who tried to hire an Apple employee was to be fired. Schmidt's response? "I would prefer that Omid do it verbally since I don't want to create a paper trail over which we can be sued later? Not sure about this."

Other e-mails traveled throughout Silicon Valley. A message from Intel CEO Paul Otellini points to an agreement with Google but cautions that "we have nothing signed. We have a handshake 'no-recruit' between eric and myself. I would not like this broadly known."

A memo from Intel says that people from Pixar cannot be recruited, adding that if someone from Pixar applies for a job, the CEO of Pixar needs to be contacted for approval.

Some companies actually maintained lists of firms that were off limits for talent acquisition.

A document from Adobe warned staffers not to recruit workers from Apple, Bell Canada, EMC, SAP, and others. An Apple document placed Microsoft, Google, Intel, Pixar, and a host of others on the do-not-call list. A Google document cautioned against contacting potential hires from Intel, Apple, PayPal, Comcast, and Genentech, saying that Google has "special agreements" with these companies.

The civil suit is being weighed by Judge Lucy Koh to determine if it can move forward as a class-action suit, says Reuters. If so, that could pave the wave for a bigger settlement.

Attorneys for the plantiffs claim damages could reach hundreds of millions of dollars. But Koh said that analysis had "holes," Reuters added.

In 2010, Apple, Adobe, Google, Intel, Intuit, and Pixar settled with the Justice Department by promising to end non-poaching agreements.

CNET contacted Apple, Intel, and Google for comment and will update the story if we receive any information.

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Bigger iPhone still coming -- just not this year, report says

iPhone 5

(Credit:
CNET)

In an about-face, Digitimes -- the purveyor of numerous Apple rumors, some of which have been true -- says not to get your hopes up for an even larger version of the iPhone. At least not this year.

The tech news site says Apple's still working on one, but that it won't come in the second half of this year, as it excitedly reported earlier this month. That report made waves after claiming Apple was working on a low-cost model with an even larger screen than the 4-inch display found on the
iPhone 5.

"Previously it was said that Apple would release a lower-cost version of its iPhone with a bigger screen in 2013," Digitimes said this morning. "But the sources claimed that Apple is indeed developing an iPhone with a bigger screen, but that will not be among the models to be lancuhed [sic] this year."

The reasoning behind the move, the updated report offers, is supply of the screens with larger displays creating possible production issues.

The report follows one from Chinese language Commercial Times yesterday, which said Apple has a low-cost, 4.8-inch iPhone model in the hopper dubbed the "iPhone Math." Jefferies analyst Peter Misek, who watches Apple's supply chain closely, put out a note to investors this morning agreeing with that possibility.

"Our checks agree three different models are scheduled for launch in 2013 but disagree on the details," Misek said. "We believe a lower-cost 4.3" iPhone and multi-color 4" iPhone 5S will launch in June/July. Additionally, we believe a 4.8" iPhone model is scheduled for the end of October. We do not know what this phone will be called and think 'Math' might be a mistranslation or a code name."

Apple currently sells three different models of the iPhone, but has only ever introduced one model at a time, choosing to sell the older model at a lower price. There were numerous rumors ahead of the
iPhone 4S in 2011 that Apple planned to change that with the simultaneous release of a 4S and the 5, something that proved to be wrong.

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RIM CEO says licensing of BlackBerry 10 'conceivable'

RIM CEO Thorsten Heins.

(Credit:
James Martin/CNET)

Research In Motion will launch devices running BlackBerry 10 at the end of the month, but the handset maker is still playing with the idea of licensing its new operating system to other manufacturers.

When asked whether RIM might license the new platform as Microsoft did with Windows Phone, RIM CEO Thorsten Heins told German newspaper Die Welt that it's not out of the realm of possibility.

"Before you licensed the software, you must show that the platform has a large potential," he said, "First we have to fulfill our promises. If such proof, a licensing is conceivable."

Licensing would allow third-party hardware makers to put the new OS on non-RIM devices. RIM has a lot riding on BlackBerry 10, which the company hopes will reinvigorate the brand. After some delay, RIM is expected to unveil handsets fort the new platform next week in a multiple-city debut.

When asked about the delay, Heins said the company's goal was to create a solid platform that would last a decade.

"We have taken the time to build a platform that is future-proof for the next ten years," he said. "Our aim is not only to smartphones, but also to the use, for example, in
cars that will be in the future increasingly networked. We see with BlackBerry 10 completely new areas of growth."

The company has been struggling to bring back lost market share and sales for its once popular BlackBerry devices, but it's not having much luck in an industry ruled by Apple and
Android, which Google has had great success licensing to third-party hardware makers. The company announced a broad restructuring last year and is rumored to be considering a plan to split in two, separating its handset division from its messaging network and selling off the struggling BlackBerry hardware business

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Texting newscaster falls into freezing canal

Here's one of Birmingham's picturesque canals.

(Credit:
Voxley19/YouTube Screenshot by Chris Matyszczyk/CNET)

Let's try and make some excuses.

She's a newscaster, so she's so used to focusing on words written down that she loses track of everything else.

She was texting her boyfriend, who is so astoundingly gorgeous that she would have walked through morning traffic in Manhattan just to send him an "LOL."

No, it's no good.

Laura Safe (this is, indeed, her real name) is the latest in the annals of people who almost did themselves permanent damage because they were too busy texting to see where they were going.

While one of the previous surviving wet texters fell into Lake Michigan, Safe merely fell into a canal in Birmingham, England.

This happens to be my home town, so may I tell you that it's like Venice without the beauty or the wonderful literature written about its detectives.

Safe, being a newscaster for Capital FM radio there, must have known there was a canal or two sprinkled about. (Birmingham has 114 miles of them.)

However, as she wandered down the steps of a shopping mall, she was busily staring into her phone, texting her man.

More Technically Incorrect

As the Daily Mail tells it, another man, property company founder Neil Edgington, watched her heading down the steps and inexorably toward the freezing canal and shouted for her to stop.

It appears she didn't listen. It appears Edgington may have ruined his suit in saving her.

After being rescued by Edgington from the wet and cold, Safe told the Mail: "I was there on the edge, teetering on the edge, moving my arms around, trying to save myself from falling into this horrendous canal which is most probably full of, well I don't know what's in there."

But we know what was in there: an engrossed texting newscaster by the name of Safe.

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