Is HP Going To Court?

HP and its top executives have been accused of misleading investors before a slump in its stock price.

HP is facing a class action lawsuit filed by Robbins Geller Rudman and Down alleging that CEO Leo Apotheker and CFO Cathie Lesjak misled investors before making announcements that included the possible spin-off of its PC business, dumping WebOS devices and the purchase of British software outfit Autonomy.

Those announcements, all made in one afternoon, led to a 20 per cent drop in HP’s share price the following day. That, according to Reuters, was the largest one day decline in HP’s share price since 1987.

The lawsuit against HP does not specify damages but it serves to highlight the growing concern at the way Apotheker is leading HP. The firm’s announcement that it was considering leaving the PC business was a shock to many, but its decision to dump its WebOS devices was perhaps the biggest shock of the lot.

While HP’s PC business was always seen as a low margin operation, WebOS was viewed as a core part of HP’s future strategy. The firm kept banging on about slipping WebOS into as many devices as possible, however all that talk evaporated, just like HP’s Touchpads when it sold them off at fire sale prices for a massive loss.

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Google Buys Patents From IBM

Google has purchased more than 1,000 patents from IBM, as part of its strategy to strengthen its patent portfolio to counter litigation, according to records of the United States Patent and Trademark Office.

Jim Prosser, a Google spokesman, confirmed the transfer, reported by a blog SEO by the Sea, but did not provide details such as the the purchase price Google paid for the patents.

Google also acquired another over 1,000 patents from IBM in July. It transferred recently some patents to smartphone maker HTC to help it pursue patent litigation against Apple.

Google has been interested in buying patents for some time now, which led to its failed bid in June for the patents of Nortel Networks, and its proposed acquisition of Motorola Mobility for about US$12.5 billion.

The tech world has recently seen an explosion in patent litigation, often involving low-quality software patents, which threatens to stifle innovation, Kent Walker, Google’s senior vice president and general counsel, said in a blog post in April.

“But as things stand today, one of a company’s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services,” he added.

The acquisition of Motorola Mobility’s patents was a key consideration for Google to start talking to the company in early July. But Motorola told Google that it could be a problem for Motorola Mobility to continue as a stand-alone entity if it sold a large portion of its patent portfolio, according to a filing by Motorola to the U.S. Securities and Exchange Commission on Tuesday.

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Should HP Reconsider The TouchPad?

Hewlett-Packard Co (HP) should re-think its decision to dump its TouchPad tablet since the device could double the value of the PC division HP plans to spin off, technology research firm Canalys said in a statement to clients.

HP stunned markets in August by saying it may shed its PC business — the world’s largest after the $25 billion acquisition of Compaq in 2002 — while at the same time killing webOS-based phones and the TouchPad tablet which was launched only six weeks earlier.

HP slashed the price of its tablet to $99 the weekend after announcing the TouchPad’s demise, igniting an online frenzy and prompting long lines to form at retailers as bargain-hunters chased down a gadget that had thus far failed to excite consumers.

“The TouchPad was overpriced at launch and did not sell. This led HP to draw a premature conclusion that the product category had failed,” Canalys analysts said in a research note.

Canalys said the price cut had helped make TouchPad the hottest brand in HP’s entire portfolio, gathering more interest than anything from HP in more than 10 years.

“The TouchPad has become the ‘must-have’ technology product of 2011. Perhaps no other technology vendor, apart from Apple, has ever created such hype for a technology product,” the research note said.

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HTC Is On A Buying Spree

Taiwanese handset maker HTC has been on a shopping spree to reshape its business, though it remains to be seen if the strategy will help it gain ground on rivals such as Apple, Samsung and Research In Motion.

HTC has bought or invested in at least six companies this year, many of which provide technologies to improve how users consume and share content on its devices. It’s a big change for the Taiwanese manufacturer, which focused for much of its existence on hardware, leaving software and content to its partners.

Times have changed, however, with rivals like Apple and Nokia building whole ecosystems around their products, including app stores and content delivery systems. HTC has shifted its focus before, moving from contract manufacturer for Microsoft’s smartphones to selling its own HTC-branded devices. It must now evolve once more.

“It is no longer enough to focus only on hardware innovations,” said Ryan Lee, an analyst with Taipei-based Topology Research Institute. HTC’s acquisitions, which include both technology and patents, “pave the way for HTC’s greater competitiveness,” he said.

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Apple Blasted For Not Blocking Stolen Certificates

A security researcher blasted Apple for what he called “foot dragging” over the DigiNotar certificate fiasco, and urged the company to act fast to update Mac OS X to protect users.

“We’re looking at some very serious issues [about trust on the Web] and it doesn’t help matters when Apple is dragging its feet,” said Paul Henry, a security and forensics analyst with Arizona-based Lumension.

Unlike Microsoft, which updated Windows Tuesday to block all SSL (secure socket layer) certificates issued by DigiNotar, Apple has not updated Mac OS X to do the same.

DigiNotar, one of hundreds of firms authorized to issue digital certificates that authenticate a website’s identity, admitted on Aug. 30 that its servers were compromised weeks earlier. A report made public Monday said that hackers had acquired 531 certificates, including many used by the Dutch government, and that DigiNotar was unaware of the intrusion for weeks.

Because almost all the people who were routed to a site secured with one of the stolen certificates were from Iran, many experts suspect that the DigiNotar hack was sponsored or encouraged by the Iranian government, which could use them to spy on its citizens.

Microsoft isn’t the only software maker to block all DigiNotar certificates: Google, Mozilla and Opera have also issued new versions of their browsers — Chrome, Firefox and Opera — to completely, or in Opera’s case, partially prevent users from reaching websites secured with a DigiNotar certificate.

Users of Safari on Mac OS X, however, remain at risk to possible “man-in-the-middle” attacks based on the fraudulently obtained certificates.

Because Safari relies on the underlying operating system to tell it which certificates have been revoked or banned entirely, Apple must update Mac OS X. The Windows edition of Safari, which has a negligible share of the browser market, taps Windows’ certificate list: That version is safe to use once Microsoft’s Tuesday patch is applied.

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Dell & Baidu To Create Mobile Devices

Dell Inc and China’s top search engine Baidu Inc plan to join forces and develop tablet computers and mobile phones, targeting the Chinese market dominated by Apple Inc and Lenovo.

China is one of the fastest growing markets for tablets and is home to more than 900 million cell phone subscribers, but analysts were skeptical that the partnership would knock Apple from its dominant perch in the market.

“I suspect this is just Dell, who has a lot of problems on the mobile and tablet front, grasping at straws to get any kind of publicity that it can to make its product more attractive,” said Michael Clendenin, managing director of technology consultancy RedTech Advisors.

“Ultimately in China, I still think it is Apple’s game, still for the iPad and iPhone.”

Dell declined to give a timeline for the launch of the devices, but local media reported on Tuesday, quoting sources, that it may be as early as November.

Baidu launched a new mobile application platform last week and offered a glimpse of its upcoming mobile operating system, which it hopes will serve a growing number of users accessing the Internet from smartphones and tablet computers.

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Analysts Expect Flood of Cheap Tablets This Fall

Analysts are predicting that a whole slew of $200 to $300 tablet computers will hit the market this fall, prompting the essential question: Which device will come out on top?

Several analysts are betting on Amazon.com to be at the top of the pile with an expected $299 Android-based tablet introduced sometime in October. The reason it will do
well is only partly because of the low price, which is below the market-leading iPad 2, starting at $499.

But analysts also expect Amazon to offer content for its 9-in. tablet thats comparable to or even exceeds the content that Apple can offer for the iPad. Amazon will make money on the content it sells, which is expected to more than make up for any loss it incurs in selling the tablet at a price below the cost of making it.

“Amazon has an ecosystem like Apple, with its own app store that offers music, movies and videos, and a bookstore,” said Bob O’Donnell, an analyst at IDC. “Not only would you get a cheaper device [than the iPad], you would get the integrated Amazon experience. That’s what makes Amazon’s tablet the most interesting and where other [Android] tablets will be challenged.”

In effect, Amazon’s approach will be to entice buyers with a much lower price, “but have all the services of Apple,” O’Donnell said.

Other Android tablets with which Amazon would likely compete include a $199 Lenovo IdeaPad A1 tablet announced Thursday, the cheapest 7-in. Android tablet from a top device maker. Another contender is the original Samsung Galaxy Tab, which is being sold on Amazon for $279.99, after having first appeared late in 2010 for $600.

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Lawsuit Says Microsoft Illegally Tracks Customers

Microsoft allegedly tracks the location of its mobile user even after customers request that tracking software be turned off, according to a new lawsuit.

The proposed class action, filed in a Seattle federal court on Wednesday, states Microsoft intentionally designed camera software on the Windows Phone 7 operating system to ignore customer requests that they not be tracked.

A Microsoft representative could not immediately be reached for comment.

The lawsuit comes after concerns surfaced earlier this year that Apple’s iPhones collected location data and stored it for up to a year, even when location software was supposedly turned off. Apple issued a patch to fix the problem.

However, the revelation prompted renewed scrutiny of the nexus between location and privacy. At a hearing in May, U.S. lawmakers accused the tech industry of exploiting location data for marketing purposes — a potentially multibillion-dollar industry — without getting proper consent from millions of Americans.

The lawsuit against Microsoft cites a letter the company sent to Congress, in which Microsoft said it only collects geolocation data with the express consent of the user.

Will HP Temporarily Resurrects The TouchPad?

Hewlett Packard Co plans to produce “one last run” of TouchPads, days after declaring it will discontinue a line of tablets that failed to challenge Apple Inc’s domination of the booming market.

A day after the chief of HP’s personal devices division told Reuters the TouchPad might get a second lease on life, HP announced a temporary about-face on the gadget after being “pleasantly surprised” by the outsized demand generated by a weekend fire-sale.

HP slashed the price of its tablet to $99 from $399 and $499 the weekend after announcing the TouchPad’s demise on August 18, part of a raft of decisions intended to move HP away from the consumer and focus on enterprise clientele.

That ignited an online frenzy and long lines at retailers as bargain-hunters chased down a gadget that had been on store shelves just six weeks.

“The speed at which it disappeared from inventory has been stunning,” the company said. “We have decided to produce one last run of TouchPads to meet unfulfilled demand.”

HP may lose money on every TouchPad in its final production run. According to IHS iSuppli’s preliminary estimates, the 32GB version carries a bill of materials of $318.

“We don’t know exactly when these units will be available or how many we’ll get, and we can’t promise we’ll have enough for everyone. We do know that it will be at least a few weeks before you can purchase,” HP said in a blogpost.

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Was Apple’s Victory, Really A Victory?

As we heard this week Apple had won an injunction barring Samsung from selling some of its Galaxy smartphones in Europe.

However, it is likely that an update from Android 2.x to Android 3.0 will resolve the patent issue, which concerns the way photos are viewed on a touchscreen.

According to OS news, only the Gallery application infringes the patent in question, and Samsung has confirmed it will update the software to get around the problem.

“The injunction has been granted due to the method of scrolling in the Gallery. If that’s replaced, there is no more reason to uphold the injunction,” said Bas Berghuis van Woortman, one of Samsung’s lawyers.

The injunction doesn’t come into effect until mid-October, giving the Korean phone maker plenty of time to change the software. OS news points to evidence showing that although Apple entered into battle with three patents and a community design, all but the Gallery patent were thrown out by the judge.

The swipe-to-unlock patent will likely be declared invalid, the judge wrote, specifically referring to the Neonode N1m mobile phone as prior art, which has the exact same unlock method as the Iphone.

Apple’s complaint about the design of Galaxy smartphones was also thrown out, with the judge citing numerous cases of prior art, including the LG Prada. And in the case of the Android GUI patent, the judge cited the Nokia 7710 as prior art.

Although Samsung’s PR firm in the UK hadn’t heard anything about an Android update, Samsung said that it expects only the Netherlands to be affected by the ruling. It said, “[The] ruling is an affirmation that the GALAXY range of products is innovative and distinctive. With regard to the single infringement cited in the ruling, we will take all possible measures including legal action to ensure that there is no disruption in the availability of our GALAXY smartphones to Dutch consumers.

“This ruling is not expected to affect sales in other European markets. We will continue our plans to introduce new products and technologies that meet and exceed consumer expectations. And we will defend our intellectual property rights through the ongoing legal proceedings around the world.”

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