Twitter Makes A Deal With IBM

Twitter Inc has purchased 900 patents and inked a cross-licensing agreement with IBM, making peace with Big Blue and bulking up on its intellectual property portfolio as it takes on larger rivals Google and Facebook.

The agreement announced on Friday comes after International Business Machines Corp accused Twitter in November – on the eve of its high-profile initial public offering – of infringing three of its patents. At the time, it underscored how few patents the six-year-old social media company possessed in relation to more established rivals.

A cross-licensing agreement will help safeguard Twitter against similar claims in the future.

IBM is one of the industry’s largest research spenders and stockpilers of intellectual property, a consistent leader in U.S. patent filings and the owner of some 41,000 patents.

Twitter is following on the heels of Facebook, which itself faced similar claims before its own 2012 IPO. The world’s largest social network has since gone on a patent-buying spree, acquiring intellectual property from tech bellwethers, including Microsoft Corp and IBM.

“This acquisition of patents from IBM and licensing agreement provide us with greater intellectual property protection and give us freedom of action to innovate on behalf of all those who use our service,” Ben Lee, Twitter’s legal director, said in a joint statement with IBM on Friday.

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Reddit ISO Profits

Social news hub Reddit enjoyed a major get when it interviewed Barack Obama last year. The big get for 2013 was reaching 90 million unique visitors a month, according to the company, on par with the likes of eBay. This season, even Microsoft co-founder and philanthropist Bill Gates joined its Secret Santa gift exchange.

Now, the self-dubbed “Front Page of the Internet” is going for a milestone it has been trying to reach since its founding in 2005: profitability.

After years of experimenting with paid subscriptions and display advertising, Reddit, with just 28 employees, has begun pouring resources into building an electronic bazaar.

Company executives say they increasingly believe such a venue is the answer to their long search for reliable revenue, complicated in part by their fans’ mistrust of advertising.

If Reddit Gifts, as the burgeoning bazaar is known, brings sustainable profitability, it would mark a turning point for an outfit that has exerted an outsized and sometimes controversial influence on Internet culture yet languished financially.

Reddit estimates over 250,000 items have been purchased over the holiday, mostly as part of the 50 or so mostly geek-oriented Secret Santa gift exchanges – where zombie- or fantasy-themed presents, say, change hands – that users have created.

Although Reddit won’t disclose details about how much money it has made from Reddit Gifts or its overall financial performance, it takes a 15 to 20 percent cut of every purchase.

Usually priced between $10 and $25, the goods reflect Reddit’s young and geeky user base, from collages of cats in steampunk apparel to coffee mugs branded by Imgur.com, a repository of funny Web pictures, to an entire category dedicated to bacon-related products. More than 250 merchants supply gifts curated and “up-voted” by the community, much as articles and links are elevated on the Reddit site itself.

The gift exchange made headlines this month after Gates signed up and surprised a Reddit user by sending her a travel book and a stuffed cow, symbol of the charity he donated to in her name.

The company, which is hoping to position itself as a bona fide shopping destination year-round, estimates that only 14 percent of its marketplace revenue comes from the Christmas-season gift exchange programs.

Yet those sales alone could put Reddit firmly in the black, said Dan McComas, the head of Reddit Gifts. He added that the company may choose to reinvest funds in e-commerce customer service and infrastructure.

Chief Executive Yishan Wong, a former Facebook executive, said Reddit was “kind of” breaking even and denied that pressure was mounting on his team to turn a profit.

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Will Computer Obtain Common Sense?

Even though it may appear PCs are getting dumbed down as we see constant images of cats playing the piano or dogs playing in the snow, one computer is doing the same and getting smarter and smarter.

A computer cluster running the so-called the Never Ending Image Learner at Carnegie Mellon University runs 24 hours a day, 7 days a week searching the Internet for images, studying them on its own and building a visual database. The process, scientists say, is giving the computer an increasing amount of common sense.

“Images are the best way to learn visual properties,” said Abhinav Gupta, assistant research professor in Carnegie Mellon’s Robotics Institute. “Images also include a lot of common sense information about the world. People learn this by themselves and, with [this program], we hope that computers will do so as well.”

The computers have been running the program since late July, analyzing some three million images. The system has identified 1,500 types of objects in half a million images and 1,200 types of scenes in hundreds of thousands of images, according to the university.

The program has connected the dots to learn 2,500 associations from thousands of instances.

Thanks to advances in computer vision that enable software to identify and label objects found in images and recognize colors, materials and positioning, the Carnegie Mellon cluster is better understanding the visual world with each image it analyzes.

The program also is set up to enable a computer to make common sense associations, like buildings are vertical instead of lying on their sides, people eat food, and cars are found on roads. All the things that people take for granted, the computers now are learning without being told.

“People don’t always know how or what to teach computers,” said Abhinav Shrivastava, a robotics Ph.D. student at CMU and a lead researcher on the program. “But humans are good at telling computers when they are wrong.”

He noted, for instance, that a human might need to tell the computer that pink isn’t just the name of a singer but also is the name of a color.

While previous computer scientists have tried to “teach” computers about different real-world associations, compiling structured data for them, the job has always been far too vast to tackle successfully. CMU noted that Facebook alone has more than 200 billion images.

The only way for computers to scan enough images to understand the visual world is to let them do it on their own.

“What we have learned in the last five to 10 years of computer vision research is that the more data you have, the better computer vision becomes,” Gupta said.

CMU’s computer learning program is supported by Google and the Office of Naval Research.

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Twitter Tightens Security

Twitter Inc said it has put in place a security technology that makes it harder to spy on its users and called on other Internet firms to do the same, as Web providers look to thwart spying by government intelligence agencies.

The online messaging service, which began scrambling communications in 2011 using traditional HTTPS encryption, said on Friday it has added an advanced layer of protection for HTTPS known as “forward secrecy.”

“A year and a half ago, Twitter was first served completely over HTTPS,” the company said in a blog posting. “Since then, it has become clearer and clearer how important that step was to protecting our users’ privacy.”

Twitter’s move is the latest response from U.S. Internet firms following disclosures by former spy agency contractor Edward Snowden about widespread, classified U.S. government surveillance programs.

Facebook Inc, Google Inc, Microsoft Corp and Yahoo Inc have publicly complained that the government does not let them disclose data collection efforts. Some have adopted new privacy technologies to better secure user data.

Forward secrecy prevents attackers from exploiting one potential weakness in HTTPS, which is that large quantities of data can be unscrambled if spies are able to steal a single private “key” that is then used to encrypt all the data, said Dan Kaminsky, a well-known Internet security expert.

The more advanced technique repeatedly creates individual keys as new communications sessions are opened, making it impossible to use a master key to decrypt them, Kaminsky said.

“It is a good thing to do,” he said. “I’m glad this is the direction the industry is taking.”

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Will Twitter IPO Shares Reach $20?

Twitter has decided to price its IPO shares between $17 and $20 when it lists on the New York Stock Exchange, the company said in its filing.

Based on an assumed initial public offering price of $18.50 — the midpoint of the range — Twitter estimates the net proceeds from the sale of shares of common stock will be roughly $1.25 billion, the company said in documentsfiled with the U.S. Securities and Exchange Commission.

Some 80.5 million shares of common stock will be registered, according to the filing.

Releasing its IPO price range positions Twitter to begin its “road show,” seeking to raise funds from investors across the country. In documents filed last week, the company said it would list its shares under the ticker symbol TWTR on the New York Stock Exchange, representing a big win for the market over rival Nasdaq.

Twitter has yet to determine a date for the listing, though one report suggested Nov. 15 could be the day.

Twitter’s IPO is likely to be one of the hottest of the year and the most prominent in social media since Facebook went public last year. Twitter’s share price range will be markedly lower than Facebook’s, which priced its IPO at $38 per share.

Twitter filed for its highly anticipated public offering earlier last  month.

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Facebook Buys Onavo

Facebook’s CEO Mark Zuckerberg has been shopping again. This time he picked up Onavo, the Tel Aviv based startup whose apps include services designed to monitor and compress mobile data.

The move will benefit Zuckerberg’s interests at two levels. With Facebook keenly emphasising its mobile credentials, the Onavo service could persuade doubters that it’s time to give the service a go.

Meanwhile his Internet.org initiative plans to bring internet connectivity to the parts that other means just can’t reach. Compression technology might make Facebook a viable option in parts of the developing world where data is an expensive luxury, while for the rest of us the prospect of lower roaming charges might be enticing.

As well as being a new subsidiary of Facebook, Onavo will become a satellite office for Facebook in Tel Aviv, the first time it has had a direct presence in Israel. So far there’s no information on how much money has changed hands, but figures of between $100m and $200m have been mentioned.

In a blog post, Onavo said, “We’re excited to join their team, and hope to play a critical role in reaching one of Internet.org’s most significant goals – using data more efficiently, so that more people around the world can connect and share.

“When the transaction closes, we plan to continue running the Onavo mobile utility apps as a standalone brand. As always, we remain committed to the privacy of people who use our application and that commitment will not change.”

However, we might speculate that the technology involved could also be integrated into mobile Facebook apps to make them more data efficient, luring more people to share their lives as they live them.

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Is Skype Involved In Spying?

Luxembourg’s data protection authority is investigating Microsoft-owned Skype for its alleged cooperation with the U.S. NSA’s Prism spying program, according to the agency.

Luxembourg’s data protection authority, CNPD, is investigating Skype’s links to NSA spying programs after receiving several complaints, said Tom Kayser, a spokesman for the authority. “I can’t really talk about the details of the investigation because it is still ongoing,” he said.

Skype, which has its European headquarters in Luxembourg, allegedly cooperates with the NSA through a program exploring the legal and technical issues involved in making customer calls available to intelligence and law enforcement agencies. The Guardian newspaper first reported the investigation.

The CNPD has powers to ensure that multinational companies based in Luxembourg respect national law, and often receives complaints from the data protection authorities of other European Union member states.

Privacy campaign group Europe-v-Facebook filed one of the complaints in June. That filing was part of a barrage of complaints filed in various countries against European subsidiaries of tech companies that are allegedly involved in the NSA’s spying program, including Facebook, Apple, Microsoft and Yahoo.

Under Luxembourg data protection law service providers and operators are required to ensure the confidentiality of communications and related traffic data.

“No person other than the user concerned may listen to, tap or store communications or the traffic data relating thereto, or engage in any other kinds of interception or surveillance thereof, without the consent of the user concerned,” reads the law’s unofficial English translation.

Violators can face up to a year in prison and/or a fine up to a!125,000 ($170,000). The court dealing with the matter can also order companies like Skype to stop any processing that conflicts with the law on pain of a periodic monetary penalty determined by the court.

“We regularly engage in a dialogue with data protection authorities around the world and are always happy to answer their questions,” a Microsoft spokeswoman said in an email. “It has been previously widely reported that the Luxembourg DPA was one of the DPA’s that received complaints from the ‘Europe v Facebook’ group so we’re happy to answer any questions they may have.”

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King.com Has IPO In The Works

King.com Ltd, the British mobile gaming firm best known for its popular puzzle game ‘Candy Crush Saga’, has filed confidentially for an initial public offering (IPO) in the United States, a person familiar with the matter said on Sunday.

Online technology companies are rushing to the stock market on the backs of Twitter Inc’s announcement earlier this month that it plans to go public in the most eagerly anticipated IPO since last year’s flotation ofFacebook Inc.

Emerging growth companies such as King can use a secretive IPO registration process in the U.S. thanks to the Jumpstart Our BusinessStartups (JOBS) Act, which loosened a number of federal securities regulations in hopes of boosting capital raising and thereby increasing job growth.

King has hired Bank of America Merrill Lynch Corp, Credit Suisse Group AG and JPMorgan Chase & Co to lead the offering, said the person, confirming an earlier report by the Daily Telegraph and asking not to be identified because the information is confidential.

Representatives for King and the banks either declined to comment or did not respond to requests for comment.

King offers 150 games in 14 languages through mobile phones, Facebook and its website. It boasts more than 1 billion gameplays per day from its users.

The company’s games appeal to a growing trend for players to play puzzles with their friends in short bursts, especially as games are increasingly played on the move on phones or tablets to kill spare minutes.

Rival Zynga Inc went public two years ago in a high-profile IPO that raised $1 billion. Since then, Zynga has suffered from sagging morale during several quarters of worsening performance and repeated waves of layoffs.

Founded in 2003, King has been profitable since 2005 and has not had a funding round since September of that year, when it raised 34 million euros ($46.04 million) from investment firms Apax Partners and Index Ventures.

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FTC Warns Google And FB

The Federal Trade Commission (FTC) has promised that her organisation will come down hard on companies that do not meet requirements for handling personal data.

FTC Chairwoman Edith Ramirez gave a keynote speech at the Technology Policy Institute at the Aspen Forum. She said that the FTC has a responsibility to protect consumers and prevent them from falling victim to unfair commercial practices.

“In the FTC’s actions against Google, Facebook, Myspace and others, we alleged that each of these companies deceived consumers by breaching commitments to keep their data confidential. That isn’t okay, and it is the FTC’s responsibility to make sure that companies live up to their commitments,” she said.

“All told, the FTC has brought over 40 data security cases under our unfairness and deception authority, many against very large data companies, including Lexisnexis, Choicepoint and Twitter, for failing to provide reasonable security safeguards.”

Ramirez spoke about the importance of consumer privacy, saying that there is too much “shrouding” of what happens in that area. She said that under her leadership the FTC will not be afraid of suing companies when it sees fit.

“A recurring theme I have emphasized – and one that runs through the agency’s privacy work – is the need to move commercial data practices into the sunlight. For too long, the way personal information is collected and used has been at best an enigma enshrouded in considerable smog. We need to clear the air,” she said.

Ramirez compared the work of the FTC to the work carried out by lifeguards, saying that it too has to be vigilant.

“Lifeguards have to be mindful not just of the people swimming, surfing, and playing in the sand. They also have to be alert to approaching storms, tidal patterns, and shifts in the ocean’s current. With consumer privacy, the FTC is doing just that – we are alert to the risks but confident that those risks can be managed,” she added.

“The FTC recognizes that the effective use of big data has the potential to unleash a new wave of productivity and growth. Like the lifeguard at the beach, though, the FTC will remain vigilant to ensure that while innovation pushes forward, consumer privacy is not engulfed by that wave.”

It’s all just lip service, of course. Companies might be nominally bound by US privacy laws in online commerce, and that might be overseen by the FTC, but the US National Security Agency (NSA) collects all internet traffic anyway, and makes data available to other US government agencies and even some private companies.

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Yahoo Still Playing Pac-Man

Yahoo announced on Wednesday that it bought Qwiki for an undisclosed sum, as the firm’s spending spree continues.

Qwiki started out as a video focused search engine in 2011, before making its way into the iTunes Store as an app that turns images and videos into digital story boards.

Yahoo announced its acquisition of Qwiki on Wednesday, although it kept quiet about what it plans to do with the company and how much it spent. However, according to Allthingsd, Yahoo spent approximately $50m to further expand its digital offerings.

What’s more, while it’s unclear what Yahoo’s plans are at present, it’s likely that the firm is looking to challenge Vine and Instagram in the social video market.

Yahoo announced the news, naturally, on Tumblr. It said, “We’re excited to announce that Yahoo acquired Qwiki – a company that uses awesome technology to bring together pictures, music and video to capture the art of storytelling.

“We will continue to support the Qwiki app, and the team will join Yahoo in our New York city office to reimagine Yahoo’s storytelling experience. Stay tuned … there’s much more to come!”

Qwiki also had something to say, posting on its website, “Thank you for being a part of our story – one which is far from over. The Qwiki app will live on as a standalone entity inside Yahoo, where we will grow our thriving community and where our team will continue to work to help you share life’s best experiences.

“We are proud of the work we’ve done, and humbled by unwavering support from the NY tech community. New York is such a big part of who we are, and what we will become.”

Yahoo’s buyout of Qwiki is the latest in a series of acquisitions by the firm. Recently the firm announced that it bought Tumblr for a cool $1.1bn, with Yahoo CEO Marissa Mayer promising “not to screw it up”.

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