Judge Rejects Silicon Valley Settlement

A California judge has rejected the proposed settlement in a lawsuit over no-hire agreements used by top Silicon Valley tech firms, saying the amount being offered to compensate workers is too low.

The remaining defendants in the case — Apple, Google, Intel and Adobe Systems — had reached a deal with the worker’s lawyers to settle the case for US$324.5 million, but Judge Lucy Koh of the federal district court in San Jose, California, said that amount is too low.

After subtracting the fees for the workers’ lawyers — they’re allowed to keep up to a quarter of the award, or $81 million, as well as other money — each worker would be left with an average of only $3,750.

“The Court finds the total settlement amount falls below the range of reasonableness,” Koh wrote in her order, issued Friday.

She said she was troubled that the workers would get less money than under a previous settlement with companies that settled earlier in the case, even though the case has been progressing in the workers’ favor since then.

Last year, Intuit, Lucasfilm and Pixar settled with the workers before the case came to trial.

All of the companies were accused of striking secret deals to not poach each others’ workers, a violation of the Sherman Antitrust Act that reduced the workers’ potential to earn higher wages.

An expert hired for the case has estimated that the workers’ should receive damages of $3 billion, for wages they could have earned if the no-hire agreements hadn’t been in place.

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Microsoft Issues New Policies

Microsoft Corp, under fire for accessing an employee’s private Hotmail account to prove he was illegally passing computer code to a blogger, has said it will now refer all suspicious activity on its email services to law enforcement.

The decision, announced by head lawyer Brad Smith on Friday, reverses Microsoft’s initial reaction to complaints last week, when it laid out a plan to refer such cases to an unidentified former federal judge, and proceed to open a suspect email account only if that person saw evidence to justify it.

“Effective immediately, if we receive information indicating that someone is using our services to traffic in stolen intellectual or physical property from Microsoft, we will not inspect a customer’s private content ourselves,” said Smith, in a blog post on the software company’s website. “Instead, we will refer the matter to law enforcement if further action is required.”

Microsoft – which has recently cast itself as a defender of customer privacy – was harshly criticized last week by civil liberties groups after court documents made public in the prosecution of Alex Kibkalo in Seattle federal court for leaking trade secrets showed that Microsoft had accessed the defendant’s email account before taking the matter to legal authorities.

The company said last week its actions were within its legal rights under the terms of use of its email services, but has now acknowledged that its actions raised concerns about customer privacy.

The issue is poignant for Microsoft, which routinely criticizes Google Inc for serving up ads based on the content of users’ Gmail correspondence.

It has also been campaigning for more transparency in the legal process through which U.S. intelligence agencies can get access to email accounts following the revelations of former National Security Agency contractor Edward Snowden.

“While our own search was clearly within our legal rights, it seems apparent that we should apply a similar principle and rely on formal legal processes for our own investigations involving people who we suspect are stealing from us,” said Smith in his blog. “Therefore, rather than inspect the private content of customers ourselves in these instances, we should turn to law enforcement and their legal procedures.”

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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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Qualcomm Acquires Patents From HP

Chip making giant Qualcomm Inc has purchased a patent portfolio from Hewlett-Packard Co, including those of Palm Inc and its iPaq smartphone, in a move that will bulk up HP’s offerings to handset makers and other licensees.

The portfolio comprises about 1,400 granted patents and pending patent applications from the United States and about 1,000 granted patents and pending patent applications from other countries, including China, England, Germany, Japan and South Korea.

The San Diego-based chipmaker did not say how much it paid for the patents.

The majority of Qualcomm’s profits come from licensing patents for its ubiquitous CDMA cellphone technology and other technology related to mobile devices. Instead of licensing patents individually, handset vendors, carriers and other licensees pay royalties to Qualcomm in return for access to a broad portfolio of intellectual property.

The patents bought from HP, announced in a release on Thursday, cover technologies that include fundamental mobile operating system techniques.

They include those that HP acquired when it bought Palm Inc, an early player in mobile devices, in 2010 and Bitfone in 2006. HP tablets made using Palm’s webOS operating system failed to catch on.

“There’s nothing left at Palm that HP could get any use out of so it’s better to sell the patents, which are always valuable to Qualcomm,” said Ed Snyder, an analyst with Charter Equity Research. “They have to keep that bucket full.”

The new patents will not lead to increased royalty rates for existing Qualcomm licensees, a Qualcomm spokeswoman said.

Last year, HP sold webOS, which it received as part of the $1.2 billion Palm acquisition, to South Korea’s LG Electronics Inc.

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Is Intel Expanding?

Even if it means that it will be the first to make ARM’s 64-bit chips, Intel said that it wants to expand its contract foundry work. Intel CEO Brian Krzanich said he would expand his company’s small contract manufacturing business, paving the way for more chipmakers to tap into the world’s most advanced process technology.

Krzanich told analysts that he planned to step up the company’s foundry work, effectively giving Intel’s process technology to its rivals. He said that company’s who can use Intel’s leading edge and build computing capabilities that are better than anyone else’s, are good candidates for foundry service. Krzanich added that the slumping personal computer industry, Intel’s core market, was showing signs of bottoming out.

Intel also unveiled two upcoming mobile chips from its Atom line designed interchange features to create different versions of the component. A high-end version of the new chip, code named Broxton, and is due out in mid-2015. SoFIA, a low-end chip was shown as an example of Intel’s pragmatism and willingness to change how it does business. Krzanich said that in the interest of speed, SoFIA would be manufactured outside of Intel, with the goal of bringing it to market next year.

Intel will move production of SoFIA chips to its own 14 nanometer manufacturing lines, Krzanich added.

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Intel Buys KNO Software

Intel has acquired educational software developer Kno to add to its Education division.

Speaking in the company blog, Intel Sales and Marketing Group VP John Galvin explained that in a world where kids are being bombarded by technology, Intel Education has a mission to support the rollout of technology in the classroom.

Galvin said, “The Kno platform provides administrators and teachers with the tools they need to easily assign, manage and monitor their digital learning content and assessments.”

This acquisition brings Intel’s global digital content library to over 225,000 [higher education] and K-12 titles from 74 education publishers. “We’re looking forward to combining our expertise with Kno’s rich content so that together, we can help teachers create classroom environments and personalized learning experiences that lead to student success,” Galvin added.

Intel Education has been working for the past decade with over 10 million teachers that it has assisted to integrate technology with education.

In the UK alone there have been tremendous strides in educational software over the past 30 years, dating back to the government pledge to provide a computer in every school, which led to the creation of the BBC Microcomputer designed specifically for that purpose.

Today, not only is ICT a dedicated lesson in its own right, but it forms one of the key skills that educators are expected to incorporate into all lesson plans, putting it on a par with English and Maths, showing just how far we’ve come from making Venn diagrams with ascii art.

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Intel Buys Patents

Intel on Monday spent US$375 million to purchase nearly 1,700 wireless networking patents from subsidiaries of digital communications company Interdigital.

Intel will get patents that cover a range of 3G, LTE and Wi-Fi technologies from Interdigital. The patents should boost Intel’s product mobile product portfolio as the company establishes a presence in the smartphone and tablet markets, which is currently ruled by ARM.

Intel has said it will integrate 3G and 4G LTE capabilities along with its Atom microprocessor in devices like smartphones and tablets. Intel made its first entry into the smartphone market earlier this year with its Atom chip code-named Medfield, which is being used in handsets from Lenovo, Orange and Lava International.

Intel later this year will release a dual-core Atom Z2580 processor with 3G, 4G and LTE capabilities. Intel’s upcoming Atom chip for tablets, code-named Clover Trail, will also come with mobile broadband options.

Intel started building its wireless business following the acquisition of Infineon Wireless for $1.4 billion, which was completed last year.

Wireless is a fast-changing market, and the company is making this investment to support the business, according to Chuck Mulloy, an Intel spokesman.

“This was an opportunity to add some value to our patent portfolio. That’s over and above what we have,” Mulloy said.

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Google Had Developed Own Currency

Google once contemplated the idea of issuing its own currency, to be called Google Bucks, company Executive Chairman Eric Schmidt said on stage at the Mobile World Congress in Barcelona,Spain on Tuesday.

At the end of his keynote speech, Schmidt hit on a wide array of topics in response to audience questions. “We’ve had various proposals to have our own currency we were going to call Google Bucks,” Schmidt said.

The idea was to implement a “peer-to-peer money” system. However, Google discovered that the concept is illegal in most areas, he said. Governments are typically wary of the potential for money laundering with such proposals.

“Ultimately we decided we didn’t want to get into that because of these issues,” Schmidt said.

He also hinted that Google might be preparing for a battle in China once its acquisition of Motorola is complete.

“Google’s been willing to take on China pretty well,” he said in response to a question about whether Google expected to continue to ignore theft of Motorola intellectual property in China, as Motorola has been doing. The acquisition hasn’t closed yet, Schmidt noted. “We’ve taken a pretty strong position on IP. We are well aware of the issues and we are considering your question,” he said.

Google is still waiting for some government approvals of its proposed acquisition of Motorola.

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Is Apple Taking Work Conditions Seriously?

Apple “takes working conditions very seriously”, the firm’s CEO Tim Cook said at a conference yesterday.

Cook was speaking at a Goldman Sachs technology conference, according to Mac Rumours. He said the company is committed to making sure working conditions are up to standard, and that Apple’s top priority will be to eliminate underage workers. He added, “If we find a supplier that intentionally hires underage labor, it’s a firing offence.”

Cook said, “Apple takes working conditions very seriously, and we have for a very long time. Whether workers are in Europe or Asia or the United States, we care about every worker.”

He added, “I’ve spent a lot of time in factories, personally. Not just as an executive. I worked at a paper mill in Alabama and an aluminium plant in Virginia. Many of our top executives visit factories on a regular basis. We have hundreds of employees based there full time.

“We are very connected to the process and we understand working conditions at a very granular level. I realize that the supply chain is complex and I’m sure that you realise this.

“The issues around it are complex. Our commitment is simple: every worker has the right to a fair and safe work environment, free of discrimination, where they can earn competitive wages and they can voice their concerns freely. Apple’s suppliers must live up to this to do business with Apple.

“No one in our industry is doing more to improve working conditions than Apple. We believe transparency is so very important in this area.”

Yesterday, Apple asked the Fair Labor Association (FLA) to conduct audits at Foxconn’s factories in China. In a statement, Apple said that factories in Shenzhen and Chengdu will be audited at its request. Audits have already begun.

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Intel Buys RealNetworks Patents

Intel on Thursday said it had agreed to acquire RealNetworks streaming media patents and video codecs in a move aimed at improving the multimedia experience delivered through devices based on its chips.

The chip maker has agreed to purchase video codec software and about 190 patents and 170 patent applications worldwide, for $120 million. RealNetworks is best known for its RealPlayer multimedia software, which offers multimedia streaming based on its own codec.

The purchase will help Intel offer “richer experiences” across a wide spectrum of devices, including through laptops and smartphones, the company said in a statement. A company spokeswoman declined further comment on specific plans for patents and software.

Intel has been beefing up its on-chip multimedia capabilities to handle more realistic graphics as the company develops newer generations of chips. The new laptop chips code-named Ivy Bridge due later this year for ultrabooks will be the first to have integrated support for Microsoft’s DirectX 11. Smartphones and tablets based on Intel’s Atom chip code-named Medfield will be released later this year.

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