Apple Helps Samsung Sell Tablets

Samsung has thanked Apple for the free advertising for its Galaxy Tab created by the legal disputes between the companies.

Tyler McGee, VP of telecommunications at Samsung Australia, said that Apple had made Samsung’s tablet computer “a household name”, which the firm believes is more than it could have managed with its marketing alone, according to the Sydney Morning Herald.

This ironic twist of fate means that instead of slowing Samsung down and keeping its products off the market, Apple has inadvertently created a lot of buzz for those devices, which is now paying off with high demand as the Galaxy Tab returns to shop shelves in Australia.

Samsung has shipped a significant volume of tablets to Australia in time for the 16 December launch, perfect timing for the busy Christmas shopping period. However, McGee warned that demand is higher than supply, suggesting that there will be shortages of the device.

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Judge Oks Sprint’s Lawsuit Against AT&T

A judge in the U.S. on Wednesday gave the go ahead to parts of C Spire Wireless and Sprint Nextel’s lawsuits against AT&T’s proposed US$39 billion acquisition of T-Mobile USA.

AT&T and T-Mobile had moved for dismissal of the lawsuits arguing that the complaints by Sprint and C Spire, formerly Cellular South, failed to adequately substantiate that the merger would cause them “antitrust injury”.

The decision by District Judge Ellen Segal Huvelle of the United States District Court for the District of Columbia could complicate AT&T’s defense of the deal which has been already opposed by the U.S. government.

The U.S. Department of Justice filed a lawsuit in August to block AT&T from acquiring T-Mobile, saying that the deal would significantly reduce competition, increase prices and stifle innovation. Seven state attorneys general have joined the lawsuit. That case goes on trial in February before Judge Huvelle.

Where private plaintiffs have successfully pleaded antitrust injury, the fact that they are defendants’ competitors is no bar, Judge Huvelle said before allowing Sprint and C Spire to proceed with their claim that the merger would make it difficult for them to acquire wireless devices. The companies had claimed that after the merger AT&T and Verizon would be in a better position to get exclusive handset deals, while foreclosing their access to the most innovative handsets and raise their costs.

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Apple Loses Court Case

Apple has lost a patent lawsuit against a small Spanish company, allowing the firm to continue selling its tablet computer.

Apple filed the case a year ago when it obtained an injunction from a local court to ban imports of the NT-K tablet into Spain. However, according to court documents, the Spanish court has vacated the injunction, saying that there are no legal grounds to block sales of the device.

According to the Wall Street Journal, the NT-K tablet is made in China and sold in Europe by Nuevas Tecnologias y Energias Catala, based in the eastern Spanish region of Valencia.

The NT-K tablet runs a Spanish language version of Android written by Nuevas Tecnologias’ programmers.

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Is Motorola Mobility A Patent Pimp Too?

Motorola Mobility has received $228m in patent licensing deals.

Motorola Mobility, which is in the process of being bought by Google, confirmed in its accounts that in June 2010 the firm signed a licensing deal with an unnamed company for which Motorola would receive $175m and future royalties. Those future royalties stacked up to an impressive $228m in just the nine months leading up to 2 October 2010.

Google’s attempt to buy Motorola’s handset division was generally regarded as a move to acquire the firm’s considerable patent portfolio. Motorola’s handset division is widely credited with being one of the major contributors to the development of mobile phones and while the firm’s smartphones might not be as fashionable as devices from Apple, HTC or Samsung, it clearly has patents that can bring home the bacon.

Although Motorola did not disclose the name of the other party in its licensing deal, there is a better than average chance that it is Research in Motion. The two firms came to a “long-term, intellectual property cross-licensing arrangement involving the parties receiving cross-licenses of various patent rights” in June 2010.

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RIM’s Troubles May Not Be Over

Law firms in the United States and Canada are considering possible consumer lawsuits against Research In Motion Ltd for last week’s BlackBerry outages, which for three days crippled email and messaging for tens of millions of users around the world.

Consumer lawyers say they are investigating whether customers have common claims against the BlackBerry manufacturer and might be able to band together in a single lawsuit.

While the outage did not rise to the level of seriousness comparable to a dangerous medication or tainted food, it inconvenienced and angered customers. Frustrated BlackBerry users, turning to blogs, message boards, Twitter and Facebook, complained about losing important emails and missing meetings last week.

Law firms are considering breach-of-contract or consumer-fraud claims, attorneys said.

A breach-of-contract claim could argue the company failed in its obligations to provide service and could include carriers for BlackBerry service as additional defendants, said attorneys exploring litigation against RIM.

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Motorola Being Dragged Into Patent Lawsuit

Intellectual Ventures has set its sights on Motorola with a new lawsuit alleging that the mobile device maker has infringed on six of their patents.

The patents cover a variety of technologies related to text messaging, docking stations and pushing software out to devices.

Intellectual Ventures, which owns 35,000 patents, said it approached Motorola in January about licensing patents, including several named in the case, according to the lawsuit. Motorola refused to license the patents, Intellectual Ventures said.

Motorola, which is the subject of several other patent lawsuits, declined to comment on the dispute.

The suit names a number of Motorola products as infringing, including the Atrix, Photon 4G, Milestone, Triumph and Brute i680.

Though Intellectual Ventures said it first approached Motorola in January, records at the U.S. Patent and Trademark Office show that all but one of the patents were transferred to the company in July and September.

It’s up to patent holders to file documents showing transfer of ownership with the patent office, so the discrepancy of timing probably means only that the company was slow in doing its paperwork, said David Mixon, a patent attorney with Bradley Arant Boult Cummings LLP.

While patent lawsuits have become commonplace in the mobile industry, this one has a unique twist. Google, which recently announced plans to acquire Motorola, is an investor in Intellectual Ventures, patent expert Florian Mueller noted in a blog post Thursday.

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PayPal Unveils New Payment System

PayPal has unveiled a mobile payment product for customers that doesn’t require near-field communication (NFC) technology inside smartphones.

The system relies instead on using smartphones and other mobile devices to scan product bar codes and to authorize payments through PayPal mobile accounts. Shoppers will also be able to use credit-card scanning terminals commonly seen in grocery stores: The user inputs a phone number and PIN on the terminal’s keypad instead of swiping a credit or debit card.

PayPal President Scott Thompson laid out the basics of the plan in a blog posted Wednesday. In the blog, he also took a swipe at competitors, including Google, MasterCard, Visa and others, who are working with NFC in smartphones for a mobile wallet.

“Let’s be clear about something — we’re not just shoving a credit card on a phone,” Thompson said in his blog.

PayPal is already a major global force in online payments, with 100 million customers. While PayPal’s new payment technologies don’t rely on NFC, they do propose making in-store payments possible from any device and support GPS-based offers, according to Thompson’s blog. PayPal will even allow for customers to set up payments on credit after they’ve checked out.

Dozens of merchants got a sneak peak of the technology Wednesday at an event PayPal sponsored. The event was covered by All Things D, which was not allowed to take photographs, but posted a story. In addition to the payment methods shown in the PayPal video, that story said PayPal will allow customers to continue using plastic cards, issued by PayPal, for payment.

In an interview posted on AllThingsD, Thompson said the PayPal approach doesn’t require merchants to install new terminals, nor does it require customers to buy a new smartphone.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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Samsung Asks ITC To Ban Apple Products

Samsung requested that the U.S. International Trade Commission ban the importation of Apple’s iPhones, iPads and iPods, ratcheting up its fight with Apple.

The filing, dated Tuesday, states Apple’s iPhone, iPod digital music player and iPad tablet infringe on five of Samsung’s patents involving telecommunications standards and user interface inventions.

Samsung also filed a fresh patent lawsuit against Apple in a Delaware federal court on Wednesday.

The complaints are the latest salvo in a growing legal battle between the two electronics giants.

In April, Apple sued Samsung in a California federal court, claiming the South Korean firm’s Galaxy line of mobile phones and tablets “slavishly” copies the iPhone and iPad.

Samsung then countersued in California, and Apple last week filed another lawsuit in South Korea. An Apple spokesman could not be immediately reached on Wednesday.

As well as its own phones and tablets, Samsung manufactures microchips for Apple’s gadgets, a business that brought in about $5.7 billion in revenue for the South Korean company last year.

Before banning the importation of Apple’s popular devices, the ITC would first have to agree to look into Samsung’s allegations, a process that could be quite lengthy.

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Apple Outs Patch For Tracking Issue

As Apple promised last week in several discussions regarding its location tracking issues, iOS 4.3.3 addresses three bugs related to the database of location information on iOS devices. Firstly, it reduces the amount of the cached location information to a week’s worth, rather than relying on a size limit, as it previously did.

Secondly, it no longer backs up the cache to your Mac or PC via iTunes upon syncing, so the information isn’t available to anyone with access to your computer. And finally, the cache is now deleted from the device when Location Services are disabled in iOS’s Settings app.

Apple has also announced plans to encrypt the location information on iOS devices itself in the next major update to the operating system, which presumably means it will be incoporated into iOS 5.

The iOS 4.3.3 update applies to the iPhone 4, iPhone 3GS, iPad, iPad 2, third-generation iPod touch, and the fourth-generation iPod touch. Exceptions to this fix though, are the iPhone 3G and the second-generation iPod touch, both of which were supported by the original release of iOS 4 when the location database is believed to have been created but have since been dropped from compatibility. Also missing in action is the CDMA iPhone 4, although some reports have suggested that it didn’t log data in the same way as the GSM model.

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