Cisco Files Suit Against Rivals

Network equipment maker Cisco Systems Inc filed several lawsuits on Friday against Arista Networks Inc, alleging the smaller rival of copying its networking technologies.

The lawsuits, filed in a federal court in California, accuse Arista of infringing on 14 patents on networks and also on related copyrights, Cisco General Counsel Mark Chandler said in a blog post.

Arista was formed by former Cisco employees, including Chief Development Officer Andreas Bechtolsheim, Chief Technology Officer Kenneth Duda, and Chief Executive Officer Jayshree Ullal.

“Rather than building its products and services based on new technologies developed by Arista, however, and providing legitimate competition to Cisco, Arista took a shortcut by blatantly and extensively copying the innovative networking technologies designed and developed by Cisco,” one of the complaints said.

Cisco is a leader in the networking world, with revenue of $12.2 billion in the third quarter. Arista, in contrast, reported sales of $155.5 million for the period, although it is growing fast.

Arista said it had not yet been able to evaluate the lawsuits.

“While we have respect for Cisco as a fierce competitor and the dominant player in the market, we are disappointed that they have to resort to litigation rather than simply compete with us in products,” Arista said in an emailed statement.

Cisco filed the lawsuits on the same day the U.S. Supreme Court agreed to review a $64 million patent infringement verdict that Commil USA LLC won against the company.

Source

Samsung Makes Changes In Mobile

Samsung Electronics Co Ltd, the world’s biggest mobile phone manufacturer, has replaced the head of its mobile design team amid criticism of the latest Galaxy S smartphone.

Chang Dong-hoon offered to resign last week and will be replaced by Lee Min-hyouk, vice president for mobile design, a Samsung spokeswoman said on Thursday.

“The realignment will enable Chang to focus more on his role as head of the Design Strategy Team, the company’s corporate design center which is responsible for long-term design strategy across all of Samsung’s businesses, including Mobile Communications,” Samsung said in a statement.

Lee, 42, became Samsung’s youngest senior executive in 2010 for his role in designing the Galaxy series, a roaring success which unseated Apple Inc’s iPhone as king of the global smartphone market.

Samsung now sells two times more smartphones than Apple, largely thanks to the success of Galaxy range.

But the South Korean firm has also been battling patent litigation the world over, with Apple claiming Samsung copied the look and feel of the U.S. firm’s mobile products.

The Galaxy S5, which debuted globally last month, has received a lukewarm response from consumers due to its lack of eye-popping hardware innovations, while its plastic case design has been panned by some critics for looking cheap and made out of a conveyor belt. The Wall Street Journal said the gold-colored back cover on the S5 looked like a band-aid.

Chang, a former professor who studied at the School of the Art Institute of Chicago, will continue to lead Samsung’s design center which overseas its overall design strategy.

Lee, who acquired the moniker of “Midas” for his golden touch with the Galaxy series, started out designing cars for Samsung’s failed auto joint venture with Renault in the 1990s.

Source

Google Snubs Privacy

Search giant Google has told the British government it is immune to prosecution on privacy issues and it can do what it like. The US Company is accused of illegally snooping on its British customers by bypassing privacy settings on Apple devices, such as iPads, to track their browsing history.

A group of British people took Google to court but the search engine is trying to get the case thrown out. Its argument is that it is not subject to British privacy law because it is based in California. This is the second time that Google has tried to avoid British law by pretending to operate in another country. It has come under fire for failing to pay tax in the UK

Nick Pickles, director of Big Brother Watch, said: ‘It is deeply worrying for a company with millions of British users to be brazenly saying they do not regard themselves bound by UK law. Solicitor Dan Tench, of law firm Olswang, said this was another instance of Google being here when it suits them and not being here when it doesn’t. Ironically when the US ordered Google to stop what it was doing, it forced the search engine to pay a $22.5million to regulators.

There are some indications that Google may not get its way. In July the Information Commissioner’s Office told Google its privacy rules breached UK law so it will be very hard for it to stand up in court and say it didn’t.

Source

Did Apple Trick Sharp?

Sharp is really regretting its dependence on Apple as its main customer.

While it made sense at the time to be extremely pleased when Apple sucked up most of its capacity with screens for its iPhone and iPad, now the tide has turned the outfit is reporting a bigger than forecast loss. Sharp is now suffering from low output at its factories and forced to write off excess capacity.

The company had a $5.1 billion net loss for the year which is much worse than it predicted. At the start of the year, Sharp was forced to curtail production of 9.7-inch screens for Apple’s iPad. That has stepped up the urgency for Sharp to find new customers and uses for its leading-technology displays and may make it harder for the company to convince investors and lenders it remains a viable company.

Sharp will officially announce its results for latest business year on May 14. To make matters worse the company is also taking a charge to put aside cash for possible fines from a display price-fixing investigation in Europe, the sources said. Sharp in October received a $4.4 billion bailout from banks including Mizuho Financial Group and Mitsubishi Financial Group in return for mortgaging nearly all its factories and offices in Japan and pledging to cut 10,000 jobs.

Source

Google Fights NSL Over Data Privacy

Google is fighting a National Security Letter (NSL) issued by the US government, with the Electronic Frontier Foundation (EFF) acknowledging it is one of the first firms to do so.

Google took the unusual step last month of revealing, albeit in vague terms, the number of NSLs it received from the US government. At the time the company said it was working with the authorities to improve transparency around the subject, but according to court filings it is also fighting against handing over users’ data.

In March, Google filed a petition to set aside a legal process. Kevan Fornasero, a lawyer for Google said in the filing that petitions “filed under Section 3511 of Title 18 to set aside legal process issued under Section 2709 of Title 18 must be filed under seal because Section 2709 prohibits disclosure of the legal process”.

Fornasero’s reference to Section 2709 refers to the ability of the FBI to issue NSLs and force the handover of user data. According to the EFF, Google is one of the first communications companies to fight an NSL, but because Section 2709 doesn’t allow firms to disclose the legal process, few people can be certain that others haven’t tried to stand up to the US government.

Matt Zimmerman, a lawyer for the EFF said, “The people who are in the best position to challenge the practice are people like Google. So far no one has really stood up for their users’ among large Internet service providers.”

Google has tried in recent years to provide users with some information on how it deals with government agencies’ requests for user data. If the firm can succeed in its fight against NSLs then it could open the floodgates for others to stand up against a law that some see to be nothing more than a snooper’s charter.

Source

FTC Defends Google Decision

The FTC defended its decision to let Google carry on with its anti-trust-like antics, while other regulations in civilized nations are planning to put the boot in.

The US Federal Trade Commission reached a settlement with Google which really did little to stop the company using its dominance to push down search results from its competitors. The move attracted considerable criticism because it followed a letter from US senators to go easy on the search engine because it was good for US jobs.  We guess they mean the jobs of US senators who Google paid campaign contributions.

Google promised to change the ways it presents some search results and runs search advertising, but was exonerated of the results bias claims. Rivals including Yelp and Microsoft claimed that Google had favored its own product results over those of its competitors and called for the anti-trust case. What makes the case look more suspect is that the EU is less frightened of actually fining Google or forcing it to behave. Indeed indications from Brussels are that it has not only agreed with the rival’s complaints but will do something about it if Google does not pull finger.

But FTC chairman Jon Leibowitz told Talking Points Memo that the agency’s decision was legally sound and would be beneficial to competition and consumers. Under facts we found, all five of us, from liberal Democrat to conservative Republican, agreed that the evidence militated against an anti-trust case,” Leibowitz told TPM.

The fact that we managed to have both Google and Google’s rivals unhappy, in an odd way that’s maybe unique to Washington, that puts us in the right place substantively, he claimed. When asked if Google’s $25 million lobbying budget for the duration FTC’s investigation helped, he said that lobbying makes the companies feel good and lobbyists feel good.

“At the end of the day, whether you want to say lobbying had any influence, or cancelled itself out because there was lobbying on both sides, if you’re going to do what lobbyists want you to do in a regulatory agency, you’re not doing your job.”

Source…

Ericcson Transfers Patents

Ericsson has agreed to transfer 1,922 patents and 263 patent applications to Unwired Planet in exchange for a share in ongoing revenue that they will generate.

The transfer includes 753 U.S. patents related to 2G, 3G and LTE technologies, Unwired Planet said Thursday. Four months ago, the company owned just 200 U.S. and foreign patents, and around 75 pending patent applications.

“Our patent portfolio now extends to all layers of the telecom handset and infrastructure stack,” said Unwired Planet’s CEO Mike Mulica during a conference call. The patents cover application stores, location-based services, mobile search and mobile advertising as well as network protocols, antennas and many more topics, Mulica said.

The portfolio will continue to grow, as Ericsson has also committed to transfer a further 100 patents each year from 2014 through 2018.

Mulica said the company wants everyone who uses the patented technologies to pay a license fee. “We will use litigation when necessary,” he said.

Source…

Sharp Says No To Intel

While Sharp is desperately looking for more cash, it appears that it will try busking outside CES with a dog on a string before it takes money from Intel.

A senior senior executive from the Japanese company told the Mercury News denied that the company was looking for money from Intel. Industry analysts had speculated that Intel and Sharp, which supplies screens to Apple (AAPL) for its latest iPhonem, were in investment discussions.

Sharp is fighting for survival after years of losses. In November, it said it may not be able to survive on its own after full-year net losses to doubled to $5.6 billion. Sharp Vice President Kozo Takahashi told reporters at a roundtable briefing on the sidelines of the Consumer Electronics Show in Las Vegas that the company’s finances have been weakened considerably and we are considering ways to deal with that.

Source…

Will Sharp Collapse?

Japanese troubled telly maker, Sharp, has warned that if it can’t do something radical soon, its business could go the way of the dodo and T-Rex.

Despite being a major supplier of LCD displays to Apple and other manufacturers, the company has admitted that it can’t survive in its current form. According to Computerworld the company said that there is “material doubt” about its ability to continue operating. The company thinks that it can cut costs and secure enough credit to survive and much of its plan for recovery is based on its IGZO technology for mobile displays.  This technology uses less battery power than existing screens.

Sharp is also carrying out a restructuring plan in which it has reduced headcount, slashed employee salaries and mortgaged its buildings and factories. The company is booking a net loss of $5.6 billion for the year mostly to cover its restructuring costs. Its stock has been downgraded to junk status by ratings agencies and apparently its executives have been seen around Apple and Intel HQ’s with their cloth caps in their hands looking for bail outs, or investments, depending on who you talk to.

Sharp President Takashi Okuda said the company is continuing its  negotiations with Hon Hai, even though so far these have not been going that well. Sharp made a mistake in that it thought that the world wanted LCD panels for large-screen TVs. It is now trying to switch over to the booming market for tablets and smartphones.

Source…

Sharp Electronics Gets Downgraded

Sharp has had its credit rating cut to junk status by the Standard and Poor’s rating agency.

Sharp, which invested heavily during the LCD television boom in the mid 2000s, is now paying the price as demand for televisions slumps across the board. Now Standard and Poor’s has bestowed the ignominy of lowering Sharp’s credit rating to BB+, putting it into what’s called junk status.

Standard and Poor’s also warned that Sharp has weak cash flow and is facing worsening market conditions, two things that will not endear it to investors. It said, “Sharp’s liquidity position has weakened, and the company is highly dependent on short-term borrowings in light of weak internal cash flow and a less favourable funding environment.”

Sharp has had a troubled year and earlier this week announced that it will lay off 2,000 employees in Japan, as its LCD business simply cannot support itself. Standard and Poor’s said that unless Sharp’s fortunes improve, the firm could be hit with another credit rating downgrade.

Standard and Poor’s said, “We may consider lowering the ratings if Sharp’s earnings in (the year to March 2013) and prospects for its recovery deteriorate even further or the company’s financing environment and relationships with credit banks and strategic partners worsen.”

Source…

Next Page »