Ericsson Seeking To Cash In On Patents

As wireless access is added to new types of devices, Ericsson is reorganizing its licensing department in an attempt to generate more revenue from its patents, the company said on Thursday.

The Swedish telecommunication vendor’s CEO Hans Vestberg wants to keep close tabs on the latest developments, and as part of its reorganization Ericsson’s chief intellectual property officer Kasim Alfalahi will now report directly to Vestberg.

The company’s IPR portfolio includes 27,000 granted patents. Today, any vendor that wants to use cellular connectivity in its products needs a license from Ericsson, which is offered under so-called fair, reasonable and non-discriminatory terms.

Licensing patents under those terms should be fairly straightforward. But that isn’t always the case; in the Netherlands Samsung and Apple, as part of their global legal battle, are arguing in court over what fair and reasonable means.

Ericsson has largely stayed out of the telecom legal battles, but announced it had sued ZTE, which then counter-sued, in April last year. The case is still pending, according an Ericsson spokeswoman.

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RIM’s Playbook Gets Jailbroken

Three hackers say they have taken advantage of a vulnerability in Research In Motion’s PlayBook tablet to gain root access to the device, a claim that could damage the BlackBerry maker’s stellar reputation for security.

Root access means a user has permission to change any file or program on a device and can control hardware functions.

In a response to questions concerning the issue, RIM said it is investigating the claim, and if a “jailbreak” is confirmed will release a patch to plug the hole.

The three hackers – who identify themselves as xpvqs, neuralic and Chris Wade – plan to release their data within a week as a tool called DingleBerry.

Apple’s iOS and Google’s Android operating systems are frequently attacked by users who want to run programs that have not been authorized by the manufacturers, but breaches of RIM’s software are more rare.

The PlayBook runs on a different operating system than RIM’s current BlackBerry smartphones. However, the QNX system will be incorporated into its smartphones starting next year.

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Google, which last week created a bit of chaos with the launch of a Gmail application for Apple iOS devices, has decided to put out discontinue its Gmail application for the BlackBerry.

As of Nov. 22, Google will no longer offer technical support to users of the application, nor will it allow people to download it anymore, the company wrote in a blog post.

However, people will be able to continue using it, although Google will put its development efforts on the version of the application for mobile browsers, available at gmail.com.

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Blackberry Delays Update

Last week at its BlackBerry DevCon conference, Research in Motion tried to get developers excited about the upcoming PlayBook OS 2.0 mobile operating system, to spur developers to create applications for RIM’s BlackbBerry PlayBook tablet, released last spring to poor reviews and low sales. But yesterday, RIM wrote in a blog post that it was delaying the release of the PlayBook 2.0 OS “until we are confident we have fully met the expectations of our developers, enterprise customers, and users.”

PlayBook OS 2.0 was originally promised for October 2011, but RIM has now set a target of February 2012. To meet the new February 2012 release date, RIM said it was dropping a key feature originally promised for PlayBook OS 2.0: its popular BlackBerry Messenger instant-messaging service.

Developers were looking forward to the promised October PlayBook 2.0 OS release in hopes it might spur sales of the poorly selling tablet, especially as the original timing would have taken advantage of the holiday sales season that will also see the release of the unified tablet/smartphone Android 4.0 “Ice Cream Sandwich” operating system and a bevy of new smartphones using Microsoft’s recently released Windows Phone 7.5 “Mango” operating system, in addition to Apple’s strong-selling iPad and new iPhone 4S, both featuring the recently released iOS 5 operating system.

The PlayBook OS is based on the QNX operating system that RIM bought in spring 2010 to be the basis for its tablets and, sometime in the 2012-13 timeframe, be the basis for a new operating system for its BlackBerry smartphones. Last week, RIM said that it will provide a unified tablet/smartphone operating system called BBX, based on the QNX/PlayBook platform. It said that applications developed for the PlayBook OS would be compatible with BBX, but did not make the same promise for BlackBerry OS apps.

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30% Of BlackBerry Users Want Out

The BlackBerry smartphone and its maker, Research in Motion, were in serious trouble even before last week’s global service disruption.

More than 30% of BlackBerry users in large companies said in September, a month before the outage, that they were looking to use a different smartphone device in 2012, according to a survey of 243 smartphone users in companies with more than 10,000 workers by Enterprise Management Associates (EMA).

“With last week’s outage, I suspect the 30% number is even higher,” said Steven Brasen, the EMA analyst who conducted the survey. “User satisfaction with BlackBerry is by far the lowest of smartphones. A huge number are dissatisfied.”

Brasen said the survey found that 11% of BlackBerry users in large companies are “completely dissastisfied” with the device, while only 2% of iPhone users and 0% of Android users are completely dissatisfied with their smartphones.

Brasen said the opinions of end users are becoming very important to IT executives.

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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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Tool Created To Hack BlackBerry Passwords

A Russian security firm has upgraded a phone-password cracking software with the ability to figure out the master device password for Research in Motion’s BlackBerry devices.

Elcomsoft said on Thursday that before it developed the product, it was believed that there was no way to uncover a device password on a BlackBerry smartphone or PlayBook tablet. BlackBerry smartphones are configured to wipe all data on the phone if a password is typed incorrectly 10 times in a row, the company said.

Elcomsoft said it figured a way around the problem using a BlackBerry’s removable media card, but only if a user has configured their smartphone in a specific way. In order for Elcomsoft’s software to be successful, a user must have enabled the feature to encrypt data on the media card.

The feature is disabled by default, but Elcomsoft said around 30% of BlackBerry users have it enabled for extra security.

The company’s software can then analyze the encrypted media card and use a brute-force method to figure out a password, which involves trying millions of possible password combinations per second until one works.

Elcomsoft said it can recover a seven-character password in less than an hour if the password is all lower-case or all capital letters. The software does not need access to the actual BlackBerry device but just the encrypted media card.

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BlackBerry Falls Behind In Workplace

More workers use iPhone and Android smartphones combined than BlackBerry devices, according to a survey of 1,681 U.S.-based workers released today by Forrester Research.

That finding highlights what many have known for a while about the entrenched workplace smartphone veteran: the BlackBerry faces trouble from its competitors.

The BlackBerry, made by Research in Motion, still leads among U.S. workers, with 42%, the survey said, with Apple’s iPhone accounting for 22% and Android devices, 26%.

The survey also found that nearly half, or 48% of the group, said that they chose the primary smartphone used for their work without considering what their company supports. Only 29% said they chose the smartphone from a list of phones the company supports, while 23% said they had no choice in the matter.

Often, corporate IT shops will choose BlackBerry smartphones when requiring a worker to use a specific smartphone, partly because of the perceived security benefits, many analysts, including at Forrester, have found. The growth in Android phones and the iPhone — many of them brought to workplaces by workers independently — are forcing IT shops to rethink that decision, however.

Ted Schadler, a Forrester analyst, said the survey points to two major trends. The first is that more workers than ever are bringing consumer-focused devices, such as Android and iPhone smartphones, to use for work, and more companies are supporting those devices.

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RIM’s Woes Continue

PlayBook shipments dropped in half for Research In Motion during its second quarter, which also saw revenue continue its steep decline.

RIM shipped just 200,000 PlayBooks in the second quarter, down from 500,000 last quarter, when it started offering the tablet device.

Revenue was US$4.2 billion, hitting the low end of the company’s expectation and down 10 percent from the same quarter last year. Analysts polled by Thomson Financial expected $4.47 billion.

RIM’s net income was $329 million, or $0.63 per share. Adjusted net income was $419 million, or $0.80 per share. Analysts were expecting better: Those polled by Thomson predicted $0.87 per share.

RIM shipped 10.6 million smartphones during the second quarter. In June, RIM warned that the second quarter might be weak because of delays in shipping new phones. The delays meant RIM would miss the back-to-school sales period, negatively impacting sales, it said at the time.

Executives who spoke during a conference call to discuss the results put a positive spin on phone sales, however. The company only began launching phones running the new BlackBerry 7 software within the past few weeks, and so far it’s the “largest and most successful launch in our history,” Mike Lazaridis, co-CEO of RIM, said during the call.

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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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