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Monday, August 15, 2011

Google's patent play: $12.5B for Motorola Mobility (AP) : Technet

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Google's patent play: $12.5B for Motorola Mobility (AP) : Technet

Google's patent play: $12.5B for Motorola Mobility (AP)

Posted: 15 Aug 2011 06:02 PM PDT

By MICHAEL LIEDTKE and PETER SVENSSON, AP Technology Writers Michael Liedtke And Peter Svensson, Ap Technology Writers – Mon Aug 15, 9:02 pm ET

SAN FRANCISCO – It may be the boldest move yet by a company known for being audacious: Google is spending $12.5 billion to buy Motorola Mobility. But the big prize isn't Motorola's lineup of cellphones, computer tablets and cable set-top boxes.

It's Motorola's more than 17,000 patents — a crucial weapon in an intellectual arms race with Apple, Microsoft and Oracle to gain more control over the increasingly lucrative market for smartphones, tablets and other mobile devices.

If approved by federal regulators, the deal announced Monday could also trigger more multibillion-dollar buyouts. Nokia Corp., another cellphone manufacturer, and Research In Motion Ltd., which makes the BlackBerry, loom as prime targets.

The patents would help Google defend Android, its operating system for mobile devices, against a litany of lawsuits alleging that Google and its partners pilfered the innovations of other companies.

In addition to the existing trove of patents that attracted Google's interest, Motorola, which introduced its first cellphone nearly 30 years ago, has 7,500 others awaiting approval.

Phone makers and software companies are engaged in all-out combat over patents for mobile devices. The tussle has been egged on by the U.S. patent system, which makes it possible to patent any number of phone features.

Patents can cover the smallest detail, such as the way icons are positioned on a smartphone's screen. Companies can own intellectual-property rights to the finger swipes that allow you to switch between applications or scroll through displayed text.

Apple, for example, has patented the way an application expands to fill the screen when its icon is tapped. The maker of the iPhone sued Taiwan's HTC Corp. because it makes Android phones that employ a similar visual gimmick.

The iPhone's success triggered the patent showdown. Apple's handset revolutionized the way people interact with phones and led to copycat attempts, most of which relied on the free Android software that Google introduced in 2008.

Android revolves around open-source coding that can be tweaked to suit the needs of different vendors. That flexibility and Android's growing popularity have fueled the legal attacks. About 550,000 devices running the software are activated each day.

Many upstart manufacturers, like HTC, had only small patent portfolios of their own, leaving them vulnerable to Apple Inc. and Microsoft Corp.

Getting Motorola's patents would allow Google to offer legal cover for HTC and dozens of other device makers, including Samsung Electronics Co., that depend on Android.

The deal is by far the largest Google has pursued in its 13-year history. Motorola Mobility's price tag exceeds the combined $9.1 billion that the company has paid for 136 previous acquisitions since going public in 2004, according to filings with the Securities and Exchange Commission.

Buying Motorola also would push Google into phone and computer tablet manufacturing, competing with other device makers who rely on Android. The largest makers of Android devices are all supporting a deal that Google CEO Larry Page said was too tempting to resist.

"With mobility increasingly taking center stage in the computing revolution, the combination with Motorola is an extremely important step in Google's continuing evolution," Page told analysts in a conference call Monday.

Google pounced on Motorola less than two months after a group including Apple and Microsoft paid $4.5 billion for 6,000 patents owned by Nortel, a bankrupt Canadian maker of telecommunications equipment.

Leaving no doubt about the mounting antagonism among the companies, Google's top lawyer lambasted Apple and Microsoft for their legal maneuvering earlier this month in a blog post titled "When patents attack Android."

"We believe this acquisition was solely driven by the ongoing patent war," Sanford Bernstein analyst Pierre Ferragu wrote in a research note, referring to the Google deal.

Apple and Google were once so close that Google's former CEO, Eric Schmidt, sat on Apple's board. But Google has since rolled out Android and provided hardware makers a way to counter the iPhone and iPad. Schmidt resigned from Apple's board two years ago.

Microsoft, for years one of Google's most bitter rivals, is desperately trying to make inroads in the mobile device market. John McCarthy, an analyst with Forrester Research, says Microsoft may try to counter Google by pursuing a long-rumored takeover of its partner, Nokia.

Investors were betting on that possibility Monday. Nokia stock rose 93 cents, or more than 17 percent, to $6.29. Research In Motion stock climbed $2.55, or more than 10 percent, to $27.11.

Oracle Corp. is seeking billions of dollars from Google in a federal lawsuit alleging that Android owes licensing fees for using the Java programming language that Oracle acquired from Sun Microsystems.

Buying patent protection offered by Motorola Mobility will be expensive. Although Google has $39 billion in cash and can easily afford it, the price translates to $40 per share, 63 percent above Motorola's stock price before the deal was announced.

Motorola Mobility Holdings Inc.'s stock soared 56 percent, or $13.65, to $38.12. Google Inc. lost about 1 percent and closed at $557.23.

The deal will test Page's ability to avoid a clash of cultures while he is still learning the nuances of the CEO job, which he took only four and a half months ago. With 19,000 workers, Motorola Mobility's payroll isn't that much smaller than Google's 28,800.

It's a coup for Motorola Mobility CEO Sanjay Jha and the company's largest shareholder, billionaire investor Carl Icahn, who had been pressuring Jha to cash in on the patent portfolio. With an 11.4 percent stake in Motorola Mobility, Icahn is in line to be paid more than $1.3 billion.

Motorola Mobility, based in Libertyville, Ill., has been struggling to come up with a product that has mass-market appeal since it introduced the Razr cellphone in 2005.

The company had some success with the Droid, one of the first phones to run on Android, but it now ranks a distant eighth in the smartphone market, with 4.4 million units shipped in the second quarter, according to research firm Canaccord Genuity. By comparison, the market-leading iPhone shipped about 20 million.

An attempt to counter the iPad hasn't paid off for Motorola Mobility, either. In an effort to drum up more demand, the company recently cut the price on the Wi-Fi-only version of its tablet, the Xoom, to $499 from $599.

The troubles saddled Motorola Mobility with a $56 million loss in its latest quarter, sinking the company's stock price to one of its lowest points since its January spinoff from the old Motorola Inc. The remaining part of that company now runs as Motorola Solutions Inc. In contrast, Google earned $2.5 billion in its most recent quarter ending in June.

___

Svensson reported from New York. AP Technology Writer Barbara Ortutay in New York contributed to this story.

Feds likely to let Google buy Motorola Mobility (AP)

Posted: 15 Aug 2011 03:11 PM PDT

By JOELLE TESSLER, AP Technology Writer Joelle Tessler, Ap Technology Writer – Mon Aug 15, 6:11 pm ET

WASHINGTON – Federal regulators are unlikely to block Google Inc. from buying cellphone maker Motorola Mobility since the acquisition could help drive competition in the fast growing mobile device market.

But the deal comes as Google faces scrutiny in the U.S. and overseas from antitrust regulators concerned that the Web search giant may be abusing its clout as a major gateway to the Internet to muscle its way into new businesses and stifling competition in the process. In response to complaints by rivals, the Federal Trade Commission is ramping up a broad inquiry into possible anticompetitive behavior by Google. The European Commission, the Texas attorney general and the Senate Judiciary Committee are also investigating the company.

Google's plan to buy Motorola Mobility for roughly $12.5 billion marks the latest in a string of high-profile acquisitions as the company expands beyond its core online search business. Google is seeking to buy the device maker, which uses its Android operating system, at a time when more and more people are going online using mobile devices rather than desktop computers, and finding what they want online through apps rather than search engines.

Devices such as smartphones and tablet computers running Google's Android operating system are battling Apple's wildly popular iPhone and iPad, Research in Motion's BlackBerry and mobile devices using Microsoft operating systems for consumers' dollars. Android is considered to be "open" software, meaning that Google gives it to device makers free of charge and allows them to modify it for their products in whatever way they see fit.

The Motorola deal will be reviewed by the either the Justice Department or the FTC to determine whether the combined company could hurt competition in the mobile computing market. For antitrust regulators, the biggest concern is that once Google owns a device manufacturer, it will be in direct competition with other smartphone and tablet computer makers that also use the Android operating system, explained John Mayo, a professor at Georgetown University's McDonough School of Business.

Google has pledged to operate Motorola Mobility and Android as separate businesses. But Mayo said the acquisition could give Google an incentive to provide Motorola with exclusive access to its latest innovations and newest Android features, and even to withhold software upgrades from rival device makers.

Still, four other big device makers that also use Android — Samsung, Sony Ericsson, HTC Corp. and LG Electronics — have all said they support the deal. That's because the Motorola acquisition gives Google a portfolio of more than 17,000 patents on phone technology that can be used to defend Android device makers from patent infringement litigation.

That support signals that other device makers believe Google wants to protect and grow its Android business — and see Android used on as many mobile devices as possible — rather than restrict access to the platform, said Ed Black, president and chief executive of the Computer & Communications Industry Association.

If anything, antitrust regulators may see the deal as a boost to competition. Android is such a crucial competitor to the iPhone in particular, that allowing Google to buy Motorola Mobility will likely produce even more innovation in smartphones and other devices, said David Balto, a former FTC antitrust official who is now a senior fellow at the Center for American Progress.

Perhaps the biggest question is whether the Motorola Mobility deal could affect the broader Google antitrust inquiry recently launched by the FTC. That probe will focus on whether Google, which handles two out of every three online searches in the U.S., abuses that control by placing links to its own content and services at the top of search results and burying links to rivals. Google's search results already highlight some of its own specialized services, including online mapping, video and finance.

Although search rankings raise a very different set of issues than the proposed Motorola Mobility acquisition, the FTC inquiry is still in its early stages and could yet delve into many other parts of Google's business, including Android. Among other things, the investigation could look at whether Google restricts the use of rival services on Android devices.

Against that backdrop, Google's decision to buy Motorola Mobility is a "gutsy move," said Melissa Maxman, an antitrust attorney with Cozen O'Connor. Google, she said, "is doubling down."

Still, Maxman said, the acquisition could reveal a different side of Google to the FTC. That's because the agency will focus on whether the company is leveraging existing monopolies in markets such as Internet search to extend its dominance into new businesses. The Motorola Mobility acquisition, she said, does not fit that pattern.

Given the dominant position of Apple and other device makers in the handset market, Maxman added, the Motorola deal serves as a reminder that "Google doesn't control everything."

Sales of gold up on eBay amid stock market turmoil (AP)

Posted: 15 Aug 2011 07:43 AM PDT

By RACHEL METZ, AP Technology Writer Rachel Metz, Ap Technology Writer – Mon Aug 15, 10:43 am ET

SAN FRANCISCO – For gold sellers on eBay, the recent stock market turmoil has been a boon for business.

Gold and silver sales on eBay had already been rising steadily over the past several years — so much so that eBay Inc. created a special area in May to make it easier for buyers to find sellers.

Now, activity on that part of the site, the Bullion Center, is intensifying as consumers unnerved by the economic uncertainty flock to gold in hopes it will be a stable investment.

"When people are coming down to the question, `Do they want to have cash in the bank or gold in their hands?' the answer is they'd rather have gold or silver," said Jacob Chandler, CEO of Great Southern Coins, the largest seller of precious metals on eBay.

The stock market just ended one of its most volatile weeks in years, prompted in part by a downgrade in the nation's credit rating and fears of another recession. The Dow Jones industrial average fell nearly 6 percent on Monday, its worst one-day drop since December 2008. Then the index rose Tuesday, fell Wednesday and rose Thursday and Friday to end the week 2 percent lower than a week ago.

Through most of last week, the average selling price increased for gold bullion — bars or coins stamped with their weight and level of purity.

According to the most recent data available from eBay, sales of 1-ounce gold American Eagle coins and 1-ounce gold Pamp Suisse bars rose steadily from Aug. 5 to Wednesday, before dipping slightly on Thursday.

On Aug. 5, when Standard & Poor's lowered the nation's credit rating, American Eagle coins were selling for an average of $1,800 among eBay's featured sellers. The average price of the coins, produced by the U.S. Mint, rose more than 8 percent to $1,952 on Wednesday, before dropping to $1,915 on Thursday.

The Pamp Suisse brand of gold bars sold for an average of $1,787 on Aug. 5 and climbed nearly 8 percent to $1,927 by Wednesday. On Thursday, the bars dropped slightly to $1,890.

Even before last week's market turbulence, investors were cautious because economic signals in the U.S. and overseas pointed toward trouble.

The Dow index fell 6 percent in the week ending Aug. 6. That week, the number of gold buyers on eBay rose 11 percent compared with the year's weekly average. The number of gold sellers rose 14 percent. EBay would not provide the total number of buyers and sellers.

"With all the turmoil in the markets, this is seen as a way to diversify," said Anthony Delvecchio, eBay's vice president of business management and strategy for eBay's North America business.

EBay, which is based in San Jose, Calif., does not impose minimum purchase amounts for bullion. Sellers offer gold both through auctions and "Buy It Now" fixed-price sales.

The increased popularity of gold on eBay echoes what's happening in the broader gold market, where prices have spiked during the past two years.

Gold traded at about $900 per ounce in the summer of 2008, before the financial crisis unfolded that year. It passed $1,600 in late May and briefly rose above $1,800 for the first time on Wednesday before pulling back to $1,784. On Friday, gold fell to $1,740.60 per ounce, still nearly twice the summer 2008 prices.

Great Southern Coins has benefited from this uptick. Chandler said the company is selling more gold lately, and its silver sales remain strong, too. Chandler estimated his business has nearly quadrupled in the past 45 days, and he said it appeared to be up about five or six times during the past week, with most of this growth coming from sales on eBay.

Daniel Hirsch, a New York-based statistician who recently purchased more than a dozen gold coins on eBay from Great Southern Coins, said he started buying gold less than a year ago in an effort to expand his investment portfolio.

"It's kind of a safe haven and a hedge against low interest rates," he said.

Just Show Me: How to use Versions in Mac OS X Lion (Yahoo! News)

Posted: 15 Aug 2011 05:23 PM PDT

BMW’s all-electric i3 spotted again, this time on city streets (Yahoo! News)

Posted: 15 Aug 2011 05:19 PM PDT

Vending Machine Dispenses Fresh Baguettes [VIDEO] (Mashable)

Posted: 14 Aug 2011 11:33 AM PDT

Emily Banks Emily Banks – Sun Aug 14, 2:33 pm ET

[More from Mashable: 12 Food Trucks Mashable Readers Love]

One ingenious baker has found a way to make sure his customers have access to fresh baguettes -- a staple of French meals -- at all hours.

Jean-Louis Hecht has opened coin-operated baguette vending machines outside his bakeries in Paris and Hombourg-Haut in northeast France. The loaves are pre-cooked, placed in the machines and warmed up when purchased.

[More from Mashable: What's Your Favorite Food Truck? [CONTEST]]

"This is the bakery of tomorrow," Hecht told The Telegraph. "If other bakers don't want to enter the niche, they're going to get decimated."

When the machine in Hombourg-Haut opened in January, it dispensed 1,600 baguettes; last month it sold 4,500.

With the introduction of specialized vending machines, could the traditional boulangerie go the way of the video-rental store?

Image courtesy of Flickr, treehouse1977

This story originally published on Mashable here.

Businesses in U.S. complain of .xxx shakedown (Reuters)

Posted: 15 Aug 2011 03:12 PM PDT

By Terry Baynes Terry Baynes – Mon Aug 15, 6:12 pm ET

NEW YORK (Reuters) – In preparation for a new triple-x Internet domain that will launch in December, lawyers for the most storied brands in the United States are scrambling to prevent an x-rated rip-off of an invaluable asset: corporate Web addresses.

The domain operator administering the .xxx domain is accepting early applications from brand owners who want control over their names. ICM Registry says it has received over 900,000 "expressions of interest" from companies that want to preregister their trademarks or block others from snapping them up to create, say, a Barbie.xxx or Coke.xxx.

While some adult-content providers are paying the approximately $200 fee because they want to use the domain, other non-porn brands ranging from MTV Networks and Budget Travel to the Red Cross are preregistering to avoid future legal battles with cybersquatters who register trademarks with the intention of reselling them.

Porn and mainstream businesses alike complain they are being forced to buy domain names they don't want, don't need and won't use -- and compare the process to a hold-up.

"Many feel they're being blackmailed to protect their brands," said Kristina Rosette, a trademark lawyer at the law firm Covington & Burling. She added that requiring preregistration fees to protect trademarks is not uncommon among domain registries, which then include the expected revenue in their business plans and projections.

ICM Registry, the private company that is introducing .xxx, was founded by Stuart Lawley, a British tech investor. He and his partners first proposed the .xxx domain in 2000 to the Internet Corporation for Assigned Names and Numbers (ICANN), the international governing body that oversees top-level domains and reviews new applications. Yet because of fierce opposition from religious and conservative groups on moral grounds, and the Internet pornography industry, which feared censorship, it took ICM until this past March to win a final approval from ICANN's board and a 10-year contract to manage the .xxx domain.

NOT MAKING A DIME

Now that Lawley is finally in the home stretch and preparing to launch ICM in December, he dismisses charges that he is shaking down registrants. "We're doing it on a cost-recovery basis. We don't make a dime out of it," he said, adding that the fees would serve to cover the cost of verifying the applicant's identity and trademark ownership.

ICM is the latest company to stake out territory in the fast-growing registry landscape. The most established player in the field is Verisign, which operates both the .com and .net domains. Another outfit, Afilias, owns .info and .mobi for sites designed for mobile devices. The number of registry companies is expected to explode next year, when ICANN will allow any company to apply for its own domain extension, like .apple or .facebook.

Most big companies own tens of thousands of domain names, according to Frederick Felman, the chief marketing officer of MarkMonitor which helps companies protect their brands online. Warner Brothers, for example, owns not only warnerbros.com but also batman.com, harrypotter.com and looneytunes.com among many others.

HERE COME THE TYPOSQUATTERS

Each new domain brings a new round of cybersquatters, who register well-known trademarks to increase Web traffic or later sell them at an inflated price. Close behind are typosquatters, who register famous names with slight typographic errors, like Peppsi instead of Pepsi. The threat of rampant brand hijacking has alarmed companies who worry about the costs of defensive registrations with the launch of new domains.

A trademark owner that falls victim to cybersquatting or typosquatting must take legal action against the domain name holder, invoking ICANN's dispute resolution policy to wrestle back the address. The process can take months and several thousand dollars in legal fees.

When ICANN opens the gates to new domains starting in January 2012, the cost of brand protection is going to skyrocket. "Multiply .xxx times several hundred, and that's the scale of the problem," said Felman.

The businesses most affected by the launch of the .xxx domain are big name adult entertainment companies, such as Canadian-based Manwin and U.S.-based Hustler, which own dozens of domain names. They are not only refusing to pay, but also demanding that ICM block their domains free of charge.

Manwin, one of the world's largest online porn companies, owns domains including Brazzers.com, Xtube.com and YouPorn.com. In June, its lawyers sent a letter to Lawley, listing 57 of its pre-existing domain names and warning ICM to protect those names or risk the consequences.

Manwin "has placed ICM on notice that registration of its domain names without its consent will constitute a violation of Manwin's rights," the company said in a statement. Hustler, which owns domains including Hustlertv.com, Hustlerclothing.com and Hustlerstore.com, has sent a similar letter.

ICM responded to the legal threats with a seven-page report in July, claiming that a registry cannot be sued for trademark infringement. The letters, though, have placed ICM on notice, which increases the potential for liability if ICM sells the trademarked names, said Rosette.

NO TO SPONGEBOB.XXX

Eighty percent of registrants so far have been from outside the pornography industry, according to Easyspace, a British registrar which has been taking preorders on behalf of businesses that want to protect their brands before the official registration period opens in September.

MTV Networks was among the early brands to sign up to protect names such as VH1 and Comedy Central. "This is a unique launch," said MTV spokesman Mark Jafar in an emailed statement. While the company will not operate a website at spongebob.xxx, it will "be preventing others from owning it," Jafar said, noting that MTV is registering more brands with .xxx than it normally would for a new domain.

Budget Travel cited similar concerns about a potential budgettravel.xxx. If people are Googling "budget travel" while planning a vacation, "We don't want them coming across something inappropriate," said Lisa Schneider, the digital general manager for the travel site Budget Travel.

SPECIAL TREATMENT FOR RED CROSS

Not all registrants have to pay the $200 to $300 fee. Under ICANN's rules, certain nonprofits including the Red Cross and the International Olympic Committee receive special protection in new domains because of their international status. At ICM's request, Red Cross has submitted a list of its brand names, along with their Spanish and French translations, which will be blocked from .xxx free of charge, according to a Red Cross spokeswoman.

People for the Ethical Treatment of Animals also signed up. However, instead of blocking its name, said PETA spokeswoman Lindsay Rajt, the organization will launch peta.xxx as a pornography site that draws attention to the plight of animals.

(Reporting by Terry Baynes; Editing by Eileen Daspin and Eric Effron)

Group seeks Amazon boycott over sales tax fight (AP)

Posted: 15 Aug 2011 02:16 PM PDT

– Mon Aug 15, 5:16 pm ET

SACRAMENTO, Calif. – A coalition of nonprofit groups is calling on customers of Amazon.com to cancel their accounts unless the Internet retailer stops resisting a California law that requires more online retailers to charge a state sales tax.

The nonprofits along with several state lawmakers Monday called on Amazon to "stop cheating California" by trying to repeal the law through a ballot referendum.

Amazon's opponents announced a Web campaign intended to organize opposition efforts and explain how customers can close their accounts.

Amazon.com Inc. did not immediately respond to an email and a call for comment Monday.

Lawmakers in June approved a measure to expand collection of California sales tax to more Internet retailers, estimating it would bring in at least $200 million a year.

Amazon has spent $3 million fighting that law.

___

On the Web: http://www.ThinkBeforeYouClickCA.org

UK police arrest man for promoting a water gun fight with Blackberry, Facebook (Digital Trends)

Posted: 15 Aug 2011 07:54 PM PDT

Mike Flacy Mike Flacy – 1 hr 55 mins ago

Water-Gun-Battle

After attempting to promote some wholesome fun with water guns, a 20-year old Essex native was arrested and charged with "encouraging or assisting in the commission of an offense" under a 2007 law called the Serious Crime Act. Essex law enforcement officers claim that the man attempted to incite a flash mob and promoted the event through BlackBerry Messenger as well as a Facebook event page. The man was allegedly encouraging Colchester residents to gather for a city-wide water gun fight. The man was released on bail and has a court date on September 1 to face the charge. 

BBM-iconDue to the recent outbreak of riots in Britain, national intelligence agency M15 has been given the task of monitoring cell phone accounts to determine who is using services like BlackBerry Messenger to incite violence or looting. However, Essex hasn't seen this level of criminal behavior and it's unclear if monitoring led to the water-related arrest. British Prime Minister David Cameron working with intelligence services to determine if the government should step in and stop people from communicating through social media if future violence is threatened. 

A group of Iranian teenagers in central Tehran experienced a similar situation after being arrested for participating in a water pistol fight at a park. The group had promoted the event through Facebook as well. The students were arrested by the morality police, but released on bail two days later. The group is expected to be charged with publicly committing an act against Islam as well as insulting police officers.  

While people in England argue over the right to monitor cell phone usage, citizens of the United States are having a similar discussion after the Bay Area Rapid Transit in San Francisco shut down wireless access and cell phone service for three hours. Police requested the shutdown based off a tip that a demonstration would be held to protest the July 3 shooting of a homeless man. However, the demonstration never materialized during that time.

Sibling rivalry: Will Google's Motorola buy turn other Android makers green? (Digital Trends)

Posted: 15 Aug 2011 06:18 PM PDT

Andrew Couts Andrew Couts – Mon Aug 15, 9:18 pm ET

motorola-android

Google rocked the mobile industry Monday with its surprise plan to purchase Motorola Mobility for $12.5 billion. According to Google CEO Larry Page, the move is intended to "supercharge" Android, as well as "protect" the highly popular mobile operating system against the likes of Microsoft, Apple, and others, who "are banding together in anti-competitive patent attacks on Android."

In Google's view, the heaviest assault on Android came on July 1, when a consortium of companies, including Apple, Research In Motion, Sony and Microsoft purchased more than 6,000 patents from Canadian telecommunications giant Nortel for $4.5 billion dollars, beating out Google's $900 million bid.

Some believe, however, that Google had no intention of winning the Nortel auction, and was actually banking on scoring a deal with Motorola — a deal that has now put more than 17,000 patents, three times the Nortel portfolio, and 7,500 pending patents, in Google's pocket.

Reinforcements have arrived

So, now that Google's on the offensive in the patent war — and jumped head-first into the business of building cell phones — what's in store for Android as a platform, and the Android ecosystem as a whole?

"Google has introduced a new dynamic into the ecosystem," says Kevin Restivo, senior analyst with IDC's Worldwide Quarterly Mobile Phone Tracker. And this game-changing move has "immediately fortified [Google] in the case, in the court, to keep Android as-is."

Google will be able to use its soon-to-be-acquired cache of patents to fight back the litigious vultures at Microsoft and Apple, and keep Android alive and well.

Playing favorites

The big unknown now, says Restivo, is how Google's hardware partners — companies like Samsung, HTC, LG and others — will react, especially in the long-term, to Google putting itself in direct competition with them.

"Until now, all Google's hardware partners have been more or less equal," says Restivo. But Google "hasn't owned a hardware maker before," either. In buying Motorola Mobility, Google has forced "an entirely new relationship" on its hardware partners, and they will "want assurances that it's business as usual."

Of course, Google has been working frantically since announcing the deal Monday morning to keep talk of partner volatility to a minimum.

"This acquisition will not change our commitment to run Android as an open platform. Motorola will remain a licensee of Android and Android will remain open," writes Google's chief executive. "We will run Motorola as a separate business. Many hardware partners have contributed to Android's success, and we look forward to continuing to work with all of them to deliver outstanding user experiences."

Other manufacturers react

To quell the impression of unrest, Google even created a website today called "Quotes from Android partners — Facts about Google's acquisition of Motorola." As of this writing, the only thing on the page contains is eerily similar quotes from various partners about how wholeheartedly they "welcome" the deal.

"We welcome today's news, which demonstrates Google's deep commitment to defending Android, its partners, and the ecosystem." writes J .K. Shin, the president of Samsung's mobile communications division.

"I welcome Google's commitment to defending Android and its partners," echoed Bert Nordberg president and CEO of Sony Ericsson.

You can almost hear teeth grinding behind their smiles.

The page goes on and on, with each subsequent sound bite further enforcing that things couldn't be better between Google and its Android hardware partners. For now, that may very well be the case, at least in a functional sense. In order for Google to maintain the status quo, however, it's "going to have show its partners that it loves them all equally," says Restivo.

No turning back now

Due to this need to keep partners happy, "I don't think you're going to see an Apple-like model [from Google]," says Restivo. "Google will not introduce flagship phones itself, based on Motorola's hardware."

"I don't think you'll see hardware partners turn on Google or Android," says Restivo, for the time being. "There won't be immediate hostility. However, those partners will have to hedge their OS bets, and have a broader array of OSs in their portfolios [down the road.]"

Because of this inevitable need to diversify, we could possibly see Google's acquisition of Motorola Mobility indirectly boosting other mobile operating systems.

"If you're Peter Chou, CEO of HTC, you're probably going to look harder at where you're long-term bets are placed," says Restivo. And because of this, we may see "more WP7 phones shipped" simply because handset makers will be forced to rely less upon Android as a platform.

Still, "it's hard to say if other OSs will get a boost," Restivo adds. "Samsung, HTC, LG – all these hardware providers have based their business on Android. Regardless of how much they like, or don't like, the Motorola Mobility buy, it's impossible for them to complete turn their backs on Google. They are very much dependent on Android and, therefore, Google."

Former competitors hand in hand

While the acquisition of Motorola certainly appears to have put Google's hardware partners in a tough spot, Restivo says Google's purchase will help the company improve Android to offer a more streamlined, concrete product for consumers.

Until this point, Android developers have had the challenging task of creating apps for a plethora of different handsets that are all just different enough to make Android a messy affair for users.

"One of the biggest problems Google has had is fragmentation, its inability to have the same experience replicated over all Android devices," says Restivo. "Having Motorola gives it more flexibility to experiment."

Restivo adds: "Google knows much of its future depends on mobile. It's going to want to rectify the consumer experience problems. And Motorola Mobility potentially allows it to so."

Uncertainty ahead

While adding Motorola to its ranks certainly has its perks, Restivo warns that owning and operating a hardware manufacturer — something Google has never done before — has its own set of unique challenges.

"Hardware ownership is a completely different ballgame," says Restivo. "Google has no experience managing supply chains," for example. Because of this lack of know-how, "Google would be wise to learn much from incoming employees."

Facebook submits evidence in ownership lawsuit (AP)

Posted: 15 Aug 2011 09:41 PM PDT

5 fun ways Google could improve Motorola products (Digital Trends)

Posted: 15 Aug 2011 06:40 PM PDT

Jeffrey Van Camp Jeffrey Van Camp – Mon Aug 15, 9:40 pm ET

motorola-google

2011 has been a big year for Google, full of product announcements and growth. However, few announcements can overshadow yesterday's news that Google plans to purchase Motorola Mobility for $12.5 billion in cash. We'll be addressing the impact of this announcement from many angles, figuring out what it means for Android and the growing patent wars, but first, we'd like to take a moment to speculate on some of the cool ways Google and Motorola could symbiotically work together in the near future.

So long NinjaBlur

Motorola Droid X2 Screen DesignLike every other Android manufacturer, Motorola has tweaked the standard Android interface with each of its handsets. Unfortunately, it's software, dubbed MotoBlur and NinjaBlur, has been widely criticized as one of the weaker modifications to the operating systems. But with Google on board, we could see a big change in philosophy. We think there's a good chance Motorola will become the first manufacturer to embrace the standard, default look of Android across its line of phones. What does this mean for you? Well, it means that Motorola's phones will have an interface more akin to the Nexus S or Nexus One than what you see from Motorola today. Some people will like the default look, while others will still go for heavily modified Android vendors like HTC, but Motorola's phones will be a lot better than they are on NinjaBlur.

The nakedness of Android on Motorola may force Google to continue to aggressively upgrade the default design and look of Android on handsets and tablets. We welcome this change.

Hello updates and rooting

There are more benefits to using the stock version of Android. By choosing to stick tight and use Google's UI without all of the heavy modification, Motorola could have a big advantage that will draw in geeks of all types. Much like Nexus S owners, Moto owners could be six to nine months ahead of other handset owners when it comes to receiving Android operating system updates, which Google tends to release twice a year. Without a clunky custom user interface and apps to tweak and rework around every new release, Motorola could become the most responsive and iterative handset maker on the market. Those who want to run the latest and greatest Android OS will choose Motorola. I know I would.

Then there's the issue of changing the bootloader and rooting. Motorola has long had a policy against geeks digging around and tampering with its devices, but Google has a more open policy toward rooting and modifying OS attributes. Chrome OS was built with rooting as an identified feature. We'd love to see a unified Motorola and Google embrace the hacking world. After all, what good is expensive technology if we can't play with it?

Atrix Laptop Dock gets an Ice Cream Sandwich redesign

Motorola Atrix 4G

We really liked the concept behind the Motorola Atrix and its laptop dock. The concept largely failed in its first go around thanks to a strange custom interface for the laptop that had few to no apps and a horribly expensive price, but there is a future for laptop and smartphone symbiosis, and it's coming faster than we think. A joined Google and Motorola might be able to explore the concept more effectively (and affordably). Android "Ice Cream Sandwich" will rear its head in the coming months and promises to work on both tablet and smartphones, changing its interface from a Honeycomb-like desktop to a smartphone display on the fly. This OS will naturally lend itself to a smartphone laptop dock like the Atrix had without any of the hassle the Atrix came with. Imagine plugging your smartphone into a dock and instantly using it as a laptop of sorts, complete with a keyboard and an extended battery that actually charges your phone while you use it. Sign us up.

Google TV gets a take 2

Since it's debut in late 2010, Google TV has been so unpopular that returns of the Logitech Revue box are actually outpacing sales. Few products have failed so quickly, though the Microsoft Kins come to mind. In any case, Apple TV is doing quite well and Google is not ready to give up on the TV market yet. The company has been quietly reworking Google TV and will likely relaunch it later this year or early next. What better company to partner with than one of the leaders in set-top boxes? If you've been a Comcast or cable subscriber, chances are you've used a Motorola DVR or cable box.

Google TV

We don̢۪t think that Comcast is suddenly going to embrace Android or Google TV, but Motorola certainly has the know-how where it relates to connecting cable TV to the Internet and recording television. We̢۪d love to see what the two companies can cook up together.

MotoNav gets a Google Nav boost

motorola-motonavThere are many people who still want a navigation system built into their car and Motorola's MotoNav competes with Garmin, TomTom, and others for this market. We haven't spent time with a MotoNav device ourselves, but having a GPS unit with a suite of built-in Google Navigation products sounds mighty appealing. If the system ran on Android, it could also connect up to your Google account on the Web or smartphone. Imagine being able to send yourself or a friend's car directions on the fly, or use a location service like Google Latitude (assuming that program has some work done) or Foursquare to automatically re-guide you to a new destination as your friends move around.

There are a lot of cool possibilities that have, until now, been left untouched. We admit that Motorola's Droid car dock accomplishes much of what we want here, though it would be nice to have a navigation system without having to plug in your phone every time.

Conclusion

These are five very broad ideas that present themselves off the bat, but we trust engineers at both Google and Motorola have plenty more in mind. Motorola is also in the smart appliances business, which is a big area where Google plans to take Android as well. Assuming Google and Motorola can learn to work cohesively, this could be one of the best purchases Google has ever made. Until now, Android's fate has largely been out of Google's hands, but with Motorola, the search giant can now take the helm of its own operating system and steer its future, much like Apple has done with the iPhone and Microsoft is doing with Nokia. We have no idea what is in store, but it's exciting.

If you have ideas for ways Google and Motorola might work together, let us know. Think the whole thing is a crock? Share those opinions too.

What Google's acquisition of Motorola Mobility could mean for Android users (Appolicious)

Posted: 15 Aug 2011 03:30 PM PDT

San Francisco subway stations closed amid protests (AP)

Posted: 15 Aug 2011 09:34 PM PDT

By PAUL ELIAS, Associated Press Paul Elias, Associated Press – 15 mins ago

SAN FRANCISCO – Rush-hour protests prompted the closure of four San Francisco subway stations and sent hundreds of commuters into the sidewalks and streets Monday, but there was no repeat of the wireless service shutdowns that angered protesters last week.

The Bay Area Rapid Transit agency has found itself in the middle of a raging debate over how far authorities should go to disrupt protests organized on social networks. The agency shut cellphone service last Thursday to quell a brewing protest on one of its platforms over a police shooting.

Cellphone service was operating Monday night as an estimated 50 protesters gathered on the Civic Center Station platform chanting "no justice, no peace" shortly after 5 p.m. Thirty minutes later, police in riot gear and wielding batons closed the station and cleared the platform after protesters briefly delayed an east-bound train from departing.

From Civic Center, the protesters were joined by more demonstrators and marched down San Francisco's Market Street and attempted to enter to more stations. Officials closed those stations as well.

"Once the platform becomes unsafe, we can't jeopardize the safety of patrons and employees," BART Deputy Police Chief Dan Hartwig said.

Hundreds of people stood on the sidewalks and streets outside stations in the city's Financial District on Monday evening. Many of the people appeared to be commuters.

"It a big disruption," said Nancy Armstrong, competing with others to flag a cab above the Civic Center station.

Ayanna Tate, of Oakland, was frustrated at not being able to take a BART train across the bay.

"I'm trying to get home! Take this someplace else," she said, referring to the protesters. "You've made your point! To everybody!"

Shortly after 7:30 p.m., three of the four downtown BART stations had re-opened.

Elijah Sparrow, a protester, called the demonstration "one of the defining battles of the 21st century over who is going to control communication."

The shutdown of wireless towers in stations near the protest last Thursday night helped raise questions about the role that social networks are playing in helping people, from Egypt to London, organize online. In the U.S., with its history of free speech, critics are saying BART's move was unconstitutional.

BART officials have said their primary concern was to ensure that passengers are safe. BART spokesman Linton Johnson declined to answer questions about why the agency decided to keep the wireless system operable Monday.

"It's wrong," American Civil Liberties Union lawyer Michael Risher said. "There were better alternatives to ensure the public's safety."

Former BART director Michael Bernick applauded the move, saying it ensured a safe and uninterrupted commute Thursday night.

"Finally, BART said enough," said Bernick. "BART put its riders and commuters ahead of these protesters and the ACLU."

BART cut power to its wireless nodes Thursday night after learning demonstrators planned to use social media and text messaging to organize a protest against police brutality on one of the subway platforms.

The tactic appeared to work because no protest occurred.

BART's actions prompted a Federal Communications Commission investigation, and a hacking group organized an attack on one of the agency's websites on Sunday and posted personal information of more than 2,000 passengers online. The group, named Anonymous, called for a disruption of BART's evening commute Monday.

"We are Anonymous, we are your citizens, we are the people, we do not tolerate oppression from any government agency," the hackers wrote on their own website. "BART has proved multiple times that they have no problem exploiting and abusing the people."

BART spokesman Jim Allison said BART has notified the FBI, and that no bank account or credit card information was listed.

BART officials, meanwhile, defended the shutdown of the cell service as a legal approach to ensure commute safety.

A protest last month on a San Francisco platform calling for the dismissal of the transit officers responsible for the July 3 shooting death of a man wielding a knife prompted the closing of one station and caused system-wide delays during rush hour.

Allison said the wireless outage was only for platforms and trains running under the city, places where protests are banned.

By Monday, a growing number of free speech advocates were calling on BART to renounce the tactic, with many calling the action an unconstitutional attempt to stifle lawful protest. Even a BART board member criticized the action.

"We really don't have the right to be this type of censor," said Lynette Sweet, who serves on BART's board of directors, said. "In my opinion, we've let the actions of a few people affect everybody. And that's not fair."

Risher, the ACLU attorney, likened BART's installing wireless networks underground as a passenger service to a government building a park. "Government's don't have to build parks," he said. "But once they do, they can't lock out speech they disagree with."

Risher met with BART's police chief in Oakland during the protest in San Francisco.

He said he was disappointed that BART wasn't prepared to commit to a firm policy against shutting wireless service except for in the most dire situations to ensure public safety, but said the ACLU had no immediate plans to file a lawsuit.

"We had hoped that BART would be in a position to commit to a policy like that," Risher said after the meeting. "They're simply not ready to do that yet."

Electronic Frontier Foundation lawyer Lee Tien said he needed more information to decide whether a lawsuit was appropriate.

Regardless of its strict legality, Tien said the tactic was unsavory and compared it to former Egyptian president Hosni Mubarak's shutting down access to the Internet in a failed attempt to stop civil unrest.

Bernick, the former BART director, said Northern California governments such as BART have been struggling for years with how to handle vocal political demonstrations that often escalate to violence.

BART and Oakland, in particular, have experienced several large-scale protests that turned into riots after a white transit officer shot the unarmed black commuter Oscar Grant on New Year's Day 2009.

BART officials said they are working on a plan to block any efforts by protesters to disrupt the service, which carries 190,000 passengers during the morning and evening commutes every day.

The BART computer problem was the latest hack the loosely organized group claimed credit for this year.

Last month, the FBI and British and Dutch officials made 21 arrests, many of them related to the group's attacks on Internet payment provider PayPal Inc., which has been targeted over its refusal to process donations to WikiLeaks.

___

Associated Press writers Terry Chea in Oakland and Terry Collins in San Francisco also contributed to this report.

Björk introduces the 'app album' (Digital Trends)

Posted: 15 Aug 2011 12:04 PM PDT

Molly McHugh Molly Mchugh – Mon Aug 15, 3:04 pm ET

biophiliaLeave it to Icelandic pop star Björk to shake up music marketing. The musician released her latest album, but instead of producing the traditional CD or selling singles via iTunes, Björk has packaged her new music in an app.

Biophilia is available in the App Store for free, and is described as "an extraordinary and innovative multimedia exploration of music, nature and technology." Songs are presented via a galactic-themed interfaced, and the app updates to give users access to newly released songs. Lyrics, background, animation, and music scores with karaoke playback are also included.

In addition to giving her fans a new and exciting way to access her music, Björk is challenging the way we approach music production. There's a much higher degree of interacting with the music, where you're either taking a part in creating the song (like with the title "Virus") or playing a game along to "Crystalline," in which the accompaniment navigates you through a maze of gathering and sharing crystals.

crystalline

All the profits for Biophilia are found via the in-app payments for individual tracks, which cost $1.99 each (one song, "Cosmogony," is included for free).

The Internet has not been kind to the music industry, and both artists and recording studios have struggled to adjust. The onslaught of P2P downloading sites and consumers' increasing comfort with technology means that free music was little more than a few clicks away. And while there's been a significant (and effective) push to curb this behavior, the buying scheme has collapsed. Digital music continues to push CDs nearer to oblivion and subscription music services have made a considerable impact on how consumers have the ability to pick and choose–and going back doesn't seem like an option.

But Biophilia is much, much more than just a way to listen to Björk's new album on your smartphone. The game-like interactions and immersive experience make you connect to the music in an entirely new, innovative way. It's almost like a learning tool, and one that requires you to be more than a passive consumer.

And not only does Biophilia give listeners a new way to access and experience music (while also reinforcing the buy-as-you-want plan), but there's a possibility it could be a very lucrative method for artists and studios. The app market is exploding, and with smartphones becoming an increasingly common medium and one that users turn to for their music listening purposes, making albums readily available and built specifically for a mobile OS is genius.

If the app album catches on, what would it mean for music services? ITunes has a firm hold over music buying and storage, and plans like MOG, Spotify, Rhapsody, and Pandora could find some competition. These sites all have various benefits, but the concept behind Biophilia is so impressive and fully-featured that we could see some fans ditching music players and going straight for an artist-produced app. Is this the future of music consumption? Given that Bjork's music targets something of a niche audience, it's obviously too early to tell. That said, we hope it's something musicians begin exploring and consumers take advantage of.

Of course, as with everything, there's a flip side. Building and selling app albums naturally lends itself toward a host of in-app payment possibilities, which have their downfall. Prices could escalate and content could be disappointing, and then the app album would likely see an early death. But in the spirit of optimism and inventiveness, we hope this territory won't be exploited too soon. 

Check out the narrated intro for Biophilia below. 

Fall release of iPad 3 canceled due to Retina display issues (Digital Trends)

Posted: 15 Aug 2011 08:31 PM PDT

Trevor Mogg Trevor Mogg – 1 hr 18 mins ago

ipad-3It seems that rumors of a fall release for the iPad 3 can finally be laid to rest.

Taiwan-based DigiTimes reported late Monday that the iPad 3′s supply schedule for the second half of 2011 has been canceled by Apple. A supply volume of 1.5 to 2 million units for the third quarter and 5 to 6 million units for the fourth quarter had been planned.

It seems that the delay is related to issues concerning the introduction of an improved screen resolution, what Cupertino-based Apple call the Retina display. The high resolution screen was first seen with the release of the iPhone 4 in 2010.

The DigiTimes report says: "The sources believe that the yield rate of the 9.7-inch panel that feature resolution of 2,048 by 1,536 may be the major reason of the supply delay since such panels are mainly supplied by Japan-based Sharp with a high price and Apple's other supply partners Samsung Electronics and LG Display are both unable to reach a good yield." The current iPad has a screen resolution of 1024×768.

Also, a higher-resolution iPad would require a significantly larger backlight source and "a single edge light bar is hardly able to reach satisfaction levels," the report says.

So now that we can say with some assurance that the iPad 3 looks set for release some time in 2012, the rumor mill can once again give its full attention to the launch date of the highly anticipated next-generation iPhone. It'll likely be happening in the fall but is still, of course, the subject of much speculation….and rumor.

Google to buy Motorola Mobility in biggest deal ever (Reuters)

Posted: 15 Aug 2011 04:55 PM PDT

By Sinead Carew and Alexei Oreskovic Sinead Carew And Alexei Oreskovic – Mon Aug 15, 7:55 pm ET

NEW YORK/SAN FRANCISCO (Reuters) – Google Inc's biggest deal ever, acquiring Motorola Mobility Holdings Inc for $12.5 billion, is an attempt to buy insurance against increasingly aggressive legal attacks from rivals such as Apple Inc.

The acquisition of one of the mobile telecommunications industry's most storied names is Google co-founder Larry Page's boldest move since taking over as CEO in April, launching the Internet giant into a lower-margin manufacturing business and pitting it against many of the 38 other handset companies that now use its Android software.

Motorola Inc was split this year into two: Motorola Mobility, which got the faster-growing cellphone and TV set-top box businesses; and Motorola Solutions, which sells gear like walkie-talkies to corporate and government clients.

Google is paying a massive 63 percent premium to gain access to one of the mobile phone industry's largest patent libraries. The company had been under pressure to build a patent portfolio after losing out to Apple, Microsoft Corp and others in a recent auction of bankrupt Nortel's assets.

Unlike the Nortel deal and others, the fact that Google avoided having to compete in an auction for Motorola by engaging in exclusive negotiations for the company underscores the pressure it was under to bolster its patent portfolio. Paying such a rich premium even though it was the only buyer dovetails with analysts' view that the increasingly litigious posture its competitors have taken over intellectual property left the Internet search giant with no choice but to pay up.

"No matter how you think about this, you have to look at it through the spectrum of the Android ecosystem under incredible attack from an IP (intellectual property) perspective. And this is Google going out and trying to fix that," said W.P. Stewart Advisors Chief Investment Officer Jim Tierney. "The biggest implication here is that Google wants Android to be one of the dominant phone operating systems for years to come."

Wall Street quickly anointed Microsoft a winner in this deal, with Windows benefiting should the move spur current Android partners to explore other options.

The deal also stoked speculation that struggling Nokia and Research in Motion would become takeover targets themselves, sending Nokia's shares up 17.35 percent and RIM's up 10.3 percent.

Google made its first foray into hardware by co-developing the Nexus One phone with HTC in 2010 -- an effort that met mixed results. Monday's deal, however, could mark the start of a shift to an Apple-style model, integrating mobile hardware with underlying software.

"Google decided to cross the Rubicon on the device side," said Fred Huet, head of telecoms and media consultancy Greenwich Consulting. "There has been growing frustration (at Google) about the lack and speed of internet centric devices.

"With Nexus they tried to show the industry what they thought was the right evolution for handsets and it did not have an impact .... With the patents they make sure that Android stays strong."

THE MORE THINGS CHANGE ...

The acquisition is likely to draw even closer regulatory scrutiny than usual, with the search leader already the subject of antitrust inquiries. Experts will want to review how it affects mobile industry competition.

But the deal -- which took Wall Street by surprise -- appears to mark a shift in strategy from Google's traditional Internet search and advertising empire and forays into video and social networking.

"The danger is that other handset makers feel disenfranchised," said Nomura Securities global technology specialist Richard Windsor. "Motorola is the weaker player. This could actually collapse the entire community."

Page, who also launched the ambitious Google+ social network since taking over as CEO, reassured investors on Monday this would not happen, saying Motorola will be run as a separate company licensing Android software in the same way as rivals like HTC Corp and LG Electronics.

Phone makers including Samsung officially said they welcomed a deal that will aid their own legal battles, but some analysts questioned the sincerity of those claims, noting that rival companies would now be unlikely to heavily promote Android since it would benefit a direct competitor.

Andy Lees, president of the Windows Phone Division at Microsoft, said in a statement that, "Investing in a broad and truly open mobile ecosystem is important for the industry and consumers alike, and Windows Phone is now the only platform that does so with equal opportunity for all partners."

Some analysts also doubt that Google will continue manufacturing handsets in the long term.

"We don't think they necessarily want to be in the handset business. They want those patents first and foremost," said Brian Pitz, an analyst at UBS. "This is really a game of protection."

Analysts say that Google's rivals are likely to continue to enforce their patent rights on mobile devices through legal means. Microsoft, for instance, recently settled a lawsuit with HTC over the Taiwanese company's Android devices. Oracle is also seeking billions of dollars from Google for infringing on Java patents. Analysts expect Apple to continue its increasingly effective patent war against its rivals as well, which could hurt Google by potentially raising licensing costs that need to be paid to Apple.

While Apple's iPhone leads in market prestige and is considered more innovative, Android has managed to quietly surpass it in market share. Android held a 43.4 percent share of the smartphone market at the end of the second quarter, ahead of Nokia's 22 percent, according to Gartner data. Apple ranked third with 18 percent, the data showed.

Shares of Motorola Mobility jumped more than 55 percent on the news, while Google shares fell by roughly 1 percent.

The deal values Motorola Mobility at $40 per share in cash, a 63 percent premium to its Friday closing price. The terms of the deal also features an unusually rich reverse breakup fee of $2.5 billion, according to a source close to the situation.

"It's a deal that will take time to pay off, but they have a lot of cash and they want to chase after profit," BGC Partners analyst Colin Gillis said.

The deal delivers a windfall for investors including Carl Icahn, Motorola's top shareholder with a stake of just over 11 percent. The activist shareholder had been urging Motorola to look into splitting off its patent business -- one of the biggest in the industry -- from its handset business, ranked eighth in the world by Gartner in terms of unit sales. In late July, Icahn even went so far as to estimate that Motorola could be worth $44 per share, or $13 billion in a sale.

Despite cashing out for $4 less than what he estimated the company was worth, Icahn said he was "quite happy with this result."

It's unclear how much Icahn spent on his stake in Motorola since he started scooping up shares in 2007, but regulatory filings indicate it may have been about $3 billion. His stake in Motorola Mobility is worth about $1.34 billion at the deal price, up by $520 million since Friday. Including his stake in Motorola Solutions, Icahn's total stake is about about $2.9 billion in the two companies.

INTO THE LIVING ROOM

As part of the deal, Google also gets Motorola's set-top box businesses, giving its nascent TV operation a much-needed boost by providing it with a more direct route into the home.

Bernstein analyst Craig Moffett noted that Google, a frequent disrupter of the pay-television market via its ownership of YouTube and launching of over-the-top TV products that allow consumers to get streaming video in the home, will now be one of its largest suppliers.

"It will be fascinating to see whether this tempers their enthusiasm for disruptive business models as they have to face the practical realities of satisfying their cable customers," said Moffett. "I think the cable industry would be delighted to see Google inside the tent."

Google said it expects the deal to close by the end of 2011 or early in 2012, and that it was confident it would gain the regulatory approvals required in the United States and Europe and the blessing of Motorola Mobility's shareholders.

Others aren't so sure.

"The legal question here is would this deal give Google the incentive to make Android less open or somehow discriminate against the other smart phone and tablet makers," said Beau W. Buffier, a lawyer with Shearman & Sterling LLP. "That will be the key issues in any review both here in the U.S. or in Europe."

The fact that the deal has the support of other major mobile device players who have a stake in the matter should help Google in the regulatory process.

Lazard advised Google on the deal, while Motorola used Centerview Partners and Frank Quattrone's Qatalyst Partners, sources told Reuters.

(Additional reporting by Sayantani Ghosh in Bangalore, Nadia Damouni, Phil Wahba and Franklin Paul in New York, Lilly Kuo in Washington; Writing by Edwin Chan; Editing by Peter Lauria, Richard Chang, Phil Berlowitz)

Firefox 6 Is Ready for Release To Match Chrome Updates (NewsFactor)

Posted: 15 Aug 2011 11:49 AM PDT

Mark Long, newsfactor.com Mark Long, newsfactor.com – Mon Aug 15, 2:49 pm ET

Mozilla's next-generation Firefox 6 browser is slated to become available for download on Tuesday -- with the final release reportedly already on the organization's FTP server. Firefox 6 will be Mozilla's third browser release this year.

Among other things, Mozilla's browser refresh will feature improvements such as extended HTML5 support, a new address bar that highlights the domain of the site being visited, and a new permissions manager that enables users to set privacy controls for each site. The goal is to keep pace with Google's Chrome, which has set a new standard for frequent refreshes containing browser innovations and enhancements.

"Both Mozilla and Microsoft have added resources and increased their rate of updates to match Google, as well as matching Chrome's speed," said Net Applications Executive Vice President Vince Vizzaccaro.

Eying Enterprises

Mozilla's share of the browser market has remained relatively stable this year, with Firefox holding 21.5 percent in July, versus 52.7 percent for Microsoft's combined IE offerings and 13.5 percent for Chrome. However, at least one expected change may have an impact on the browser market in the next two years.

In July, Microsoft announced a cutoff date for the support it offers for Windows XP. Since many small businesses are still running Microsoft's venerable OS in tandem with IE6, they will be forced to upgrade to a new operating system well in advance of April 8, 2014. According to the software giant, 9.7 percent of the world's PCs were still running IE6 in July.

Windows XP business users will not have the luxury of waiting for the arrival of Windows 8 before taking action. "We believe most organizations can't skip Windows 7 and wait for Windows 8," said Gartner Vice President and Distinguished Analyst Michael Silver. "By the time Windows 8 ships and organizations do their testing, Windows XP support will be about over -- before organizations can deploy Windows 8."

On the downside, Mozilla's new Firefox fast-development track means IT departments have less time between browser releases to prepare. By beefing up its enterprise support for new versions of Firefox, Mozilla hopes to take advantage of the opportunity that the end of Windows XP potentially represents.

"Mozilla is fundamentally about people, and we care about our users wherever they are," Mozilla noted in a recent blog. "To this end, we are re-establishing a Mozilla Enterprise User Working Group as a place for enterprise developers, IT staff, and Firefox developers to discuss the challenges, ideas and best practices for deploying Firefox in the enterprise."

Microsoft's Strategy

Microsoft is betting that most businesses still running Windows XP will upgrade to more advanced computers well in advance of XP's support expiration date. The software giant intentionally skipped XP support for Internet Explorer 9 to compete more effectively on Windows 7 machines.

Microsoft has been pushing IE9 "as the best browsing experience on Windows 7 because of IE9's use of hardware acceleration and integration with the Windows 7 user interface," noted Net Applications.

The strategy appears to be succeeding. On PCs running Windows 7 last month, noted Net Applications, IE9 accounted for an 18.5 percent market share worldwide and a 24.8 percent share in the United States.

"Although Internet Explorer lost usage share on XP, on Windows 7 [PCs] Microsoft increased global usage share, going from 54.6 percent in June to 54.8 percent in July, and in the U.S., Internet Explorer share on Windows 7 grew 0.6 percent to 68.1 percent," Net Applications observed.
at 10:14 PM

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