Samsung Electronics has replied to a patent-infringement lawsuit filed against it by Sharp by lodging complaints of its own with the U.S. International Trade Commission and the Tokyo District Court, it said Thursday.
Samsung filed the U.S. complaint on Dec. 21 and alleged that Sharp's LCD products infringe upon four of its U.S. patents. The patents were not detailed in Samsung's statement. It asked the trade regulator to launch an investigation into the complaints and, as is typical in such cases, block Sharp from importing into the U.S. products that contain the LCDs in question. Such products could include TVs, monitors, laptop PCs and cell phones.
The ITC will now examine the complaint and decide whether to move forward with a formal investigation.
Samsung followed the U.S. complaint with a complaint lodged in Tokyo on Wednesday in which it alleged that LCD televisions sold by Sharp in Japan incorporate LCD modules that infringe upon two of Samsung's Japanese patents. As in the U.S. complaint, Samsung asked the court to halt manufacturing and sales of the infringing products in Japan.
On Dec. 12, Sharp filed a patent-infringement lawsuit against Samsung in the Seoul Central District Court. The lawsuit alleges the LCD modules and televisions manufactured and/or sold by Samsung in South Korea infringe upon three Sharp patents. The Korean patents concern technology that allows high brightness and high-speed response as well as a wide viewing angle, Sharp said in a statement at the time.
The lawsuit was the second filed by Sharp against Samsung.
On Aug. 6, Sharp filed a suit in the U.S. District Court for the Eastern District of Texas alleging LCD modules manufactured by Samsung and LCD TVs, computer monitors and mobile phones that incorporate the modules infringed on its U.S. patents: 4,649,383, 5,760,855, 6,052,162, 7,027,024 and 7,057,689.
Samsung said Thursday that it is also pursuing lawsuits against Sharp in Delaware and Texas.
Sunday, December 30, 2007
2007's coolest gadgets
The end of the year provides us with the perfect excuse to look back at some of the coolest gadgets that have come out of the consumer electronics giants of east Asia in the last year. As you might expect, the continuing convergence of all sorts of products into smaller and more functional devices was a big theme in 2007. Some of the gadgets also reminded us of the importance of services that often go hand-in-hand with hardware and are a big but often forgotten part of the "cool factor" we attach to such products.
Take for example Casio's Exilim EX-S880. Like many other digital still cameras on the market it does a good job of shooting video but Casio innovated by adding in a capture mode that records videos in the format preferred by YouTube. Combined with a desktop application to upload the videos, this means that movies can be online minutes after you've shot them and with nothing more than a couple of mouse clicks.
On the hardware side, there's been plenty of impressive gadgets and we've also witnessed the birth of a completely new product category: OLED (organic light emitting diode) televisions. Several companies have been promising these for years and in the end it was Sony that made it first to market. You've got to see this TV to fully appreciate its coolness! At just 3 millimeters thick, the TV was the star of October's Ceatec show in Japan and leads off our look back at the coolest gadgets of 2007.
Without a doubt the coolest product of the year was Sony's OLED TV. First shown as a prototype at CES in January, the commercial version came along in October and didn't disappoint -- except perhaps on price. The set has an 11-inch OLED panel and is 3mm thick. OLEDs offer several advantages over LCD and PDP technology, including wider viewing angles, faster response time, and better contrast and colors. However, the technology is difficult to manufacture and the OLED material degrades over time. Sony said the XEL-1 has a viewing life of 30,000 hours, which allows a user to watch eight hours of television every day for 10 years. The television went on sale in Japan on Dec. 1 for ¥200,000 (US$1,750) and promptly sold out. It's not only a cool TV set but perhaps the first product for a few years from Sony that really makes you say "wow." After the turmoil of recent years could Sony finally have its mojo back?
Toshiba Dynabook SS RX1
It may not look very special at first glance, but pick up the Dynabook SS RX1 (called the Portege R500 in some markets) and you'll immediately realize why it was one of the coolest laptop PCs we saw all year. This 12.1-inch screen laptop weighs just 768 grams in its lightest configuration -- more than 100 grams lighter than Sony's impressive Vaio G laptop. At the computer's heart lies a 1.06GHz Intel Core2 Duo processor and on some models you'll also find 802.11n Wi-Fi. Toshiba has put a lot of work into smart design so that it's thin and light. The laptop has also shed a few grams thanks to the use of a 64G-byte solid-state disk (SSD) in place of a conventional hard-disk drive. It costs around US$2,000.
Casio YouTube digital still camera
Casio brought up the first digital cameras with a video mode optimized for YouTube: the Exilim EX-S880 and EX-Z77. Getting a clip onto YouTube is easy: Shoot it, put the camera in the dock, and click a couple of times on the PC uploader application and you're done. The EX-S880 can take 8.1-megapixel images, has a 3X optical zoom and costs about US$300. YouTube mode has subsequently made it into other Casio models. The Casio deal with YouTube gave them exclusivity until the end of the year so you can look for it in devices from other makers in 2008.
NEC Lui concept PC
Imagine most of the PC innovations you've seen in the last few years thrown together inside a single box and you start to get an idea of what the Lui from NEC is all about. The machine is a PC running Windows Vista that can also act as a home server. It has two digital HDTV tuners, so you can watch one channel while you record another. It has DLNA (Digital Living Network Alliance) connectivity so that programming -- live or recorded -- can be streamed to other DLNA devices over Ethernet, and it will come with a Blu-ray Disc writer so that TV shows can be copied to disc. Users outside the home can log into the server and access content in the same way Slingbox or Location Free TV works. The PC is due on the Japanese market in the first half of 2008 at a price yet to be announced. NEC is one of Japan's leading PC makers despite not being well known for PCs in all countries.
Hitachi Blu-ray Disc camcorder
The first camcorders based on an 8-centimeter Blu-ray Disc appeared in 2007 from an unlikely vendor: Hitachi. The company launched two models, the DZ-BD70 based solely on disc and the DZ-BD7H, which adds a 30G-byte hard disk drive. A single-sided 8 cm recordable (BD-R) or rewritable (BD-RE) disc can store about an hour of footage shot in full high-definition quality (1,920 pixels by 1,080 pixels). The hybrid model can store an additional four hours of high-definition video on its hard-disk drive. The cameras have a 10X optical zoom lens, a 2.7-inch widescreen monitor and a viewfinder. Additionally, the cameras can be used to take still images at up to 4.3 megapixel resolution (2,400 pixels by 1,800 pixels). The DZ-BD70 costs about US$1,299 and the DZ-BD7H about US$1,499.
Nissan Pivo 2
From Nissan at the Tokyo Motor Show came the impressive Pivo 2 concept car. Fully electric, it has a cab that can rotate through 360 degrees and can also twist its wheels around so that it can move into parking spaces sideways. Equally impressive is Pivo-kun, the robot embedded in the car's dash. Since Pivo-kun is equipped with voice recognition, the driver can ask questions like the location of the nearest parking lot. Its facial recognition has an important safety aspect: It monitors the driver's face for signs of tiredness and suggests a rest if one is needed. More than that, it provides virtual companionship to the driver and that should mean safer roads -- Nissan research shows happy drivers have fewer accidents. Look for cars like Pivo 2 on city streets around 2015.
NTT DoCoMo Raku-Raku Phone Basic
We love NTT DoCoMo's Raku-Raku Phone Basic for its lack of gadgets. Developed by Fujitsu, the handset is designed to appeal to users for whom the dizzying array of functions, features and buttons on current phones are just too much. The buttons and on-screen text are bigger than conventional cell phones and there are three dedicated speed-dial buttons. The phone includes a neat-sounding "slow voice" function that can slow the speed of the other person's voice without slowing down the conversation (it slows the speech and shortens the gaps between words to compensate) and "clear voice" which automatically adjusts clarity and the ringtone volume to match the surroundings -- now why don't all phones have that?
Samsung TPEG Cell Phone
Samsung Electronics developed a cell phone capable of receiving real-time traffic information using a new system called TPEG. The SPH-B5800 phone can receive and decode the information broadcast using the Transport Protocol Experts Group format, which was developed in Europe in the late 1990s and is already in use in South Korea. The phone updates travel information every five minutes and can also receive TV via the country's Satellite DMB system. It went on sale in South Korea at the beginning of the year for around US$600 and includes a 2-megapixel camera, 330,000-word dictionary and 2-inch color TFT (thin-film transistor) LCD (liquid crystal display) screen. It measures 96 millimeters by 46 mm by 16 mm and weighs 96 grams.
World's smallest high-def camcorder
Panasonic claimed headlines with what it said was the world's smallest camcorder. The HDC-SD7 measures 52 millimeters by 110 mm by 87 mm and weighs 350 grams. One of the secrets to its small size is the use of an SD memory card as a recording medium. The electronics and socket needed for a flash card take up much less space than a DVD or hard-disk drive. It packs three CCD (charge coupled device) sensors behind a 10X zoom lens and has a 2.7-inch widescreen LCD (liquid crystal display) monitor. It can record full HD (1,920 pixel by 1,080 pixel) MPEG4 AVC/H.264 video at a range of quality levels. At the average 9M bps (bit per second) rate, a 4G-byte SD card can hold up to 60 minutes of video. It costs about ¥140,000 (US$1,175) in Japan.
Sony Video Walkman with TV
The year finally brought from Sony a Walkman with video support and then later in the year an upgraded model with mobile digital TV viewing and recording. It's an important addition because Apple's iPod, which is the biggest competitor for the devices, doesn't offer TV reception. The "OneSeg" TV system has proved very popular in Japan and can now be found in many portable gadgets including cell phones, laptop PCs, car navigation systems and even electronic dictionaries. The only difference between the three new Walkman devices with TV is their memory capacity. The NW-A916 has 4G bytes of memory, the NW-A918 has 8G bytes and the NW-A919 16G bytes. Compared to the last players the screen size has been increased to 2.4-inches from 2-inches. They went on sale in November and the NW-A916 costs about ¥30,000 (US$260), the NW-A918 ¥35,000 and the NW-A919 ¥45,000.
Take for example Casio's Exilim EX-S880. Like many other digital still cameras on the market it does a good job of shooting video but Casio innovated by adding in a capture mode that records videos in the format preferred by YouTube. Combined with a desktop application to upload the videos, this means that movies can be online minutes after you've shot them and with nothing more than a couple of mouse clicks.
On the hardware side, there's been plenty of impressive gadgets and we've also witnessed the birth of a completely new product category: OLED (organic light emitting diode) televisions. Several companies have been promising these for years and in the end it was Sony that made it first to market. You've got to see this TV to fully appreciate its coolness! At just 3 millimeters thick, the TV was the star of October's Ceatec show in Japan and leads off our look back at the coolest gadgets of 2007.
Without a doubt the coolest product of the year was Sony's OLED TV. First shown as a prototype at CES in January, the commercial version came along in October and didn't disappoint -- except perhaps on price. The set has an 11-inch OLED panel and is 3mm thick. OLEDs offer several advantages over LCD and PDP technology, including wider viewing angles, faster response time, and better contrast and colors. However, the technology is difficult to manufacture and the OLED material degrades over time. Sony said the XEL-1 has a viewing life of 30,000 hours, which allows a user to watch eight hours of television every day for 10 years. The television went on sale in Japan on Dec. 1 for ¥200,000 (US$1,750) and promptly sold out. It's not only a cool TV set but perhaps the first product for a few years from Sony that really makes you say "wow." After the turmoil of recent years could Sony finally have its mojo back?
Toshiba Dynabook SS RX1
It may not look very special at first glance, but pick up the Dynabook SS RX1 (called the Portege R500 in some markets) and you'll immediately realize why it was one of the coolest laptop PCs we saw all year. This 12.1-inch screen laptop weighs just 768 grams in its lightest configuration -- more than 100 grams lighter than Sony's impressive Vaio G laptop. At the computer's heart lies a 1.06GHz Intel Core2 Duo processor and on some models you'll also find 802.11n Wi-Fi. Toshiba has put a lot of work into smart design so that it's thin and light. The laptop has also shed a few grams thanks to the use of a 64G-byte solid-state disk (SSD) in place of a conventional hard-disk drive. It costs around US$2,000.
Casio YouTube digital still camera
Casio brought up the first digital cameras with a video mode optimized for YouTube: the Exilim EX-S880 and EX-Z77. Getting a clip onto YouTube is easy: Shoot it, put the camera in the dock, and click a couple of times on the PC uploader application and you're done. The EX-S880 can take 8.1-megapixel images, has a 3X optical zoom and costs about US$300. YouTube mode has subsequently made it into other Casio models. The Casio deal with YouTube gave them exclusivity until the end of the year so you can look for it in devices from other makers in 2008.
NEC Lui concept PC
Imagine most of the PC innovations you've seen in the last few years thrown together inside a single box and you start to get an idea of what the Lui from NEC is all about. The machine is a PC running Windows Vista that can also act as a home server. It has two digital HDTV tuners, so you can watch one channel while you record another. It has DLNA (Digital Living Network Alliance) connectivity so that programming -- live or recorded -- can be streamed to other DLNA devices over Ethernet, and it will come with a Blu-ray Disc writer so that TV shows can be copied to disc. Users outside the home can log into the server and access content in the same way Slingbox or Location Free TV works. The PC is due on the Japanese market in the first half of 2008 at a price yet to be announced. NEC is one of Japan's leading PC makers despite not being well known for PCs in all countries.
Hitachi Blu-ray Disc camcorder
The first camcorders based on an 8-centimeter Blu-ray Disc appeared in 2007 from an unlikely vendor: Hitachi. The company launched two models, the DZ-BD70 based solely on disc and the DZ-BD7H, which adds a 30G-byte hard disk drive. A single-sided 8 cm recordable (BD-R) or rewritable (BD-RE) disc can store about an hour of footage shot in full high-definition quality (1,920 pixels by 1,080 pixels). The hybrid model can store an additional four hours of high-definition video on its hard-disk drive. The cameras have a 10X optical zoom lens, a 2.7-inch widescreen monitor and a viewfinder. Additionally, the cameras can be used to take still images at up to 4.3 megapixel resolution (2,400 pixels by 1,800 pixels). The DZ-BD70 costs about US$1,299 and the DZ-BD7H about US$1,499.
Nissan Pivo 2
From Nissan at the Tokyo Motor Show came the impressive Pivo 2 concept car. Fully electric, it has a cab that can rotate through 360 degrees and can also twist its wheels around so that it can move into parking spaces sideways. Equally impressive is Pivo-kun, the robot embedded in the car's dash. Since Pivo-kun is equipped with voice recognition, the driver can ask questions like the location of the nearest parking lot. Its facial recognition has an important safety aspect: It monitors the driver's face for signs of tiredness and suggests a rest if one is needed. More than that, it provides virtual companionship to the driver and that should mean safer roads -- Nissan research shows happy drivers have fewer accidents. Look for cars like Pivo 2 on city streets around 2015.
NTT DoCoMo Raku-Raku Phone Basic
We love NTT DoCoMo's Raku-Raku Phone Basic for its lack of gadgets. Developed by Fujitsu, the handset is designed to appeal to users for whom the dizzying array of functions, features and buttons on current phones are just too much. The buttons and on-screen text are bigger than conventional cell phones and there are three dedicated speed-dial buttons. The phone includes a neat-sounding "slow voice" function that can slow the speed of the other person's voice without slowing down the conversation (it slows the speech and shortens the gaps between words to compensate) and "clear voice" which automatically adjusts clarity and the ringtone volume to match the surroundings -- now why don't all phones have that?
Samsung TPEG Cell Phone
Samsung Electronics developed a cell phone capable of receiving real-time traffic information using a new system called TPEG. The SPH-B5800 phone can receive and decode the information broadcast using the Transport Protocol Experts Group format, which was developed in Europe in the late 1990s and is already in use in South Korea. The phone updates travel information every five minutes and can also receive TV via the country's Satellite DMB system. It went on sale in South Korea at the beginning of the year for around US$600 and includes a 2-megapixel camera, 330,000-word dictionary and 2-inch color TFT (thin-film transistor) LCD (liquid crystal display) screen. It measures 96 millimeters by 46 mm by 16 mm and weighs 96 grams.
World's smallest high-def camcorder
Panasonic claimed headlines with what it said was the world's smallest camcorder. The HDC-SD7 measures 52 millimeters by 110 mm by 87 mm and weighs 350 grams. One of the secrets to its small size is the use of an SD memory card as a recording medium. The electronics and socket needed for a flash card take up much less space than a DVD or hard-disk drive. It packs three CCD (charge coupled device) sensors behind a 10X zoom lens and has a 2.7-inch widescreen LCD (liquid crystal display) monitor. It can record full HD (1,920 pixel by 1,080 pixel) MPEG4 AVC/H.264 video at a range of quality levels. At the average 9M bps (bit per second) rate, a 4G-byte SD card can hold up to 60 minutes of video. It costs about ¥140,000 (US$1,175) in Japan.
Sony Video Walkman with TV
The year finally brought from Sony a Walkman with video support and then later in the year an upgraded model with mobile digital TV viewing and recording. It's an important addition because Apple's iPod, which is the biggest competitor for the devices, doesn't offer TV reception. The "OneSeg" TV system has proved very popular in Japan and can now be found in many portable gadgets including cell phones, laptop PCs, car navigation systems and even electronic dictionaries. The only difference between the three new Walkman devices with TV is their memory capacity. The NW-A916 has 4G bytes of memory, the NW-A918 has 8G bytes and the NW-A919 16G bytes. Compared to the last players the screen size has been increased to 2.4-inches from 2-inches. They went on sale in November and the NW-A916 costs about ¥30,000 (US$260), the NW-A918 ¥35,000 and the NW-A919 ¥45,000.
Wednesday, December 26, 2007
Microsoft sues domain name registrar for typosquatting
Microsoft has sued domain name registrar Red Register claiming that it is illegally profiting from Microsoft's trademarks.
In a lawsuit filed in Seattle earlier this month Microsoft alleges that Red Register snatched up 125 domain names, all "confusingly similar to Microsoft's Marks" in order to profit from Web advertising, a practice known as typosquatting and cybersquatting.
Web surfers may be tricked into clicking on ads on these sites "because the person finds it easier to click on the advertisement or hyperlink than to continue searching for the Microsoft site, or because the person mistakenly believes Microsoft has authorized or endorsed the advertisements," the filings state.
Typosquatting is the practice of registering domain names that contain misspellings of trademark terms. Cybersquatting is the registration of a variant of trademark.
Red Register owns domains such as windowslivecare.com, msnmesnger.com, and ageofmathology.com, Microsoft said in court filings.
Microsoft is seeking to take control of the Red Register domains and is asking for the court to fine the company for unspecified damages. The lawsuit was filed Dec. 4 in King County Superior Court in Seattle.
Although the domains are now registered to a Tortola, Virgin Islands, company named Versata Software, they were previously registered to Red Register and Microsoft believes the current Versata registration information to be false, the filings state.
Domain registrars historically made money by registering domain names to third parties, but that has changed as it has become easier to get into the domain name game. Now many registrars have begun to amass portfolios of domains themselves, or even temporarily registering domains and then dropping them before they are required to pay any fees, a practice called "domain tasting," said Karl Kronenberger, a partner with Kronenberger Burgoyne LLP, a law firm specializing in Internet disputes.
Some companies have even set up several domain name registrars and they pass their domain names from one to the other without ever having to pay fees. This is possible, because domains can be held for three days before any fees are due, Kronenberger said.
Registrars must be accredited by the Internet Corporation for Assigned Names and Numbers (ICANN), the group that oversees the Internet's domain name system, but once that has happened they can get better access to the database of domain names. Companies like Microsoft and Google have become accredited registrars for this reason.
There are presently more than 1,000 registrars worldwide, according to Kronenberger. "It costs US$8,000 per year to maintain your existence as a registrar," he said. "once you pay that, you can register domains very cheaply."
Some registrars have amassed valuable portfolios without running afoul of trademark law, but Microsoft's Red Register lawsuit is not unprecedented. In October, Yahoo filed a similar lawsuit against Belgium Domains. One month later another lawsuit was filed against Belgium Domains, this time by Dell.
Kronenberger said the Microsoft lawsuit "seems to be a pretty straightforward case of a registrar registering large batches of domains containing trademarks."
Microsoft has filed at least five other similar lawsuits in recent years. In March it announced that reached a $2 million settlement against Jason Cox of New Mexico and Newtonarch LLC. It also announced a $1 million settlement in a similar suit against Partner IV Holdings.
Microsoft and Red Register did not immediately return e-mail seeking comment for this story.
In a lawsuit filed in Seattle earlier this month Microsoft alleges that Red Register snatched up 125 domain names, all "confusingly similar to Microsoft's Marks" in order to profit from Web advertising, a practice known as typosquatting and cybersquatting.
Web surfers may be tricked into clicking on ads on these sites "because the person finds it easier to click on the advertisement or hyperlink than to continue searching for the Microsoft site, or because the person mistakenly believes Microsoft has authorized or endorsed the advertisements," the filings state.
Typosquatting is the practice of registering domain names that contain misspellings of trademark terms. Cybersquatting is the registration of a variant of trademark.
Red Register owns domains such as windowslivecare.com, msnmesnger.com, and ageofmathology.com, Microsoft said in court filings.
Microsoft is seeking to take control of the Red Register domains and is asking for the court to fine the company for unspecified damages. The lawsuit was filed Dec. 4 in King County Superior Court in Seattle.
Although the domains are now registered to a Tortola, Virgin Islands, company named Versata Software, they were previously registered to Red Register and Microsoft believes the current Versata registration information to be false, the filings state.
Domain registrars historically made money by registering domain names to third parties, but that has changed as it has become easier to get into the domain name game. Now many registrars have begun to amass portfolios of domains themselves, or even temporarily registering domains and then dropping them before they are required to pay any fees, a practice called "domain tasting," said Karl Kronenberger, a partner with Kronenberger Burgoyne LLP, a law firm specializing in Internet disputes.
Some companies have even set up several domain name registrars and they pass their domain names from one to the other without ever having to pay fees. This is possible, because domains can be held for three days before any fees are due, Kronenberger said.
Registrars must be accredited by the Internet Corporation for Assigned Names and Numbers (ICANN), the group that oversees the Internet's domain name system, but once that has happened they can get better access to the database of domain names. Companies like Microsoft and Google have become accredited registrars for this reason.
There are presently more than 1,000 registrars worldwide, according to Kronenberger. "It costs US$8,000 per year to maintain your existence as a registrar," he said. "once you pay that, you can register domains very cheaply."
Some registrars have amassed valuable portfolios without running afoul of trademark law, but Microsoft's Red Register lawsuit is not unprecedented. In October, Yahoo filed a similar lawsuit against Belgium Domains. One month later another lawsuit was filed against Belgium Domains, this time by Dell.
Kronenberger said the Microsoft lawsuit "seems to be a pretty straightforward case of a registrar registering large batches of domains containing trademarks."
Microsoft has filed at least five other similar lawsuits in recent years. In March it announced that reached a $2 million settlement against Jason Cox of New Mexico and Newtonarch LLC. It also announced a $1 million settlement in a similar suit against Partner IV Holdings.
Microsoft and Red Register did not immediately return e-mail seeking comment for this story.
IBM dishes five predictions for future
Drained by your commute? Blood-sucking utility bills got you down? Wondering if that tomato in your dinner salad was really organic?
The cures to those ills and more may arrive within five years, according to IBM.
The company recently released its second annual set of "Next Five in Five" predictions, visions that sketch out a future where driving is a relative pleasure, eco-friendly devices save you money and super doctors use advanced technology to probe your body's innermost depths in search of disease.
IBM's contention that driving will become safer and less aggravating may be particularly tantalizing for many.
The company said that during the next five years, a "wave of connectivity" between vehicles and roadways will help keep traffic flowing smoothly, drive down pollution and get you to your destination easier, "without the stress."
This will be accomplished through "intelligent" traffic systems that automatically adjust light patterns and shift traffic to alternative routes, as well as cars that exhibit "reflexes" thanks to communication with other vehicles and roadside sensors, according to IBM.
The company's crystal ball also revealed that the long-simmering trend toward "smart energy" devices will proliferate wildly. "Dishwashers, air conditioners, house lights, and more will be connected directly to a 'smart' electric grid, making it possible to turn them on and off using your cell phone or any Web browser," a company statement asserts.
Even the act of eating will take on new meaning, in IBM's view: "You will know everything from the climate and soil the food was grown in, to the pesticides and pollution it was exposed to, to the energy consumed to create the product, to the temperature and air quality of the shipping containers it traveled through on the way to your dinner table."
The report also suggests that doctors' ability to heal us will become even more astounding. Due to advances in X-ray and audio technologies, doctors will gain "superpowers," according to IBM. Computers will also be able to compare your health data to an ocean's worth of other patient records, helping with diagnosis and treatment, the company said.
In addition, the company said cell phones will continue to grow in power and functionality. For example, phones will enable users to snap a photo of an article of clothing, pull in results from the Web about the brand and where to buy it, and then render the garment on top of a 3-D image of the user, IBM said.
IBM's list received a measured nod from Edward Cornish, editor of The Futurist magazine and past president of the World Future Society, an organization based in Bethesda, Maryland.
"Basically, the five forecasts seem to me to be quite reasonable," Cornish said. "They're based on technologies that have been around for a number of years and are simply extrapolations."
The Futurist has released its own list of predictions for 2008 and beyond.
The organization contends, among other things, that the world will have a billion millionaires by 2025; the earth is on the verge of a "significant extinction event"; and "nonhuman entities," such as robots fueled by artificial intelligence, will make more decisions.
The cures to those ills and more may arrive within five years, according to IBM.
The company recently released its second annual set of "Next Five in Five" predictions, visions that sketch out a future where driving is a relative pleasure, eco-friendly devices save you money and super doctors use advanced technology to probe your body's innermost depths in search of disease.
IBM's contention that driving will become safer and less aggravating may be particularly tantalizing for many.
The company said that during the next five years, a "wave of connectivity" between vehicles and roadways will help keep traffic flowing smoothly, drive down pollution and get you to your destination easier, "without the stress."
This will be accomplished through "intelligent" traffic systems that automatically adjust light patterns and shift traffic to alternative routes, as well as cars that exhibit "reflexes" thanks to communication with other vehicles and roadside sensors, according to IBM.
The company's crystal ball also revealed that the long-simmering trend toward "smart energy" devices will proliferate wildly. "Dishwashers, air conditioners, house lights, and more will be connected directly to a 'smart' electric grid, making it possible to turn them on and off using your cell phone or any Web browser," a company statement asserts.
Even the act of eating will take on new meaning, in IBM's view: "You will know everything from the climate and soil the food was grown in, to the pesticides and pollution it was exposed to, to the energy consumed to create the product, to the temperature and air quality of the shipping containers it traveled through on the way to your dinner table."
The report also suggests that doctors' ability to heal us will become even more astounding. Due to advances in X-ray and audio technologies, doctors will gain "superpowers," according to IBM. Computers will also be able to compare your health data to an ocean's worth of other patient records, helping with diagnosis and treatment, the company said.
In addition, the company said cell phones will continue to grow in power and functionality. For example, phones will enable users to snap a photo of an article of clothing, pull in results from the Web about the brand and where to buy it, and then render the garment on top of a 3-D image of the user, IBM said.
IBM's list received a measured nod from Edward Cornish, editor of The Futurist magazine and past president of the World Future Society, an organization based in Bethesda, Maryland.
"Basically, the five forecasts seem to me to be quite reasonable," Cornish said. "They're based on technologies that have been around for a number of years and are simply extrapolations."
The Futurist has released its own list of predictions for 2008 and beyond.
The organization contends, among other things, that the world will have a billion millionaires by 2025; the earth is on the verge of a "significant extinction event"; and "nonhuman entities," such as robots fueled by artificial intelligence, will make more decisions.
Hitachi, Canon, Panasonic tie in flat-panel displays
Hitachi, Canon and Panasonic have agreed to a wide-ranging collaboration that will see the three companies share the cost, burden and benefits of development and production of flat-panel displays.
The move comes hot on the heels of a tie-up announced last week between Toshiba and Sharp and continues a major realignment in the fast-moving industry.
Under the terms of the initial agreement Canon and Panasonic will each buy a 24.9 percent stake in Hitachi Displays, a wholly-owned subsidiary of Hitachi that already makes small and medium size LCD (liquid crystal display) panels. The transaction, which is subject to regulatory approval, is expected to be completed before March 31, 2008.
Hitachi said it hopes to accelerate the development of cutting-edge LCD technology through the alliance, which was announced on Tuesday. Competition in the flat-panel display industry is fierce and there is constant pressure on manufacturers to invest in new and efficient production technology to keep prices low and their screens technologically competitive. However a new LCD plant can easily cost US$1 billion [b] or more so companies are increasingly working together to share the costs.
Meanwhile Canon said it hopes to shorten development time and gain a stable supply of LCD panels for its range of digital single-lens reflex cameras. It also hopes to develop new types of displays that can be used in its information management products.
Panasonic, which has invested heavily in PDP (plasma display panel) technology for large-size flat-panel TVs and displays, will invest in a new production line at IPS Alpha Technology. The company is a joint-venture in which Canon and Toshiba also hold stakes although Toshiba is understood to be in talks concerning its exit from the venture. The new production line will help ensure a stable supply of medium-size LCD panels for Panasonic's TV up to about 40-inches in screen size, above which it uses PDPs.
The wide-ranging collaboration and cooperation announced Tuesday is the first step of a series of planned moves that will eventually have Canon take control of Hitachi Displays and Panasonic take control of IPS Alpha Technology, the three companies said.
In addition to the LCD alliance, Canon and Hitachi plan to work together on development of OLED (organic light emitting diode) displays. OLED is a fundamentally different technology from LCD and PDP and has been under development by many display makers for several years. It's viewed by some as a potential replacement for LCD technology because it provides a brighter and richer picture but a lot of work remains before it can be produced in sufficient volume and at a low enough price to compete with LCD.
The world's first commercial OLED TV recently went on sale in Japan. Sony's XEL-1 has an 11-inch screen and is just 3-millimeters thick -- another advantage of OLED because a backlight unit isn't required -- but comes with an equally impressive ¥200,000 (US$1,750) price tag.
Last week Toshiba and Sharp announced plans to work together in the flat-panel display business. Toshiba will buy from Sharp screens for its 32-inch and larger TV sets while Sharp will buy from Toshiba the chips used in its TVs. The cooperation will begin from April next year and will slowly build towards 2010 when two goals are expected to be reached: Sharp will supply Toshiba with 40 percent of its LCD modules and Toshiba will sell to Sharp 50 percent of the chips it needs, they said.
Sony and Samsung Electronics have been cooperating in LCD panel production for sometime and jointly own S-LCD, a manufacturer of cutting-edge LCD panels based in South Korea.
The move comes hot on the heels of a tie-up announced last week between Toshiba and Sharp and continues a major realignment in the fast-moving industry.
Under the terms of the initial agreement Canon and Panasonic will each buy a 24.9 percent stake in Hitachi Displays, a wholly-owned subsidiary of Hitachi that already makes small and medium size LCD (liquid crystal display) panels. The transaction, which is subject to regulatory approval, is expected to be completed before March 31, 2008.
Hitachi said it hopes to accelerate the development of cutting-edge LCD technology through the alliance, which was announced on Tuesday. Competition in the flat-panel display industry is fierce and there is constant pressure on manufacturers to invest in new and efficient production technology to keep prices low and their screens technologically competitive. However a new LCD plant can easily cost US$1 billion [b] or more so companies are increasingly working together to share the costs.
Meanwhile Canon said it hopes to shorten development time and gain a stable supply of LCD panels for its range of digital single-lens reflex cameras. It also hopes to develop new types of displays that can be used in its information management products.
Panasonic, which has invested heavily in PDP (plasma display panel) technology for large-size flat-panel TVs and displays, will invest in a new production line at IPS Alpha Technology. The company is a joint-venture in which Canon and Toshiba also hold stakes although Toshiba is understood to be in talks concerning its exit from the venture. The new production line will help ensure a stable supply of medium-size LCD panels for Panasonic's TV up to about 40-inches in screen size, above which it uses PDPs.
The wide-ranging collaboration and cooperation announced Tuesday is the first step of a series of planned moves that will eventually have Canon take control of Hitachi Displays and Panasonic take control of IPS Alpha Technology, the three companies said.
In addition to the LCD alliance, Canon and Hitachi plan to work together on development of OLED (organic light emitting diode) displays. OLED is a fundamentally different technology from LCD and PDP and has been under development by many display makers for several years. It's viewed by some as a potential replacement for LCD technology because it provides a brighter and richer picture but a lot of work remains before it can be produced in sufficient volume and at a low enough price to compete with LCD.
The world's first commercial OLED TV recently went on sale in Japan. Sony's XEL-1 has an 11-inch screen and is just 3-millimeters thick -- another advantage of OLED because a backlight unit isn't required -- but comes with an equally impressive ¥200,000 (US$1,750) price tag.
Last week Toshiba and Sharp announced plans to work together in the flat-panel display business. Toshiba will buy from Sharp screens for its 32-inch and larger TV sets while Sharp will buy from Toshiba the chips used in its TVs. The cooperation will begin from April next year and will slowly build towards 2010 when two goals are expected to be reached: Sharp will supply Toshiba with 40 percent of its LCD modules and Toshiba will sell to Sharp 50 percent of the chips it needs, they said.
Sony and Samsung Electronics have been cooperating in LCD panel production for sometime and jointly own S-LCD, a manufacturer of cutting-edge LCD panels based in South Korea.
Storm worm tempts with Christmas strip show
The criminals behind the Storm botnet waited until the last minute, but they've finally started delivering unwanted Christmas presents.
Starting Monday, Storm-infected machines began sending out Christmas-themed spam in yet another attempt to trick victims into downloading malicious software. In this case, the site is named Merrychristmasdude.com, and the malware is a variation of the Storm Trojan horse program that has been plaguing systems around the world since January.
The e-mails contain titles such as "Find Some Christmas Tail," "Warm Up this Christmas" and "Mrs. Clause Is Out Tonight!"
One message reads "Yo, I am pretty sure this is up your alley, from the things you have told me before. This will be the best 2 min you spend this holiday. hehe."
Once the user clicks on the link to Merrychristmasdude.com, he is taken to a Christmas-themed Web site with photos of scantily clad women and offered a free download. That download is a malicious program, called Email-Worm.Win32.Zhelatin.pd by F-Secure, that connects to a P-to-P (peer-to-peer) network and begins downloading even more malware.
Storm's creators have built up networks of infected PCs -- called botnets -- over the past year by using a combination of sophisticated hacking tricks to avoid detection and by spamming potential victims with clever and timely e-mail messages. The network is called Storm because its original messages offered victims video of the deadly storms that battered Europe a year ago, but has also perfected the tactic of sending out holiday-themed messages.
Security experts estimate that the Storm has infected more than 15 million computers over the past year, although the current size of the network is much smaller than that.
This latest variant is being blocked by some antivirus vendors, including Kaspersky, Microsoft and Symantec, according to a technical write-up of the Christmas outbreak.
The SANS Internet Storm Center recommends that administrators block Web and e-mail access to the Merrychristmasdude.com domain.
Starting Monday, Storm-infected machines began sending out Christmas-themed spam in yet another attempt to trick victims into downloading malicious software. In this case, the site is named Merrychristmasdude.com, and the malware is a variation of the Storm Trojan horse program that has been plaguing systems around the world since January.
The e-mails contain titles such as "Find Some Christmas Tail," "Warm Up this Christmas" and "Mrs. Clause Is Out Tonight!"
One message reads "Yo, I am pretty sure this is up your alley, from the things you have told me before. This will be the best 2 min you spend this holiday. hehe."
Once the user clicks on the link to Merrychristmasdude.com, he is taken to a Christmas-themed Web site with photos of scantily clad women and offered a free download. That download is a malicious program, called Email-Worm.Win32.Zhelatin.pd by F-Secure, that connects to a P-to-P (peer-to-peer) network and begins downloading even more malware.
Storm's creators have built up networks of infected PCs -- called botnets -- over the past year by using a combination of sophisticated hacking tricks to avoid detection and by spamming potential victims with clever and timely e-mail messages. The network is called Storm because its original messages offered victims video of the deadly storms that battered Europe a year ago, but has also perfected the tactic of sending out holiday-themed messages.
Security experts estimate that the Storm has infected more than 15 million computers over the past year, although the current size of the network is much smaller than that.
This latest variant is being blocked by some antivirus vendors, including Kaspersky, Microsoft and Symantec, according to a technical write-up of the Christmas outbreak.
The SANS Internet Storm Center recommends that administrators block Web and e-mail access to the Merrychristmasdude.com domain.
U.K. health chief defends plan for records database
The head of the U.K. National Health Service has defended plans to build a centralized database of patient records following another embarrassing loss of personal information by the government.
The U.K. Department of Health admitted this weekend that nine of its regional NHS trusts have reported losing patient data. One of the trusts, the City and Hackney Primary Care Trust, in east London, lost the medical records for about 160,000 children, according to newspaper reports. The total number of records has not been disclosed.
The losses emerged as part of a wider review following similar government blunders, and have revived questions about the security of building a centralized patient records database, part of the U.K.'s National Programme for IT (NPfIT). But David Nicholson, chief executive of the NHS, said the project is essential and should go ahead.
"It's vitally important that when a doctor is sitting in front of a patient they have all the information they need at their fingertips, and that's what's been driving us through all this," Nicholson told BBC Radio 4's Today program on Monday.
The proposed system will not be a single large records database, but a series of interconnected regional databases, he said. And the security system will be more rigorous than that used with most Internet banking systems, according to Nicholson.
"You'd need a user name, a password and a smart card [to access patient records] and you would have role-controlled access," he said. "So a nurse on a ward with a smart card and a password could only access a relatively small number of patient records."
The information that was reported lost over the weekend was encrypted and so not vulnerable to misuse, Nicholson said.
But Ross Anderson, a security expert at the University of Cambridge, told Radio 4 that whether the data is encrypted is not the main issue.
"One of the questions you have to ask here is not whether the data was encrypted or password protected, but why someone was able to have access to 160,000 children's records," he said. "In private industry ... if someone tried to make off with hundreds of thousands of records the alarms would sound."
Opposition leaders pounced on the latest misstep as evidence that the Labour government can't be trusted with its citizens' data. They called for further studies to show how the proposed patient records system would protect privacy.
The incident comes after the U.K.'s HM Revenue and Customs lost personal records for 25 million Britons, and the Driving Standards Agency lost records for more than 3 million learner drivers.
"The power of technology means it can be very easy to use the information, but also very easy to lose the information," the Information Commissioner Richard Thomas said on the Today program. "The events of the last few weeks have woken up everybody to the importance of taking these matters seriously."
The U.K. Department of Health admitted this weekend that nine of its regional NHS trusts have reported losing patient data. One of the trusts, the City and Hackney Primary Care Trust, in east London, lost the medical records for about 160,000 children, according to newspaper reports. The total number of records has not been disclosed.
The losses emerged as part of a wider review following similar government blunders, and have revived questions about the security of building a centralized patient records database, part of the U.K.'s National Programme for IT (NPfIT). But David Nicholson, chief executive of the NHS, said the project is essential and should go ahead.
"It's vitally important that when a doctor is sitting in front of a patient they have all the information they need at their fingertips, and that's what's been driving us through all this," Nicholson told BBC Radio 4's Today program on Monday.
The proposed system will not be a single large records database, but a series of interconnected regional databases, he said. And the security system will be more rigorous than that used with most Internet banking systems, according to Nicholson.
"You'd need a user name, a password and a smart card [to access patient records] and you would have role-controlled access," he said. "So a nurse on a ward with a smart card and a password could only access a relatively small number of patient records."
The information that was reported lost over the weekend was encrypted and so not vulnerable to misuse, Nicholson said.
But Ross Anderson, a security expert at the University of Cambridge, told Radio 4 that whether the data is encrypted is not the main issue.
"One of the questions you have to ask here is not whether the data was encrypted or password protected, but why someone was able to have access to 160,000 children's records," he said. "In private industry ... if someone tried to make off with hundreds of thousands of records the alarms would sound."
Opposition leaders pounced on the latest misstep as evidence that the Labour government can't be trusted with its citizens' data. They called for further studies to show how the proposed patient records system would protect privacy.
The incident comes after the U.K.'s HM Revenue and Customs lost personal records for 25 million Britons, and the Driving Standards Agency lost records for more than 3 million learner drivers.
"The power of technology means it can be very easy to use the information, but also very easy to lose the information," the Information Commissioner Richard Thomas said on the Today program. "The events of the last few weeks have woken up everybody to the importance of taking these matters seriously."
The Queen logs on to YouTube
The Queen's Christmas message, an annual greeting from the U.K.'s Queen Elizabeth II to her subjects, will be available on YouTube for the first time this year as part of an official YouTube channel opened on Sunday by Buckingham Palace.
The Royal Channel, dubbed "the official YouTube channel of the British monarchy," carries both current and archive footage of the royal family and promises regular updates with new video.
The highlight of the first 18 videos is the first televised Christmas Broadcast of 1957. The channel also includes clips of The Queen Mother's wedding and the first episodes of several series such as "A day in the life of The Prince of Wales."
The clips have already attracted several thousand views since hitting YouTube about a week ago, according to statistics on the site. The 1957 broadcast has garnered a lot more attention and had just under 300,000 views at time of writing. That makes it the fifth most popular video viewed in the U.K. this week, according to YouTube.
Beating The Queen to the top-spot in the U.K. is a trailer for a new season of TV show "Lost," a teaser for the long-awaited "Duke Nukem Forever" computer game, a clip of the winning entry from TV show "X Factor" and, as the most-viewed video of the week in the U.K., a video from a Britney Spears look-a-like offering parenting tips to Britney's pregnant sister.
Buckingham Palace established its cyber credentials last year when it began offering The Queen's Christmas Message and other addresses via an RSS feed for download into iPods and other video players. Until then it had been most widely available online through the BBC's Web site.
This year's Christmas Message will be available shortly after 3pm local time (3pm GMT) on Dec. 25, at about the same time it is broadcast on British TV.
The Royal Channel, dubbed "the official YouTube channel of the British monarchy," carries both current and archive footage of the royal family and promises regular updates with new video.
The highlight of the first 18 videos is the first televised Christmas Broadcast of 1957. The channel also includes clips of The Queen Mother's wedding and the first episodes of several series such as "A day in the life of The Prince of Wales."
The clips have already attracted several thousand views since hitting YouTube about a week ago, according to statistics on the site. The 1957 broadcast has garnered a lot more attention and had just under 300,000 views at time of writing. That makes it the fifth most popular video viewed in the U.K. this week, according to YouTube.
Beating The Queen to the top-spot in the U.K. is a trailer for a new season of TV show "Lost," a teaser for the long-awaited "Duke Nukem Forever" computer game, a clip of the winning entry from TV show "X Factor" and, as the most-viewed video of the week in the U.K., a video from a Britney Spears look-a-like offering parenting tips to Britney's pregnant sister.
Buckingham Palace established its cyber credentials last year when it began offering The Queen's Christmas Message and other addresses via an RSS feed for download into iPods and other video players. Until then it had been most widely available online through the BBC's Web site.
This year's Christmas Message will be available shortly after 3pm local time (3pm GMT) on Dec. 25, at about the same time it is broadcast on British TV.
Google replies to lawmaker's questions on privacy
Google has responded to a U.S. congressman's series of questions about its privacy practices, with the company defending its use of consumer data.
Representative Joe Barton, a Texas Republican, sent a letter to Google Chairman and CEO Eric Schmidt Dec. 12, after privacy groups raised questions about the implications of Google's $3.1 billion acquisition of online ad server DoubleClick.
During an earlier meeting with Schmidt, Barton had "voiced concern regarding the potential consumer protection and privacy implications of the merger," Barton said in his letter. "I believe Google's participation in our research into and consideration of the consumer protection implications of a merger of any online search engine and any behavioral or targeted advertising firms is vital to crafting sound national policy."
In response to Barton's questions about the privacy implications of the merger, Google repeated its calls for Congress to pass a national privacy law that would create a "uniform framework for privacy."
"Concerns about online privacy cannot be solved by one company alone," said the Google letter, by Alan Davidson, the company's head of U.S. public policy. "Moreover, both technologies and best practices for protecting privacy are changing rapidly. We therefore encourage you and your staff to ask these questions of other providers of online services."
Barton, ranking minority member of the House Energy and Commerce Committee, had asked Google to respond to his letter before Dec. 18, about when the U.S. Federal Trade Commission was expected to complete its examination of the antitrust implications of the merger. Google's response was dated Friday, one day after the FTC announced it would not block the DoubleClick acquisition. Google hosted Barton's staff at its headquarters Wednesday and Thursday, however.
The FTC approval is the last U.S. hurdle for the merger; the European Union is still reviewing it.
Barton's letter asked several questions about Google's privacy practices, including how long Google retains search queries, e-mail drafted on Google's Gmail service and Web histories. Barton also asked why Google needed to retain data.
The IP (Internet Protocol) addresses associated with search queries will be partially deleted after 18 months, as Google previously has announced, the letter said. In other services, such as Gmail and Google Web History, the privacy preferences are customized by individual users, the letter said.
Google retains data about searches as a way to improve its search algorithms and to improve services such as the spell checking feature on Google search, the letter said. The company also uses the data to fight click fraud and other malicious efforts, the letter said.
Barton also asked if Google plans to merge its consumer data with DoubleClick's after the merger. He asked what was the benefit of the merger if Google did not plan to merge data.
"We are new to the third-party display ad serving business, so we have not yet decided whether or how we would merge DoubleClick and Google data," Davidson's letter said.
The merger would create "numerous efficiencies" not related to DoubleClick's data, Davidson added. "Acquiring DoubleClick's expertise in display ad serving will assist Google in its efforts to design an integrated interface for advertisers to manage their texts and display advertising campaigns," the letter said. "In addition, the acquisition will allow Google to provide advertisers with better metrics for the display ads the place in our advertising network."
Representative Joe Barton, a Texas Republican, sent a letter to Google Chairman and CEO Eric Schmidt Dec. 12, after privacy groups raised questions about the implications of Google's $3.1 billion acquisition of online ad server DoubleClick.
During an earlier meeting with Schmidt, Barton had "voiced concern regarding the potential consumer protection and privacy implications of the merger," Barton said in his letter. "I believe Google's participation in our research into and consideration of the consumer protection implications of a merger of any online search engine and any behavioral or targeted advertising firms is vital to crafting sound national policy."
In response to Barton's questions about the privacy implications of the merger, Google repeated its calls for Congress to pass a national privacy law that would create a "uniform framework for privacy."
"Concerns about online privacy cannot be solved by one company alone," said the Google letter, by Alan Davidson, the company's head of U.S. public policy. "Moreover, both technologies and best practices for protecting privacy are changing rapidly. We therefore encourage you and your staff to ask these questions of other providers of online services."
Barton, ranking minority member of the House Energy and Commerce Committee, had asked Google to respond to his letter before Dec. 18, about when the U.S. Federal Trade Commission was expected to complete its examination of the antitrust implications of the merger. Google's response was dated Friday, one day after the FTC announced it would not block the DoubleClick acquisition. Google hosted Barton's staff at its headquarters Wednesday and Thursday, however.
The FTC approval is the last U.S. hurdle for the merger; the European Union is still reviewing it.
Barton's letter asked several questions about Google's privacy practices, including how long Google retains search queries, e-mail drafted on Google's Gmail service and Web histories. Barton also asked why Google needed to retain data.
The IP (Internet Protocol) addresses associated with search queries will be partially deleted after 18 months, as Google previously has announced, the letter said. In other services, such as Gmail and Google Web History, the privacy preferences are customized by individual users, the letter said.
Google retains data about searches as a way to improve its search algorithms and to improve services such as the spell checking feature on Google search, the letter said. The company also uses the data to fight click fraud and other malicious efforts, the letter said.
Barton also asked if Google plans to merge its consumer data with DoubleClick's after the merger. He asked what was the benefit of the merger if Google did not plan to merge data.
"We are new to the third-party display ad serving business, so we have not yet decided whether or how we would merge DoubleClick and Google data," Davidson's letter said.
The merger would create "numerous efficiencies" not related to DoubleClick's data, Davidson added. "Acquiring DoubleClick's expertise in display ad serving will assist Google in its efforts to design an integrated interface for advertisers to manage their texts and display advertising campaigns," the letter said. "In addition, the acquisition will allow Google to provide advertisers with better metrics for the display ads the place in our advertising network."
Wikia search project to launch Jan. 7, Wales says
Wikipedia founder Jimmy Wales has set Jan. 7 as the launch date for an open-source search project that eventually hopes to challenge Google and other established players.
The Wikia Search project has assembled the basic technologies for a search engine, including a search application, search algorithm and Web crawler. The project will allow technology enthusiasts to help filter sites and rank search results, using a community model akin to that of Wikipedia.
The idea is to challenge the established players by offering a search service that is more transparent to end users, meaning they can see how search results are arrived at. Wales has described Yahoo and Google as opaque services that don't explain how results are arrived at.
Wales has started to invite a handful of people to test an early version of the search platform, which will be publicly launched on Jan. 7, he wrote in an email to the Wikia mailing list Monday.
The search tool will take time to evolve, and the initial service won't match the capabilities of the leading search engines. Contributors will have to develop the search platform over time, in a similar way that Wikipedia took time to get enough entries to be useful.
The search project is part of Wales' for-profit company, Wikia Inc., which offers a software platform that anyone can use to build wikis. In a similar way, the Wikia Project will allow other people to build their own search engines.
Wikia Inc. was started in 2004 and has received investment money from Amazon.com and Bessemer Venture Partners.
The Wikia Search project has assembled the basic technologies for a search engine, including a search application, search algorithm and Web crawler. The project will allow technology enthusiasts to help filter sites and rank search results, using a community model akin to that of Wikipedia.
The idea is to challenge the established players by offering a search service that is more transparent to end users, meaning they can see how search results are arrived at. Wales has described Yahoo and Google as opaque services that don't explain how results are arrived at.
Wales has started to invite a handful of people to test an early version of the search platform, which will be publicly launched on Jan. 7, he wrote in an email to the Wikia mailing list Monday.
The search tool will take time to evolve, and the initial service won't match the capabilities of the leading search engines. Contributors will have to develop the search platform over time, in a similar way that Wikipedia took time to get enough entries to be useful.
The search project is part of Wales' for-profit company, Wikia Inc., which offers a software platform that anyone can use to build wikis. In a similar way, the Wikia Project will allow other people to build their own search engines.
Wikia Inc. was started in 2004 and has received investment money from Amazon.com and Bessemer Venture Partners.
Cisco green plan looks beyond routers
Cisco Systems wants to turn the enterprise data network into an electricity meter.
Using open standards, the company wants to get server and storage vendors to collect and share information about their equipment and send it to Cisco routers and switches. The data could include power consumption, operating temperature and more. It's becoming a critical job, and because the network touches all IT resources across the enterprise, data collection should happen there, according to Paul Marcoux, vice president of green engineering.
Marcoux joined Cisco from American Power Conversion only about six weeks ago, after Cisco created the position to overlook energy issues across all parts of the company. Networking gear itself makes up a much smaller portion of IT power consumption than do servers or storage, but Cisco plans to go beyond just making its own products more efficient.
Power is a growing issue in data centers as the cost of energy rises and concerns about global climate change increase. Being able to collect and analyze information about power usage is a big part of the battle and becoming more crucial in the age of virtualization, according to Marcoux. Distributing storage and processing cycles without regard for power issues is not just inefficient, it's dangerous, he said.
If virtualization software looks at a process that requires more computing power or storage space, then enlists servers or storage devices that are near to overheating or running out of power, it could send a rack of servers over the edge and shut it down, Marcoux said. For that reason, the virtualization system needs to know the power status of all the resources it may call upon, he said.
By the same token, consolidated data centers typically serve many departments of an enterprise and consume a lot of power, but those groups generally don't have to pay for their part of the power. In fact, the electricity bill often bypasses even the IT department, going to building management instead, Marcoux said. Collecting data about the power consumed by each device, and eventually by individual transactions, would allow enterprises to bill each department for the power it uses, he said.
Software on routers and switches would collect the information and then take actions or forward it on to separate building management, energy management or virtualization control systems, Marcoux said. Given the large amount of energy data to be processed, Cisco may introduce daughtercards for its platforms to provide extra computing power, he said. He hopes the technology will be in place and collecting information in enterprises within three years.
Because data centers contain gear from so many vendors, open standards are the only way to make such a system work, according to Cisco. Fortunately, there already are several available standards, Marcoux said. Having standards already in place will help speed up adoption, Marcoux said.
"We're not trying to reinvent the wheel, we're just trying now to utilize the wheel," Marcoux said.
Cisco's proposal would represent a whole new role for networks beyond communications, said Burton Group analyst Dave Passmore. Server vendors might go along with the plan, but Cisco can't count on smooth sailing, he said. Centralized power regulation would play a role in overall management of the data center, an area where Cisco is attempting to make inroads with other initiatives as well.
"Who controls virtualization in the data center is going to be the new battleground," Passmore said.
Using open standards, the company wants to get server and storage vendors to collect and share information about their equipment and send it to Cisco routers and switches. The data could include power consumption, operating temperature and more. It's becoming a critical job, and because the network touches all IT resources across the enterprise, data collection should happen there, according to Paul Marcoux, vice president of green engineering.
Marcoux joined Cisco from American Power Conversion only about six weeks ago, after Cisco created the position to overlook energy issues across all parts of the company. Networking gear itself makes up a much smaller portion of IT power consumption than do servers or storage, but Cisco plans to go beyond just making its own products more efficient.
Power is a growing issue in data centers as the cost of energy rises and concerns about global climate change increase. Being able to collect and analyze information about power usage is a big part of the battle and becoming more crucial in the age of virtualization, according to Marcoux. Distributing storage and processing cycles without regard for power issues is not just inefficient, it's dangerous, he said.
If virtualization software looks at a process that requires more computing power or storage space, then enlists servers or storage devices that are near to overheating or running out of power, it could send a rack of servers over the edge and shut it down, Marcoux said. For that reason, the virtualization system needs to know the power status of all the resources it may call upon, he said.
By the same token, consolidated data centers typically serve many departments of an enterprise and consume a lot of power, but those groups generally don't have to pay for their part of the power. In fact, the electricity bill often bypasses even the IT department, going to building management instead, Marcoux said. Collecting data about the power consumed by each device, and eventually by individual transactions, would allow enterprises to bill each department for the power it uses, he said.
Software on routers and switches would collect the information and then take actions or forward it on to separate building management, energy management or virtualization control systems, Marcoux said. Given the large amount of energy data to be processed, Cisco may introduce daughtercards for its platforms to provide extra computing power, he said. He hopes the technology will be in place and collecting information in enterprises within three years.
Because data centers contain gear from so many vendors, open standards are the only way to make such a system work, according to Cisco. Fortunately, there already are several available standards, Marcoux said. Having standards already in place will help speed up adoption, Marcoux said.
"We're not trying to reinvent the wheel, we're just trying now to utilize the wheel," Marcoux said.
Cisco's proposal would represent a whole new role for networks beyond communications, said Burton Group analyst Dave Passmore. Server vendors might go along with the plan, but Cisco can't count on smooth sailing, he said. Centralized power regulation would play a role in overall management of the data center, an area where Cisco is attempting to make inroads with other initiatives as well.
"Who controls virtualization in the data center is going to be the new battleground," Passmore said.
Sunday, December 23, 2007
Google's DoubleClick deal brings greater focus on privacy
Nearly lost in the news about the U.S. Federal Trade Commission's approval on Thursday of Google's acquisition of DoubleClick was another action by the agency: the publication of a proposed set of privacy principles governing online behavioral advertising.
The release of the privacy principles is an important and welcome step, said Peter Swire, a senior fellow at the Center for American Progress, a liberal think tank, and a law professor at Ohio State University. Although some privacy groups blasted the FTC for approving Google's DoubleClick deal, the acquisition has helped place focus on the entire online advertising industry's privacy practices, Swire said.
"It's good that the FTC is shining a spotlight on this industry," Swire said Friday. "Online advertising is in its second boom. They're trying lots of new techniques; some of those techniques have privacy problems."
The FTC hosted a workshop on behavioral advertising and privacy in November. The agency's proposed privacy principles, a series of "self-regulatory" steps the FTC is recommending for online advertisers, come in part from that workshop.
Among the FTC's proposals:
-- Web sites that collect information for behavioral advertising should provide a "clear, consumer-friendly, and prominent statement" about the reason for collecting that data. Consumers should be able to choose whether they will allow that information to be collected.
-- Any company that collects or stores consumer data for behavioral advertising should provide "reasonable security" and should keep data only as long as necessary to fulfill legitimate business or law enforcement needs.
-- Companies should only collect sensitive data for behavioral advertising if they obtain express consent from the consumer.
The Center for Democracy and Technology (CDT), a group focused on online privacy and civil liberties, also praised the FTC for releasing its privacy principles. The principles are a "clear sign that the commission does not believe that the industry's current self-regulation framework is sufficient to protect consumers today,” CDT Deputy Director Ari Schwartz said in a statement.
CDT also called on Google to "step up and make a clear, public statement about its plans for proactively protecting consumer privacy." Consumer privacy in the behavioral advertising market remains an industrywide concern that requires the focus of consumers, policymakers and companies, CDT said.
The release of the privacy principles should send a signal to online advertisers, said Leslie Harris, CDT's president. "In releasing these principles, the FTC hasn't closed the door to other options," she said in a statement. "Self-regulation is part of the solution for protecting consumer privacy, but clearly self-regulation hasn't lived up to its promises. ... We'll need a rigorous mix of self-regulation backed by regulatory enforcement."
Other privacy groups criticized the FTC for its ruling allowing Google's acquisition of DoubleClick to move forward. The agency had reason to act on privacy concerns raised by the merger and failed, said Marc Rotenberg, executive director of the Electronic Privacy Information Center (EPIC), one of three privacy groups that asked the FTC to block the merger or impose privacy conditions.
The FTC could have established "the necessary safeguards for personal data and competition that could have allowed a global [privacy] framework to emerge," Rotenberg said. "[The FTC's] sole purpose is to protect the public interest. It failed to do so ... in a case that will have far-reaching implications for the Internet economy and the privacy rights of American consumers."
Joseph Turow, a communication professor at the University of Pennsylvania, agreed. The European Union is still investigating the Google-DoubleClick deal, with a decision not due until April, and it is likely that regulators there will take a harder look at privacy issues, he said.
Consumer tracking and privacy should be part of the FTC's antitrust review when it looks at online advertising deals, he said. "You can't talk about the digital advertising market today without talking about competition in targeting Americans," he said.
Google supports the FTC's efforts to create privacy guidelines, David Drummond, the company's senior vice president for corporate development and chief legal officer, said in a blog post. "The FTC’s decision publicly affirms what we and numerous independent analysts have been saying for months: Our acquisition does not threaten competition in what is a robust, innovative, and quickly evolving online advertising space," Drummond wrote. "In fact, we firmly believe the transaction will increase competition and bring substantial benefits to consumers, web publishers, and online advertisers."
Critics failed to show specific privacy harms, added Thomas Lenard, president of iGrowthGlobal, a conservative think tank. "I don’t see a problem because nobody has demonstrated the acquisition will result in any privacy harm to consumers," he said. "All the allegations are very hypothetical. Privacy advocates assert that Google’s and DoubleClick’s activities injure consumers, but they don’t provide any evidence."
If the FTC had blocked the deal, it would be "penalizing success, and that would send a bad signal to the marketplace," Lenard added. "That would also be bad for consumers."
The release of the privacy principles is an important and welcome step, said Peter Swire, a senior fellow at the Center for American Progress, a liberal think tank, and a law professor at Ohio State University. Although some privacy groups blasted the FTC for approving Google's DoubleClick deal, the acquisition has helped place focus on the entire online advertising industry's privacy practices, Swire said.
"It's good that the FTC is shining a spotlight on this industry," Swire said Friday. "Online advertising is in its second boom. They're trying lots of new techniques; some of those techniques have privacy problems."
The FTC hosted a workshop on behavioral advertising and privacy in November. The agency's proposed privacy principles, a series of "self-regulatory" steps the FTC is recommending for online advertisers, come in part from that workshop.
Among the FTC's proposals:
-- Web sites that collect information for behavioral advertising should provide a "clear, consumer-friendly, and prominent statement" about the reason for collecting that data. Consumers should be able to choose whether they will allow that information to be collected.
-- Any company that collects or stores consumer data for behavioral advertising should provide "reasonable security" and should keep data only as long as necessary to fulfill legitimate business or law enforcement needs.
-- Companies should only collect sensitive data for behavioral advertising if they obtain express consent from the consumer.
The Center for Democracy and Technology (CDT), a group focused on online privacy and civil liberties, also praised the FTC for releasing its privacy principles. The principles are a "clear sign that the commission does not believe that the industry's current self-regulation framework is sufficient to protect consumers today,” CDT Deputy Director Ari Schwartz said in a statement.
CDT also called on Google to "step up and make a clear, public statement about its plans for proactively protecting consumer privacy." Consumer privacy in the behavioral advertising market remains an industrywide concern that requires the focus of consumers, policymakers and companies, CDT said.
The release of the privacy principles should send a signal to online advertisers, said Leslie Harris, CDT's president. "In releasing these principles, the FTC hasn't closed the door to other options," she said in a statement. "Self-regulation is part of the solution for protecting consumer privacy, but clearly self-regulation hasn't lived up to its promises. ... We'll need a rigorous mix of self-regulation backed by regulatory enforcement."
Other privacy groups criticized the FTC for its ruling allowing Google's acquisition of DoubleClick to move forward. The agency had reason to act on privacy concerns raised by the merger and failed, said Marc Rotenberg, executive director of the Electronic Privacy Information Center (EPIC), one of three privacy groups that asked the FTC to block the merger or impose privacy conditions.
The FTC could have established "the necessary safeguards for personal data and competition that could have allowed a global [privacy] framework to emerge," Rotenberg said. "[The FTC's] sole purpose is to protect the public interest. It failed to do so ... in a case that will have far-reaching implications for the Internet economy and the privacy rights of American consumers."
Joseph Turow, a communication professor at the University of Pennsylvania, agreed. The European Union is still investigating the Google-DoubleClick deal, with a decision not due until April, and it is likely that regulators there will take a harder look at privacy issues, he said.
Consumer tracking and privacy should be part of the FTC's antitrust review when it looks at online advertising deals, he said. "You can't talk about the digital advertising market today without talking about competition in targeting Americans," he said.
Google supports the FTC's efforts to create privacy guidelines, David Drummond, the company's senior vice president for corporate development and chief legal officer, said in a blog post. "The FTC’s decision publicly affirms what we and numerous independent analysts have been saying for months: Our acquisition does not threaten competition in what is a robust, innovative, and quickly evolving online advertising space," Drummond wrote. "In fact, we firmly believe the transaction will increase competition and bring substantial benefits to consumers, web publishers, and online advertisers."
Critics failed to show specific privacy harms, added Thomas Lenard, president of iGrowthGlobal, a conservative think tank. "I don’t see a problem because nobody has demonstrated the acquisition will result in any privacy harm to consumers," he said. "All the allegations are very hypothetical. Privacy advocates assert that Google’s and DoubleClick’s activities injure consumers, but they don’t provide any evidence."
If the FTC had blocked the deal, it would be "penalizing success, and that would send a bad signal to the marketplace," Lenard added. "That would also be bad for consumers."
McAfee to pay $13.8 million to settle backdating lawsuits
McAfee has taken two major steps toward closing the stock-option backdating scandal that has plagued the company for the past two years.
On Friday, the security vendor filed 10 years' worth of restated financial reports, a process that was set off by the scandal. The company also said it had reached a tentative settlement in a class-action lawsuit relating to its accounting practices.
Charges for the restatement will be $137.4 million. McAfee has also set aside US$13.8 million to cover lawsuits filed in 2006 on behalf of McAfee shareholders, the company said in a statement released on Friday.
McAfee is one of more than 100 U.S. companies that have been investigated by the U.S. Securities and Exchange Commission (SEC) for improper backdating of options. In backdating, companies would alter the date that stock options grants were made to certain employees so they could be purchased at a lower price and ultimately sold by the employee at a greater profit. The practice, while not illegal, was often improperly disclosed in regulatory filings, leading to SEC investigations of many high-profile companies, including Apple, Dell and Broadcom.
Earlier this year, McAfee's former legal counsel, Kent Roberts, was indicted on fraud charges related to the scandal.
The restated reports cover the period from 1995 until the first quarter of McAfee's fiscal 2006 year. The company has also filed 10-Q reports for the first three quarters of its fiscal 2007 year, putting it up-to-date with the SEC for the first time since March 2006.
On Friday, the security vendor filed 10 years' worth of restated financial reports, a process that was set off by the scandal. The company also said it had reached a tentative settlement in a class-action lawsuit relating to its accounting practices.
Charges for the restatement will be $137.4 million. McAfee has also set aside US$13.8 million to cover lawsuits filed in 2006 on behalf of McAfee shareholders, the company said in a statement released on Friday.
McAfee is one of more than 100 U.S. companies that have been investigated by the U.S. Securities and Exchange Commission (SEC) for improper backdating of options. In backdating, companies would alter the date that stock options grants were made to certain employees so they could be purchased at a lower price and ultimately sold by the employee at a greater profit. The practice, while not illegal, was often improperly disclosed in regulatory filings, leading to SEC investigations of many high-profile companies, including Apple, Dell and Broadcom.
Earlier this year, McAfee's former legal counsel, Kent Roberts, was indicted on fraud charges related to the scandal.
The restated reports cover the period from 1995 until the first quarter of McAfee's fiscal 2006 year. The company has also filed 10-Q reports for the first three quarters of its fiscal 2007 year, putting it up-to-date with the SEC for the first time since March 2006.
U.S. trade agency to investigate antivirus patent claims
The U.S. International Trade Commission (ITC) has voted to investigate claims by Trend Micro of competitors' patent infringement involving antivirus products.
Trend Micro filed a trade complaint Nov. 21 against fellow cybersecurity vendors Barracuda Networks of Campbell, California; Panda Software International, based in Spain; and Panda Distribution of Glendale, California.
Trend Micro's complaint accuses the three companies of infringing its patent for virus detection and removal apparatus for computer networks. The technology "represents a dramatic departure from the traditional antivirus methods of safeguarding individual computers," the company says in its complaint.
The Trend Micro complaint accuses Barracuda of importing antivirus software that infringes its patent. The complaint says Barracuda uses code from the open-source antivirus product ClamAV, which is written in part in Europe and Australia. Barracuda also imports hardware components, the complaint says.
Panda's products also contain code imported into the U.S., the Trend Micro complaint says.
A Barracuda spokeswoman said the complaint is curious. "It is interesting that the ITC has decided to take up an investigation, given Barracuda Networks manufactures all of its products in the United States and does not import anything of significance," said Kylie Heintz.
A Panda representative didn't immediately respond to a request for comments.
The ITC case will be referred to an administrative law judge, who will schedule and hold an evidentiary hearing. The judge will make an initial determination as to whether there is a violation of section 337 of the Tariff Act of 1930. That initial determination is subject to commission review.
The ITC will make a final determination in the investigation at the earliest practicable time, the commission said in a news release. Within 45 days, the ITC will set a target date for completing the investigation.
Trend Micro filed a trade complaint Nov. 21 against fellow cybersecurity vendors Barracuda Networks of Campbell, California; Panda Software International, based in Spain; and Panda Distribution of Glendale, California.
Trend Micro's complaint accuses the three companies of infringing its patent for virus detection and removal apparatus for computer networks. The technology "represents a dramatic departure from the traditional antivirus methods of safeguarding individual computers," the company says in its complaint.
The Trend Micro complaint accuses Barracuda of importing antivirus software that infringes its patent. The complaint says Barracuda uses code from the open-source antivirus product ClamAV, which is written in part in Europe and Australia. Barracuda also imports hardware components, the complaint says.
Panda's products also contain code imported into the U.S., the Trend Micro complaint says.
A Barracuda spokeswoman said the complaint is curious. "It is interesting that the ITC has decided to take up an investigation, given Barracuda Networks manufactures all of its products in the United States and does not import anything of significance," said Kylie Heintz.
A Panda representative didn't immediately respond to a request for comments.
The ITC case will be referred to an administrative law judge, who will schedule and hold an evidentiary hearing. The judge will make an initial determination as to whether there is a violation of section 337 of the Tariff Act of 1930. That initial determination is subject to commission review.
The ITC will make a final determination in the investigation at the earliest practicable time, the commission said in a news release. Within 45 days, the ITC will set a target date for completing the investigation.
AT&T, Vonage finalize patent lawsuit settlement
A patent infringement lawsuit filed by AT&T against voice-over-IP telephony provider Vonage has been settled, Vonage said late Friday.
The settlement brings an unusually speedy end to the lawsuit, which was filed by AT&T on Oct. 17. It alleged Vonage wilfully infringed an AT&T patent related to telephone systems that allow people to make VOIP (voice-over-Internet Protocol) calls using standard telephone devices. A breakdown in talks between the two companies over the issue led to the lawsuit, said AT&T at the time.
Less than a month later, on Nov. 7, the two companies said they had tentatively agreed to a settlement. At that time Vonage said it would pay AT&T around US$39 million under the terms of the settlement.
Final terms were not disclosed on Friday when, in a brief statement, Vonage said the dispute had been settled.
Vonage previously settled a patent suit with Verizon Communications for $80 million to $120 million, depending on the results of its appeal of a court ruling on two patents, and with Sprint Nextel for $80 million. As part of the Sprint Nextel deal Vonage agreed to license more than 100 patents covering technology for connecting calls from a traditional phone network to an IP network. The Verizon settlement came after a court found Vonage had infringed upon the carrier's patents.
The settlement brings an unusually speedy end to the lawsuit, which was filed by AT&T on Oct. 17. It alleged Vonage wilfully infringed an AT&T patent related to telephone systems that allow people to make VOIP (voice-over-Internet Protocol) calls using standard telephone devices. A breakdown in talks between the two companies over the issue led to the lawsuit, said AT&T at the time.
Less than a month later, on Nov. 7, the two companies said they had tentatively agreed to a settlement. At that time Vonage said it would pay AT&T around US$39 million under the terms of the settlement.
Final terms were not disclosed on Friday when, in a brief statement, Vonage said the dispute had been settled.
Vonage previously settled a patent suit with Verizon Communications for $80 million to $120 million, depending on the results of its appeal of a court ruling on two patents, and with Sprint Nextel for $80 million. As part of the Sprint Nextel deal Vonage agreed to license more than 100 patents covering technology for connecting calls from a traditional phone network to an IP network. The Verizon settlement came after a court found Vonage had infringed upon the carrier's patents.
Lucent agrees to pay fines for China dealings
Alcatel-Lucent has agreed to pay $2.5 million in fines to resolve allegations that it provided Chinese government officials with free trips to Disneyland and other tourist attractions.
The company has to pay $1 million to resolve U.S. Department of Justice charges that it violated the Foreign Corrupt Practices Act (FCPA) when providing travel and other perks to Chinese government officials, the DOJ said Friday. The company also agreed to pay a $1.5 million civil fine to the U.S. Securities and Exchange Commission.
The agreement with the DOJ wraps up a multiyear investigation into whether Lucent, before its November 2006 merger with Alcatel, provided things of value to the Chinese officials and improperly accounted for the expenses.
The company cooperated fully with the DOJ and SEC investigations, an Alcatel-Lucent spokeswoman said. The company is "glad to put the matter behind us" and looks forward to successful business dealings in China in the future, she said.
From about 2000 to 2003, Lucent spent millions of dollars on more than 300 trips for Chinese government officials that included sightseeing, entertainment and leisure, the DOJ said. The trips were approved by senior Lucent Chinese officials, with the support of Lucent employees in the U.S.
Lucent improperly recorded expenses for these trips and failed to implement internal controls to monitor the provision of travel and other things of value to Chinese officials, the DOJ said in a press release.
In 2002 and 2003, there were 24 Lucent-sponsored trips for Chinese government customers, and at least 12 trips were primarily for sightseeing, the DOJ said. The people participating in these trips were senior government officials, including the heads of state-owned telecommunications companies in Beijing and the leaders of provincial telecommunications subsidiaries.
Between 2000 and 2003, Lucent provided Chinese government officials with trips to the U.S., Europe, Australia and elsewhere that were often characterized as "factory inspections" or "training," the DOJ said. By 2001, Lucent had outsourced most of its manufacturing and no longer owned factories for its customers to tour. These trips were primarily sightseeing tours to locations such as Disneyland, Universal Studios and the Grand Canyon, and typically lasted 14 days and cost between $25,000 and $55,000 per trip, the DOJ said.
Lucent admits to all of this conduct in the agreement announced on Friday. The agreement also requires Lucent to adopt new or modify existing internal controls, policies and procedures. Those internal controls must ensure that Lucent keeps fair and accurate books, the DOJ said. The agency has agreed not to prosecute Lucent if it complies with all of the requirements in the agreement over a two-year term.
The company has to pay $1 million to resolve U.S. Department of Justice charges that it violated the Foreign Corrupt Practices Act (FCPA) when providing travel and other perks to Chinese government officials, the DOJ said Friday. The company also agreed to pay a $1.5 million civil fine to the U.S. Securities and Exchange Commission.
The agreement with the DOJ wraps up a multiyear investigation into whether Lucent, before its November 2006 merger with Alcatel, provided things of value to the Chinese officials and improperly accounted for the expenses.
The company cooperated fully with the DOJ and SEC investigations, an Alcatel-Lucent spokeswoman said. The company is "glad to put the matter behind us" and looks forward to successful business dealings in China in the future, she said.
From about 2000 to 2003, Lucent spent millions of dollars on more than 300 trips for Chinese government officials that included sightseeing, entertainment and leisure, the DOJ said. The trips were approved by senior Lucent Chinese officials, with the support of Lucent employees in the U.S.
Lucent improperly recorded expenses for these trips and failed to implement internal controls to monitor the provision of travel and other things of value to Chinese officials, the DOJ said in a press release.
In 2002 and 2003, there were 24 Lucent-sponsored trips for Chinese government customers, and at least 12 trips were primarily for sightseeing, the DOJ said. The people participating in these trips were senior government officials, including the heads of state-owned telecommunications companies in Beijing and the leaders of provincial telecommunications subsidiaries.
Between 2000 and 2003, Lucent provided Chinese government officials with trips to the U.S., Europe, Australia and elsewhere that were often characterized as "factory inspections" or "training," the DOJ said. By 2001, Lucent had outsourced most of its manufacturing and no longer owned factories for its customers to tour. These trips were primarily sightseeing tours to locations such as Disneyland, Universal Studios and the Grand Canyon, and typically lasted 14 days and cost between $25,000 and $55,000 per trip, the DOJ said.
Lucent admits to all of this conduct in the agreement announced on Friday. The agreement also requires Lucent to adopt new or modify existing internal controls, policies and procedures. Those internal controls must ensure that Lucent keeps fair and accurate books, the DOJ said. The agency has agreed not to prosecute Lucent if it complies with all of the requirements in the agreement over a two-year term.
Saturday, December 22, 2007
NetBooks aims at 'S' of SMB
If the success of NetSuite's IPO this week was any indication, the market for on-demand ERP (enterprise resource planning) software is red-hot. Startup NetBooks hopes to capitalize on that.
NetBooks recently began offering hosted ERP software. But the company, based in Rohnert Park, California, has set its sights on a particular class of customer: the millions of small, owner-managed U.S. businesses with between two and 50 employees. "It's the backbone of the economy," said NetBooks' founder, Ridgely Evers.
Evers has long played in this space. While at Intuit, he led the creation of QuickBooks, the popular accounting software.
NetBooks' core suite covers marketing, sales, inventory and finance, but doesn't include functions like e-mail or calendaring. "We're not a Microsoft Office replacement," Evers stressed.
The product is engineered for ease of use, he said: "For our target market, IT is the word 'it.'"
NetBooks has added other capabilities through partnerships, including PayCycle for payroll and UPS Online Shipping. The firm will make major new partner announcements in early 2008 and release new software features throughout the year, according to Evers.
Evers declined to discuss how many customers the firm has landed so far, saying only, "we're very early in our growth."
NetBooks costs US$200 per month, or $1 per hour, for five users, along with free access for a customer's bookkeeper, accountant and "marketing coach." Unlimited support -- accessed by clicking a button within the NetBooks software -- and free upgrades are included in the price. The company also says that if a customer signs up for the service at a given price, they will never pay more for it.
One analyst said NetBooks shows promise but faces many challenges.
"If they do in fact do all the things they claim to do, this is great," said Marc Songini of Nucleus Research in Wellesley, Massachusetts.
"They're doing a smart thing by offering these [third-party] integrations so customers don't have to do it," he added.
Still, he said, "They're very small, and don't have a lot of recognition. It's going to be tough for them to get up and running and get critical mass."
For one thing, NetSuite does sell its service to small businesses, Songini said. Also, if a giant like Google began offering a similar suite of hosted applications, startups like NetBooks would be hard-pressed to succeed, he said.
The other challenge centers on marketing. Larger ERP and CRM (customer relationship management) vendors have clear sales targets: C-level executives. The small business market may be immense, but it is also broad.
"Obviously, that bottom segment of the market is wide-open, but the problem has been, how do you sell to it," Songini said.
Songini said one possibility would be for NetBooks to strike reseller deals with computer manufacturers and retailers like Dell or Radio Shack.
NetBooks recently began offering hosted ERP software. But the company, based in Rohnert Park, California, has set its sights on a particular class of customer: the millions of small, owner-managed U.S. businesses with between two and 50 employees. "It's the backbone of the economy," said NetBooks' founder, Ridgely Evers.
Evers has long played in this space. While at Intuit, he led the creation of QuickBooks, the popular accounting software.
NetBooks' core suite covers marketing, sales, inventory and finance, but doesn't include functions like e-mail or calendaring. "We're not a Microsoft Office replacement," Evers stressed.
The product is engineered for ease of use, he said: "For our target market, IT is the word 'it.'"
NetBooks has added other capabilities through partnerships, including PayCycle for payroll and UPS Online Shipping. The firm will make major new partner announcements in early 2008 and release new software features throughout the year, according to Evers.
Evers declined to discuss how many customers the firm has landed so far, saying only, "we're very early in our growth."
NetBooks costs US$200 per month, or $1 per hour, for five users, along with free access for a customer's bookkeeper, accountant and "marketing coach." Unlimited support -- accessed by clicking a button within the NetBooks software -- and free upgrades are included in the price. The company also says that if a customer signs up for the service at a given price, they will never pay more for it.
One analyst said NetBooks shows promise but faces many challenges.
"If they do in fact do all the things they claim to do, this is great," said Marc Songini of Nucleus Research in Wellesley, Massachusetts.
"They're doing a smart thing by offering these [third-party] integrations so customers don't have to do it," he added.
Still, he said, "They're very small, and don't have a lot of recognition. It's going to be tough for them to get up and running and get critical mass."
For one thing, NetSuite does sell its service to small businesses, Songini said. Also, if a giant like Google began offering a similar suite of hosted applications, startups like NetBooks would be hard-pressed to succeed, he said.
The other challenge centers on marketing. Larger ERP and CRM (customer relationship management) vendors have clear sales targets: C-level executives. The small business market may be immense, but it is also broad.
"Obviously, that bottom segment of the market is wide-open, but the problem has been, how do you sell to it," Songini said.
Songini said one possibility would be for NetBooks to strike reseller deals with computer manufacturers and retailers like Dell or Radio Shack.
Oracle's Ellison: SOA migration a slow process
Scoffing at reports alleging the adoption of SOA is slowing, Oracle CEO Larry Ellison said this week that moving to SOA is a slow process but one that presents an opportunity for Oracle.
Speaking on Oracle's earnings conference call Wednesday, Ellison said he had read news articles about the slowing adoption of SOA. But he stressed that SOA requires a change in architecture, which takes time to implement.
"While I've read [these articles], people have to understand when you have a fundamentally new computer software architecture, SOA, it takes a long time for adoption," Ellison said. Moving to SOA is not as easy as flipping a switch, he said.
"It takes about 10 to 20 years before [you can] rewrite all of your applications," he said. But Oracle sees this process accelerating in its middleware business.
"We think it's a long-term growth story, it's a very rapid growth story," said Ellison. "It takes a long time for our customers to have a majority of their applications modernized and we think this is a growth story for a decade for us," he said.
For the quarter ending November 30, Oracle reported revenues of US$5.3 billion, a 28 percent increase over the $4.16 billion reported for the same quarter last year. Net income was $1.3 billion, a 35 percent increase over the $967 million reported for the same time period in 2006.
Speaking on Oracle's earnings conference call Wednesday, Ellison said he had read news articles about the slowing adoption of SOA. But he stressed that SOA requires a change in architecture, which takes time to implement.
"While I've read [these articles], people have to understand when you have a fundamentally new computer software architecture, SOA, it takes a long time for adoption," Ellison said. Moving to SOA is not as easy as flipping a switch, he said.
"It takes about 10 to 20 years before [you can] rewrite all of your applications," he said. But Oracle sees this process accelerating in its middleware business.
"We think it's a long-term growth story, it's a very rapid growth story," said Ellison. "It takes a long time for our customers to have a majority of their applications modernized and we think this is a growth story for a decade for us," he said.
For the quarter ending November 30, Oracle reported revenues of US$5.3 billion, a 28 percent increase over the $4.16 billion reported for the same quarter last year. Net income was $1.3 billion, a 35 percent increase over the $967 million reported for the same time period in 2006.
Wall Street Beat: Uncertainty rules '08 outlook
In the last full trading week of the year, the NetSuite IPO, acquisition news and earnings reports from Oracle, Palm and RIM highlighted technology sector gains, but also concerns for 2008.
Oracle on Wednesday reported net income of US$1.3 billion for the quarter ending Nov. 30, up 35 percent from a year earlier. The report validated its acquisition strategy at the end of what is bound to be a record year for M&A in the tech sector. Oracle's results show it is leveraging homegrown as well as acquired products, cross-selling a broad variety of business applications. Company shares closed Thursday at $22.10, up by $1.34.
The U.S. Federal Trade Commission's approval on Thursday of Google's acquisition of online ad-server DoubleClick helped boost Google shares by $12.32, to close at $689.69, even though the deal requires other government body approvals.
Through November 2007, tech M&A amounted to about $449 billion, close to the total for 2006, according to a report released this week by the 451 Group. With a strong December for M&A, 2007 "could be the first year in tech M&A history to top a half-trillion dollars' worth of transactions," according to the report.
There are a variety of reasons for the banner M&A year, but underlying them all were strong vendor earnings. Next year, though, will likely see a slowdown in deals.
The U.S. housing slump and resulting turmoil in financial markets have raised fears of an overall slowdown in the economy. This could affect consumer and business buying plans as well as the financial results of tech vendors.
"There's a sense of muted expectation," according to the 451 Group's Brenan Daly. "Corporate buying activity reflects to some degree consumer activity. If you are flush with cash and expecting good things from the economy, chances are you're more willing to go out buying."
Meanwhile, the IPO of software-as-a-service vendor NetSuite on Thursday reflected a year for public offerings that was ultimately stronger than expected. Company shares closed at $35.50 after opening at $26.00. IPOs this year underscored confidence in sectors such as SaaS and storage, noted the 451 Group report. In the SaaS arena, SuccessFactors and DemandTec had strong IPOs. In the storage sector, Data Domain and 3Par had solid IPOs, 451 noted.
But the same factors that are likely to contribute to a slowdown in M&A will also probably cause a slump in IPO activity in 2008.
Most IT market researchers are forecasting a slowdown for at least the first half of next year. Growth in U.S. IT investment, for example, will drop to 4.8 percent in 2008 from 5.3 percent in 2007, according to Forrester Research.
In a year of tepid sales, only the best-run companies are expected to have the full confidence of investors. This week's earnings reports from Palm and RIM are a case in point. Palm shares dropped to their lowest point in four years on Wednesday, closing at $5.52, after the company reported a quarterly loss of $9.6 million for the quarter ending Nov. 30. Last year the company earned $12.8 million for the period. Palm stock has dropped about 50 percent in the past two months.
Reporting Thursday on the same quarter, RIM said BlackBerry sales boosted earnings to $370.5 million, compared to $175.2 million last year. Shares jumped by about $10 in after-hours trading, about an hour after the announcement.
Handset markets are booming, but vendors face some of the same pressures as PC makers: Competition has lowered margins. Vendors need to get it all right: good products, good management, and well-managed logistics.
"We view RIM as extremely well-positioned due to carrier partnership strategy, talented management and technology," said Citi Investment Research in a market commentary. On the other hand, Citi fretted that "we are increasingly concerned with Palm's internal controls."
Especially in the most competitive sectors -- such as PCs, handheld devices, telecom and Internet-based businesses -- 2008 will leave much less room for error than 2007, which, despite economic turmoil, turned out to be a strong year for tech earnings overall.
Oracle on Wednesday reported net income of US$1.3 billion for the quarter ending Nov. 30, up 35 percent from a year earlier. The report validated its acquisition strategy at the end of what is bound to be a record year for M&A in the tech sector. Oracle's results show it is leveraging homegrown as well as acquired products, cross-selling a broad variety of business applications. Company shares closed Thursday at $22.10, up by $1.34.
The U.S. Federal Trade Commission's approval on Thursday of Google's acquisition of online ad-server DoubleClick helped boost Google shares by $12.32, to close at $689.69, even though the deal requires other government body approvals.
Through November 2007, tech M&A amounted to about $449 billion, close to the total for 2006, according to a report released this week by the 451 Group. With a strong December for M&A, 2007 "could be the first year in tech M&A history to top a half-trillion dollars' worth of transactions," according to the report.
There are a variety of reasons for the banner M&A year, but underlying them all were strong vendor earnings. Next year, though, will likely see a slowdown in deals.
The U.S. housing slump and resulting turmoil in financial markets have raised fears of an overall slowdown in the economy. This could affect consumer and business buying plans as well as the financial results of tech vendors.
"There's a sense of muted expectation," according to the 451 Group's Brenan Daly. "Corporate buying activity reflects to some degree consumer activity. If you are flush with cash and expecting good things from the economy, chances are you're more willing to go out buying."
Meanwhile, the IPO of software-as-a-service vendor NetSuite on Thursday reflected a year for public offerings that was ultimately stronger than expected. Company shares closed at $35.50 after opening at $26.00. IPOs this year underscored confidence in sectors such as SaaS and storage, noted the 451 Group report. In the SaaS arena, SuccessFactors and DemandTec had strong IPOs. In the storage sector, Data Domain and 3Par had solid IPOs, 451 noted.
But the same factors that are likely to contribute to a slowdown in M&A will also probably cause a slump in IPO activity in 2008.
Most IT market researchers are forecasting a slowdown for at least the first half of next year. Growth in U.S. IT investment, for example, will drop to 4.8 percent in 2008 from 5.3 percent in 2007, according to Forrester Research.
In a year of tepid sales, only the best-run companies are expected to have the full confidence of investors. This week's earnings reports from Palm and RIM are a case in point. Palm shares dropped to their lowest point in four years on Wednesday, closing at $5.52, after the company reported a quarterly loss of $9.6 million for the quarter ending Nov. 30. Last year the company earned $12.8 million for the period. Palm stock has dropped about 50 percent in the past two months.
Reporting Thursday on the same quarter, RIM said BlackBerry sales boosted earnings to $370.5 million, compared to $175.2 million last year. Shares jumped by about $10 in after-hours trading, about an hour after the announcement.
Handset markets are booming, but vendors face some of the same pressures as PC makers: Competition has lowered margins. Vendors need to get it all right: good products, good management, and well-managed logistics.
"We view RIM as extremely well-positioned due to carrier partnership strategy, talented management and technology," said Citi Investment Research in a market commentary. On the other hand, Citi fretted that "we are increasingly concerned with Palm's internal controls."
Especially in the most competitive sectors -- such as PCs, handheld devices, telecom and Internet-based businesses -- 2008 will leave much less room for error than 2007, which, despite economic turmoil, turned out to be a strong year for tech earnings overall.
Hitachi considering 'all options' for hard-disk unit
Hitachi is considering a shake-up of Hitachi Global Storage Technologies (HGST), the hard-disk drive maker that it acquired from IBM in 2003.
The Tokyo company said in a statement to the Tokyo Stock Exchange that it is considering "all options" regarding the subsidiary.
The statement was issued in response to a report in the Friday morning edition of The Nikkei newspaper that said Hitachi is in talks with U.S. investment fund Silver Lake over the sale of just under half the company. The Nikkei said that the two parties are trying to come up with a deal by January however agreement remains some way off because there are disagreements on price.
Hitachi declined to comment beyond its statement.
Despite coming up with several market-leading drives, such as the first terabyte hard-disk drive at the beginning of this year, the company hasn't yet been able to make a profit under Hitachi's ownership. It is the third-largest manufacturer of hard-disk drives behind Seagate and Western Digital.
Hard-disk drive makers have been enjoying better business conditions in the market in the second half of 2007. Early in the year prices fell about 20 percent per quarter but those sharp price declines have now steadied and prices dropped just 5 percent in the fourth quarter, according to a recent report from iSuppli.
The research agency said worldwide shipments of drives hit 132 million units in the third quarter, a 15 percent jump from the 115 million shipped in the second quarter. It predicted the seasonably strong fourth quarter will see a further 11 percent jump in shipments from the previous quarter.
The Tokyo company said in a statement to the Tokyo Stock Exchange that it is considering "all options" regarding the subsidiary.
The statement was issued in response to a report in the Friday morning edition of The Nikkei newspaper that said Hitachi is in talks with U.S. investment fund Silver Lake over the sale of just under half the company. The Nikkei said that the two parties are trying to come up with a deal by January however agreement remains some way off because there are disagreements on price.
Hitachi declined to comment beyond its statement.
Despite coming up with several market-leading drives, such as the first terabyte hard-disk drive at the beginning of this year, the company hasn't yet been able to make a profit under Hitachi's ownership. It is the third-largest manufacturer of hard-disk drives behind Seagate and Western Digital.
Hard-disk drive makers have been enjoying better business conditions in the market in the second half of 2007. Early in the year prices fell about 20 percent per quarter but those sharp price declines have now steadied and prices dropped just 5 percent in the fourth quarter, according to a recent report from iSuppli.
The research agency said worldwide shipments of drives hit 132 million units in the third quarter, a 15 percent jump from the 115 million shipped in the second quarter. It predicted the seasonably strong fourth quarter will see a further 11 percent jump in shipments from the previous quarter.
IBM buys in-memory database company Solid
IBM is buying Solid Information Technology, a maker of high-performance databases and a close partner of IBM rival MySQL.
Solid makes an embedded database with an in-memory database engine, which means it can store and retrieve data from main memory, giving faster performance than traditional disk-based systems.
That makes it popular for applications that require very fast processing times, such as routing calls in a phone network or trading stocks. Solid's customers include Cisco Systems, Siemens, TeliaSonera and Nokia, according to its Web site.
IBM agreed to acquire the company for an undisclosed sum and expects the deal to close in the first quarter of 2008, IBM announced Friday. It said the deal will enhance its database line-up by adding real-time data access capabilities. IBM rival Oracle acquired an in-memory database two years ago, from TimesTen.
The IBM acquisition may be seen as a setback for MySQL, since it marks the loss of independence of another company that makes a high-performance transaction engine for MySQL's database.
Two years ago Oracle bought Innobase, which made the most popular MySQL transaction engine. Oracle continues to license InnoDB to MySQL, but the acquisition prompted MySQL to look for alternatives.
One of those was Solid, which joined MySQL's storage engine certification program and released an open source version of its database engine for MySQL. IBM did not say in its statement if it would continue to develop the MySQL product.
However, MySQL is also developing its own transaction engine, so in the long term it will be less dependant on partners. Called Falcon, the engine is due to ship with MySQL 6.0, which is due for wide release late next year.
The acquisition of Solid is IBM's twelfth acquisition this year, it said.
Solid makes an embedded database with an in-memory database engine, which means it can store and retrieve data from main memory, giving faster performance than traditional disk-based systems.
That makes it popular for applications that require very fast processing times, such as routing calls in a phone network or trading stocks. Solid's customers include Cisco Systems, Siemens, TeliaSonera and Nokia, according to its Web site.
IBM agreed to acquire the company for an undisclosed sum and expects the deal to close in the first quarter of 2008, IBM announced Friday. It said the deal will enhance its database line-up by adding real-time data access capabilities. IBM rival Oracle acquired an in-memory database two years ago, from TimesTen.
The IBM acquisition may be seen as a setback for MySQL, since it marks the loss of independence of another company that makes a high-performance transaction engine for MySQL's database.
Two years ago Oracle bought Innobase, which made the most popular MySQL transaction engine. Oracle continues to license InnoDB to MySQL, but the acquisition prompted MySQL to look for alternatives.
One of those was Solid, which joined MySQL's storage engine certification program and released an open source version of its database engine for MySQL. IBM did not say in its statement if it would continue to develop the MySQL product.
However, MySQL is also developing its own transaction engine, so in the long term it will be less dependant on partners. Called Falcon, the engine is due to ship with MySQL 6.0, which is due for wide release late next year.
The acquisition of Solid is IBM's twelfth acquisition this year, it said.
Russians close to prosecuting 'Pinch' Trojan authors
Russia may soon prosecute the authors of the "Pinch" Trojan, an easy-to-use malicious software program available on the Internet that steals a variety of data.
Nikolay Patrushev, who heads Russia's Federal Security Services, said earlier this week that Pinch's authors had been identified and would be taken to court, according to a blog posting by Russian security vendor Kaspersky Lab.
Kaspersky said the arrest of the Pinch writers, identified as Ermishkin and Farkhutdinov, would be on the same level as the 2005 prosecution of German Sven Jaschan for creating the NetSky and Sasser worms, which caused thousands of infected computers to crash worldwide.
With Pinch, "it's impossible to estimate what financial losses have been caused over the years since this Trojan first saw the light of day," Kaspersky said.
Pinch's sellers would customize the program for buyers and offer support, illustrating a growing underground economy for hacking tools, Kaspersky said.
Thousands of versions of Pinch, which comes in Russian and English language versions, are still circulating on the Internet. Kaspersky said its security software can detect some 4,000 variants of Pinch, where the basic code is the same but aspects of the program have been modified in order to evade detection by security software.
Pinch has a highly-developed user interface that can be used for sorting information it steals off other computers, according to F-Secure.
It can steal e-mail account passwords, pilfer other password information stored in the Internet Explorer, Firefox and Opera browsers, and snap screenshots.
That stolen information can also be encrypted before it is sent back to the hacker, according to Panda Security, another security vendor.
Pinch could also be customized to have the victimized computer join a botnet, or a network of computers set up to hide other malicious activity by the hacker. Botnets are often used to send spam or mount other hacking attacks.
Nikolay Patrushev, who heads Russia's Federal Security Services, said earlier this week that Pinch's authors had been identified and would be taken to court, according to a blog posting by Russian security vendor Kaspersky Lab.
Kaspersky said the arrest of the Pinch writers, identified as Ermishkin and Farkhutdinov, would be on the same level as the 2005 prosecution of German Sven Jaschan for creating the NetSky and Sasser worms, which caused thousands of infected computers to crash worldwide.
With Pinch, "it's impossible to estimate what financial losses have been caused over the years since this Trojan first saw the light of day," Kaspersky said.
Pinch's sellers would customize the program for buyers and offer support, illustrating a growing underground economy for hacking tools, Kaspersky said.
Thousands of versions of Pinch, which comes in Russian and English language versions, are still circulating on the Internet. Kaspersky said its security software can detect some 4,000 variants of Pinch, where the basic code is the same but aspects of the program have been modified in order to evade detection by security software.
Pinch has a highly-developed user interface that can be used for sorting information it steals off other computers, according to F-Secure.
It can steal e-mail account passwords, pilfer other password information stored in the Internet Explorer, Firefox and Opera browsers, and snap screenshots.
That stolen information can also be encrypted before it is sent back to the hacker, according to Panda Security, another security vendor.
Pinch could also be customized to have the victimized computer join a botnet, or a network of computers set up to hide other malicious activity by the hacker. Botnets are often used to send spam or mount other hacking attacks.
Sharp and Toshiba to team up on LCD TV screens and chips
Sharp and Toshiba plan to closely cooperate in the flat-panel TV business, buying screens and semiconductor chips from each other, they said Friday.
Toshiba will turn to Sharp for the 32-inch and larger flat-panel displays used in its LCD (liquid crystal display) televisions while Sharp will procure from Toshiba the chips used in its TVs. The cooperation will begin during the year from April and will slowly build towards 2010 when two goals are expected to be reached: Sharp will supply Toshiba with 40 percent of its LCD modules and Toshiba will sell to Sharp 50 percent of the chips it needs.
The deal provides both companies with a steadier supply of vital components for LCD TVs. The market for such televisions has grown from 161 million units in 2003 to an estimated 192 million this year and is expected to keep on rising on the back of strong demand and competition.
Some of the display panels headed for Toshiba will come from a state-of-the-art ¥380 billion (US$3.36 billion) LCD manufacturing plant Sharp is building in Osaka's Sakai City. Production is scheduled to begin in 2009. The plant will handle mother glass -- the large sheets on which several display panels are made -- of 2.85 meters by 3.05 meters. This size, dubbed 10th generation, is larger than that used by any other display manufacturer and will make the Sakai plant the world's most advanced LCD production center.
The large glass sheets also bring a cost advantage for Sharp. The per-inch price of LCD panels drops with increases in the size of mother glass, so the panels are likely to be more competitive than those from rivals. That's especially important in the TV market, where strong competition has made price a key to success.
Toshiba currently holds a stake in IPS Alpha Technology Ltd., an LCD manufacturing joint venture created with Panasonic and Hitachi. The IPS line uses an older 6th-generation technology and will need substantial investment if it is to remain competitive in the market.
Toshiba will turn to Sharp for the 32-inch and larger flat-panel displays used in its LCD (liquid crystal display) televisions while Sharp will procure from Toshiba the chips used in its TVs. The cooperation will begin during the year from April and will slowly build towards 2010 when two goals are expected to be reached: Sharp will supply Toshiba with 40 percent of its LCD modules and Toshiba will sell to Sharp 50 percent of the chips it needs.
The deal provides both companies with a steadier supply of vital components for LCD TVs. The market for such televisions has grown from 161 million units in 2003 to an estimated 192 million this year and is expected to keep on rising on the back of strong demand and competition.
Some of the display panels headed for Toshiba will come from a state-of-the-art ¥380 billion (US$3.36 billion) LCD manufacturing plant Sharp is building in Osaka's Sakai City. Production is scheduled to begin in 2009. The plant will handle mother glass -- the large sheets on which several display panels are made -- of 2.85 meters by 3.05 meters. This size, dubbed 10th generation, is larger than that used by any other display manufacturer and will make the Sakai plant the world's most advanced LCD production center.
The large glass sheets also bring a cost advantage for Sharp. The per-inch price of LCD panels drops with increases in the size of mother glass, so the panels are likely to be more competitive than those from rivals. That's especially important in the TV market, where strong competition has made price a key to success.
Toshiba currently holds a stake in IPS Alpha Technology Ltd., an LCD manufacturing joint venture created with Panasonic and Hitachi. The IPS line uses an older 6th-generation technology and will need substantial investment if it is to remain competitive in the market.
Friday, December 21, 2007
Report: Sharp, Toshiba discussing LCD alliance
Sharp and Toshiba are discussing a flat-panel display alliance that could lead to a big shake-up in the industry, a Japanese newspaper reported Friday.
As part of the deal, Sharp will begin supplying Toshiba with LCD (liquid crystal display) panels from a new plant the company is building in Osaka, Japan, according to The Nikkei newspaper.
The ¥380 billion (US$3.4 billion) plant is currently under construction in Osaka's Sakai City, with production scheduled to begin in 2009. The plant will be able to handle mother glass -- the large sheets on which several display panels are made -- of 2.85 meters by 3.05 meters. This size, dubbed 10th generation, is larger than that used by any other display manufacturer and will make the Sakai plant the world's most advanced LCD production center.
The large-size glass also brings a cost advantage for Sharp. The per-inch price of LCD panels drops with increases in the size of mother glass, so the panels are likely to be more competitive than those from rivals. That's especially important in the TV market, where strong competition has made price a key to success.
Toshiba currently obtains panels for its large-screen TVs from IPS Alpha Technology Ltd., a company that it jointly owns with Panasonic and Hitachi, and from South Korea's Samsung. By aligning with Sharp for large-screen panels, Toshiba will pull out of IPS, The Nikkei said. IPS currently operates a 6th-generation LCD manufacturing line, and the company will need substantial investment to upgrade or replace this if it is to remain in the market.
Sharp and Toshiba wouldn't immediately comment on the newspaper report; however, Sharp hinted that an announcement could come later Friday.
As part of the deal, Sharp will begin supplying Toshiba with LCD (liquid crystal display) panels from a new plant the company is building in Osaka, Japan, according to The Nikkei newspaper.
The ¥380 billion (US$3.4 billion) plant is currently under construction in Osaka's Sakai City, with production scheduled to begin in 2009. The plant will be able to handle mother glass -- the large sheets on which several display panels are made -- of 2.85 meters by 3.05 meters. This size, dubbed 10th generation, is larger than that used by any other display manufacturer and will make the Sakai plant the world's most advanced LCD production center.
The large-size glass also brings a cost advantage for Sharp. The per-inch price of LCD panels drops with increases in the size of mother glass, so the panels are likely to be more competitive than those from rivals. That's especially important in the TV market, where strong competition has made price a key to success.
Toshiba currently obtains panels for its large-screen TVs from IPS Alpha Technology Ltd., a company that it jointly owns with Panasonic and Hitachi, and from South Korea's Samsung. By aligning with Sharp for large-screen panels, Toshiba will pull out of IPS, The Nikkei said. IPS currently operates a 6th-generation LCD manufacturing line, and the company will need substantial investment to upgrade or replace this if it is to remain in the market.
Sharp and Toshiba wouldn't immediately comment on the newspaper report; however, Sharp hinted that an announcement could come later Friday.
Broadcom says Qualcomm is importing chips against ban
The U.S. International Trade Commission said it will investigate whether Qualcomm is complying with a ban that prohibits it from importing certain chips into the U.S.
The investigation is the result of a complaint that Broadcom filed with the U.S. ITC. Qualcomm is importing chips that employ a work-around of a Broadcom patent that the court ruled Qualcomm infringes. Broadcom alleges that the new technology also infringes its patent.
The investigation is the latest chapter in a long-running dispute between the two chip companies. In July, the ITC ruled that Qualcomm was infringing on Broadcom patents. In a very rare decision, the ITC forbade the import of phones that included future versions of certain Qualcomm chips, rather than all the offending chips, because the commission decided that would have unduly damaged the economy.
However, the U.S. Court of Appeals for the Federal Circuit has since stayed that ruling.
One attorney suspects that Broadcom's most recent complaint to the ITC is an effort to essentially overrule the appeals' court stay.
"This enforcement proceeding represents a crafty way for Broadcom to get around the court's stay and go directly to the ITC to give some teeth to the remedy provided by the ITC," said Lyle Vander Schaaf, an attorney at Bryan Cave and a former ITC attorney.
If the commission decides in Broadcom's favor, Qualcomm could face millions of dollars in penalties, he said.
Broadcom said it is seeking fines and additional orders against Qualcomm.
The investigation is the result of a complaint that Broadcom filed with the U.S. ITC. Qualcomm is importing chips that employ a work-around of a Broadcom patent that the court ruled Qualcomm infringes. Broadcom alleges that the new technology also infringes its patent.
The investigation is the latest chapter in a long-running dispute between the two chip companies. In July, the ITC ruled that Qualcomm was infringing on Broadcom patents. In a very rare decision, the ITC forbade the import of phones that included future versions of certain Qualcomm chips, rather than all the offending chips, because the commission decided that would have unduly damaged the economy.
However, the U.S. Court of Appeals for the Federal Circuit has since stayed that ruling.
One attorney suspects that Broadcom's most recent complaint to the ITC is an effort to essentially overrule the appeals' court stay.
"This enforcement proceeding represents a crafty way for Broadcom to get around the court's stay and go directly to the ITC to give some teeth to the remedy provided by the ITC," said Lyle Vander Schaaf, an attorney at Bryan Cave and a former ITC attorney.
If the commission decides in Broadcom's favor, Qualcomm could face millions of dollars in penalties, he said.
Broadcom said it is seeking fines and additional orders against Qualcomm.
ComScore: Online sales heat up this week
U.S. buyers shopped aggressively online on Monday and Tuesday of this week, spending significantly more than they did on the comparable days last year, according to comScore.
Online retail spending hit US$700 million on Monday, up 33 percent from last year, and $670 million on Tuesday, up 25 percent, the Web-monitoring company said Thursday.
During the first 48 days of the holiday shopping season -- Nov. 1 to Dec. 18 -- U.S. shoppers have spent almost $25 billion in online retail purchases, up 19 percent from the same period last year, according to comScore.
As Christmas day approaches, the intensity of online shopping will ease up, although late-shipping deals, in-store pickup options and price reductions should keep growth rates strong in the remainder of the holiday season, comScore said.
The company expects online spending during the holidays to reach $29.5 billion, which would represent a 20 percent increase over the 2006 season.
Meanwhile, Nielsen Online said Wednesday that a majority of online shoppers it surveyed reported being either "very satisfied" or "somewhat satisfied" with the customer support they received from online shopping Web sites.
Nielsen Online's survey found that of the 46 percent of respondents who had posted or planned to post reviews about their online shopping experience, 88 percent said those reviews were, or would be, positive.
Netflix topped the survey's customer satisfaction list, having been rated "very satisfied" by 90.3 percent of respondents, and was followed by comparison-shopping site NexTag.com (87 percent), giant e-tailer Amazon.com (86.6 percent), Yahoo Shopping (84.3 percent) and Kohls.com (84.1 percent). Rounding out the top 10 were Barnesandnoble.com, HomeDepot.com, Circuitcity.com, eBay.com and JCPenney.com.
On the other end of the spectrum, sites that in recent days have been flagged for buckling under the strong holiday-season traffic include Mastercard.com and Macys.com.
Macys.com's home page faced slowdowns throughout Tuesday, taking, at its worst, about 38 seconds to load, compared with the usual 2 seconds, according to Web site uptime and availability tracker Gomez.
Apparently, while experiencing availability problems, Macys.com has been serving up a page telling shoppers that the site is crowded and that they have to wait until traffic decreases in order to be let in. An apparent screenshot of this page was posted by The Consumerist blog on Tuesday.
Meanwhile, Mastercard.com has racked up downtime of almost five hours between Nov. 9 and Dec. 20, equivalent to uptime of 99.5 percent for that period, according to Pingdom, which also tracks Web site performance. As such, Mastercard.com has performed significantly worse than sites from competing credit-card companies like Discover, Visa, Diners Club and American Express, all of which have had uptime above 99.9 percent during this period, Pingdom said Thursday.
Neither Macy's nor MasterCard immediately responded to requests for comment.
Online retail spending hit US$700 million on Monday, up 33 percent from last year, and $670 million on Tuesday, up 25 percent, the Web-monitoring company said Thursday.
During the first 48 days of the holiday shopping season -- Nov. 1 to Dec. 18 -- U.S. shoppers have spent almost $25 billion in online retail purchases, up 19 percent from the same period last year, according to comScore.
As Christmas day approaches, the intensity of online shopping will ease up, although late-shipping deals, in-store pickup options and price reductions should keep growth rates strong in the remainder of the holiday season, comScore said.
The company expects online spending during the holidays to reach $29.5 billion, which would represent a 20 percent increase over the 2006 season.
Meanwhile, Nielsen Online said Wednesday that a majority of online shoppers it surveyed reported being either "very satisfied" or "somewhat satisfied" with the customer support they received from online shopping Web sites.
Nielsen Online's survey found that of the 46 percent of respondents who had posted or planned to post reviews about their online shopping experience, 88 percent said those reviews were, or would be, positive.
Netflix topped the survey's customer satisfaction list, having been rated "very satisfied" by 90.3 percent of respondents, and was followed by comparison-shopping site NexTag.com (87 percent), giant e-tailer Amazon.com (86.6 percent), Yahoo Shopping (84.3 percent) and Kohls.com (84.1 percent). Rounding out the top 10 were Barnesandnoble.com, HomeDepot.com, Circuitcity.com, eBay.com and JCPenney.com.
On the other end of the spectrum, sites that in recent days have been flagged for buckling under the strong holiday-season traffic include Mastercard.com and Macys.com.
Macys.com's home page faced slowdowns throughout Tuesday, taking, at its worst, about 38 seconds to load, compared with the usual 2 seconds, according to Web site uptime and availability tracker Gomez.
Apparently, while experiencing availability problems, Macys.com has been serving up a page telling shoppers that the site is crowded and that they have to wait until traffic decreases in order to be let in. An apparent screenshot of this page was posted by The Consumerist blog on Tuesday.
Meanwhile, Mastercard.com has racked up downtime of almost five hours between Nov. 9 and Dec. 20, equivalent to uptime of 99.5 percent for that period, according to Pingdom, which also tracks Web site performance. As such, Mastercard.com has performed significantly worse than sites from competing credit-card companies like Discover, Visa, Diners Club and American Express, all of which have had uptime above 99.9 percent during this period, Pingdom said Thursday.
Neither Macy's nor MasterCard immediately responded to requests for comment.
Key Cisco leader Giancarlo resigns
Charles Giancarlo, who was seen as a likely candidate to head Cisco Systems, has resigned from the networking giant after 14 years to "pursue new professional opportunities," Cisco announced Thursday.
Giancarlo will join Silver Lake Partners, a Silicon Valley venture capital firm that has played host to other executives who left to run other companies. He will be a managing director at the firm's Menlo Park, California, office, starting Jan. 1, Silver Lake said in a statement.
Giancarlo has played a number of important roles at Cisco, and became executive vice president and chief development officer in 2005. Leadership of the company's overall engineering, product and technology strategy will be turned over to a Development Council of seven leaders, which was formed earlier this month under Giancarlo's leadership, Cisco said in a statement. He will leave the company on Dec. 31.
The Development Council will report to Chairman and CEO John Chambers. Formation of the group fits Cisco's recent push for collaboration in place of traditional top-down management. Chambers has said that executive teams within Cisco have helped the company move faster.
It's the second major departure from Cisco in less than a year. In February, Michelangelo Volpi, the head of Cisco's routing and service provider businesses, and also seen as a possible heir to the top spot, resigned to later head up online video company Joost.
Giancarlo, 50, joined Cisco through the acquisition of Kalpana, an early Ethernet switching company. He developed Cisco's acquisition strategy and led several of the company's advanced and emerging technologies, including wireless networking, unified communications, security, video and Telepresence, Cisco said.
"Cisco is very proud to have had Charlie as one of its leaders, and he will always be considered part of Cisco's extended family," Chambers said in a written statement.
Giancarlo also has been president of Cisco's consumer-oriented Linksys subsidiary. That business will now be led by Senior Vice President and General Manager Michael Pocock, who will report to Ned Hooper, Cisco's senior vice president of business development and of the company's consumer and small business group, Cisco spokeswoman Elizabeth McNichols said.
The move surprised longtime Cisco watchers. Infonetics analyst Michael Howard guessed that Giancarlo might have tired of the big-company environment and yearned to return to his startup roots. Other Cisco executives, including onetime Chief Development Officer Mario Mazzola, have left the company only to start small networking ventures that later were acquired by Cisco.
Sun Microsystems' Ed Zander worked at Silver Lake before taking over Motorola in 2004, and Michael Capellas was at the firm between leadership stints at MCI and First Data.
Giancarlo will join Silver Lake Partners, a Silicon Valley venture capital firm that has played host to other executives who left to run other companies. He will be a managing director at the firm's Menlo Park, California, office, starting Jan. 1, Silver Lake said in a statement.
Giancarlo has played a number of important roles at Cisco, and became executive vice president and chief development officer in 2005. Leadership of the company's overall engineering, product and technology strategy will be turned over to a Development Council of seven leaders, which was formed earlier this month under Giancarlo's leadership, Cisco said in a statement. He will leave the company on Dec. 31.
The Development Council will report to Chairman and CEO John Chambers. Formation of the group fits Cisco's recent push for collaboration in place of traditional top-down management. Chambers has said that executive teams within Cisco have helped the company move faster.
It's the second major departure from Cisco in less than a year. In February, Michelangelo Volpi, the head of Cisco's routing and service provider businesses, and also seen as a possible heir to the top spot, resigned to later head up online video company Joost.
Giancarlo, 50, joined Cisco through the acquisition of Kalpana, an early Ethernet switching company. He developed Cisco's acquisition strategy and led several of the company's advanced and emerging technologies, including wireless networking, unified communications, security, video and Telepresence, Cisco said.
"Cisco is very proud to have had Charlie as one of its leaders, and he will always be considered part of Cisco's extended family," Chambers said in a written statement.
Giancarlo also has been president of Cisco's consumer-oriented Linksys subsidiary. That business will now be led by Senior Vice President and General Manager Michael Pocock, who will report to Ned Hooper, Cisco's senior vice president of business development and of the company's consumer and small business group, Cisco spokeswoman Elizabeth McNichols said.
The move surprised longtime Cisco watchers. Infonetics analyst Michael Howard guessed that Giancarlo might have tired of the big-company environment and yearned to return to his startup roots. Other Cisco executives, including onetime Chief Development Officer Mario Mazzola, have left the company only to start small networking ventures that later were acquired by Cisco.
Sun Microsystems' Ed Zander worked at Silver Lake before taking over Motorola in 2004, and Michael Capellas was at the firm between leadership stints at MCI and First Data.
Szulik out at Red Hat; former Delta exec tapped as CEO
Longtime Red Hat CEO Matthew Szulik is being replaced, the company announced on the same day it posted a quarterly revenue gain of 28 percent.
James Whitehurst, formerly the chief operating officer for Delta Airlines, will take on Szulik's leadership positions and a seat on the board starting in the new year. Szulik, currently president and CEO, will remain as chairman of the board.
Szulik had been Red Hat's CEO for the past eight years and is one of the most prominent business executives in the open-source world.
Whitehurst joins Red Hat as the company works through a transition aimed at helping it compete better with giants like Oracle and Microsoft. The company is best known for its Linux server distribution, but that market is getting increasingly crowded. As a result, Red Hat is trying to reach out into other areas or beef up existing offerings, like its services.
Despite the competitive landscape, Red Hat managed to produce solid results for its third quarter ending Nov. 30. It posted revenue of US$135.4 million, an increase of 28 percent over the same period last year.
Net income reached $20.3 million or $0.10 per diluted share, compared with $14.6 million or $0.07 per diluted share in the corresponding quarter of 2006.
The company highlighted its JBoss Advanced Partner Program, launched during the quarter, aimed at offering support services to value-added resources in North America. Red Hat bought JBoss last year as part of its efforts to expand its offerings.
James Whitehurst, formerly the chief operating officer for Delta Airlines, will take on Szulik's leadership positions and a seat on the board starting in the new year. Szulik, currently president and CEO, will remain as chairman of the board.
Szulik had been Red Hat's CEO for the past eight years and is one of the most prominent business executives in the open-source world.
Whitehurst joins Red Hat as the company works through a transition aimed at helping it compete better with giants like Oracle and Microsoft. The company is best known for its Linux server distribution, but that market is getting increasingly crowded. As a result, Red Hat is trying to reach out into other areas or beef up existing offerings, like its services.
Despite the competitive landscape, Red Hat managed to produce solid results for its third quarter ending Nov. 30. It posted revenue of US$135.4 million, an increase of 28 percent over the same period last year.
Net income reached $20.3 million or $0.10 per diluted share, compared with $14.6 million or $0.07 per diluted share in the corresponding quarter of 2006.
The company highlighted its JBoss Advanced Partner Program, launched during the quarter, aimed at offering support services to value-added resources in North America. Red Hat bought JBoss last year as part of its efforts to expand its offerings.
Microsoft to hand over Windows secrets to Samba team
Developers of open-source Samba software will find their work a little easier thanks to an agreement with Microsoft, signed Thursday, that will give them access to previously secret data on how the Windows operating system works.
Microsoft was compelled to make this information available following a March 24, 2004, European Commission antitrust ruling against the company. In July 2006, the EU fined Microsoft €280.5 million (US$338.6 million at that time) for failing to provide documentation on Windows protocols to its rivals. Microsoft lost an appeal of that decision in September, setting the stage for the deal.
The deal was signed with a nonprofit group called the Protocol Freedom Information Foundation, (PFIF) which negotiated on behalf of the Samba team because Samba is not represented by a corporate entity. PFIF will pay a one-time fee of €10,000 and, in return, will be able to allow open-source developers, including the Samba team, to access the documents.
Developers will have to sign nondisclosure agreements and will not be allowed to redistribute Microsoft's documentation, but they will be able to write open-source software that implements the Windows protocols. The deal will also clarify which patents Microsoft believes are related to this technology, making it easier for open-source developers to avoid patent violations.
Antitrust rulings forced Microsoft to set up protocol-licensing programs in the past, including the Microsoft Communications Protocol Program (MCPP) and the Work Group Server Protocol Program (WSPP), but these efforts were not compatible with open-source software licenses.
To reach an agreement with the Samba team, Microsoft created a new type of WSPP licensing agreement, which gives developers access to the Windows protocols as well as a clear list of the patents that Microsoft has declared relative to its technology.
"They're giving us all the documentation to make everything work," said Jeremy Allison, co-author of Samba. "We will have no more excuses to suck ... if we don't have something, we won't be able to say it's not our fault we don't know how to do it."
Samba and Microsoft executives had been meeting since March in hopes of hammering out a deal, said Sam Ramji, director of Microsoft's Open Source Software Lab, in a blog post entitled "If you're surprised, you're not paying attention."
"I expect that this will significantly improve the process of Samba development, and produce better quality interoperation between Windows and Linux/UNIX environments," he wrote.
Samba is an open-source version of the file-and-print software used by Windows. It is a standard component of the Linux and Unix operating systems, allowing these systems to share data and work alongside Windows clients.
But development of Samba has traditionally been back-breaking work. Developers would analyze network traffic to try and glean how Windows was working and then build their software based on that knowledge -- a process called reverse-engineering.
With the new agreement, developers will have access to Microsoft's own protocol specifications and will be able to build their software based on those documents, Allison said. That, in turn, will accelerate the team's development of its next generation of software, which will implement the new Sever Message Block (SMB) 2.0 protocol, used by Windows Vista.
Though the deal was reached on Thursday, developers were still waiting for the final technical aspects of the document hand-over to be settled, Allison said. He expects to get his hands on the technical specifications fairly soon. "I'm guessing that for my Christmas vacation I'll have some enjoyable things to read," he said.
Microsoft was compelled to make this information available following a March 24, 2004, European Commission antitrust ruling against the company. In July 2006, the EU fined Microsoft €280.5 million (US$338.6 million at that time) for failing to provide documentation on Windows protocols to its rivals. Microsoft lost an appeal of that decision in September, setting the stage for the deal.
The deal was signed with a nonprofit group called the Protocol Freedom Information Foundation, (PFIF) which negotiated on behalf of the Samba team because Samba is not represented by a corporate entity. PFIF will pay a one-time fee of €10,000 and, in return, will be able to allow open-source developers, including the Samba team, to access the documents.
Developers will have to sign nondisclosure agreements and will not be allowed to redistribute Microsoft's documentation, but they will be able to write open-source software that implements the Windows protocols. The deal will also clarify which patents Microsoft believes are related to this technology, making it easier for open-source developers to avoid patent violations.
Antitrust rulings forced Microsoft to set up protocol-licensing programs in the past, including the Microsoft Communications Protocol Program (MCPP) and the Work Group Server Protocol Program (WSPP), but these efforts were not compatible with open-source software licenses.
To reach an agreement with the Samba team, Microsoft created a new type of WSPP licensing agreement, which gives developers access to the Windows protocols as well as a clear list of the patents that Microsoft has declared relative to its technology.
"They're giving us all the documentation to make everything work," said Jeremy Allison, co-author of Samba. "We will have no more excuses to suck ... if we don't have something, we won't be able to say it's not our fault we don't know how to do it."
Samba and Microsoft executives had been meeting since March in hopes of hammering out a deal, said Sam Ramji, director of Microsoft's Open Source Software Lab, in a blog post entitled "If you're surprised, you're not paying attention."
"I expect that this will significantly improve the process of Samba development, and produce better quality interoperation between Windows and Linux/UNIX environments," he wrote.
Samba is an open-source version of the file-and-print software used by Windows. It is a standard component of the Linux and Unix operating systems, allowing these systems to share data and work alongside Windows clients.
But development of Samba has traditionally been back-breaking work. Developers would analyze network traffic to try and glean how Windows was working and then build their software based on that knowledge -- a process called reverse-engineering.
With the new agreement, developers will have access to Microsoft's own protocol specifications and will be able to build their software based on those documents, Allison said. That, in turn, will accelerate the team's development of its next generation of software, which will implement the new Sever Message Block (SMB) 2.0 protocol, used by Windows Vista.
Though the deal was reached on Thursday, developers were still waiting for the final technical aspects of the document hand-over to be settled, Allison said. He expects to get his hands on the technical specifications fairly soon. "I'm guessing that for my Christmas vacation I'll have some enjoyable things to read," he said.
'Bricking' bug threatens most HP, Compaq laptops
The hacker who posted an exploit last week that threatened a large swath of Hewlett-Packard Co.'s laptop lineup followed up Wednesday with new attack code that can "brick" nearly every HP laptop.
In a post to the milw0rm.com Web site Wednesday, a Polish security researcher who used the alias "porkythepig" spelled out a pair of vulnerabilities in an ActiveX control used by HP's Software Update, the patch management program bundled with virtually every HP- and Compaq-branded laptop.
According porkythepig's post, the Software Update bugs let an attacker corrupt Windows' kernel files, making the laptop unbootable, or with a little more effort, allow hacks that would result in a PC hijack or malware infection. In either case, a drive-by attack could be conducted by feeding users an e-mail message with a link to a malicious Web site.
"Every HP notebook machine containing the HP Software Updates application is vulnerable," claimed porkythepig. "It is possible that the vulnerable machine model list disclosed by the vendor as a confirmation to the previous issue concerning HP laptops, [the] HP Info Center case, will be similar in this case."
Last week, porkythepig disclosed multiple flaws in other software included with HP's portables. When the company patched the vulnerabilities a day later, it listed 83 affected laptops.
The scenario in which an attacker overwrites the kernel and thus "bricks" the HP or Compaq notebook, was out of the ordinary, since most hacks aim to snatch control of the machine or infect it with identity-stealing malware. But the crippling attack, said porkythepig, is actually the simpler of the two. "This attack vector doesn't require any additional victim social engineering, because the system files are always placed in the predictable locations," he said.
A drive-by attack that hopes to execute rogue code, however, requires more work. To successfully exploit the ActiveX bug in Software Update and compromise the computer, the hacker needs to know the location of certain files.
The researcher said he had tested the exploit code on Windows 2000, XP, Server 2003 and Vista, and that the vulnerabilities pose a risk to any user with either Internet Explorer 6 (IE6) or IE7 on the PC. Nor will HP be able to use the down-and-dirty fix it deployed last week, said porkythepig. After he revealed several bugs in HP's Info Center a week ago, HP issued an update that simply disabled the vulnerable software.
"Simple disabling of the vulnerable control by the vendor's patch, like in the other HP software vulnerability case, HP Info, [could still] result in the machine['s] software update system [being] compromised, and would leave the user vulnerable to future security issues," porkythepig said in the milw0rm.com write-up.
HP did not reply to e-mailed requests for confirm and comment.
In a post to the milw0rm.com Web site Wednesday, a Polish security researcher who used the alias "porkythepig" spelled out a pair of vulnerabilities in an ActiveX control used by HP's Software Update, the patch management program bundled with virtually every HP- and Compaq-branded laptop.
According porkythepig's post, the Software Update bugs let an attacker corrupt Windows' kernel files, making the laptop unbootable, or with a little more effort, allow hacks that would result in a PC hijack or malware infection. In either case, a drive-by attack could be conducted by feeding users an e-mail message with a link to a malicious Web site.
"Every HP notebook machine containing the HP Software Updates application is vulnerable," claimed porkythepig. "It is possible that the vulnerable machine model list disclosed by the vendor as a confirmation to the previous issue concerning HP laptops, [the] HP Info Center case, will be similar in this case."
Last week, porkythepig disclosed multiple flaws in other software included with HP's portables. When the company patched the vulnerabilities a day later, it listed 83 affected laptops.
The scenario in which an attacker overwrites the kernel and thus "bricks" the HP or Compaq notebook, was out of the ordinary, since most hacks aim to snatch control of the machine or infect it with identity-stealing malware. But the crippling attack, said porkythepig, is actually the simpler of the two. "This attack vector doesn't require any additional victim social engineering, because the system files are always placed in the predictable locations," he said.
A drive-by attack that hopes to execute rogue code, however, requires more work. To successfully exploit the ActiveX bug in Software Update and compromise the computer, the hacker needs to know the location of certain files.
The researcher said he had tested the exploit code on Windows 2000, XP, Server 2003 and Vista, and that the vulnerabilities pose a risk to any user with either Internet Explorer 6 (IE6) or IE7 on the PC. Nor will HP be able to use the down-and-dirty fix it deployed last week, said porkythepig. After he revealed several bugs in HP's Info Center a week ago, HP issued an update that simply disabled the vulnerable software.
"Simple disabling of the vulnerable control by the vendor's patch, like in the other HP software vulnerability case, HP Info, [could still] result in the machine['s] software update system [being] compromised, and would leave the user vulnerable to future security issues," porkythepig said in the milw0rm.com write-up.
HP did not reply to e-mailed requests for confirm and comment.
New York nears decision on ODF vs OOXML
Officials in New York are nearing decision-making time about which XML-based office document format, ODF or OOXML, that state will use across the IT systems of its agencies as the debate over a universal file format continues.
According to the state's Web site, the public comment period about whether the state should mandate a document format is scheduled to end Dec. 28. At that point officials will review all comments and decide which course of action to take.
In August, the state legislature requested that New York Chief Information Officer and Director of the Office for Technology Melodie Mayberry-Stewart gather information and input from people who would be affected about how the state should approach access, creation and maintenance of electronic documents in a way that achieves, among other things, vendor neutrality and interoperability.
A document posted to the state Web site outlines questions users should consider when debating whether ODF or OOXML would be a better fit for New York government agencies. They have until 5 p.m. EST on Dec. 28 to make their comments, which should be sent electronically to the state technology office's Principal Attorney Darlene Van Sickle via e-mail to erecords-study@oft.state.ny.us
In addition to New York, other states, including Massachusetts, Minnesota and Texas, have eyed mandating one document file format across their IT systems.
The debate over whether ODF (Open Document Format for XML) or OOXML (Open XML) should be the universal file format for office documents apparently will remain heated in 2008 after a stormy year for those on both sides.
In September, the International Organization for Standardization rejected an attempt by Microsoft to use another standards body, Ecma International, to fast-track OOXML through the standards process. Complaints poured in that Microsoft placed people sympathetic to its cause in key voting positions toward the end of the process in an attempt to swing the vote in its favor.
The next month a group designed to promote ODF, the OpenDocument Foundation, withdrew support of ODF in favor of CDF (Compound Document Format). As 2007 closes, companies such as IBM, Sun Microsystems and Google continue to promote ODF, while Microsoft remains the most visible supporter of OOXML.
According to the state's Web site, the public comment period about whether the state should mandate a document format is scheduled to end Dec. 28. At that point officials will review all comments and decide which course of action to take.
In August, the state legislature requested that New York Chief Information Officer and Director of the Office for Technology Melodie Mayberry-Stewart gather information and input from people who would be affected about how the state should approach access, creation and maintenance of electronic documents in a way that achieves, among other things, vendor neutrality and interoperability.
A document posted to the state Web site outlines questions users should consider when debating whether ODF or OOXML would be a better fit for New York government agencies. They have until 5 p.m. EST on Dec. 28 to make their comments, which should be sent electronically to the state technology office's Principal Attorney Darlene Van Sickle via e-mail to erecords-study@oft.state.ny.us
In addition to New York, other states, including Massachusetts, Minnesota and Texas, have eyed mandating one document file format across their IT systems.
The debate over whether ODF (Open Document Format for XML) or OOXML (Open XML) should be the universal file format for office documents apparently will remain heated in 2008 after a stormy year for those on both sides.
In September, the International Organization for Standardization rejected an attempt by Microsoft to use another standards body, Ecma International, to fast-track OOXML through the standards process. Complaints poured in that Microsoft placed people sympathetic to its cause in key voting positions toward the end of the process in an attempt to swing the vote in its favor.
The next month a group designed to promote ODF, the OpenDocument Foundation, withdrew support of ODF in favor of CDF (Compound Document Format). As 2007 closes, companies such as IBM, Sun Microsystems and Google continue to promote ODF, while Microsoft remains the most visible supporter of OOXML.
IBM unveils 'smart' e-mail search engine
IBM has created a free semantic e-mail search engine aimed at users of the company's Lotus Notes software and Microsoft Outlook.
The engine, called IBM OmniFind Personal Email Search (IOPES), allows users to search their mail based on concepts, such as dates and phone numbers, according to IBM. It also allows searchers to define their own concepts.
Once the software is installed, it indexes and analyzes the user's e-mail store. Searches are conducted through a browser interface that delivers results through a stripped-down, Google-like interface.
Users can enter simple keyword-based queries or ones using basic natural language constructions. For example, to find e-mails from a friend named Mark Smith, you could simply enter "from Mark Smith."
But to find only the e-mails Smith sent in a certain month, a query might be constructed as "Mark from January 2007." You could find his phone number by typing "Smith's phone number."
The results don't show a list of e-mail headers or display the messages in full. Instead, the software extracts the passage it believes contains the right answer, and highlights what it deems to be the specific information requested, such as a phone number.
Users can also search for attachments, with search results providing direct links to the documents in question.
E-mail is a good target for developing a semantic search engine because users frequently repeat certain phrasings and words and repeatedly exchange the same type of information. "There is a fairly large number of things that are so e-mail specific," said Shivakumar Vaithyanathan, the project's technical lead.
Researchers in a number of IBM labs worked on the project for the past year and a half, according to Vaithyanathan. The product has been quietly available on the company's alphaWorks site for a couple of months, but only now is IBM attempting to drive widespread adoption, according to a spokeswoman.
"To be able to solve all these problems in some meaningful way, we want some feedback," Vaithyanathan said.
IBM also released the tool internally to its employees and said it has received mostly positive responses.
The engine, called IBM OmniFind Personal Email Search (IOPES), allows users to search their mail based on concepts, such as dates and phone numbers, according to IBM. It also allows searchers to define their own concepts.
Once the software is installed, it indexes and analyzes the user's e-mail store. Searches are conducted through a browser interface that delivers results through a stripped-down, Google-like interface.
Users can enter simple keyword-based queries or ones using basic natural language constructions. For example, to find e-mails from a friend named Mark Smith, you could simply enter "from Mark Smith."
But to find only the e-mails Smith sent in a certain month, a query might be constructed as "Mark from January 2007." You could find his phone number by typing "Smith's phone number."
The results don't show a list of e-mail headers or display the messages in full. Instead, the software extracts the passage it believes contains the right answer, and highlights what it deems to be the specific information requested, such as a phone number.
Users can also search for attachments, with search results providing direct links to the documents in question.
E-mail is a good target for developing a semantic search engine because users frequently repeat certain phrasings and words and repeatedly exchange the same type of information. "There is a fairly large number of things that are so e-mail specific," said Shivakumar Vaithyanathan, the project's technical lead.
Researchers in a number of IBM labs worked on the project for the past year and a half, according to Vaithyanathan. The product has been quietly available on the company's alphaWorks site for a couple of months, but only now is IBM attempting to drive widespread adoption, according to a spokeswoman.
"To be able to solve all these problems in some meaningful way, we want some feedback," Vaithyanathan said.
IBM also released the tool internally to its employees and said it has received mostly positive responses.
Air France launches in-flight cell phone trial
Air France launched a commercial trial of an onboard cell phone service, but in a limited fashion that avoids a controversial aspect.
Travelers on certain Air France planes on European routes can send and receive short messages and, provided their phones support Internet access, send and receive e-mails.
Initially, travelers won't be able to make or receive voice calls. That limitation skirts an important issue: whether cell phone talkers will annoy nearby passengers.
However, in about three months, Air France does plan to allow voice calls, but said it will regulate the service "to maintain passengers' comfort and well-being." It did not explain how it might do that.
Onboard calls and messages are routed through a small cellular base station inside the plane. From there, messages are transmitted over satellite to the ground and then on to the telephone network. The service is supplied by OnAir, a company part owned by airplane maker Airbus.
To use their phones, passengers must dial as if they're making an international call. Air France did not say how much each message would cost for users, but said the price is comparable to traditional mobile phone use.
The planes come equipped with a new illuminated sign that instructs passengers when to keep their phones off. Travelers can send and receive messages only when the plane rises above 10,000 feet.
Tips for using the service will be explained on a leaflet in seat pockets, Air France said. In addition, users will be able to fill out a survey about their experiences using it. After six months, Air France will consider whether to launch the service on all of its flights.
Airlines and regulators worldwide have been considering onboard cell phone use for years. Some regulators, including the U.S. Federal Communications Commission, have banned mobile phone use on airplanes. The European Union, however, has approved the idea, and various national regulators there have begun to allow it. Airlines in other regions, like the Australian operator Qantas, are also conducting more limited tests of the service.
JetBlue, Yahoo and Research In Motion recently launched a service on one airplane in the U.S. that allows users to send and receive e-mail from BlackBerry phones, Wi-Fi smartphones and laptops. However, the service uses an onboard Wi-Fi network instead of cellular phone technology.
Travelers on certain Air France planes on European routes can send and receive short messages and, provided their phones support Internet access, send and receive e-mails.
Initially, travelers won't be able to make or receive voice calls. That limitation skirts an important issue: whether cell phone talkers will annoy nearby passengers.
However, in about three months, Air France does plan to allow voice calls, but said it will regulate the service "to maintain passengers' comfort and well-being." It did not explain how it might do that.
Onboard calls and messages are routed through a small cellular base station inside the plane. From there, messages are transmitted over satellite to the ground and then on to the telephone network. The service is supplied by OnAir, a company part owned by airplane maker Airbus.
To use their phones, passengers must dial as if they're making an international call. Air France did not say how much each message would cost for users, but said the price is comparable to traditional mobile phone use.
The planes come equipped with a new illuminated sign that instructs passengers when to keep their phones off. Travelers can send and receive messages only when the plane rises above 10,000 feet.
Tips for using the service will be explained on a leaflet in seat pockets, Air France said. In addition, users will be able to fill out a survey about their experiences using it. After six months, Air France will consider whether to launch the service on all of its flights.
Airlines and regulators worldwide have been considering onboard cell phone use for years. Some regulators, including the U.S. Federal Communications Commission, have banned mobile phone use on airplanes. The European Union, however, has approved the idea, and various national regulators there have begun to allow it. Airlines in other regions, like the Australian operator Qantas, are also conducting more limited tests of the service.
JetBlue, Yahoo and Research In Motion recently launched a service on one airplane in the U.S. that allows users to send and receive e-mail from BlackBerry phones, Wi-Fi smartphones and laptops. However, the service uses an onboard Wi-Fi network instead of cellular phone technology.
E.U. group says Google-DoubleClick deal will harm privacy
European consumer groups warned the European Commission Thursday that Google's plan to take over the online advertising company DoubleClick, currently under investigation, would erode consumers' privacy and would push up prices for online goods and services.
In a letter to competition commissioner Neelie Kroes, BEUC, the pan-European Union consumer group, together with three national associations, urged the Commission to use its powers to block the deal in its current form.
"Consumers' privacy could be at risk; it is crucial that the Commission integrates privacy concerns into the Google/DoubleClick merger review process," said Monique Goyens, BEUC's director general in a statement.
In addition to privacy concerns, the letter also argued that combined strength of the two Internet firms would harm consumers "with respect to the price, degree of innovation, quality, and selection of online products and services that would likely be available to consumers following the merger."
Neither Google nor the Commission were available to comment.
Meanwhile, also on Thursday, the U.S. Federal Trade Commission cleared Google's acquisition of DoubleClick on a 4-1 vote after an eight-month investigation. The FTC concluded that acquisition "is unlikely to substantially lessen competition" and downplayed concerns brought by some privacy groups, saying those concerns are "not unique to Google and DoubleClick," and "extend to the entire online advertising marketplace."
The Commission's competition department has until April 2 to decide to permit the deal, approve it on the condition it is changed or prohibit it outright.
Competition reviews normally focus on the economic impact of mergers and takeovers, rather than their potential impact on privacy.
Consumer groups wrote to Kroes in June, shortly after the planned deal was announced, warning about its impact on privacy. Thursday's follow-up letter focused on the economic effects of the deal on consumers, as well as reiterating the groups' concerns about privacy.
Acknowledging that privacy falls beyond the scope of merger reviews, they nevertheless tried to persuade the Commission to bear it in mind.
"Privacy issues raised in our 27 June letter are detrimental to consumers' welfare and ought to be taken into account in the merger review process," the consumer groups said.
Economic harm to consumers would result from the deal because it would strengthen what the groups describe as the super-dominant position of Google in the online advertising industry.
"The online advertising market will be placed in jeopardy if the Google/DoubleClick merger is allowed to proceed, because the combined company will dominate both major 'pipelines' for online advertising - both the pipeline for search ads and the pipeline for non-search ads," they wrote to Kroes.
"If allowed to proceed, the transaction will enable the world's largest network for the sale of non-search online advertising (Google) to capture and use to its own benefit the dominant provider of stand-alone ad-serving tools (DoubleClick) used by web publishers to connect other networks to the non-search inventory which they need to survive and which is not already committed to Google," the letter said.
By eliminating competition between the two companies for both stand-alone ad serving tools and integrated ad networks, the deal will ultimately "reinforce Google's super-dominant position in the market for search ads," they said.
In addition to the possibility of higher prices for consumers, the deal could undermine the common business model for online publishing, which relies on advertising revenue. This could force content providers to switch to a model based around revenue from subscriptions, forcing consumers to pay for what they get free now.
"Higher online advertising prices may result in part of the advertising budgets shifting to other media, resulting in less revenue than initially forecasted for web publishers. Such publishers might then be forced to charge users to access content in circumstances where they do not do so today," the consumer groups warned.
In a letter to competition commissioner Neelie Kroes, BEUC, the pan-European Union consumer group, together with three national associations, urged the Commission to use its powers to block the deal in its current form.
"Consumers' privacy could be at risk; it is crucial that the Commission integrates privacy concerns into the Google/DoubleClick merger review process," said Monique Goyens, BEUC's director general in a statement.
In addition to privacy concerns, the letter also argued that combined strength of the two Internet firms would harm consumers "with respect to the price, degree of innovation, quality, and selection of online products and services that would likely be available to consumers following the merger."
Neither Google nor the Commission were available to comment.
Meanwhile, also on Thursday, the U.S. Federal Trade Commission cleared Google's acquisition of DoubleClick on a 4-1 vote after an eight-month investigation. The FTC concluded that acquisition "is unlikely to substantially lessen competition" and downplayed concerns brought by some privacy groups, saying those concerns are "not unique to Google and DoubleClick," and "extend to the entire online advertising marketplace."
The Commission's competition department has until April 2 to decide to permit the deal, approve it on the condition it is changed or prohibit it outright.
Competition reviews normally focus on the economic impact of mergers and takeovers, rather than their potential impact on privacy.
Consumer groups wrote to Kroes in June, shortly after the planned deal was announced, warning about its impact on privacy. Thursday's follow-up letter focused on the economic effects of the deal on consumers, as well as reiterating the groups' concerns about privacy.
Acknowledging that privacy falls beyond the scope of merger reviews, they nevertheless tried to persuade the Commission to bear it in mind.
"Privacy issues raised in our 27 June letter are detrimental to consumers' welfare and ought to be taken into account in the merger review process," the consumer groups said.
Economic harm to consumers would result from the deal because it would strengthen what the groups describe as the super-dominant position of Google in the online advertising industry.
"The online advertising market will be placed in jeopardy if the Google/DoubleClick merger is allowed to proceed, because the combined company will dominate both major 'pipelines' for online advertising - both the pipeline for search ads and the pipeline for non-search ads," they wrote to Kroes.
"If allowed to proceed, the transaction will enable the world's largest network for the sale of non-search online advertising (Google) to capture and use to its own benefit the dominant provider of stand-alone ad-serving tools (DoubleClick) used by web publishers to connect other networks to the non-search inventory which they need to survive and which is not already committed to Google," the letter said.
By eliminating competition between the two companies for both stand-alone ad serving tools and integrated ad networks, the deal will ultimately "reinforce Google's super-dominant position in the market for search ads," they said.
In addition to the possibility of higher prices for consumers, the deal could undermine the common business model for online publishing, which relies on advertising revenue. This could force content providers to switch to a model based around revenue from subscriptions, forcing consumers to pay for what they get free now.
"Higher online advertising prices may result in part of the advertising budgets shifting to other media, resulting in less revenue than initially forecasted for web publishers. Such publishers might then be forced to charge users to access content in circumstances where they do not do so today," the consumer groups warned.
NetSuite sets initial stock price at $26
NetSuite on Wednesday set the initial price of its stock at $26, greatly exceeding its original estimate.
The company is selling 6.2 million shares of stock. It said in a filing with the U.S. Securities and Exchange Commission that the proceeds from the sale would net it $151.9 million after expenses.
NetSuite, which sells a line of hosted business software, company initially set the suggested price range for its stock at $13 to $16, and subsequently raised it to $16 to $19 and then $19 to $22. The stock is now trading on New York Stock Exchange under the symbol "N." After rising to $39.01, shares had dropped to $25.76 at 10 a.m. Eastern Time.
The company set the price by running an online "Dutch" auction, in the same fashion of search giant Google, instead of having underwriters set the price.
Scott Sweet, managing director of IPOboutique.com, a firm that tracks the IPO market and offers investment advice, said NetSuite is greatly overvalued as a result of the auction.
"Once again the Dutch auction concept failed to live up to its self-described mantra as being a better conduit in the pricing of an IPO by the investors than the standard method of pricing by the underwriters," he said in an e-mail message Thursday. "In past Dutch auction deals, and it appears the same in this case, investors put in overzealous high bids to 'beat' others in a scramble to get shares. In doing so, it is highly likely that it has greatly diminished the IPO's performance and highly overvalued the company."
NetSuite has said it plans to use proceeds from its IPO to pay off an $8 million balance on a line of credit with Tako Ventures, an entity controlled by Oracle CEO Larry Ellison, and to possibly make acquisitions.
Ellison controls about 60 percent of NetSuite's outstanding stock -- some 31.9 million shares.
NetSuite said Wednesday that Ellison has now completed the transfer of those shares into a holding company, NetSuite Restricted Holdings. The move is meant to "effectively eliminate" Ellison's voting power and avoid potential conflicts of interests, NetSuite said.
The company is selling 6.2 million shares of stock. It said in a filing with the U.S. Securities and Exchange Commission that the proceeds from the sale would net it $151.9 million after expenses.
NetSuite, which sells a line of hosted business software, company initially set the suggested price range for its stock at $13 to $16, and subsequently raised it to $16 to $19 and then $19 to $22. The stock is now trading on New York Stock Exchange under the symbol "N." After rising to $39.01, shares had dropped to $25.76 at 10 a.m. Eastern Time.
The company set the price by running an online "Dutch" auction, in the same fashion of search giant Google, instead of having underwriters set the price.
Scott Sweet, managing director of IPOboutique.com, a firm that tracks the IPO market and offers investment advice, said NetSuite is greatly overvalued as a result of the auction.
"Once again the Dutch auction concept failed to live up to its self-described mantra as being a better conduit in the pricing of an IPO by the investors than the standard method of pricing by the underwriters," he said in an e-mail message Thursday. "In past Dutch auction deals, and it appears the same in this case, investors put in overzealous high bids to 'beat' others in a scramble to get shares. In doing so, it is highly likely that it has greatly diminished the IPO's performance and highly overvalued the company."
NetSuite has said it plans to use proceeds from its IPO to pay off an $8 million balance on a line of credit with Tako Ventures, an entity controlled by Oracle CEO Larry Ellison, and to possibly make acquisitions.
Ellison controls about 60 percent of NetSuite's outstanding stock -- some 31.9 million shares.
NetSuite said Wednesday that Ellison has now completed the transfer of those shares into a holding company, NetSuite Restricted Holdings. The move is meant to "effectively eliminate" Ellison's voting power and avoid potential conflicts of interests, NetSuite said.
Software AG pays $26M for mainframe UI tools
Software AG has bought the application modernization activities of Jacada, adding to its portfolio of tools for prolonging the life of mainframe applications by giving them a Web interface.
The sale marks Jacada's move out of the application modernization and middleware software business in order to concentrate on development of call center systems.
Software AG has bought the rights to Jacada's Terminal Emulator, Interface Server and HostFuse products, among others. Jacada keeps its WorkSpace and WinFuse software, and rights to the Jacada brand.
Eight of Jacada's research, development and support staff will join Software AG to maintain the application modernization products.
Software AG will pay $26 million in cash for the business, which generates $12 million in annual revenue, it said Thursday.
It will gain access to 200 of Jacada's 1,200 customers, mostly in the U.S., giving it a chance to expand its SOA (services-oriented architecture) work in an important market, it said.
The deal is tiny compared to Software AG's purchase of U.S. software vendor webMethods: It paid $546 million for the SOA and business process management (BPM) company in June.
Software AG is also looking to acquire other smaller companies or business units which could benefit from its global infrastructure. Earlier this year it paid $62 million for 80 percent of its Israeli distributor SPL Software.
Also on Thursday, Jacada announced the appointment of a new CEO, Paul O'Callaghan, from Jan. 1. President of the company since May 2006, he replaces Gideon Hollander, who will remain with the company as chairman.
The sale marks Jacada's move out of the application modernization and middleware software business in order to concentrate on development of call center systems.
Software AG has bought the rights to Jacada's Terminal Emulator, Interface Server and HostFuse products, among others. Jacada keeps its WorkSpace and WinFuse software, and rights to the Jacada brand.
Eight of Jacada's research, development and support staff will join Software AG to maintain the application modernization products.
Software AG will pay $26 million in cash for the business, which generates $12 million in annual revenue, it said Thursday.
It will gain access to 200 of Jacada's 1,200 customers, mostly in the U.S., giving it a chance to expand its SOA (services-oriented architecture) work in an important market, it said.
The deal is tiny compared to Software AG's purchase of U.S. software vendor webMethods: It paid $546 million for the SOA and business process management (BPM) company in June.
Software AG is also looking to acquire other smaller companies or business units which could benefit from its global infrastructure. Earlier this year it paid $62 million for 80 percent of its Israeli distributor SPL Software.
Also on Thursday, Jacada announced the appointment of a new CEO, Paul O'Callaghan, from Jan. 1. President of the company since May 2006, he replaces Gideon Hollander, who will remain with the company as chairman.
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