Wednesday, January 2, 2008

Nokia Siemens to buy Apertio for €140M

Nokia Siemens Networks will buy Apertio, which specializes in network management applications for telecommunications operators, for €140 million (US$205 million), the companies said Wednesday.
Apertio, in Bristol, England, sells a software application suite with components for managing mobile phone subscribers. Features allow operators to authenticate and deliver applications to users, shut off lost handsets and collect real-time data on subscribers.

The management and consolidation of subscriber data is becoming more important, particularly as operators offer "converged" services, the term for offerings that combine mobile, fixed-line and Internet-based services, the companies said.

The deal is expected to close by May. When complete, Paul Magelli, Apertio's CEO, will head a new section within the Converged Core business of Nokia Siemens.

Apertio's software and equipment is used by operators such as Orange, T-Mobile, O2 and Vodafone. Apertio, a private company, estimates its 2007 revenue at €28 million.

Personal information record losses reach new heights

More than 120 million people in the U.S. had personal data exposed in 2007 as identity theft reached record heights. That's according to research from the nonprofit organization the Identity Theft Resource Center (ITRC) which reported 446 separate breaches exposing 128 million records.
The data shows a more-than sixfold increase over its 2006 figures, when 312 incidents were recorded, involving more than 19 million individuals.

Another group, attrition.org, shows 319 personal information data loss incidents in 2007 in its database, both in the U.S. and other countries.

Criminals can fraudulently use other another person's identity data to buy goods, take out loans, take money from savings accounts, and hire cars. That person has to recover from the loss and endure badgering by debt-recovery organizations and bailiffs.

In the U.K. in 2007 we saw:-

- HMRC and Standard Life - 15,000 records exposed
- HMRC child benefit database - 25 million records lost
- HMRC and Countrywide Assured - 6,500 records leaked
- Northern Ireland Driving Agency - 6,500 records exposed
- Driving Standards Agency - 3 million records lost.

This means that U.K. government agencies alone lost over 28 million people's identity data in 2007. Additional medical data records were lost due to NHS errors.

The number of new identity fraud victims contacting credit reference checking agency Experian continues to grow: 2,570 victims of identity fraud contacted it for assistance in the first half of 2007; a 68 percent year-on-year increase.

Helen Lord, Experian's fraud and regulatory compliance director at Experian, said: "The rate of identity fraud growth continues to be scary."

Identity theft criminals are being caught and punished. However, ITRC founder, Linda Foley, herself an identity theft victim, said: "Identity theft is like the never-ending story. It acts like an oil spill that spreads in yet another direction with the ocean currents and wind despite best efforts to contain it."

IBM buys Israeli storage startup XIV

IBM has bought XIV, an Israeli manufacturer of SAN (storage area network) equipment. XIV's main product is Nextra, a storage system based on a grid of standard hardware components.
Nextra's self-healing, self-tuning and dynamic scaling capabilities will give IBM new technology to address the growing requirement for high-performance storage for digital archives, digital media and Web 2.0 applications, IBM said.

Around 4 petabytes (4 million gigabytes) of Nextra storage are already in service, XIV said.

XIV employees will join IBM's system storage business unit, the companies said. Moshe Yanai, chairman of XIV, previously worked at EMC.

The companies would not put a price on the deal, but reports in the Israeli financial press earlier this week valued it at US$300 million to $350 million.

This is the latest in a line of storage-related acquisitions for IBM, which recently bought Softek, FileNet and NovusCG to beef up its storage offering.

Qualcomm maneuvers around court's chipset ban

Qualcomm is shipping four new wireless chipsets that do not infringe on a video encoding patent held by competitor Broadcom. Qualcomm expects the WCDMA (Wideband Code Division Multiple Access) handsets containing the chips to go on sale in the U.S. by April, it said Wednesday.
The announcement comes two days after a U.S. federal judge issued an injunction that stops Qualcomm from selling some wireless chipsets found to infringe on the Broadcom patent.

Under a special provision of the injunction, Qualcomm can continue to use Broadcom's patented technology in some existing QChat push-to-talk and 1xEV-DO (Evolution-Data Only) products through Jan. 31, 2009, as long as it pays royalties to Broadcom. New products, or existing products sold to new customers, are not covered by the automatic license.

Qualcomm is still developing workarounds for infringing technology included in the QChat and 1xEV-DO products, it said.

Broadcom won a patent infringement suit against Qualcomm in May and was awarded US$19.6 million in damages. However, Broadcom said the injunction -- which only applies to chipsets sold in the U.S. -- was far more important than the money.

Monday's injunction, issued in the U.S. District Court for the Southern District of California, also prohibits Qualcomm from some marketing and customer support activities related to WCDMA and EV-DO chips.

Qualcomm said it still wants further clarification on some aspects of the injunction, saying it could affect the company's product development. The company said it is also considering filing an appeal or for a stay of the injunction.

The two companies still have other patent infringement and antitrust claims pending.

Tuesday, January 1, 2008

Federal judge orders stop to Qualcomm chip sales

A U.S. federal judge has clamped further restrictions on Qualcomm's ability to sell and support certain wireless chipsets, saying that they infringe on three patents held by rival Broadcom.
The injunction, issued Monday by U.S. District Court Judge James Selna, prohibits Qualcomm from making and selling certain third generation (3G) chipsets, used to provide Internet access to mobile phones. Qualcomm is also barred from engaging in a range of marketing and customer support activities related to its WCDMA (Wideband Code Division Multiple Access) and EV-DO (EVolution-Data Only) chips, which are used to process data on high-speed wireless networks.

The ruling is the latest in a series of actions in the long-running dispute between the two chip vendors. In July, the U.S. International Trade Commission (ITC) ruled that Qualcomm infringed Broadcom patents and barred Qualcomm from importing chips to the U.S., but the Commission allowed mobile phone vendors to ship the chips in their products.

"The ITC order did not go nearly as far in prohibiting other activities from Qualcomm," said David Rosmann, vice president of intellectual property litigation with Broadcom. "The U.S. District Court order has in some respects much broader remedies. So the activities that are going to be barred by this injunction go a long way to stopping Qualcomm's continued operations in support of these infringing chips."

Broadcom sued Qualcomm in May 2005, claiming that Qualcomm's chips violated three of the company's patents. In May of this year, a jury found in Broadcom's favor and awarded the company US$19.6 million in damages. Monday's injunction stems from that decision.

Broadcom is also suing Qualcomm on other patent infringement and antitrust claims, Rosmann said. The antitrust case is expected to go to trial in 2009.

Qualcomm executives could not be reached immediately for comment.

Researcher says Sears downloads spyware

Sears and Kmart customers who sign up for a new marketing program may be giving up more private information than they'd bargained for, a prominent anti-spyware researcher claims.
According to Harvard Business School Assistant Professor Ben Edelman, [cq] Sears Holdings' My SHC Community program falls short of U.S. Federal Trade Commission (FTC) standards by failing to notify users exactly what happens when they download the company's marketing software.

And given the invasive nature of the product, Sears has an obligation to make its behavior clearer to users. "The software is not something you'd want on your computer or the computer of anyone you care about," Edelman said in an interview. "It tracks every site you go to, every search you make, every product you buy, and every product you look at but don't buy. It's just spooky."

Edelman has written up an analysis of Sears's software, set to be made public on Tuesday.

Problems with the retailer's My SHC Community program were first brought to light in late December, when CA senior engineer Benjamin Googins, wrote a blog entry criticizing the software, which was written by VoiceFive, a subsidiary of Internet measurement firm ComScore.

Sears launched the My SHC Community in March, intending it to be a vehicle for customers who want a voice in the company's direction. "It's still kind of in its early days," said Rob Harles, vice president of MY SHC Community, in an interview conducted prior to Edelman's post. "It's mainly used right now for research, but what we want to do is open it up so it's creating dialogue with our customers."

Sears Holdings, the owner of the Sears Roebuck and Kmart department stores is the third-largest retailer in the U.S.

Sears offers members $10, and a chance to win one of several sweepstakes as an extra incentive to join the program.

But in return, a small percentage of members must install extremely invasive software.

According to Googins, the product monitors not only all of the user's Web traffic, but also keeps track of secure sessions such as visits to bank sites, sniffs through email headers, and then sends that information to a ComScore.

While Googins called the software "a significant threat to privacy," Harles doesn't see it that way. First off, he said that members can join the community with or without the tracking software and that less than 10 percent of the members have signed up for the tracking program.

And those who get the tracking software installed have all personally identifying information scrubbed by ComScore, and are informed of exactly what's going on, he added.

Harles sent Googlins a detailed rebuttal to his claims, which the CA researcher has published on his blog.

Edelman said Monday the Sears executive is simply wrong. "The comments from... Rob Harles are remarkable," he said via e-mail. "Exactly contrary to actual facts, as best I can tell."

Sears does disclose that it is installing tracking software, but doesn't do enough to make sure that users have seen these disclosures before they download the program, Edelman said in his analysis.

"The FTC requires that software makers and distributors provide clear, prominent, unavoidable notice of the key terms," he wrote. "SHC's installation of ComScore did nothing of the kind."

In an interview, Harles said that Sears had no immediate plans to change its disclosure policies, but he did say that My SHC Community would undoubtedly evolve in some ways.

This isn't the first time ComScore's software has been in the news. In June, Edelman documented how they company's tracking software was being installed on some PCs without consent.

"Why so many problems for ComScore?" Edelman wrote in his latest blog posting. "The basic challenge is that users don't want ComScore software. ComScore offers users nothing sufficiently valuable to compensate them for the serious privacy invasion ComScore's software entails. There's no good reason why users should share information about their browsing, purchasing, and other online activities. So time and time again, ComScore and its partners resort to trickery (or worse) to get their software onto users' PCs."

Holiday electronics sales strong, says SIA

Sales of semiconductors in November indicate that consumer products such as LCD (liquid crystal display) TVs, digital music players and other devices sold well during the holidays, the Semiconductor Industry Association (SIA) said Monday.
November chip sales rose 2.3 percent year-on-year to US$23.1 billion, the SIA said.

Unit demand has far outpaced last year. But falling chip prices have hurt industry revenue, the chip association said. For example, DRAM (dynamic RAM) bit shipments grew 25 percent in the three months through mid-December, but average selling prices have declined 20 percent over the same period.

The association also noted that rising energy prices and concerns about the sub-prime lending issue in the U.S. do not appear to have had a significant impact on consumer spending for the holidays, the SIA said. The group reiterated its forecast that worldwide semiconductor sales will reach a new record in 2007. But it will take a stronger than expected December selling season to reach the 3.8 percent growth goal the group had forecast earlier this year, the SIA said.

Investment banking firm Credit Suisse was not as optimistic as the SIA.

The November data was below normal seasonal trends, noted analyst John Pitzer, in a report on Monday. Even if December reaches its normal seasonal growth, 2007 industry revenue will only reach US$255.7 billion, up 3.2 percent over last year. The growth percentage would fall short of the SIA's 3.8 percent target.

The slow November prompted Credit Suisse to lower its 2008 chip industry revenue forecast to 9.4 percent year-on-year growth, down from a previous target of 13 percent.

Vonage, Nortel settle patent dispute for no cash

Vonage Holdings and Nortel Networks have preliminarily agreed to cross-license several patents, ending a dispute between the companies without any monetary payments, Vonage said Monday.
All claims relating to past damages as well as remaining payments will be dismissed, the company said. Documents sealing the agreement have not yet been finalized.

The agreement is a minor victory for Vonage. The company has settled or reached tentative agreements in three other patent disputes related to VoIP (voice over Internet Protocol) and other telecommunications technology for what could ultimately reach $239 million in payments.

Vonage tentatively agreed last month to settle a patent infringement lawsuit filed by rival AT&T for $39 million. Prior to that deal, Vonage had reached settlements with Sprint Nextel for $80 million and with Verizon Communications for $80 million to $120 million, depending on the results of an appeal.

U.S. bans spare lithium batteries from checked bags

New rules will go into effect on Jan. 1 that prohibit air passengers in the U.S. from carrying spare lithium batteries in their checked baggage.
The new rules, announced Friday by the U.S. Department of Transport, are designed to reduce the risk of fires in aircraft. Lithium batteries have been identified as a possible cause of several aircraft fires.

Passengers will still be able to carry lithium batteries in checked bags if they are installed in a device like a laptop or digital camera. But loose batteries will need to be put in a plastic bag and carried on the plane as hand luggage, the DOT said.

The rules also limit each passenger to two "extended-life" lithium batteries. These are larger batteries with more than 8 grams of equivalent lithium content, examples of which are pictured in the DOT's statement.

The rules are also described at the SafeTravel.dot.gov Web site.

In February 2006 a United Parcel Service flight landed at Philidelphia International Airport after the crew detected a fire in its cargo. The National Transportation Safety Board said later that it found several burned out laptop batteries on the plane, and could not rule them out as a possible cause of the fire.

Lithium batteries are a fire hazzard because of the heat they can generate when they are damaged or suffer a short circuit, the NTSB said at a hearing about the Philidelphia incident last July.

"Several lithium battery incidents have occurred in recent years, including a lithium-ion battery fire that occurred less than two months ago on an airplane in Chicago," the NTSB said.

Several big makers of laptops and cell phones, including Dell and Nokia, have recalled batteries recently because of flaws that created a potential fire hazzard.

Motorola settles patent dispute with Metrologic

Motorola has settled a long-running patent dispute with Metrologic Instruments, a maker of bar-code scanners.
Motorola inherited the lawsuit as part of its 2006 acquisition of wireless handhold device maker Symbol Technologies. Symbol and Metrologic had been engaged in the spat since early 2002, when Symbol sued Metrologic, claiming that the company had failed to make adequate royalty payments.

Symbol was a maker of wireless barcode scanners that are used by delivery and warehouse workers to keep track of inventory.

In 1996, Metrologic licensed Symbol's barcode scanning technology for use with its handheld scanners, paying Symbol royalties of US$10 per scanner. However, in 2001 Metrologic stopped making these payments, claiming that "product changes had pushed the scanners beyond the scope of definitions laid out in the agreement," according to Symbol.

The actual amount in dispute had been less than $500,000 Metrologic has said.

In June 2003 Metrologic counter-sued, claiming patent infringement.

Monday's agreement settles all pending litigation, and enters Motorola and Metrologic into a patent cross-license deal that covers barcode scanning and mobile computing technology, they said in a statement. Terms of the settlement were not released.

US bans spare lithium batteries from checked bags

New rules will go into effect on Jan. 1 that prohibit air passengers in the U.S. from carrying spare lithium batteries in their checked baggage.
The new rules, announced Friday by the U.S. Department of Transport, are designed to reduce the risk of fires in aircraft. Lithium batteries have been identified as a possible cause of several aircraft fires.

Passengers will still be able to carry lithium batteries in checked bags if they are installed in a device like a laptop or digital camera. But loose batteries will need to be put in a plastic bag and carried on the plane as hand luggage, the DOT said.

The rules also limit each passenger to two "extended-life" lithium batteries. These are larger batteries with more than 8 grams of equivalent lithium content, examples of which are pictured in the DOT's statement.

The rules are also described at the SafeTravel.dot.gov Web site.

In February 2006 a United Parcel Service flight landed at Philidelphia International Airport after the crew detected a fire in its cargo. The National Transportation Safety Board said later that it found several burned out laptop batteries on the plane, and could not rule them out as a possible cause of the fire.

Lithium batteries are a fire hazzard because of the heat they can generate when they are damaged or suffer a short circuit, the NTSB said at a hearing about the Philidelphia incident last July.

"Several lithium battery incidents have occurred in recent years, including a lithium-ion battery fire that occurred less than two months ago on an airplane in Chicago," the NTSB said.

Several big makers of laptops and cell phones, including Dell and Nokia, have recalled batteries recently because of flaws that created a potential fire hazzard.

Holiday electronics sales strong, says SIA

Sales of semiconductors in November indicate that consumer products such as LCD (liquid crystal display) TVs, digital music players and other devices sold well during the holidays, the Semiconductor Industry Association (SIA) said Monday.
November chip sales rose 2.3 percent year-on-year to US$23.1 billion, the SIA said.

Unit demand has far outpaced last year. But falling chip prices have hurt industry revenue, the chip association said. For example, DRAM (dynamic RAM) bit shipments grew 25 percent in the three months through mid-December, but average selling prices have declined 20 percent over the same period.

The association also noted that rising energy prices and concerns about the sub-prime lending issue in the U.S. do not appear to have had a significant impact on consumer spending for the holidays, the SIA said. The group reiterated its forecast that worldwide semiconductor sales will reach a new record in 2007. But it will take a stronger than expected December selling season to reach the 3.8 percent growth goal the group had forecast earlier this year, the SIA said.

Investment banking firm Credit Suisse was not as optimistic as the SIA.

The November data was below normal seasonal trends, noted analyst John Pitzer, in a report on Monday. Even if December reaches its normal seasonal growth, 2007 industry revenue will only reach US$255.7 billion, up 3.2 percent over last year. The growth percentage would fall short of the SIA's 3.8 percent target.

The slow November prompted Credit Suisse to lower its 2008 chip industry revenue forecast to 9.4 percent year-on-year growth, down from a previous target of 13 percent.

Baidu CFO killed in holiday accident

Shawn Wang, the chief financial officer of Baidu.com, China's top search engine, was killed in an accident on December 27, the company said Saturday.
"We are all completely shocked and deeply saddened by this tragic news," said Robin Li, Baidu's chairman and CEO, in a statement that described Wang as a "tremendous leader" and "wonderful friend."

Baidu did not provide details of the fatal accident, except to say that it took place "in China during the Christmas holiday vacation."

Wang joined Baidu in 2004 and helped guide the company through its 2005 initial public offering on the Nasdaq stock exchange. Before Baidu, Wang worked as a partner at PriceWaterhouseCoopers' Global Capital Markets Group.

Baidu did not immediately name a new CFO, saying Wang's responsibilities would be overseen by the company's management team until a successor is found.
Sumner Lemon is Singapore correspondent for the IDG News Service.

OLPC CTO Jepsen quits nonprofit effort

The One Laptop Per Child project suffered a blow this week, with Chief Technology Officer Mary Lou Jepsen quitting the nonprofit to start a for-profit company to commercialize technology she invented with OLPC.
Jepsen, who joined OLPC as its first employee in 2005 after Nicholas Negroponte started the effort, will pursue an opportunity to chase after "her next miracle in display technology," OLPC said in an e-mail sent on Sunday.

Jepsen was responsible for hardware and display development for the rugged and power-saving XO laptop, designed for use by children in developing countries. Though the laptop has struggled to find buyers, it has been praised for its innovative hardware features and environmentally friendly design.

Her last day with the organization is Dec. 31, though she will continue consulting with OLPC, according to the e-mail. Dec. 31 is also the end of OLPC's Give One Get One program, in which two XO laptops can be purchased for about US$400, with a user getting one laptop and the other being donated.

Satisfied that XO laptops were shipping in volume, Jepsen noted in an e-mail that she was starting a for-profit company to commercialize some of the technologies she invented at OLPC.

"I will continue to give OLPC product at cost, while providing commercial entities products they would like at a profit," Jepsen wrote in an e-mail.

"I believe that the work I led in the design of the XO laptop is just the first step in changing computing," she wrote.

Powered by solar power, foot pedal or pull-string, the laptop doesn't rely on an electrical outlet to run, making it useful for situations where power is unreliable or unavailable. The laptop's specially designed lithium-ferro phosphate battery consumes between 2 watts to 8 watts depending on usage, compared to 40 watts on commercial laptops depending on usage.

The laptop's battery lasts up to 21 hours because of custom-designed, efficient power-saving features implemented at the hardware and software level. Batteries in commercial laptops may explode at high temperatures, while XO's batteries can run and recharge in temperatures around 100 degrees Fahrenheit (38 degrees Celsius), Jepsen said in earlier interview.

OLPC is also designing a cow-powered generator that works by hooking cattle up to a system of belts and pulleys.

For connectivity, the laptop has mesh-networking features for Internet access.

AOL to end support for Netscape browser

An historic name in software will effectively pass into history in February as AOL discontinues development and active support for the Netscape browser, according to an official blog.
AOL will keep delivering security patches for the current version of Netscape until Feb. 1, 2008, after which it will no longer provide active support for any version of the software, according to a Friday entry on The Netscape Blog by Tom Drapeau, lead developer for Netscape.com. The Netscape.com Web site will remain as a general-purpose portal.

Netscape was the original mass-market Web browser and helped to popularize the Internet in the mid-1990s, but it has long taken a back seat to Microsoft Internet Explorer and Mozilla Firefox. Firefox itself traces its roots back to Netscape software that was made into open source. The Mozilla Foundation was founded in 2003, with support from AOL, and has released successive versions of Firefox while AOL continued to develop Netscape on top of the same platform, Drapeau wrote.

Groups within AOL have tried and failed to revive Netscape Navigator and gain market share against Internet Explorer, according to the blog entry.

"AOL's focus on transitioning to an ad-supported Web business leaves little room for the size of investment needed to get the Netscape browser to a point many of its fans expect it to be," Drapeau wrote. "Given AOL's current business focus ... we feel it's the right time to end development of Netscape branded browsers, hand the reins fully to Mozilla and encourage Netscape users to adopt Firefox," Drapeau wrote.

The Mosaic Netscape browser was posted for downloading in 1994 by Mosaic Communications, which later changed its name to Netscape Communications. That company kicked off the dot-com boom with its hugely successful initial public offering in August 1995 and was acquired by AOL in 1999. But Internet Explorer, introduced in 1995, eventually dominated the browser market. Microsoft's bundling of its browser with Windows operating systems was a key issue in antitrust lawsuits filed against it in 1997.

As of this month, Netscape had only 0.6 percent of the browser market, which was still dominated by Internet Explorer with more than 77 percent, according to Web application and analytics firm Net Applications. Firefox was gaining, however, with market share just over 16 percent.

Users will still be able to download old versions of Netscape from an archive, currently located here, though they will not be supported by AOL, Drapeau wrote.