Judge nixes $533 million iTunes damages, orders new trial
A US District Court judge says his instructions to a jury may have "skewed" how damages should have been assessed on Apple's iTunes.
Apple will have at least a few more months before it's asked to ante up for patent infringement in its iTunes software.
US District Court Judge Rodney Gilstrap on Tuesday voided $532.9 million in damages levied against Apple in February in a case brought by patent-holder SmartFlash. The judge said that he may have "skewed" the jury when issuing instructions on how to assess damages, Reuters reported. The judge has ordered a new trial on damages for September 14, according to the report.
iTunes software has long been one of Apple's most important platforms. The software initially acted as a repository for user music at its launch in 2001, but as time went on, expanded to include a wide range of services, including marketplaces for music, videos, apps, and more. The software most recently added support for music-streaming service Apple Music, which launched last week.
SmartFlash makes no products of its own but holds a patent portfolio that it licenses to device makers. Such firms are often dubbed patent trolls for their penchant of seeking to license their patented tech and, if unsatisfied with the result, suing companies for alleged patent infringement.
SmartFlash in 2013 filed a patent-infringement lawsuit against Apple, saying that the company's iTunes software was violating patents it held. SmartFlash -- which has also sued Samsung, Google and Amazon over similar patent violations -- won its case against Apple.
In February, a jury determined that Apple should pay $532.9 million for patent violation. SmartFlash had sought $852 million in damages, while Apple argued that the damages should top out at $4.5 million.
For its part, Apple has shared its displeasure with SmartFlash, saying in February that the company is "exploiting" the marketplace.
"Smartflash makes no products, has no employees, creates no jobs, has no U.S. presence, and is exploiting our patent system to seek royalties for technology Apple invented," the company said in a statement at the time.
Two days after Apple was ordered to pay damages, SmartFlash filed a second lawsuit over the same patents but including products -- such as the iPhone 6, iPhone 6 Plus and iPad Air 2 -- that didn't exist when the first suit was filed.
The judge's ruling this week voids the initial damages and will only require that new damages be assessed.
SmartFlash did immediately respond to a request for comment. Apple declined comment.
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Microsoft to cut 7,800 jobs, take $7.6B charge as phone woes drag on
The layoffs will mostly hit employees in the former Nokia smartphone business. CEO Satya Nadella says Microsoft remains committed to phones but needs a dose of "reinvention."
Microsoft is cutting more employees and restructuring its mobile phone business, in a costly maneuver that continues the company's struggle in the smartphone market.
The software giant announced Wednesday that it will lay off 7,800 workers, most of them in its moribund smartphone unit, which it bought from Nokia last year to the tune of slightly more than $7.2 billion. The 7,800 positions being cut represent about 6.5 percent of the 118,584 employees Microsoft had as of March 31.
The company also said that as a result of the layoffs and restructuring, it will record a charge of around $7.6 billion related to assets it took aboard through its acquisition of the Nokia Devices and Services business, along with restructuring expenses of approximately $750 million to $850 million. In a nutshell, that means Microsoft paid too much for Nokia's phone business based on how the unit is performing now, and the company wants to write off some of the now "worthless" assets.
Microsoft isn't giving up on mobile phones, but rather is still finding its way.
"I am committed to our first-party devices, including phones," Microsoft CEO Satya Nadella said in a statement Wednesday. "However, we need to focus our phone efforts in the near term while driving reinvention. We are moving from a strategy to grow a standalone phone business to a strategy to grow and create a vibrant Windows ecosystem that includes our first-party device family."
Last month, Microsoft announced that Stephen Elop, the former CEO of Nokia who headed Microsoft's devices group, was leaving the company. Joining him on the exit line was former Nokia executive Jo Harlow, who reported to Elop.
Microsoft has long been trying to make a greater dent in the smartphone market, one of the reasons it acquired Nokia's handset unit. But it's mired in a distant third place in the market, with a 2.5 percent share that's going nowhere, far behind Apple and Android.
The company meanwhile is looking to Windows 10 as a white knight that will run apps across all manner of devices and bring new features and a new look to PCs, tablets and mobile phones. The operating system, set to launch July 29, is designed to offer a more unifying experience among computers and mobile devices. So Microsoft is hoping consumers who like Windows 10 on their PCs or tablets may be more drawn to mobile phones with the same software.
But even if Windows 10 is a stunning success, carving out a greater chunk of the mobile market is a huge challenge. Though Microsoft remains a significant software maker, with one version or another of Windows running on more than 90 percent of the world's computers, it has stumbled for years in the mobile phone market and has yet to find a spark as developers and consumers alike remain fixated on Apple's iPhone and on Android phones from Samsung and others.
The new layoffs are in addition to the 18,000 employees Microsoft said a year ago that it planned to let go, according to sources who spoke to The New York Times, which earlier reported on today's announced job cuts. Most of those previously announced, 18,000 cuts involved the struggling Nokia division as well.
Wednesday's round of layoffs had been expected. In an email distributed to employees last month, Nadella mentioned the need to make some "tough choices," a phrase that often implies upcoming job cuts.
With Nadella at the helm, Microsoft has been trying to transform itself from a traditional software company into one that focuses on cloud-based services. Nadella's mantra has been "mobile-first, cloud-first," and he has been keen on empowering Microsoft's mobile operations. But the Nokia purchase may have been more than the company could handle. Microsoft added around 25,000 employees to its ranks when it took over Nokia's mobile phone business. And now with mobile phone sales still in the dumps, more of those employees may be looking for other jobs.
Microsoft said it expects the layoffs will take place over the next several months and that the write-offs announced Wednesday will be completed by the end of its fiscal year in June 2016.
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Finding an edge: Gold medalist Lindsey Vonn talks tech
From CNET Magazine: Olympic Alpine skier Lindsey Vonn is competitive, focused and determined to make a difference -- and not just on the slopes.
Olympic gold medalist Lindsey Vonn, one of the greatest female skiers in US history, admits she's a techie who embraces everything from fitness trackers to wearable cameras to help her train. She's also keen on social media, which lets her connect with fans, including kids asking how she overcame the severe knee injuries that kept her off the competitive track for two years before her record-breaking comeback during the 2014-2015 winter season.
"There are lots of girls who have written me -- a lot of injured kids who have asked me for advice about what I can give them to help them through," says Vonn, who in February set up the Lindsey Vonn Foundation to help girls "achieve their dreams."
But Vonn, a 30-year-old Minnesota native who began "carving the local hill" when she was just 3 years old, says there's one technology she doesn't want her rivals to get their hands on anytime soon: virtual reality. That's because Vonn considers her ability to visualize a ski run a competitive edge.
"If everyone were given that opportunity to train -- to virtually train all the courses -- then it wouldn't be an advantage for me," she says with a laugh. "So I prefer if they wait a couple of years on that."
Vonn spoke with Connie Guglielmo, editor in chief of CNET News, about using tech to track her health, sleep and diet; how GoPro cameras have changed her skiing; and why she hopes people will think of her as more than just a skier.
Here are a few excerpts from their conversation.
What's your overall take on technology? Does it actually help you train?
It's changed a lot about how I train. It makes everything more accurate, and you have a lot more information you can use to improve on what you're doing. There's nothing I can do that can't be tracked. ... If I was tired on this day or didn't sleep well, I can see what I [ate] the day before or what I did. And then I can make changes.
It's changed a lot about how I train. It makes everything more accurate, and you have a lot more information you can use to improve on what you're doing. There's nothing I can do that can't be tracked. ... If I was tired on this day or didn't sleep well, I can see what I [ate] the day before or what I did. And then I can make changes.
Sometimes it is a little intrusive because you have so much information that you are giving to your trainer or your coach. But at the same time it's a lot easier to do that than to have them come to your house or do blood work to see if you are sleeping, if you're rested. ... We used to do a lot of tests at long training camps. They would test my blood to see how much muscle breakdown I had. That was a good indicator if I was overtraining. Now with all that information, I don't have to do that. So while it may seem more intrusive, it's actually less intrusive.
What specific technology do you rely on?
I use Armour39, which is the Under Armour heart-rate monitor. I actually record my workouts, and I can send them to my trainer. I use the Jawbone just as a basic tracker -- I like using it mostly for sleep. I also use a lot of GoPro [cameras]. We track a lot of my skiing, and [it] helps me analyze skiing from a different perspective. Sometimes we put it on the ski. We can see how the ski responds -- if it is vibrating too much and things like that. I use a lot of technology in pretty much everything that I do.
I use Armour39, which is the Under Armour heart-rate monitor. I actually record my workouts, and I can send them to my trainer. I use the Jawbone just as a basic tracker -- I like using it mostly for sleep. I also use a lot of GoPro [cameras]. We track a lot of my skiing, and [it] helps me analyze skiing from a different perspective. Sometimes we put it on the ski. We can see how the ski responds -- if it is vibrating too much and things like that. I use a lot of technology in pretty much everything that I do.
I have Beats wireless headphones, which makes my life nicer because I can listen to music while I work out. ...
Everything pretty much revolves around skiing and training.
Before wearable cameras and fitness trackers, you had to rely on instinct for a lot of these things. Is there such a thing as too much technology for you?
Technology is a really great tool, but you also need to have that human aspect. You know you can't just go off of what your iPhone says or what your computer says. You have to know how your body is feeling, and obviously if you are tired, you need to take a break. ... The data may say that you can train today [but] you know your body and you should listen to that probably more than technology.
Technology is a really great tool, but you also need to have that human aspect. You know you can't just go off of what your iPhone says or what your computer says. You have to know how your body is feeling, and obviously if you are tired, you need to take a break. ... The data may say that you can train today [but] you know your body and you should listen to that probably more than technology.
I think training virtually would be a really amazing tool, but it would also give my competitors pretty big advantages as well. One thing that I feel I'm really good at is visualizing the course in my mind. I'm able to train [on] all the courses throughout the summer even though I'm obviously not skiing. If everyone [were] given that opportunity to train -- to virtually train all the courses -- then it wouldn't be an advantage for me. So, I prefer if they wait a couple of years on that.
What tech would you like to have that hasn't been invented?
I want a teleporter. I would like a device to teleport -- anything to make traveling easier. I travel so much that would be one thing that I would want people to do.
I want a teleporter. I would like a device to teleport -- anything to make traveling easier. I travel so much that would be one thing that I would want people to do.
But more realistically, I would like a wearable to track my skiing -- my speed -- with some sort of GPS that shows me when I'm accelerating and decelerating. ... They've tried to make apps and trackable GPS gear that syncs up your GoPro footage with GPS -- it kind of gives you a description of how fast or slow you are going in the turns. But I found that it's really not that accurate. So, hopefully in the future they can come up with something that will help me improve my training and be able to figure out what I can do better.
You've said you really like your Apple iPhone. Why?
Yes. I had the old Nokia brick phone and went straight to the iPhone. I've been using it since the first one came out. I've never used any other smartphone beyond the iPhone.
Yes. I had the old Nokia brick phone and went straight to the iPhone. I've been using it since the first one came out. I've never used any other smartphone beyond the iPhone.
It makes everything easier -- especially when I travel. The iPhone, with GPS, is really helpful when I'm traveling and you can't find the mountain or the village. You have the iPhone with your navigation. I'm traveling all the time so it makes my life easier to be able to have that.
What about an Apple Watch?
I'm a Rolex user. So I probably won't be able to use the Apple Watch, but my sister will probably test it out for me and tell me how it's going. I think there are some aspects that could be really cool -- it also tracks your sleep and [is] similar to the Jawbone. But we'll see.
I'm a Rolex user. So I probably won't be able to use the Apple Watch, but my sister will probably test it out for me and tell me how it's going. I think there are some aspects that could be really cool -- it also tracks your sleep and [is] similar to the Jawbone. But we'll see.
You tell a story about how you met one of your skiing idols, Picabo Street, when she visited your hometown. Now you use social media to reach your fans. What do you like about social media?
Social media is a really good platform to be able to communicate with fans. And especially since my last two surgeries, a lot of people have written me asking how they can recover better or rehab better from their injuries. And I know a lot of kids also say that, you know, "My career is over; I cannot be a skier anymore." I just like to write them back and give them a little bit of motivation and inspiration to try to get them back on their feet and smiling again. So I think social media is a really good way to communicate with fans that way.
Social media is a really good platform to be able to communicate with fans. And especially since my last two surgeries, a lot of people have written me asking how they can recover better or rehab better from their injuries. And I know a lot of kids also say that, you know, "My career is over; I cannot be a skier anymore." I just like to write them back and give them a little bit of motivation and inspiration to try to get them back on their feet and smiling again. So I think social media is a really good way to communicate with fans that way.
Everyone knows you as a skier, and you've been called one of the greatest female skiers in history. How would you like to be described?
I hope people recognize me as a great skier, but also as a good person: someone who tries to give back as much as possible. I started my own foundation, the Lindsey Vonn Foundation, in February. My goal is to empower young women -- so it's a whole other side of me that people don't necessarily know about.
I hope people recognize me as a great skier, but also as a good person: someone who tries to give back as much as possible. I started my own foundation, the Lindsey Vonn Foundation, in February. My goal is to empower young women -- so it's a whole other side of me that people don't necessarily know about.
I would hope people think of me as a determined and successful athlete and also someone who tries to give back. ... I'm not just a skier. I'm not just a skier.
This story appears in the summer edition of CNET Magazine. For other magazine stories, go here.
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Smartphones aren't selling like they used to (it's an Android thing)
Samsung is just the latest smartphone vendor to offer bad news as demand slows around the world.
After a strong end to 2014, the smartphone market seems to have taken a turn.
Samsung warned on Monday that it would miss Wall Street's expectations for the second quarter, an indication of a rough start for its flagship Galaxy S6 smartphone. Also on Monday, HTC reported that it has swung back into the red. Last week, Chinese smartphone vendor Xiaomi said its sales pace for the year has slowed significantly.
Their results underscore the challenges that all smartphone vendors -- with the potential exception of Apple -- face as consumers upgrade their smartphones less frequently and are less impressed by newer devices' incremental improvements. Moreover, the once hot growth market of China appears to be reaching a saturation point for first-time buyers, with cooling demand there, too.
"Vendors in China will have to win replacement buyers and improve the appeal of their premium offerings to attract upgrades," Gartner analyst Annette Zimmermann said in a statement.
It's all part of a slowdown across the entire the consumer electronics market, according to Gartner. The research firm now forecasts global shipments of PCs, tablets and smartphones to grow 1.5 percent this year, down from its previous forecast of 2.8 percent growth. That slowing growth is pretty much across the board: Worldwide PC shipments will fall 4.5 percent this year. Shipments of tablets will drop 5.9 percent compared with 2014 numbers. And the market for mobile phones will slow to 3.3 percent growth, according to Gartner, which did not provide the market's previous growth rate.
Hitting a wall
Samsung is the highest-profile company to offer bad news.
The Korean conglomerate on Monday said it expects a seventh straight profit decline as it continues to fight tough competition in the smartphone market. Samsung has been losing out particularly to Apple's iPhone 6 and iPhone 6 Plus.
Samsung had hoped to regain its edge, so to speak, with its Galaxy S6 and S6 Edge, both released in April to critical praise. The S6 Edge drew special attention because of a unique shape that features two sides that drop down like an infinity pool. Samsung struggled to meet early demand for the S6 Edge, which the company said was more difficult to produce.
Taiwan-based smartphone manufacturer HTC, meanwhile, posted a loss of $260 million in the second quarter and said it had closed some of its production facilities due to dropping sales.
HTC's sales woes were attributed to lower demand for its high-end Android devices, including the HTC One M9, and weak sales in China. The company previously cut its second-quarter revenue forecast and said that it would post its first loss after four profitable quarters.
Hot startup Xiaomi cooled off a bit when it reported last week that it had sold 35 million smartphones in the first half, missing its projected pace to hit 100 million units by end of the year. With demand in China slowing down, Xiaomi has been moving to expand into new areas, including launching into Brazil.
No need for new
Why are smartphone sales tapering off, even amid new phone launches? Ironically, part of the problem was a strong holiday season, which effectively reduced demand for the rest of the year, according to Jan Dawson, an analyst at Jackdaw Research.
Other factors include fewer basic phones that need to be replaced, and a shift by carriers to equipment installment plans, in which you pay a monthly fee for a device in exchange for a cheaper wireless plan, according to Roger Entner, an analyst at Recon Analytics. Such plans mean fewer people are switching to new devices because they no longer have to pay that fee once the smartphone is paid off, he said.
On top of that, many of this year's newest devices were viewed as "incremental at best," said Dawson. Sure, the new smartphones offer better cameras, more storage and handy features like fingerprint sensors. But none of the upgrades have been significant enough to justify an immediate upgrade.
It's now up to the world's smartphone vendors to figure out what they have to do to once again produce the hot devices consumers all want -- and want it now.
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