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Apple reverses decision to change VPN on Demand in VirnetX lawsuit, but only for devices that already shipped

Due to a loss in a patent lawsuit that awarded patent holder VirnetX $368.2 million, we reported earlier this month that Apple would be changing the behaviour of its VPN on Demand features for devices running iOS 6.1 and up. The changes would mean a downgrade in functionality for users effectively forcing them to start the VPN client before they run an app, or before they open mobile Safari to access an intranet site.

Now, in a recently updated knowledge base article (via MacRumors), Apple appears to be backtracking on that decision informing customers it “no longer plans to change the behavior of the VPN On Demand feature of iOS 6.1 for devices that have already been shipped.”

Apple continues by stating “The ‘Always’ option will continue to work as it currently does on these devices.” It seems as if Apple and VirnetX have reached some type of settlement, but what this means for future devices that have yet to ship is unclear.

Apple to pay $53 million in class-action suit following iPhone warranty policy

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Bring your faulty iPhone into your local Apple Store and probably the first thing the technician behind the Genius Bar troubleshooting your device will do is check the status of Liquid Contact Indicator, which signals excessive exposure to water.

This hidden tape strip reacts to moisture and can be found in your device’s headphone jack and charging port. The status of your warranty coverage depends on its color: if it is white, you pass, which means you are probably not responsible for replacement costs; if it is pink, your warranty is void, which can lead to expensive repair costs.

Apple’s practice of not honoring its hardware warranty based on this practice led to a class action lawsuit against the company in California.

Apple has reportedly agreed to pay up to the tune of $53 million in a settlement, nearly $16 million of which will go toward the legal counsel of the plaintiffs, and should be filed in a San Francisco federal court in the coming days, according to Wired.com.


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Judge says Apple and Google are using litigation as a business strategy, have ‘no interest’ in settlement

In an ongoing case in which Apple and Google’s Motorola have accused each other of infringing various mobile related patents since 2010, U.S. District Judge Robert Scola said in an order yesterday that the two companies have no interest in reaching a settlement. Bloomberg reports Scola said in his order that both companies are using the litigation as a “business strategy that appears to have no end”:

“The parties have no interest in efficiently and expeditiously resolving this dispute; they instead are using this and similar litigation worldwide as a business strategy that appears to have no end,” U.S. District Judge Robert Scola in Miami said in an order dated yesterday. “That is not a proper use of this court.”

“Without a hint of irony, the parties now ask the court to mop up a mess they made by holding a hearing to reduce the size and complexity of the case,” he wrote. “The court declines this invitation.”

The result is Apple and Google will now have a four month period to narrow their claims related to the case that now includes over 180 claims for 12 patents. Bloomberg notes that Scola said the case currently includes “disputes over the meaning of more than 100 terms,” and that the case would be put on hold until the disputes are resolved if the two companies are unable to come up with a solution before the four month timeframe expires.

Back in November there were reports that Apple and Google’s Motorola were considering a settlement and even submitted “proposals on using binding arbitration to reach a licensing agreement” for standard essential patents to courts in Wisconsin. At the time Apple said “such an agreement could lead to a global settlement of all of their patent disputes,” but the two companies couldn’t come to an agreement on the arbitration process.

Last year Apple and HTC announced they reached a global settlement in multiple patent-related cases that some analysts estimated could be worth as much as $180 million to $280 million annually. When it comes to Samsung, many reports quoted Samsung’s Shin Jong-kyun as claiming the company does not “intend to (negotiate) at all” following the HTC settlement.

Apple in court: Samsung infringes key text-selection patent, anti-poaching class action blocked, slide to unlock invalidated in Germany

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Apple’s decision to disable VPN on demand functionality on iOS due to the virnetX lawsuit isn’t the only patent related Apple news today. Head below for a roundup of Apple’s court woes and wins from earlier today:

Samsung infringes key text-selection patent: Reuters reports that the International Trade Commission has handed down a preliminary decision ruling Samsung infringed on an Apple patent related to a text-selection feature. However, the courts also ruled Samsung didn’t infringe another patent related to detecting when other devices are plugged into a microphone jack. If the text-selection decision is upheld, the result could be a U.S. import ban on Galaxy, Transform, and Nexus devices:
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Apple in Shanghai court over Siri speech recognition patent infringement claims

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AFP reported Apple is in court in Shanghai, China again today, but this time it’s over a lawsuit alleging the company copied components of Siri’s speech recognition software. According to the report, Shanghai-based Zhizhen Network Technology Co. claimed in pretrial proceedings that Apple infringed its patent related to voice recognition technology via Siri. While the suit notes that development of Siri began in 2007, there is no mention of Nuance. Apple currently partners Nuance with to implement the speech recognition component in Siri, and it is also a market leader that presumably has its own arsenal of speech recognition related patents.

Zhizhen says it patented its “Xiao i Robot” software in 2004, while Apple’s Siri, which made its debut with the release of the iPhone 4S in 2011, was first developed in 2007.

“The company will ask Apple to stop manufacturing and selling products using its patent rights, once Apple’s infringement is confirmed,” Si Weijiang, a lawyer representing Zhizhen, told AFP.

“We don’t exclude the possibility of demanding compensation in the future,” he added.

The company is behind Siri-like software called ‘Xiao i Robot’ that it claimed was first developed before Siri in 2004. The technology is apparently available on some smart TVs and enterprise applications, but it doesn’t appear to be available as a consumer-facing app for smartphones or tablets. The video below appeared online when the company originally filed suit against Apple last year, and it shows the Xiao i Robot software running on a Lenovo smartphone:

http://www.youtube.com/watch?v=Ku0H10_G1X4

Police officer reports son for fraud after Apple refuse to refund £3,700 App Store spending spree

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A police officer in the U.K. named Doug Crossan reported his own 13-year-old son for fraud after Apple refused to refund £3,700 that the child ran up playing freemium App Store titles on his iPad. DailyMail has the story:

Cameron then racked up more than 300 purchases on games such as Plants vs Zombies, Hungry Shark, Gun Builder, Nova 3. Many of them are free to download but users can buy in-game extras – in one game Cameron had purchased a virtual chest of gold coins costing £77.98.

But the technology company has refused and his only way of recouping the money is to report the purchases as being fraudulent. So Mr Crossan, of Clevedon, North Somerset, has shopped Cameron to the Action Fraud helpline – meaning his son could face arrest and questioning by the his father’s colleagues. He said: ‘I am sure Cameron had no intention to do it, but I had to have a crime reference number if there was any chance of getting any credit card payments refunded.

We reported last week that Apple was adding a new “offers in-app purchases” warning in the App Store to better inform consumers downloading free apps that additional content will require a fee. The move followed a settling a class action lawsuit that alleged children were able to rack up thousands of dollars through the iOS freemium model, i.e. in-app purchases, with both parents and children under the impression that the games were free. Apple is refusing to refund Crossan, citing “parental responsibility and pointing out that iPads contain password locks to prevent accidental or unwanted purchases.”


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Apple adds ‘offers in-app purchases’ warning in iTunes following class action lawsuit

After settling a class action lawsuit brought on by parents arguing the iOS freemium model, i.e. in-app purchases, allowed children to easily rack up thousands of dollars, Apple has made a subtle change to the App Store to make consumers more aware of apps that offer in-app purchases. The Guardian confirmed with Apple that it recently added a new “Offers In-App Purchases” warning directly underneath the download button in iTunes following the settlement (as pictured above).

Apple has always listed “Top in-app purchases” on app listings in iTunes and the App Store app, but the new warning is clearly a response to the lawsuit and an attempt to make apps that offer in-app purchases more visible to customers downloading free apps. The new warning isn’t on listings in the App Store iOS app yet, but could presumably make its way there as well.

Apple previously agreed to pay $5 in iTunes credit or a full refund for purchases above $30 to those claiming in-app content was purchased by a minor without their permission. Apple is contacting 23 million iTunes account holders that qualify to receive a cut of the settlement.

Update: As expected, the new warning is now appearing on the App Store on iOS as well:

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Sony and Philips-backed Intertrust sues Apple over security and trusted computing patents

Apple is the target of a new patent infringement suit filed today by Intertrust—a company backed by Sony and Philips that has licensed its patents to many companies in the past including Samsung, Nokia, Microsoft, HTC, Motorola, and others. The Wall Street Journal noted Philips and Sony each hold a 49.5-percent stake in the company that previously settled with Microsoft in 2004 for $440 million related to a patent infringement case.

The announcement from Intertrust on its website doesn’t mention the specific patents or technologies involved in the suit, but it claims Apple products, including iPhone, iPad, Apple TV, Macs, iCloud and iTunes, infringe on 15 Intertrust patents related to “security and distributed trusted computing.”

 The lawsuit accuses Apple of making products and services that infringe on 15 Intertrust patents on security and distributed trusted computing. The lawsuit covers a broad range of key Apple products and services including iOS devices such as the iPhone and iPad, Mac computers and laptops, Apple TV, and services including iTunes, iCloud, and the Apple App Store.

“Apple makes many great products that use Intertrust’s inventions,” said Talal Shamoon, Intertrust’s chief executive officer. “Our patents are foundational to modern Internet security and trusted computing, and result from years of internal research and development. We are proud of our record of peaceful and constructive licensing with industry leaders. We find it regrettable that we are forced to seek Court assistance to resolve this matter.”

THX sues Apple over iMac, iPhone and iPad narrow profile speaker design

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Images from Patent no. 7433483

Apple has found itself on the wrong side of another patent lawsuit. Lucasfilm-owned THX sued Apple yesterday over a claimed infringed patent relating to the speaker designs found on the new iMacs, iPhones, and iPads.

Patent no. 7433483, filed in 2008 by THX, protects “narrow profile sound systems” that shoot sound out a “narrow sound duct.” The exact patent description reads as follows:

A narrow profile speaker unit comprises at least one speaker outputting sound towards an internal surface and through a duct with an output terminus, such as a slot, having a narrow dimension, effectively changing the cross-section of the speaker’s audio output wave. A pair of speakers may face one another, outputting sound towards a common output slot. Multiple pairs of speakers may be used to form an inline speaker unit for increased sound output. A slotted speaker unit may include multiple speakers facing the same direction, towards a groundplane or reflecting surface, and having parallel apertures for allowing sound radiation. The speaker units may be integral with or attached to electronic appliances such as desktop computers or flatscreen devices, or may be used in automobiles or other contexts.

THX was founded in 1983 as a division of Lucasfilm and was re-booted in 2001 as an independent company. Apple and THX have never had friction in the past, and, just two months ago, THX released ‘THX tune-up’. It’s an app that allows you to adjust your “TV, projector and speakers” all from your iPhone or iPad.


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Apple asks judge to throw out app monopoly lawsuit, says there’s ‘nothing illegal’ about a closed system

Apple asked a federal judge today to throw out a lawsuit originally filed in 2011 that claimed the company has a monopoly over iOS apps by not allowing iPhone users access to an “aftermarket” of applications. Bloomberg reported that U.S. District Judge Yvonne Gonzalez Rogers did not resolve the matter today, but Apple’s lawyer Dan Wall argued Apple’s “closed” system doesn’t violate antitrust laws:

Apple doesn’t set the price for paid applications, and charging a price for distribution of a product on a new and unique platform doesn’t violate any antitrust laws, said Dan Wall, Apple’s attorney, at yesterday’s court hearing in Oakland, California.

“There’s nothing illegal about creating a system that is closed in a sense,” Wall told U.S. District Judge Yvonne Gonzalez Rogers.

“Can a consumer go somewhere else to buy Angry Birds for the iPhone?” asked Alexander Schmidt, an attorney representing seven consumers who sued. “If the answer is no, then Apple is a monopolist.”

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Following FTC fines, UK iPhone users sue Google for bypassing Safari privacy settings

Google agreed to pay a record $22.5 million Federal Trade Commission fine in August following an investigation into whether it bypassed mobile Safari security settings to install tracking cookies without user consent. Now, 12 iPhone users in the United Kingdom have launched a lawsuit against Google that seeks compensation related to the tracking. They also want a “proper explanation” about how their personal information was used. The Telegraph via Business Insider has the full story:

It is thought the case, being brought against Google by law firm Olswang on behalf of the internet users, is the first of its kind in the UK. They say that cookies, small tracking files, were installed by Google on the Apple computers and mobile devices of those using the Safari internet browser without their knowledge .

Claimants thought that cookies would be blocked because of assurances given by Google in the time their devices were allegedly affected, from summer 2011 to spring 2012, and also because of Safari’s default settings.

“We hope that they will take this opportunity to give Safari users a proper explanation about what happened, to apologize and, where appropriate, compensate the victims of their intrusion.”

Patent troll Personal Audio LLC sues iTunes’ top podcaster Adam Carolla’s Ace Broadcasting

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In July 2011, a federal jury in Texas awarded “patent licensing company” Personal Audio LLC $8 million in its patent infringement lawsuit against Apple. The jury found Apple infringed two valid patents related to downloadable playlists with its iOS devices as far back as the original iPod. One covered an “audio program player including a dynamic program selection controller,” while the other covered an “audio program distribution and playback system.” 9to5Mac has now learned Personal Audio LLC is attempting to target content creators directly, starting with a new patent infringement case in Texas against one of iTunes biggest podcasters, Adam Carolla’s Ace Broadcasting.

If the outcome of the case is anything like Personal Audio’s previous cases, it could have a major impact on podcasters and other content creators on iTunes and elsewhere. Personal Audio also sued and entered licensing agreements with Sirius XM Radio, Archos, Coby, RIM, Samsung, Amazon, and Motorola related to its downloadable playlist patents and others.

The new patent, issued just last year on Feb. 7, 2012, is quite broad and describes a “System for Disseminating Media Content Representing Episodes in a Serialized Sequence.” Personal Audio is also suing the popular Howstuffworks.com series, which like Ace Broadcasting, is a large podcasting presence on iTunes and across the web…


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Analyst estimates Apple will get around $7 per HTC phone sold yielding $180-$280M annually

On Friday, a press release confirmed Apple and HTC reached a global settlement regarding two patent infringement lawsuits that would include a 10-year licensing agreement and dismiss the current lawsuits between the companies. There was no other information on the deal at the time, but today Sterne Agee analyst Shaw Wu claimed to have the specifics (via BusinessInsider):

Apple will get $6-$8 for every Android-based HTC phone sold, says Shaw Wu, an analyst at Sterne Agee… HTC sells 30-35 million Android smartphones annually, so it will generate $180-$280 million in annual revenue for Apple. Since there is no almost cost associated with that revenue, it should be pure profit. But, Apple made $41 billion in net income during its last fiscal year, so it’s not like this HTC money means much.

The Wall Street Journal also reported today that the settlement would indeed include licensing fees.

Judge to review claims of juror misconduct in Apple vs. Samsung case Dec. 6

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Following the $1 billion verdict in the Samsung vs. Apple case, Samsung has been attempting to get the courts to investigate juror Velvin Hogan. It claimed Hogan “concealed information” about his past history with Seagate, a company Samsung is now a shareholder in. CNET reported Federal District Judge Lucy Koh will consider Samsung’s claims in a hearing set for Dec. 6. At the heart of the allegations is whether Hogan disclosed that his former employee Seagate had previously sued him:

As part of her inquiry, Koh said she will require Apple to disclose what information the company’s lawyers knew about the jury foreman…Samsung argued that jury foreman Velvin Hogan didn’t disclose during jury selection that he had been sued by Seagate, his former employer. Samsung pointed out in court papers that Seagate and Samsung have a “substantial strategic relationship.” The litigation with Seagate led Hogan to file for personal bankruptcy in 1993. Samsung maintains Hogan should have informed the court about the case.

The Register reported today that Apple called Samsung’s argument a “convoluted theory,” adding it was Samsung responsibilities to interview jurors members during jury selection:
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Do Siri’s quirky answers boasting Apple products constitute sponsored advertising?

We know Siri has a tendency to provide surprising answers that can cause a bit of controversy in some cases. Many reported earlier this year that Siri responded with “Nokia Lumia 900” when asked what the best smartphone is (an answer based on data from the Web). Apple quickly appeared to tweak the responses with answers that promoted the iPhone, such as: “The one you’re holding.” Now, PocketNow reported law student Sean DeVries is suing Apple over the “sponsored responses”:

Instead of actually providing information based on web search results and user reviews, Apple’s Siri software will provide a “sponsored answer” instead that advertises Apple’s products… of our law-student Pocketnow readers decided to sue Apple about this on-device false advertising simply out of principle.  Sean DeVries’ goal is to get Apple to at least change their website and end user agreement to include this information though an indicator of “sponsored responses” would be best during Siri’s answers.  Sean’s court date is scheduled for October 9th.

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Samsung chief says company looking to resolve differences with Apple ahead of court rendezvous, options include cross-licensing deal

The legal battle between Samsung and Apple is nothing new, because the two companies have duked it out in court for quite sometime. Both companies are ordered to meet to talk about a deal tomorrow. Not surprisingly, Samsung chief JK Shin is looking to resolve the differences between his company, and Apple is looking toward negotiating with them, according to Reuters. One of the ways he suggested is a cross-licensing deal: “There is still abig gapin the patent war with Apple but we still have several negotiation options including cross-licensing.”

Headed to the United States today, Shin is accompanied by chief executive Choi Gee-sung. Both will meet with Apple’s CEO Tim Cook and company in a San Francisco court tomorrow to try to hammer out a negotiation.

The interesting part of this whole kerfuffle is that Samsung is a key supplier for many parts that Apple uses in its products. South Korean-based Samsung even has a factory in Austin, Texas dedicated to making chips for Apple’s iOS devices. However, even with giving each other their business, the two companies’ relationship is not very good. Samsung is one of the most popular manufacturers of Android handsets, leaving both Apple and Samsung suing each other to try to back up their respective devices.

We will cover anything that comes out of the court tomorrow, but do not expect the two companies to strike a deal very quickly, because it looks like it is going to take a bit to settle their differences.


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Man sues Apple over ribbed Smart Cover, makes case for throwing out patent system

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Apple is being sued by a man in Colorado over claims that the company’s $39 iPad Smart Covers violate a “Portable Computer Case” patent originally filed in 2003 and issued in 2005. PaidContent obtained a copy of the lawsuit.

The United States patent in question is 6,977,809. A Colorado man owns it, Jerald Bovino, who is seeking royalties for sales of Smart Covers’ using his invention. An excerpt from the patent seems to describe functionality that is quite similar to Apple’s Smart Covers—at least the ribbed design:


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Museum display company sues Apple over touchscreen patent

Yesterday, law firm Hagens Berman filed a lawsuit in a California U.S. District Court against Apple Inc. related to “gesture recognition technology for touchscreens” covered in patents owned by Flatworld Interactives. The company, which originally developed its technology for museum exhibits in the 1990s, is seeking an “injunction enjoining Apple from continued infringement, and an award of damages to compensate Flatworld” for the millions of iOS devices and MacBooks using its technology.

Flatworld Interactives, LLC received U.S. Patent No. RE 43,318, which includes claims to touch screen based systems that allow users to manipulate images using gestures, such as selecting an image by touching it, and flicking images off of the screen.

The full press release is below:

Hagens Berman: Lawsuit Claims Wide Range of Apple Devices Infringe Patents for Screen Manipulation

A lawsuit filed yesterday against Apple, Inc. (NASDAQ: AAPL) by the Hagens Berman law firm claims that the computing and consumer-products giant has built many of its most popular devices including the iPhone and iPad using intellectual property owned by a Villanova, Penn. company that developed gesture recognition technology for touchscreens in the mid-1990s.

Flatworld Interactives, LLC received U.S. Patent No. RE 43,318, which includes claims to touch screen based systems that allow users to manipulate images using gestures, such as selecting an image by touching it, and flicking images off of the screen.

The company designed touchscreen systems originally for use in video displays for museums and other exhibit applications.

Hagens Berman’s lawsuit was filed on Flatworld’s behalf in the United States District Court for the Northern District of California. It alleges that numerous best-selling Apple devices, including the iPhone, iPad, iPod Touch, iPod Nano, MacBook Pro and MacBook Air infringe the patent. The complaint also alleges that Apple knew about the patent but continued to sell the infringing products.

“Reading Flatworld’s patent is like reading the description of gesture recognition features of any of the accused products on Apple’s website,” said Steve Berman, Hagens Berman’s managing partner. “It is clear that Flatworld owns technology that Apple has used to drive billions of dollars in infringing sales.”

Flatworld was founded by Dr. Slavko Milekic, a Professor of Cognitive Science & Digital Design at the University of the Arts in Philadelphia, Penn. Professor Milekic first developed gesture recognition touch screens for use by children as an easier and more intuitive means of interacting with a computer.

The lawsuit seeks a ruling from the court affirming that Apple has infringed the patent, an injunction enjoining Apple from continued infringement, and an award of damages to compensate Flatworld.

More information about this case is available at www.hbsslaw.com/Flatworld.

Apple eBook price-fixing lawsuits hit Canada following DOJ suit

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Following an investigation into alleged eBook price-fixing, the U.S. Department of Justice filed an antitrust lawsuit against Apple and publishers Macmillan and Penguin earlier this month, who refused to settle. Other publishers, including Hachette, HarperCollins, and Simon & Schuster, settled and reached an agreement to return Amazon to its previous wholesale model and dismantle Apple’s agency model. The settlement also included agreements with select states that would see $51 million in restitution paid to those who purchased eBooks through Apple’s platform. Now, several Canadian publications are reporting class-action lawsuits were filed against Apple and the five publishers throughout Canada.

Lawyer Normand Painchaud spoke with The Montreal Gazette about his class-action suit filed in Quebec Superior Court and talked about two others filed in Ontario and British Columbia:


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Apple, Google, and five other companies must face lawsuit over no-poaching agreements

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Late last week we told you that the U.S. Justice Department apparently had evidence that Apple, along along with Google, Adobe, Intuit, Pixar, Intel, and Lucasfilms, entered “no-poach” agreements as part of an antitrust investigation from 2010. U.S. District Judge Lucy H Koh made a statement yesterday at the U.S. District Court in San Jose, Calif., confirming the companies must face a lawsuit. According to the report from Bloomberg, Koh said she would allow plaintiffs to re-file their complaint even if an initial request by the defendants to dismiss the claims is granted.  

Judge Koh’s decision yesterday will result in Google and the other companies having to provide a detailed account of the agreements made with other companies. They must also allow lawyers to take depositions. One lawyer representing the plaintiffs, Joseph Saveri, said, “We get to see what really happened,” claiming the case could result in hundreds of millions of dollars in damages. Google provided statements to Bloomberg claiming they have “always actively and aggressively recruited top talent,” while the others have declined to comment.

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Apple asks Chinese manufacturer to cease production plans for Steve Jobs figurine, claim they own his likeness

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We had a feeling it would not be long before Apple stepped in and shut down Chinese manufacturer In Icon’s plans to create an extremely realistic Steve Jobs figurine, and today The Telegraph reports the 12-inch doll originally slated for release in February is now facing legal threats from Apple if the company doesn’t cease production plans.

According to the report, Apple claimed it owns the rights to Steve Jobs’ likeness and in a letter to the company claims toys using the Apple logo, a person’s name, or likeness of Jobs is considered a criminal offense.

The 12-inch figurine, which comes complete with Jobs’s trademark blue jeans, sneakers and black turtleneck sweater, was created by Chinese company In Icons and was set for release in February. But ‘their efforts have reportedly met with’ a legal challenge with Apple allegedly threatening to sue the toy maker unless they cease trading.

In Icon’s Tandy Cheung originally told ABC News the company would not stop production in lieu of Apple’s requests, and said the technology company cannot copyright Jobs’ appearance:

“Apple can do anything they like. I will not stop, we already started production…Steve Jobs is not an actor, he’s just a celebrity… There is no copyright protection for a normal person… Steve Jobs is not a product… so I don’t think Apple has the copyright of him.”

This is not the first time Apple has put a stop to Steve Jobs figurines. MICGadget was forced to stop selling their toy in November 2010 after Apple sent the following email (excerpt below):

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Lawsuit roundup: Apple insists to intervene in Lodsys, sued over E-book pricing

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Frankly, it feels like lawsuits are taking too much of our time and mind space lately – and they aren’t fun to think about.  So here’s a roundup of the more exciting lawsuits news of the last hour:

MacRumors:

A class-action lawsuit has been filed against Apple and 5 of the 6 major book publishers, alleging they “colluded to increase prices for popular e-book titles to boost profits and force e-book rival Amazon to abandon its pro-consumer discount pricing.”

On Lodsys (important if you are a App developer with an auto-updating app):

Apple insists to intervene in Lodsys lawsuit against app developers. Apple still requests a court hearing on its motion. Things may still take some more time, but there will be no more written pleadings unless the court asks the parties to address particular questions in more detail. At this stage it’s possible that the court decides very quickly, and I continue to be reasonably optimistic that Apple’s motion will be granted.

At some point, we should start referring to Lodsys by the name of its parent company, Intelectual Ventures. 


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Kodak considering sale of patent involved in Apple lawsuit

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In January of 2010, Kodak sued  Apple and RIM for infringing on their patent to preview photographs. The lawsuit is still going on, but today Wall Street Journal is reporting that Kodak is currently looking to sell 10% of their patent portfolio, which includes the patent Apple and RIM are bring sued for.

The 1,100 patents include patents covering  capturing, storing, organizing and sharing digital image. WSJ credits the sale to Kodak’s loss in profit over the last two quarters.

Chief Executive Antonio Perez has been using Kodak’s intellectual property as a means of funding the company’s long and expensive transformation. In 2008, Mr. Perez put forth a goal to generate between $250 million and $350 million a year from Kodak’s patent portfolio.

Google is fresh off acquiring 1,000 patents from IBM and is likely still in a buying mood as it battles everyone from Oracle to Microsoft to Apple-by-proxy in the courts.  Apple, who outbid Google for the Nortel patent portfolio at $4.5B  is obviously on the offensive.

Kodak’s decision to sell its patents follows a $4.5 billion patent sale by Nortel Networks Corp. Kodak has retained Lazard as an adviser for the sale. Lazard also advised Nortel on its sale.


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Samsung drops counter-suit against Apple to speed up legal proceedings

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In April, Apple originally filed a lawsuit against Samsung saying Samsung’s Galaxy Tab copied the iPhone and iPad. Soon after, Samsung filed a counter-patent suit against Apple and asked to see the iPhone 5 and iPad 3. Seeing the unreleased devices was denied by a judge earlier this year. This week Samsung has dropped their counter-patent suit.

The suit was dropped on June 30th, but Samsung will continue to fight patents with an earlier counter-patent suit.  While Samsung dropped the suit in the U.S., it won’t affect other patent suits they have. Besides the U.S., Samsung has lawsuits against Apple in South Korea, Japan, Germany, and the U.K.

Samsung’s spokesperson Nam Ki Yung told Bloomberg the counter-suit was dropped “to streamline the legal proceedings”. Nam also told Bloomberg, “Samsung will continue to actively defend and protect our intellectual property”.

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