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Though the agreement Google reached with the Federal Trade Commission was in many ways expected, there’s one issue that really doesn’t seem to be clear. That is: What is Google required to do with the existing standards-essential patent cases it is currently fighting on behalf of its Motorola subsidiary against Microsoft and Apple?
The FTC got Google to sign a consent decree saying it wouldn’t seek injunctions over its SEPs — patents that contribute to foundational parts of smartphones and other devices across the industry — as long as other companies were willing to license them. But what happens to existing cases — for instance, one involving Motorola patents on the video compression standard H.264, which Microsoft wants to license for Xbox but not on Google’s proposed royalty terms? FTC spokesman Peter Kaplan said, “The answer is that under the order they do not have to drop their appeals of SEP cases, but at the same time they cannot obtain or enforce any SEP exclusion orders or injunctions.” But Microsoft pointed out, in a filing released by the U.S. International Trade Commission, that the FTC said in multiple parts of the published agreements and public statements that Google had to withdraw all its related SEP claims.
Microsoft Contends FTC-Google Deal Kills Pending Motorola Patent Cases
Just in time for another debate on whether the Consumer Electronics Show is going the way of the floppy disk, tech consulting firm Accenture has released a report on consumer demand for a range of devices, and the outlook isn’t all good.
Techies predictably love their smartphones, tablets, computers and HDTVs, those multitasking devices that can screen the latest episode of Downton Abbey and tell you the weather. But demand for cameras, music players, DVD players and other single-use products has plummeted, according to the report. In 2012, for instance, nearly a third fewer people owned DVD players than did a mere three years before. That won’t surprise anyone with a smartphone and limited purse or briefcase space. But the forced evolution of single-use devices might.
2013: The end of the iPod, digital camera and DVD player? The 2013 Accenture Consumer Electronics Products and Services Usage Report (Accenture)
Pandora announced its listener base has seen a 41 percent increase from the same period a year ago, boasting of 67.1 million active listeners at the end of December. The Internet radio company said its service accounted for 7.2 percent of all U.S. radio listening in December, up from 4.7 percent last year.
The company also announced that Chrysler will integrate its Internet radio service into the entertainment systems of the auto maker's new cars. Under the new partnership, Chrysler vehicles equipped with the auto company's Uconnect Access via Mobile feature will be able to stream Pandora on their sound systems through a driver's smartphone. There are more than 85 car models that have the Internet radio service integrated into their entertainment systems, Pandora said.
Pandora reports 41 percent increase in US audience in one year
So far this season, ratings for the big broadcast networks have been down, continuing an ongoing pattern of audience erosion. But it's different this time. With use of digital video recorders hitting a critical mass and more people accessing content online and via video-on-demand on a variety of devices, network executives have become like petulant Little Leaguers, striking out and then blaming the umpires because they can't get a hit. In a steady drumbeat designed to ward off the mojo of a lethargic scatter market and expectations of doldrums after 2012's Olympics and elections, media company honchos are chanting a new mantra: People are watching their programs, but they're not all being counted, because of when, where or on what device they're watching.
Media Companies Counting on New Measurement
[Commentary] On Jan. 1, Time Warner Cable rang in the New Year by dropping our network, Ovation, from its channel lineup. Other independent networks may face the same fate. This is not an isolated incident, but the disturbing result of years of consolidation in the pay TV industry, with a small number of dominant carriers offering the networks of a small number of media conglomerates. The result is the homogenization of cable TV and the betrayal of cable’s promise to deliver diversity. Policy makers, concerned citizens and industry leaders need to understand and seek to arrest this trend before it is too late. The way to salvage this year is to use this event and others like it to begin a real conversation about how we are going to ensure independent networks have a place on the cable dial. If we don’t do it now, by next New Year’s there may be little diversity left to save. [Gutstein is a partner in and chief operating officer of Ovation.]
The Future of Cable’s Independent Voices
After turning on an Internet service provider (ISP)-level ad blocking option by default—and after meeting Jan 7 with French government officials—France’s second-largest ISP decided to temporarily suspend its controversial move for “two to three weeks” until it’s able to reach a revenue agreement with Google.
Last week, Free quietly released a new update to its router (known as a Freebox) firmware, which installed an ad blocking feature. While many users use ad blocking on their own browsers or computers, this marked the first time any major ISP, anywhere, installed ad blocking at the ISP level. The move was quickly dubbed “AdGate” by the French media, and it appears to have stemmed from a revenue dispute between Free and Google. In France, like in many places, ISPs have been getting upset with the search giant driving large amounts of traffic (most notably, YouTube) over their networks.
France's second-largest ISP suspends ad blocking for now
[Commentary] We begin the new year with a public totally turned off by Capitol Hill’s embarrassing holiday antics over the fiscal cliff. Sadder still, more cliffs are on the way. It is difficult to see how Congress will find time for anything other than debt limit extensions, budget sequesters, continuing resolutions, government shut-downs and other assorted near-death experiences in the year ahead. We could be free-falling off cliffs all year long! It’s actually worse than being on a roller-coaster, because a roller-coaster goes up as well as down. Isn’t the year following a national election supposed to be open, at least for six months or so, to something approaching cooperative work and tackling tough problems that no one is willing to take on during campaign season? Shouldn’t we be discussing wide-ranging proposals to tackle the many challenges that beset America instead of marking do-or-die cliff dates on our political calendars? America needs to be climbing mountains instead of falling off cliffs. I end where I so often begin these writings. Until we have media that invest in real news, that dig for facts instead of just loud-mouthing opinions, that sustain resource-intensive investigative journalism, that analyze truly complex national issues and national choices, that hold the powerful accountable—until then, we will not have media that truly serve the public interest.
Life On The Cliff
Sony and BMG, onetime partners in one of the music world’s biggest mergers, are teaming up again on a bid to buy — and then divide between themselves — some of the recorded music assets of EMI, according to two people with direct knowledge of the talks between the companies. The EMI assets are being sold by the Universal Music Group, which last year took the company over for $1.9 billion but is being required by the European Union to dispose of about a third of it to preserve competition. The EMI labels up for sale include Parlophone, with acts like Coldplay and the Gorillaz, along with EMI’s extensive classical catalog and other labels and subsidiaries across Europe. Universal is said to be seeking at least $650 million for the divestments, according to these people, who spoke on condition of anonymity because the talks were private. Sony and BMG — which merged in 2004, then split up four years later when Sony bought out BMG’s share — have agreed to submit a bid together in the EMI auction, but the two companies will not be forming another joint venture. Instead, if they are successful, EMI’s divested assets would be split up even further, with Sony taking some and BMG taking others.
Sony and BMG Are Said to Team Up on Bid for EMI
Rep. Darrell Issa (R-CA), chairman of the House Oversight Committee, is urging the Federal Trade Commission to investigate leaks to the media about its probe of Google. He sent a letter dated Jan. 3 to Scott Wilson, the FTC's inspector general, urging him to find out which FTC officials provided nonpublic information about the Google case to media outlets. Rep Issa noted that any leaks ahead of the announcement were illegal and said they were counterproductive to the investigative process.
Rep Issa urges FTC to smoke out Google tipsters
Clearwire investor Crest Financial will ask the Federal Communications Commission to block Sprint’s takeover of the company, as well as a separate deal between Sprint and Softbank, saying they undermine the value of Clearwire’s airwaves.
The firm plans to file its complaint with the FCC before the Jan. 28 comment deadline on the two transactions, David Schumacher, general counsel for Houston-based Crest Financial, said on a conference call with reporters today. The low price Sprint is getting for Clearwire’s spectrum could hurt the value of other airwaves, making it a concern for the FCC, he said. “I doubt this kind of complaint from Crest is likely to derail the Sprint-Clearwire or Sprint-Softbank deals,” said Jeffrey Silva, a Washington-based analyst with Medley Global Advisors. “Third-party concerns about the impact on shareholder value is unlikely to move the needle much relative to the agency’s overall evaluation of the deals.”
Clearwire Investor Will Ask FCC to Block Sprint Deals