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Analysis of Apple’s Letter To Lodsys→

Analysis of Apple’s Letter To Lodsys

Florian Mueller at FOSS Patents breaks down today’s letter from Apple to Lodsys CEO Mark Small, detailing a possible scenario iOS developers might soon find themselves into:

App developers have to understand that Lodsys can still sue them. Apple’s letter does not prevent Lodsys from doing that, and it would be a way for Lodsys to pursue its agenda. It wouldn’t make economic sense for Lodsys to sue a few little app developers based on the damage awards or settlements Lodsys might get out of such a lawsuit. However, for Lodsys it would still be worth it if this resulted in a lucrative settlement with Apple, or if it (alternatively) scared potentially thousands of app developers so much that they would pay. Lodsys would sue some app devs only to set an example, and for the ones to whom it happens, that would be an unpleasant situation.

As other bloggers have already written and tweeted, Apple’s letter might be heartwarming for developers, but the story is far from over. Apple is stepping up to defend its developers and that is great news for sure (see developers’ reactions here), but in case of Lodsys deciding to sue anyway to set a precedent, these indie developers would still have to deal with actual court duties, lawyers, and the fact that they’d need to directly ask Apple to back them up. Apple hasn’t explicitly stated they would pay for every legal expense in today’s letter (unless the emails sent to developers, and not Mark Small, have additional details we’re not aware of), though Mueller believes that sending a copy of the letter to Mark Small to developers is a good sign of the company taking things seriously and considering paying for any kind of expense if Lodsys sues.

Again, it’s not over yet, but the general consensus seems to be that this is a great first step to defend the App Store, Apple’s own ecosystem and in-app purchases, and independent developers.

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Apple Officially Responds To iOS Devs Hit By Lodsys Patent Claims [Updated]

According to a number of tweets from iOS developers hit by Lodsys’ patent infringement claims in regards to in-app purchases and upgrade buttons, Apple has started sending out emails earlier today with legal documentation about Lodsys’ claims. While the contents of the entire email and letter haven’t been posted yet, the first details have started making the rounds of Twitter as Apple is apparently offering support to iOS developers by helping them defending against Lodsys patent infringement claims.

The first paragraph of the email has been posted by Craig Grannel at Revert To Saved:

There is no basis for Lodsys’ infringement allegations against Apple’s App Makers. Apple intends to share this letter and the information set out herein with its App Makers and is fully prepared to defend Apple’s license rights.

The Loop has posted another paragraph of the email, with more coming soon:

Apple is undisputedly licensed to these patents and the App Makers are protected by that license,” wrote Bruce Sewell, Apple Senior Vice President and General Counsel.

From what we can gather so far, it appears Apple is asking Lodsys, and CEO Mark Small, to withdraw letters sent to developers as they’re already covered by Apple. We’ll update this story with more details as they become available.

Another excerpt from Apple’s email confirms that the company believes developers shouldn’t pay any licensing fee because Apple’s already licensed to use Lodsys’ patent and offer the technology to third-party App Store developers through software development kits and  APIs:

Thus the technology that is targeted in your notice letters is technology that Apple is expressly licensed under the Lodsys patents to offer to Apple’s App Makers. These licensed products and services enable Apple’s App Makers to communicate with end users through the use of Apple’s own licensed hardware, software, APIs, memory, servers, and interfaces, including Apple’s App Store. Because Apple is licensed under Lodsys’ patents to offer such technology to its App Makers, the App Makers are entitled to use this technology free from any infringement claims by Lodsys.

Update: full text of the letter sent by Apple to Lodsys’ CEO Mark Small has been posted by Macworld. A few notable excerpts:

Because I believe that your letters are based on a fundamental misapprehension regarding Apple’s license and the way Apple’s products work, I expect that the additional information set out below will be sufficient for you to withdraw your outstanding threats to the App Makers and cease and desist from any further threats to Apple’s customers and partners.

First, Apple is licensed to all four of the patents in the Lodsys portfolio. As Lodsys itself advertises on its website, “Apple is licensed for its nameplate products and services.” See http://www.lodsys.com/blog.html (emphasis in original). Under its license, Apple is entitled to offer these licensed products and services to its customers and business partners, who, in turn, have the right to use them.

Through its threatened infringement claims against users of Apple’s licensed technology, Lodsys is invoking patent law to control the post-sale use of these licensed products and methods. Because Lodsys’s threats are based on the purchase or use of Apple products and services licensed under the Agreement, and because those Apple products and services, under the reading articulated in your letters, entirely or substantially embody each of Lodsys’s patents, Lodsys’s threatened claims are barred by the doctrines of patent exhaustion and first sale.

The conclusion of the letter:

Therefore, Apple requests that Lodsys immediately withdraw all notice letters sent to Apple App Makers and cease its false assertions that the App Makers’ use of licensed Apple products and services in any way constitute infringement of any Lodsys patent.

Contrarily to speculation and rumors posted in the past week, Apple isn’t avoiding the situation and is now actively taking part in backing independent developers hit by Lodsys claims of patent infringement in applications that use Apple’s own iOS SDK. By reassuring that developers shouldn’t pay any licensing fee because Apple is already licensed to offer the technology behind the App Store and in-app purchases, the company is taking a firm position in defending its ecosystem and “app makers.” Several bloggers and patent experts tried to analyze the patent claims over the past two weeks, with the EFF even coming out and saying Apple should have stepped in and started defending its iOS devs right away. As usual Apple has taken its time to study the issue and come up with facts, and is now simply asking Lodsys to withdraw every notice letter and infringement claim sent out to developers.

Scott Forstall Places Second In Most Creative Business People Award

Fast Company has placed Scott Forstall as second in their 2011 ‘Most Creative People in Business’ awards. Forstall, who is VP of iPhone software, received the award for leading the development on iOS, with Fast Company noting that “the popularity of that tap, pinch, and swipe interface has sent Cupertino’s earnings rocketing”.

Jonathan Ive’s slick designs may grab the headlines whenever Steve Jobs introduces a new product, but it’s Scott Forstall’s smart software that fills Apple’s coffers.

Meanwhile, Wadah Khanfar took out top honors for his work as Director General of the Al Jazeera network – which has seen recent surge in popularity for its extensive coverage of the uprisings in the Arab world, notably for its coverage in Egypt and more recently, Syria. In its entirety, the list featured a variety of people that exhibited creativity in business from Arianna Huffington of the Huffington Post (10th) to Oprah Winfrey (12th) to the singer Bruno Mars (58th).

However of most interest to us at MacStories are those which have heavily utilized iOS as part of their business strategy – in some cases even dedicating their entire business to the success of iOS. Jack Dorsey of Square and Twitter made the list at number 4, whilst Marcos Weskamp of Flipboard made the list at number 42. Others included Aaron Levie of Box.net (59), Kevin Systrom of Instagram (66), Dong Minghzhu of Gree (71) and Mikael Hed of Rovio, who rounded out the list at number 100. [via Setteb.it]

Reports Of A Grand Central Apple Store Resurface

The Wall Street Journal has today revived suggestions that Apple is looking to open an Apple Store in the New York Grand Central Terminal. Back in early February there had been reports from the New York Observer that Apple was planning to open their largest store at the terminal. Those rumors were then squashed in early March after reports surfaced that negotiations had fallen through.

Todays report from the WSJ claims that the Metropolitan Transportation Authority (MTA) is looking for new tenants and that Apple has expressed interest in establishing a retail presence within Grand Central. The space on offer is large, but not large enough to be the world’s largest Apple Store – which is currently the Regent Street (London) store which is 25,000 square feet.

The agency is looking for a single renter for two adjacent balconies on the north and east sides of the terminal. It will issue a request for proposals Monday.

A spokesman for the MTA told the WSJ that the agency dealing with the space has spoken to Apple and is hopeful that they bid on the space. Their report also suggests that the MTA may even be working specifically to find space for Apple, offering two adjacent spaces for rent, even though one is still occupied by a tenant. That tenant, who operates the Metrazur restaurant, would likely receive a hefty buyout from whoever purchases the space.

If Apple is interested in renting the space they will have to do so publicly – with all retail space within Grand Central awarded through an open bidding process. Jump the break for a plan of the retail space on offer – highlighted in red on the right hand side, labelled “East Balcony”.

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iPhone 5 To Feature Curved Glass Screen?

According to DigiTimes, the latest rumor going around the Taiwan supply chain is that the next iPhone (whether it be the 4S or 5) will feature a curved cover glass for the display. It would see the next iPhone resemble aspects of Google’s Nexus S phone which had the glass curved into a concave, or perhaps like the older model iPod Nano which had convex glass.

In the past, manufacturers of the glass for smartphone displays had been reluctant to commit to the investment in appropriate glass cutting equipment because of the high capital costs associated with producing them. However, Apple is said to have purchased between 200 and 300 glass-cutting machines for the glass manufacturers according to DigiTimes’ sources.

Prior reports put the production of the next iPhone as beginning in August this year, but today’s DigiTimes report notes that there is no firm timetable yet for the beginning of production. Apple is supposedly still involved in working with suppliers for cover glass, glass cutting, lamination and touch sensors to improve yield rates before production begins.

[Via DigiTimes]

Explosion Tragedy at Foxconn Plant Claims Third Life

Today some more details have emerged over the explosion and subsequent fire that occurred at a Foxconn manufacturing plant in the city of Chengdu, China. The sad news is that a third life has since been lost and 9 people (of the 15 that were injured in the incident) remain in hospital as a result of various injuries.

The Chinese paper, Commercial Times is reporting that the explosion took place around the location of a building that houses coating lines and other various chemical materials. An investigation is currently ongoing, but early signs point to “an explosion of combustible dust in a duct” within one of the polishing workshops. On a related note, the SACOM watchdog group had published a report two weeks ago that criticized several aspects of the Chengdu plant, including insufficient venting of the polishing department, where it was said that there was large amounts of (highly explosive) aluminium dust.

Foxconn rejected the report when it was released, and although early signs do point to a dust explosion, it must be noted that the investigation is still in the very early stages to say with certainty that this was the cause. Meanwhile it has been reported in the Commercial Times and China Times that Foxconn, in efforts to quell investor concerns, will be increasing production of the iPad 2 at their Shenzen plant (which already produces most iPad 2s) to offset any loss in output at their Chengdu plant whilst it is being repaired and investigated.

[Via Engadget and DigiTimes]

First Impressions and More Details On Apple’s Updated Retail Stores

After last night’s photos of Apple’s changes to the retail experience (dubbed “Apple Store 2.0” in recent rumors and speculation), a MacTalk forum member has posted (via MacRumors) his first impressions of the new retail space and in-store tables featuring interactive iPad displays to offer more product information, compare tech specs, and call a Specialist for further assistance. As previously reported, the iPads being used by Apple next to each device and computer are special units glued to a mounting block that’s also glued to the main table, running a custom app that’s impossible to hide by locking the device or clicking the Home button. Forum poster jack112006 says he’s tried different combinations for pressing the Home button, but none of them worked as the iPads are likely impossible to hack in-store to visualize the underlying OS. Furthermore, as we saw from the pictures, the units are connected to a single cable that, once inside the mounting block, is divided into two separate cables: one for security and anti-theft measures, one (a very thin 30-pin dock connector) for charging purposes.

The second cable is quite special. It is an ultra-thin 30 pin ribbon cable. It is tight against the iPads body in the acrylic block, and is used for charging, and I would imagine periodic device re-imaging for a new product, etc. The software on all the iPads is very special, and is set up so that the Home button is inactive.

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Apple Store 2.0 Goes Live: Interactive iPads and More [Updated]

Following the wild speculation and rumors from the last week as to whether Apple was planning a special event to celebrate the 10th anniversary of Retail, the so-called Apple Store 2.0 experience has launched in Australia (it’s already Sunday morning there and Apple Stores are open), featuring what was previously reported: iPads are used to display product information and prices, compare features between different products and ask for a specialist’s help. As you can see from the photo above, it appears the new store-specific application (we don’t know yet if it’s a native app, a web app, or something else) is used to lists features, compare, call for support and introduce new users to the Mac platform.

Website Mac Prices Australia has posted photos from the updated Apple retail experience:

Retail stores around Australia have launched ‘Retail 2.0′ to mark the 10th anniversary of Apple Retail stores. We knew this was coming but what exactly has happened?

iPads display product prices & information for products.

iPads display product features, prices and lets you compare between models.

Use the iPad to ask a specialist to to come to you.

Apple store staff appear to be wearing party hats.

We’ll update this post with more information as they become available. If you live in Australia and have photos to send, our tips@macstories.net inbox is waiting for your pictures.

Update: more photos from the Sydney Apple Store below.

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Apple Store iOS App Expected To Be Updated As Part Of Retail Revamp

Some more fragments of information have leaked out about what this weekends rumoured Apple Store 2.0 relaunch will bring. According to MacRumors, the iOS Apple Store app will be updated, bringing with it full support for building custom, built-to-order Macs.

It is suggested that the app update will bring all the features and purchasing options that the online Apple Store currently offers – meaning the ability to customize everything from the processor to memory and even pre-installed software. Add-ons, like printers and AppleCare, would also be options for customers to select when using the Apple Store app for ordering a new Mac. The Apple Store app was released just over a year ago but has always been somewhat limited, only offering customers the ability to order the base configurations of each Mac and with options for AppleCare or One to One.

With this update, it seems clear that Apple has opted to move the mobile ordering experience into an app rather than deploying it as a mobile-formatted website.

With this latest leak, it seems reasonable to expect a fairly large and broad revamp of the Apple Store experience, just days after its 10 year aniversary. From what has leaked and been rumoured, there is expected to be minor store makeovers, a revamp of the internal RetailMe service on iPad 2s, a new internal “Daily Download” application for store employees and now a new Apple Store app for iOS.

[Via MacRumors]