Microsoft to buy $1 Billion in AOL Patents

Patent protection is apparently the name of the game these days in the high tech world, and if so Microsoft just bought itself a chuck of protection in a deal with AOL that will give Microsoft 800 patents for approximately $1 billion.

The patents were sold after an auction in which other major consumer electronics and social media players reportedly participated. The deal is expected to close by year end 2012 and AOL said that it intends to pass a large portion of the sales down to shareholders. As part of the deal Microsoft is buying a business unit of AOL.

Patents are increasingly being used as a weapon against competitors, either being used to ban their products such as what Apple, Samsung, Motorola and others are doing in various places around the globe or being leveraged for financial purposes, such as Motorola demanding $4 billion a year in royalties from Microsoft.

This growing use of patents has lead to a number of major players making big buys similar to what Microsoft has done here. The Google $12.5 billion purchase of Motorola Mobility for example; Facebook recently purchased 750 patents from IBM and Sony and Apple gained a huge number of new patents via their $4.5 billion purchase of Nortel Networks.

From reports this looks like the bulk of the patents that AOL currently holds. It said that the company retains approximately 300 patents including ones in advertising, search and mapping. Microsoft will grant the company a license to the purchased patents as well.

I wonder what companies will feel Microsoft’s wrath in the patent market space. I believe that they must have had talks with AOL about what patents will protect them from rivals and which ones AOL believes are currently being violated. Stay tuned because it has probably never been a better time to be a patent or intellectual property lawyer.

Mobile Sports Report TechWatch: Padfone Tablet Near?

Microsoft obviously realizes two major hurdles exist in front of its push to get its Windows Phone to become an established, viable player in the smartphone space. It is way behind in the app space, and it needs apps to succeed.

So it is doing what you would expect from a company that has the vast resources of Microsoft, it is launching a variety of efforts to get developers to commit to creating apps for the platform, including paying them for the work, according to The New York Times.

The software company has a number of incentives that range from funding the development of apps, prime placement in its app store, free equipment and others. The company has also established a major app development effort with Nokia.

Problems pile up for Motorola- could this kill the merger?
First off it is investigating Motorola Mobility in two separate for using legal injunctions against Apple and Microsoft to gain an edge in the market. This investigation is rooted in complaints that both companies filed against Motorola.

Part of the question that the EU will look at is did Motorola break promises with standards setting organizations and if it offered unfair licensing conditions for its standard-essential patents. Fines for this violation can be substantial.

Then there is an apparent demand for $4 billion dollars annually as royalty payments made by Motorola to Microsoft to use its patents in the Xbox that is being heard in a US court. Microsoft is retaliating by asking a judge to block the importation of Motorola phones due to patent violations.

The net result of these and China’s delaying in giving regulatory approval to the deal is that Motorola investors are getting nervous, according to the Business Insider. Shares have been dropping in the past weeks due to the delays. However in a note on Google’s Investor Page, CEO Larry Page has a long note that mentions the Motorola deal in very positive terms and that he has great expectations for the deal.

Asus taking Padfone preorders
Asus is now taking orders for its hybrid table called the Padfone. The device has two main components. The first is smartphone that is powered by a a Snapdragon S4 dual core 1.5GHz processor running the latest version of the Android operating system, v. 4.0

Then there is a 10-inch tablet that has a docking bay for the phone, with the phones processor running the tablet. I will be very interested to see how this works because a user could then leverage their cell phone data plan on the tablet, and so not need two plans. Pricing and delivery date have not yet been announced although it is expected later this month.

Samsung’s Galaxy Notes hits 5 million in sales
When I saw the Galaxy Note at CES I was sure it would not be a winner. It was kind of a jackalope, neither a phone nor a tablet, and too big for one purpose and too small for the other IMHO. This wisdom is why I am not rich. The company, which had a record breaking quarter, sold 5 million of the devices.

Now some might point out that Apple sold 3 million of its new iPads in just three days, and that is all good and true. But this is not the only arrow in Samsung’s quiver, and the company has a range of tablets, and smartphones available. Its creative thinking looks to make it a true force to be dealt with in both market segments.

Tablet and smartphone owners multitask with TV
One of the latest news reports from Nielsen shows that globally 88% of tablet owners and 86% of smartphone owners said that they used their device at least once in a 30 day period while watching television.

In the United States 26% said that they used their tablet multiple times a day when watching television and 27% said that they did so with their smartphones. Those numbers were roughly double that of those who said that they never did.

The top purpose was to view e-mail, both during the actual broadcasts and during the commercial breaks. A popular alternative was to check out information related to ether the program, or good news for advertisers, looking up information on products shown during commercial breaks.

Apple closing on facial recognition software?
A new patent that Apple as filed for shows that the company is developing features that will enable control of an iOS device via facial recognition. The patent lists a method to create an automatic user-switching system which can lock, unlock, as well as reconfigure a device for users based on face detection using a front-facing camera.

As discussed in Ars technica the patent, “Electronic Device Operation Adjustment Based On Face Detection” it has the ability to lock out unauthorized users as well as be set for specific preferences. There is already a facial unlock feature on the Android side in v. 4.0.

In Time for the Masters: Garmin’s S3 Golf Watch

OK, so you are not playing the course but Garmin International has timed the release of its latest golf watch, the Approach S3 a touchscreen golf watch, to capitalize on the desire to golf that the Masters Tournament seems to inspire in players year after year.

The sleek looking entrant comes at a time when golf watches are increasingly adding a host of features that just a few years ago golfers would have given their pitching wedge for and this offering shines with the best of the them from the looks of it.

The Approach S3 touchscreen GPS golf watch comes with 27,000 courses from around the globe preloaded so that walking onto a new course a golfer always has information at their fingertips. There is no fee or subscription for this feature and it includes course updates as they are available.

One of the overriding uses for the watch is as a virtual caddie and it has a host of features that help a golfer from a downloadable scorecard to a round timer for slower players to more specialized features. One of these is called Green View that shows the shape and layout of the greens, with the ability for the user to drag the pin to match that day’s location.

Other key capabilities include Layup Distances that include distances needed for doglegs and hazards; Precise Yardage for front, middle and back of green distances; and it has the ability to measure shot distances.

The watch is waterproof, which s good if your game resembles mine, and it supports an 8 hour charge for game play but four days as an everyday watch. A small charging cradle is included. The Approach S3 is expected to be available in April 2012 and will have a suggested retail price of $349.99.

The release is two weeks or so after Motorola Mobility released the next generation of its MotoActv family with a golf edition watch, the MotoActv Golf Edition. However Garmin has been in this game for a while and has a well respected track record so Motorola and others that are entering the field will need to show that they are not just as good as Garmin but have features that will differentiate their offerings.

I expect that with the increasing ability to cram a huge about of data into a small form factor such as a watch the features in this space will likely continue to grow, something that will put pressure on developers but will likely make the chance of breaking par a bit easier- if only you can get that hitch out of your swing.

Motorola takes a Swing at Golf with MotoActv Golf Edition

Motorola Mobility is taking its MotoActv onto the golf course with its latest release of its mobile sports technology that helps track activity and it has brought along PGA golf pro Bubba Watson to help design and promote the device.

The MotoActv Golf Edition does not track heartbeat or speed and distance a user has run but rather serves as a virtual caddie, recording your course and providing distance and hole placement advice.

Three-time PGA Tour winner Bubba Watson has assisted in the development of the technology and is serving Motorola as the products spokesman. He said that the program will help allow players to make better decisions on the course.

“From the weekend warriors trying to find the distance to the back of the green to great golfers who want to analyze their game and share their stats with friends, MotoActv helps improve scores and makes the game more enjoyable,” Watson said in a statement.

According to Motorola the platform enables golfers to track their performance on 20,000 courses and includes a GPS system that gives distances to the front, center and back of greens as well as hazards. For those telling their spouses that golf is a good workout the program tracks your steps and distance traveled and tells you the amount of calories you have burned (without taking into account any 19th hole entertainment).

It serves as a Virtual Caddie
The GPS and distance capabilities of MotoActv replicate the findings provided by laser finders and other reference equipment. It also not only tallies your score but also keeps track of a wide variety of additional statistics such as clubs used, greens hit in regulation and number of putts on each hole played. It also can be customized to match the clubs in your bag. So no Mashie Niblick — no problem.

The golf program does not just rely on the GPS data to provide users with information about their position and hole and course layout. There is also a satellite view available (not live) that can be manipulated using the mouse to set the arc of the ball and so provide you with details of your most recent shot. For selected courses you can see how Bubba Watson would play the course in advance of your actually playing it yourself.

This is a great extension of the MotoActv lineup, in my opinion. The platform itself is really designed for serious users, be they bikers, runners or now golfers. The advantages that it brings to table seem pretty obvious. It also helps to expand out from the very competitive biking and running field. The MotoActv Golf Edition is available now for preorder at $299.99 and is expected to ship on April 1.

Mobile Sports Report TechWatch: Mostly Apple Edition

Flush from releasing its latest iPad, its stock price hovering near $600 and with billions in cash in the bank, Apple has announced plans to launch a dividend and share repurchasing program. The two programs will result in the company spending approximately $45 billion in three years.

The plan calls for Apple to spend $10 billion in a share repurchase program that will begin in September 30, 2012. Its goal is to help neutralize the impact of dilution from future employee equity grants and employee stock purchase programs. This program has already been approved by the company’s Board of Directors.

The second program calls for a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012. This is still pending approval by Apple’s BoD.

Apple loses key ITC ruling
After a strong winning streak in its patent battles Apple is starting to lose a few again. The latest comes with an Administration Law Judge at the International Trade Commission ruling that Motorola Mobility did not infringe on three Apple patents. Apple had appealed an earlier ruling on the topic, and will now likely take the issue to court, so it is far from over.

Conde Nast to give advertisers viewer data
Conde Nast is finally relating the information it has been harvesting from readers of its iPad edition of its magazines. For the last 2 years a variety of its publications have been available on the tablets and I has been tracking a variety of information including basic data such as how many readers it has, the breakdown between paid and single issue sales and how long readers view articles and ads.

I would love to hear what some of this information and home the publisher will reveal some details to the public about what impact tablets have had on its business model, both pro and con. Publishers will start receiving data on specific issues 10 weeks after it hits the stands.

Windows 8 Tablets on the Horizon.
There seems to be a lot of breathless talk that when Windows 8 is released a slew of tablets will be released and crush Apple’s iPad, returning the tablet market to the righteous. Who cares? I hope that the tablets are good and have the options I want, not how they compare to Apple. But I digress.

There is a lot of talk about who is going to have tablets when Windows 8 is available, and a list of probables and a few features is included in this piece by the International Business Times. No real surprises, Hewlett-Packard, Nokia, Dell and some others but worth a look so you have an idea of what is on the way.

Kindle and Nook in for a fight from new Nexus tablet?
The site Android and Me is reporting that a Nexus tablet from ASUS is a done deal and expects that the tablet will come in at a very nice $149. It is reporting that Google has selected ASUS to produce the next generation Nexus tablet and that it will have a 7-inch form factor and that all other details are unknown at this time.

However this will go directly against the two popular e-readers out there, from Amazon and Barnes & Noble, which currently are the second and fourth most popular selling tablets. A good price war is always popular with consumers and I am looking forward to what they do if this turns out to be true.

Americans willing to pay for tablet content aside for news
A recent Nielsen study on tablet content purchases found some interesting facts about European and American users. Americans are willing to pay for almost all types of content, with 62% having purchased music, 58% purchased books and 51% have purchased movies, but only 19% paid for news.

That is not too far out of line with the European countries surveyed about news, aside from Italy which had 44% purchasing news content. The Europeans showed they were much less likely to buy books, movies and music than Americans.

Friday Grab Bag: London Olympics will be on YouTube

YouTube and NBC to team on Summer Olympics
NBC will be taking advantage of YouTube’s huge online popularity to help drive traffic to NBC’s home page during the upcoming Summer Olympics in a move that looks to benefit both players according to reports from Sports Business Daily.

The deal calls for YouTube to promote NBCOlympics.com on its home page and to direct visitors to live and highlight videos of the London Games. YouTube will be providing the player that users will need to view the video.

For YouTube it is a further step up into the big leagues as it is replacing Microsoft’s MSN portal as the player of choice. MSN had the 2008 and 2010 Olympics. For NBC it gains a huge presence on the Internet.

According to comScores Media Matrix NBC Sports is currently 6th for the US audience online with 14.7 million unique visitors in February 2012. While it will undoubtedly get a huge boost regardless of any deal due to the Olympics it still trails market leader Yahoo Sports by a significant amount- Yahoo with 50 million users.

US to insist on digital app security?
“Oops your data was stolen again-my bad” may not be the correct response to all of the constant leaking of data from smartphones and other devices. At least one US Senator, Charles Schumer, has taken up the call and has asked the FTC to see if the manner that Google and Apple are running their operating systems violates users’ privacy.

While not a big fan of government intervention I have to agree with this statement from him about apps that steal data- “beyond what a reasonable user understands himself to be consenting to when he allows an app to access data on the phone for purposes of the app’s functionality.”

He is asking that the government agency to force smartphone developers to add safeguards that require expressed consent before allowing access to personal information. It seems that more than these two are guilty and usually all we get are crocodile tears from them when caught. I wonder if this FTC effort will get out of the noise stage?

Apple drops Google Maps
Apple has dropped support for Google Maps in its iPhoto for iOS technology. The move is most likely partly caused by the company’s lawsuits against Google and leading Android users and Google’s fighting back via lawsuits filed my Motorola Mobility, soon to be a part of Google.

However Apple has also purchased mapping technology via its acquisitions of Placebase, Poly9, and C3 Technologies. Apple still offers Google in a number of other ways in its OS and platform offerings so be careful reading too much into this.

Is this a major win for Apple in its Patent battles?
A Google and Motorola Mobility have been ordered by Circuit Judge Richard Posner to disclose details of the development of the Android operating system to rival Apple as part of Apple’s ongoing patent lawsuit over the development of Android.

The case has been ongoing since 2010 and has resulted in a satellite of additional suits by all involved. This will probably add fuel to the fire but not clear if it will have a meaningful impact as there are a number of rumors that Apple may be looking to settle.

What are the best baseball books?
This is always a topic that incites my baseball loving friends- what are the best books on baseball? Well Jeff Polman is the latest to tackle the topic in a blog post found in the Huffington Post. He positions it as the 25 Baseball books that you would want if you were stranded on a desert island.

I really enjoyed the list but like most fans feel that there were favorites that he omitted, some that are worthy and at least one that is a favorite for immature reasons (Seasons in Hell). I do think that Ball Four cannot be omitted no matter what the reason. There is a good conversation on the topic ongoing at Baseball Think Factory at this time. Drop in and make yourself known.

E-Reader use continues to grow
According to a recent Harris poll the growth in e-reader ownership and usage portends good news for those in both markets. Just seven months ago 15% of Americans had one of these devices and now that number has almost doubled to 28%.
What is very good news for companies in this market is that the growth does not appear to be constrained to any one particular age segment with users in the ages 18-35 and 36-47 categories slightly ahead at 30% currently and that number just drops slightly to 28% among ages 67 and older and 24% of those in the 48-66 age category. Typical users read more than non-users as well.