“At root, the judges of the Federal Circuit appear confused about how computers work,” and, “it’s making a mess of patent law,” reports Ars Technica, explaining how the definition of “computer” has judges making conflicting decisions.
In order to receive patent protection, inventions cannot have “abstract ideas” or “mental processes.” However, the United States Court of Appeals for the Federal Circuit seems to be having a hard time drawing that line, according to the article.
The Court supported a patent protecting Alice Corporation’s idea of using a computer to do a specific kind of financial transaction. A few weeks later, Bancorp Services was denied its patent for “using a computer to manage a particular type of life insurance policy,” the article states.
The Court explained the discrepancy: “…the use of a computer in an otherwise patent-ineligible process for no more than its most basic function — making calculations or computations — fails to circumvent the prohibition against patenting abstract ideas and mental processes.”
“To salvage an otherwise patent-ineligible process, a computer must be integral to the claimed invention, facilitating the process in a way that a person making calculations or computations could not,” the court continued. “The computer required by some of Bancorp’s claims is employed only for its most basic function, the performance of repetitive calculations, and as such does not impose meaningful limits on the scope of those claims.”
In contrast, computer use was considered an integral part in the Alice Corp. invention, which was therefore upheld.
“This doesn’t make much sense,” Ars Technica argues. “Every computer application, no matter how sophisticated, consists of nothing more than ‘the performance of repetitive calculations.'”
Warner Bros. is targeting several unnamed users of Amazon.com’s resellers market, filing at least 16 separate lawsuits in California.
The complaints claim the defendants have been selling counterfeit DVDs ranging from “Harry Potter” films to various HBO original shows.
Amazon’s e-commerce platform, which enables third parties to sell products, is protected by the first sale doctrine. However, a 2010 9th Circuit Appeals Court decision set the precedent that the original vendor could limit resale by “crafting the terms of use for media content to define the purchase as a ‘license’ rather than a strict ‘sale,'” notes The Hollywood Reporter.
However, a source told THR that the lawsuits aren’t concerning issues of used merchandise.
“If Warner Bros. is suggesting that illegally downloaded or camcorded copies of shows and movies are being passed off as new or used items on Amazon, the lawsuits launched Monday suggest a different sort of problem,” the article states. “Namely, the lack of internal controls in the Amazon Marketplace to deal with such ‘counterfeits.’ Amazon has been known in the past to suspend the accounts of counterfeiters, so the litigation raises the question of why not this time.”
Warner Bros. is seeking damages and attorney costs (Amazon is not a named defendant) and that “the defendants be restrained from offering unauthorized copies of their works for sale as well as marketing, advertising and promoting such copies,” explains THR.
In the year of the failed SOPA and PIPA legislation, a recently leaked report indicates that the RIAA’s Deputy General Counsel did not believe those bills would have been effective in dealing with music piracy.
RIAA CEO Cary Sherman wrote and spoke out in support of SOPA and PIPA at the time: “legislation that if passed would have removed infringing websites from the United States Internet,” according to TorrentFreak. “But quietly behind closed doors earlier this year one of the RIAA’s most senior lawyers admitted that the legislation would not have been effective against online piracy.”
In the leaked presentation document, RIAA Deputy General Counsel Victoria Sheckler admits that because of the viral online opposition to the bills, they were “essentially dead.”
But the document said more. According to TorrentFreak, “perhaps of most interest is the confession that even if they had passed, SOPA and PIPA would have been of little help to the music industry.”
The RIAA is instead focusing on the “six strikes” copyright enforcement, believing it is “robust enough to have a positive effect with its ‘consumer friendly’ approach.”
“Evidence exists that most users would modify their behavior if alerted to the risks associated with using certain P2P services and/or made to believe they will face consequences if caught infringing,” writes Sheckler.
According to a “Memorandum of Understanding, the RIAA is clearly aware that if they’ve issued infringement notices against an account holder six times, then that user has a good chance of being viewed as a ‘repeat infringer’ by their ISP — at least if prompted to do so by the RIAA” and could therefore suffer penalties including a slowed connection, possible disconnection, etc.
Consumers are faced with a dizzying array of options to catch up with TV viewing as the cable business struggles with windowing strategies across multiple digital platforms.
One frustration for viewers is the inconsistent manner in which their favorite shows are offered online and on-demand.
“What is delaying the multichannel TV world is a complex web of vested interests ranging from the cable and satellite operators that dictate most of the distribution parameters for programming to the studios that hold onto some of the rights to the content they license to the networks,” notes Variety. “Then there are the varying off-air marketing strategies, not to mention just old-fashioned indecision.”
Programmers are faced with ad revenue challenges when considering premiere telecasts, reruns, DVR playback and more.
“Cablers also need to protect their relationships with operators that pay them a fortune in carriage fees,” explains the article. “On the other hand, programmers want to maximize the exposure of their shows in ways that can drive ratings back to on-air, dilute the appeal of piracy and capitalize on the momentum of online video in general.”
The industry’s lack of uniformity has evolved during the dawn of the TV Everywhere era, enabled by over-the-top products and services (and impacted by consumers’ changing expectations).
“What we’re really trying to do as an industry is to get a point of consistent time-shifted product available on all devices and platforms to pay TV subscribers,” said Mike Hopkins, president of distribution at Fox Networks.
“Even as cable/satellite TV carriers like Comcast and DirecTV squabble over dollars and cents with broadcast and cable networks like NBC and Viacom, the very structure of their decades-old business model is under attack from new Internet technologies and services, as well as new government regulations,” reports ReadWriteWeb.
“At stake is the future of how people watch and pay for television and video — and who controls the experience,” notes the article.
The dominance of cable and satellite TV providers is being chipped away by Internet video services like YouTube, streaming Internet TV boxes such as Roku and Boxee, online media distribution venues including Netflix and Hulu, smart TVs and related over-the-top (OTT) platforms.
“The other half of the squeeze on the cable TV industry comes from the ossified business practices of the industry itself,” suggests the article. “Cliffhanger battles for carriage rights that lead content creators to pull their programming from cable and satellite systems if they can’t get a deal they like is shooting the industry in the foot.”
Frustrated consumers (and some lawmakers) are pushing for change to the current bundling model, for example. “Programmers like Viacom typically won’t allow anyone to buy their channels individually, but we hope to change that,” said DirecTV recently.
Some analysts suggest the impending changes do not signal a death toll for cable TV, but rather a transition where mobile devices will be used in conjunction with TVs. We should expect the growth of second screen apps to be a significant influence in this space (and may even help save cable).
“Cable TV’s ratings may fall as OTT becomes more popular, but don’t cancel cable’s season just because the plot is getting a major rewrite,” comments ReadWriteWeb.
Following its initial victory in federal court in mid-July, Aereo has announced changes to its financial model that could further enrage TV broadcasters who continue to battle the company on claims of copyright infringement.
“TV streaming start-up Aereo has unveiled a more flexible pricing structure that includes a $1 day pass, $8 and $12 monthly passes, and an $80 annual plan,” reports VentureBeat.
“Aereo lets New York City residents view live streams from major TV broadcast networks (including ABC, CBS, NBC, and Fox) on a variety of Internet-connected devices, such as smartphones, tablets, and desktops,” explains the post. “There’s also a DVR in the mix that allows users to record up to 40 hours of content that can be streamed later. Ultimately, it’s a great solution for cord-cutters that still want to enjoy local content.”
In addition to updating its original $12/month subscription, the company is offering “Aereo Try for Free,” an introductory trial that allows NYC residents to watch one continuous hour of TV everyday without paying.
“We know that one size does not fit all, that’s why we’ve designed our new pricing structure to work for a wide variety of lifestyles,” explains Aereo CEO Chet Kanojia. “Whether you want a day pass to watch the ‘big game’ on your mobile device or an annual membership that provides you with 40 hours of DVR storage, we have a plan that works for you.”
Aereo is currently available only to TV viewers in NYC, but the company has plans to expand. “We’re going to really start marketing,” said backer Barry Diller last month following the court decision. “Within a year and a half, certainly by 2013, we’ll be in most major markets.”
The DASH Promoters Group is a newly formed collection of companies and organizations, supported by the European Broadcasting Union, that is working to promote the adoption of MPEG-DASH as an international standard for multimedia delivery over the Internet.
According to the group’s website, they believe the use of this open standard “will accelerate market growth, enable interoperability between content preparation tools, servers, CDNs and end devices, reduce the cost of delivery and eventually benefit the end user.”
During the London Olympics, Belgian broadcaster VRT is offering its audience an opportunity to stream the games via MPEG-DASH. “The public trial allows for a maximum of 1,000 concurrent viewers to watch their favorite sport events on a laptop, smartphone or tablet,” explains the site.
This marks the first live public trial of MPEG-DASH (dynamic adaptive streaming over HTTP), which the group hopes will serve as the next step toward adoption of a standard and eventual commercial deployment.
The DASH Promoters Group is facilitating the streaming with DRM content protection — available via the VRT Sporza website — but due to copyright restrictions it will not be available outside the Belgian territory.
“This trial is supported by a number of DASH Promoters Group members,” notes the DASH-PG site. “Encoding is provided by Elemental, Harmonic and Media Excel; streaming origins are courtesy of Wowza and CodeShop, who is also providing encryption; Web clients for PC and Android are supplied by Adobe; and BuyDRM is providing applications for iOS and Android, which incorporate its DRM solution.”
Amazon customers can now store 250 songs for free with the new update for Cloud Player, Amazon’s challenge to Apple’s iTunes Match.
“The update includes a new feature that scans folders containing music on your computer and automatically matches up that music to songs within Amazon’s catalog,” reports Digital Trends. “It doesn’t matter if the music was ripped from a compact disc or purchased through another competing service.”
“After matching up the music, customers will be able to access the music within Cloud Player. Similar to Apple’s iTunes Match, the music will be upgraded to 256 Kbps quality despite the original bit rate of each song,” explains the post.
Also new is the inclusion of all the past music purchases on a specific Amazon account, allowing users to access music from any browser and mobile device. Amazon is also offering its Premium package that allows storage of 250,000 songs for $24.99 per year.
“In addition, all songs purchased on Amazon don’t count towards the 250 or 250,000 limit,” notes Digital Trends. “Beyond the Cloud Player features, Amazon is also splitting up Cloud Player from the Cloud Drive product. Any Amazon user can get 5GB of file storage for free with Cloud Drive, but can pay for premium plans up to $500 a year for 1TB of online data storage.”
In a related article by Ars Technica, Amazon is changing its stance on the need for music licenses. With the Cloud Player’s initial launch over a year ago, the company viewed the service as a media management application that did not require licenses.
But this week in a press release, Amazon announced licensing agreements “with Sony Music Entertainment, EMI Music, Universal Music Group, Warner Music Group, and more than 150 independent distributors, aggregators and music publishers.”
Microsoft’s Windows 8 is officially completed and ready for its “release to manufacturing,” according to the company.
Consumers will still wait until the public release on October 26, but developers with Microsoft’s MSDN subscription or a TechNet subscription will have access as early as August 15. The following day, businesses with Software Assurance, a volume license deal, can also get the new OS.
“Microsoft also said that, as of today, software developers can now offer paid apps via the operating system’s new ‘Windows Store.’ Until now, only free programs were allowed in the marketplace,” reports AllThingsD.
An attempt to make a cohesive operating system for both desktops and tablets, “Windows 8 represents Microsoft’s biggest-ever overhaul to its flagship product,” the article states. “The new Windows works on both traditional PC chips as well as on the kinds of ARM processors used for cell phones (though that version is called Windows RT). Microsoft is also shaking up how programs are written and delivered.”
As previously reported, Microsoft’s Surface tablet is also scheduled for public availability on October 26.
Although Yahoo and Google’s Gmail dominate in the U.S., Microsoft’s Hotmail is still the leading Web email service across the world, according to comScore.
This week, Microsoft is updating the email service, giving it a new name and adding new features that rival the other popular U.S. services.
AllThingsD writer Katherine Boehret has been using the pre-release version of the new Outlook.com — renamed to align with all of Microsoft’s email offerings — and reports encouraging results.
The new version “includes dozens of smart features that simplify the otherwise-exasperating process of managing your email inbox,” she writes. “Examples include optional one-click scheduled cleanups of mail that delete all but the last message you got from someone; a safe, built-in way to unsubscribe from newsletters; and easy methods for creating email sorting rules for new and old messages. I cut the number of emails in my inbox in half after the first day of using Outlook.com.”
The update is also bringing social to email, incorporating profile photos and status updates from various social networks.
As a challenge to other email services, Outlook.com can import contacts from other services and receive emails from other accounts.
Although Microsoft has been somewhat eclipsed by Apple in recent years, this summer has been full of new announcements including its new Surface tablet, the Windows 8 fall launch and upcoming Office 2013.
The social network that once seemed unstoppable has seen major challenges with its IPO and stock prices after its first earnings report. But, according to Fortune, Facebook’s biggest problem doesn’t have to do with investors or ads. It has to do with maintaining its 901 million active users.
“Social network users can be extremely fickle,” the article states. “They might love the service one minute and run away another,” as evidenced by failed sites such as Friendster, Myspace and Google’s Buzz.
Facebook acknowledged this threat in its S-1 Registration Statement filed with the Securities and Exchange Commission. “There is no guarantee that we will not experience a similar erosion of our active user base or engagement levels,” the company wrote.
Gartner analyst Brian Blau recently described the social space as “a hit-driven industry,” one in which missteps or lack of innovation can cause a rapid downward spiral.
“The issue for Facebook and all other social networks is that they have yet to land in the rarified position of ‘necessary,'” suggests Fortune.
“Google has become a necessary resource for finding Web sites. Facebook is just a place to hang out and communicate with friends and family. And despite Facebook’s best efforts to deliver games, applications, and extend its reach beyond its own domain, it hasn’t done anything yet that would totally safeguard it from possible obsolescence,” concludes the article.
Some companies are now trading out their traditional focus groups for social media, using popular social networks for consumer research.
“While consumers may think of social media sites like Facebook, Twitter and Foursquare as places to post musings and interact with friends, companies like Walmart and Samuel Adams are turning them into extensions of market research departments,” reports The New York Times. “And companies are just beginning to figure out how to use the enormous amount of information available.”
Currently, Frito-Lay is using a Facebook app for customers to suggest new flavors and vote on their preferences. Walmart used Twitter chatter to determine whether to keep in-store stock of lollipop-shape cake makers. Samuel Adams used Facebook to create a crowdsourced beer.
“The social media approach also attracts younger customers. People who sign up for focus groups or consumer panels are generally not young fad followers, but Facebook users often are, so adding social media to the mix lets Frito-Lay get a wide range of consumer feedback,” notes NYT.
“Companies using data from social media said the ability to see what consumers do, want and are talking about on such a big scale, without consumers necessarily knowing the companies are listening in, was unprecedented,” the article states.
“This is like the biggest focus group someone could ever imagine,’ suggests Mark LaRow, SVP for products at software company MicroStrategy.
GigaOM writer Dave Greenbaum takes a look at Google Fiber in action, noting some drawbacks to the otherwise impressive, high-speed network.
To start, he downloaded various files to test the speed over the wired connection and Wi-Fi. “These tests show one of the limitations of Google’s Fiber network, other services. Since Google Fiber is providing virtually unheard of speeds for their subscribers, companies like Apple and I suspect Hulu, Netflix and Amazon will need to keep up,” he explains.
“I downloaded a few (legal) torrents and while it’s hard to compare torrents at any given moment, a popular file downloaded at extremely high speeds,” he notes. “Subscribers will pay for high-speed Internet but may not notice the difference when compared with friends with top-tier broadband.”
“Another limitation may be the fact that Google appears to be using a gigabit PON based on a screen shot of an interface to the Network box. If this is the case, speed could be reduced by other users,” Greenbaum writes.
Other concerns include: lack of popular cable channels, outstanding contracts with other providers, the lack of a landline IP, compatibility issues with Google’s Network Box (the required router for Fiber), and finally privacy (will Google be spying on users’ Internet use?).
All in all, the service is still promising. “I’m delighted they have bucked the trend against slow speeds and obnoxious bandwidth caps,” Greenbaum concludes. “I realize that in order to control the experience, you’ll have to use their hardware but Google has everything to gain by making their system as configurable as possible. As the service becomes more popular, content systems will be forced to upgrade their networks to keep up, although that means that bandwidth could slow down for some customers in theory.”
Cable subscriptions average $60-$80 a month compared with streaming services that typically cost around $10 a month. ITworld writer Brian Proffitt walks his readers through the steps to determine if cord cutting is right for them, acknowledging that streaming services are, in fact, not for everyone.
First, he recommends that viewers identify their habits — for example, what they watch most (movies, sports or primetime television). According to the post, most online services now have good movie offerings, so movie-watchers should be able to make an easy switch.
Services like Hulu Plus offer a great selection of television. For frequent TV viewers, Proffitt suggests first listing the shows that are watched (even guilty pleasures) and identifying what streaming sites provide them in a timely fashion.
For sports fans, cutting cords can be much more difficult. Many sports have subscription-based seasonal passes, but they are likely subject to blackout rules.
Once a viewer has a good idea of what content is most frequently watched and which services offer them quickly (very important — some TV shows are delayed months on some streaming services), Proffitt recommends a good connection to the Internet without severe data limits. If you are always going over your data allotments, you may find the money you save by cutting cable subscriptions is quickly redirected.
Additional considerations include the cost of the Internet TV device (for example: Boxee, Apple TV or Roku), ensuring high definition and quality sound, and the ability to play other content like home movies on the TV.
Top broadcasters including NBC and Fox are jumping into the wireless world with the soon-expected launch of Dyle.
“Dyle is a service run by Mobile Content Venture, a consortium of broadcasters that are building a network to deliver local and live TV channels to mobile devices,” explains CNET.
Mobile Content Venture (MCV) has agreements with various companies including ABC, CBS, Samsung, LG, Belkin and others.
Using the app on a new phone or in conjunction with a dongle for tablets, users can tune in to live sports, breaking news and other live programming over broadcasting airwaves without overtaxing the cellular network.
“The wireless industry, MCV argues, can benefit from a second network that runs parallel to the cellular one,” notes the article. “Consumers who watch television through Dyle don’t consume data from their plans, an increasingly big concern with more restrictions on data use. In its own way, MCV believes it can alleviate the growing traffic congestion on the mobile highways.”
While CNET writer Roger Cheng expresses skepticism about demand — “history has shown that consumers haven’t exactly clamored for live TV on their mobile devices” — a new study from Research Now (commissioned by Dyle) may suggest otherwise.
“The 510-person survey found that 61 percent of consumers would be somewhat or very likely to switch cell phone providers to get access to mobile TV. Even more — 68 percent — said they would watch more live TV if it were available on their mobile device. The study found that consumers wanted to get their local news and weather from mobile TV even if the content is readily available online,” reports CNET.
The project does, however, face a dilemma: without critical mass, big manufacturers and mobile carriers won’t join up, but Dyle may struggle to gain traction without their support.