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Eolas: "No need to change Internet Explorer, just pay us"

Microsoft on 11 April will release a patch that changes Internet Explorer so that the browser no longer violates a patent owned by Eolas. The change will require users to click or press keys before embedded elements on a webpage are activated.

The changes caused Eolas to lash out against Microsoft. They worsen of the users' browser experience, Eolas COO Mark Swords told eWeek. Instead, Microsoft should purchase a license on the dispute technology.

Is Eolas suddenly a consumer advocate? Or is the company really just looking to rake in some more money in addition to the $521m that it was awarded in a 2003 lawsuit?

Microsoft's decision significantly undermines Eolas' position. The software developer has shown that it doesn't need Eolas' technology, sending a signal that it doesn't plan to pay any outrageous sum. In essese, the update has downgraded the technology to the bargain basement: nice to have, but showing notable defects.

We witnessed how outrageous these license fees can get in the Blackberry-NTP case. There a jury awarded about $100m in damages for the patent violation. But Blackerry maker RIM had to pay another $500m to purchase a license on the technology.

The Eolas case just offers additional proof that there is an urgent need for patent reform, and that software patents should be treated differently from traditional patents for instance in the pharmaceutical industry.

I doubt however that this case will do anything to speed up that reform process. Microsoft is itself greatly profiting from the broken patent system, and will likely see this as a single incident. It's hard to be a patent optimist these days.

Photo credit: Ken Duncan

Tags: patent reform, patent, Microsoft, internet explorer, eolas

March 31, 2006 at 08:59 PM | Permalink | Comments (1) | TrackBack

Shaming more adware funders

Spyware researcher Ben Edelman got hungry for more after he and the Center for Democracy and Technology published a blacklist last week.

Adware is one of the problems at the root of the spyware and botnet problem, because adware makers pay "partners" to distribute and install the software. They have created an incentive for bored teenagers to create botnets and install adware on those zombie computers for financial gain.

Last week's report caused several advertisers to cancel their contract with 180solutions. This week Edelman is taking aim at the Direct Revenue programme. The adware network is funded by major brand names including Citi, HSBC, True.com, United Airlines, T-Mobile and Vonage.

If you feel that Adware is a nuisance and you do business with any of these companies, make sure you drop them a line and let them know how you feel. In most cases these companies don't even know that they are engaged in this questionable practice, and just exposing them will do.

Tags: adware, Ben Edelman, 180solutions, direct revenue

March 31, 2006 at 07:11 PM | Permalink | Comments (0) | TrackBack

Google gets cash hungry

Google is planning to sell an additional 5.3m shares. The main reason, according to the press release, is to increase the supply of shares available in the market, as the search engine will be added to the S&P 500.

What that doesn’t answer the question: why does Google need the $2.1bn that the floatation will bring?

The SEC filing doesn't give us anything either. It is using standard phrasing to say that there is nothing to say:

"We anticipate that we will use the net proceeds from this offering for general corporate purposes, including working capital and capital expenditures. In addition, we may use proceeds of this offering for acquisitions of businesses, technologies or other assets that we believe will complement our business."

The acquisition note would be interesting, if Google wouldn't have used the exact same phrasing last year in August when the company sold an additional $4bn.

Surely you should buy an umbrella when it isn't raining. Google will have an easier time getting cash now that the company is still hot. But the more outstanding shares, the worse some of the key performance indexes are going to look.

Google as of 31 December 2005 had cash reserves of $8bn, according to its annual report. The company in the same document however pointed out that Microsoft (which the company considers one of its main competitors) has "significantly more cash resources than we do".

Anything beyond that is speculations. I'm going with the umbrella theory.

Tags: google, stock exchange, Microsoft

March 31, 2006 at 02:25 AM | Permalink | Comments (0) | TrackBack

Is Apple's volume patch an admission of guilt?

Apple yesterday released a software update that allows consumers to tune down the maximum volume level of their iPod devices.

The timing of the release is questionable. Apple is currently facing a lawsuit that alleges that the iPod caused some users to go deaf.

The iPod maker didn't mention the suit in its press release. But the opposing lawyers made sure to link the two (press release - subscription required), and claimed that the move amounts to an admission of guilt.

"It is good to know that Apple finally acknowledges that there is a serious flaw with its iPod product," said Steve Berman, an attorney for the plaintiffs.

He also made sure to point out a serious flaw in the patch: it only works on the iPod Nano and "fifth generation" iPods, locking a large group of iPod users.

"Unfortunately, this patch doesn't help the millions of people who own older models -- it is a jack-legged workaround that falls well short of what consumers demand and deserve," Berman was quick to point out.

It may be up to a judge or jury to decided if the patch amounts to an admission of guilt, but it certainly doesn't help. Apple either must be very sure of its case, or is confident that it will reach a settlement very soon.

Tags: apple, ipod, ipod nano

March 30, 2006 at 09:34 PM | Permalink | Comments (5) | TrackBack

Diebold fights transparency at all costs

If having a transparent democratic election is your greatest goal, Diebold can be your greatest enemy.

The maker of electronic voting machines is fighting a local Utah clerk with the determination of a company that is trying to prevent any facts from leaking out.

When county clerk Bruce Funk received a batch of 40 Diebold TSx voting machines, he soon became suspicious of the device. Two of the machines failed a first test and had to be shipped back to the manufacturer. Other devices showed defects ranging from paper jams and memory card bay doors that wouldn't close.

As Funk was responsible for the elections in Emery County, he decided to get a second opinion from BlackBoxVoting a non-profit group that is critically following electronic voting. They found that there was a critical memory shortage in seven of the machines that would eat up to 20Mb of the devices' memory. The shortage more importantly left the voting machines with insufficient memory to store a backup file with the election results.

Diebold claimed that the shortage was the result of different fonts being installed on the machines, but BlackBoxVoting quickly dismissed that explanation. Fonts would account for a few 100 Kilobytes, not 20 megs.

The voting machine maker later changed its story to say that it shipped three different models of the voting machines – but didn't account for the memory shortage and inability to store the backup file.

By then however, the company decided to go on the offensive. The third party testing had invalidated the warranty and required the machines to be recertified – at a cost of $40,000.

In a heated debate, Funk offered to resign. But the next day, he decided to fight for his position as an elected official and hired an attorney.

This isn't the first time that the accuracy of Diebold voting machines has been scrutinized. But the company keeps fighting any outside effort to verify the accuracy of its machines. We can only speculate why the company is trying to hide thing from the public.

Tags: Diebold, black box voting, elections, democracy

March 30, 2006 at 08:51 PM | Permalink | Comments (0) | TrackBack

Intel and MIT take different routes to bring computers to the developing world

Intel today released the specifications for its "Community PC". The devices were designed for use in rural India, where people rent their computing time in small kiosks from local merchants. There they stay in touch with relatives and file or access government forms.

The fact that many people share a single computer combined with the Indian climate and environment make that your typical Dell desktop system isn't up to the job. The systems have to deal with errant power supply, bugs (the kind with legs) and dust tend to invade the units, and high temperatures and humidity often render the computers useless.

That’s why Intel years ago hired a group of anthropologists to find out how it could increase the market for its processors in such markets like India. The chipmaker believes that Western technology can be sold in emerging economies, as long as it solves a real problem.

So the Community PC features a backup power source, dust filter and additional cooling to cope with the harsh climate. The computer also comes with a special feature that allows the owner to quickly "reset" the unit to get rid of any worms or spyware that uses might have downloaded during their sessions.

This Tuesday, Nicholas Negroponte is scheduled to deliver the opening keynote at LinuxWorld in Boston. Negroponte is the driving force behind the $100 Linux laptop for developing nations. While the laptop attacks some of the developing world's problems such as erratic power supply, it doesn't aim to solve any specific problems. Instead the project leaves it up to the users to find applications for the units, much like the way that we're constantly finding new uses for PC technology in the West.

The $100 laptop project is focused on creating a low cost computer, Intel thinks that the right application will justify the investment. The two are taking a dramatically different approach. Both have some claim to validity, but years of aid work have shown that Intel's approach tends to work better than MIT's.

Tags: intel, aid work, emerging economies, nicholas negroponte

March 30, 2006 at 01:48 AM | Permalink | Comments (1) | TrackBack

Europe tells Microsoft to stop playing games

European anti trust regulator Neelie Kroes has given Microsoft a dirty look – the kind that parents give their children when they haven’t done anything wrong… yet. And then they leave it up to little ones to determine where they should draw the line.

In a letter to Microsoft chief executive Steve Ballmer, Kroes warned the software vendor to show restraint in bundling services with its forthcoming Vista operating system. She didn't say which specific services were off limits, but mentioned that an ban on Vista sales is a very real option.

Security and online search allegedly are two areas of concern. Microsoft is new in the anti-virus and anti-spyware markets, and its MSN search engine only recently has become as capable as Google's and Yahoo's. So in both cases there are legitimate concerns that the company could use its Windows monopoly to push those services.

But Microsoft has publicly stated that it won't bundle its anti-virus software. And although MSN for years has been the default search engine for Internet Explorer, that hasn't stopped Google and Yahoo from beating the service on both features and market share.

It appears that Kroes is making a strategic move more than that she is making any real threats. Microsoft has yet to reach an agreement with the EU in the anti-monopoly case there, and negotiations are anything but smooth. Threatening with a ban on Vista sales might provide some grease to the process.

Tags: windows vista, microsoft, european union, neelie kroes

March 29, 2006 at 08:02 PM | Permalink | Comments (0) | TrackBack

Jobs gets a good tax bill

Steve Jobs last week had to sell about $300m worth of Apple stock, because he was awarded  $600m earlier.

In short, the taxman wanted its cut of a plush pay package that Jobs had agreed upon in 2003. At the time, the executive agreed to a $1 annual cash salary plus the 10m Apple shares, which would vest in 2006.

Everybody benefits. President Bush gets to purchase some new Humvees for Iraq and Jobs gets a new turtleneck.

Apple shareholders are left to pick up the bill. And given that Apple stock has been down 29 per cent since it peaked at $86.40 in January, they might be less thrilled.

Tags: apple, steve jobs

March 29, 2006 at 06:34 PM | Permalink | Comments (0) | TrackBack

Google folds on Print advertising

Google's foray into the print advertising market has crashed, Business Week claims.

The programme was a first, and cautious, attempt by Google to expand its AdWords programme to print publications.

The test programme pitched pages in publications such as Martha Stewart Living and Road and Track. The first one sells its advertising at a rate of $59,000 for half a page. One advertiser paid a mere $4,000 through Google.

Google's advertisements are successful because of their pay-per-click model. Because the end user consciously clicks on the ad, the technology is effectively a lead generation tool.

Few people will use AdSense to run an image campaign. That’s where print, radio and television excel and to a certain extent banner ads.

Image campaigns rely on repetition (frequent exposure to a brand name) and association (if a hot girl is drinking Pepsi on TV, all Pepsi drinkers must be hot and cool). AdSense offers the consumer to solve his problem that very moment.

They serve a different goal, and also attract a different type of advertiser. Coca cola won't start buying advertising around keywords like "cool" and "sexy" on Google, just like a Philadelphia real estate agent won't run commercial on CNN.

Tags: google, adsense, adwords

March 28, 2006 at 01:21 AM | Permalink | Comments (0) | TrackBack

E-commerce 2.0

The screenshots prety much say it all...

Shots from tshirthell.com

via: Jeff Nolan's Venture Chronicals

Tags: e-commerce

March 28, 2006 at 12:19 AM | Permalink | Comments (0) | TrackBack