House passes bill to curb patent trolls

The U.S. House of Representatives has passed a bill meant to discourage so-called patent trolls from filing multiple infringement lawsuits or demanding licensing deals over the objections of some groups representing small inventors. The Innovation Act, which passed Thursday by a 325-91 vote, has the support of several large U.S. technology companies as well as advocacy groups Public Knowledge and the Electronic Frontier Foundation. The bill now heads to the U.S. Senate for action. Despite the lopsided vote, some lawmakers said the bill favors large companies at the expense of small inventors. "This is a gift to the giant conglomerates that can already push you down," said Representative Sheila Jackson Lee, a Texas Democrat. With the bill, Congress is "attacking the little guy," added Representative Dana Rohrabacher, a California Republican. Still, several tech groups applauded the bill's passage. The legislation "should send a powerful message to patent trolls that their continued abuse of the patent system and extortion of American businesses will not be tolerated," the Internet Association, representing Google, Facebook, Amazon.com, eBay and Yahoo, said in a statement. The Innovation Act, sponsored by Representative Bob Goodlatte, a Virginia Republican, targets businesses that use patent licensing and lawsuits as their primary source of revenue. Critics blame these patent assertion entities (PAEs), often called patent trolls, for a growing number of patent infringement lawsuits in U.S. courts and a flood of patent settlement demand letters. The bill would require plaintiffs in patent infringement lawsuits to identify the patents and claims infringed in initial court filings, in an effort to reduce complaints about PAEs filing lawsuits with vague patent claims. The bill would also allow judges to require that losing plaintiffs pay defendants' court fees. In addition, the bill would allow courts to delay massive discovery requests from patent infringement plaintiffs until the patent claims have been interpreted by the court, and it would allow manufacturers and suppliers to intervene in patent litigation against their customers. In recent years, some PAEs have targeted end users of technologies that allegedly infringe their patents in an effort to collect more patent license fees or court awards. Several groups representing inventors, venture capitalists and U.S. colleges have opposed the bill, with some saying that it has been rushed through Congress in about a month. This week, inventor Dean Kamen, founder of Deka Research and Development, spoke out against the bill. "The patent system has been a main driver of keeping the U.S. economy ahead of the rest of the world since this country was formed," he said during a press briefing. "Any bill that tinkers with the main engine of innovation ought be looked at very, very carefully and not whipped along." The bill would "dramatically increase the barriers" for small inventors to protect their intellectual property, he added.. . . . . . . . . . . .

Developers slowly rising to Microsoft's Surface

Microsoft's Surface touch computer may be generating more oohs and ahs than some of the company's other recent technologies, but the product has yet to generate rabid interest among programmers. A year and half after Microsoft released Surface, just 250 companies are developing applications for the touch system, Microsoft officials revealed during its Professional Developers Conference 2009 (PDC09) held here this week. Some 5,000 copies of its free Software Development Kit (SDK) for Surface have been downloaded, they added. Compare that with the 100,000 iPhone SDKs that were downloaded in the four days after its launch on March 6, 2008.. . . . . . . . . . Some observers question whether such a comparison is valid -- deployment of the $12,500 to $15,000 Surface tabletop PC is limited mostly to hotels, health clinics, banks and other customer-facing businesses looking for a new spin on the computerized kiosk. The Surface's April 2008 launch came amid a massive economic downturn that still has businesses shy about investing in new technology, leading to a chicken-and-egg situation where developers are holding off developing Surface apps until the economy improves. Brad Carpenter, general manager of Microsoft's Surface team, said he remains patient. "For interest to scale out takes time," he said in an interview at PDC this week. "There are more and more apps every day. So we feel like we are making progress." He pointed out that Microsoft now has 250 Surface partner companies, up from 180 six months ago and 60 a year ago. Similarly, the 5,000 SDK downloads is more than 3 times the 1,500 six months ago, and up sixteenfold from 300 a year ago. To accelerate development of applications for Surface, Microsoft announced that the Surface SDK is now available without charge to all developers. The SDK was previously available free only to members of the Microsoft Developer Network (MSDN). Microsoft noted that the SDK includes a simulator that lets developers see how their programs would run on a conventional PC. It lets users plug in multiple USB mice to simulate how multi-touch technologies work. The SDK runs on Vista today, but Microsoft said the next version will be based on Windows 7. With adequate hardware, Windows 7 offers multi-touch capabilities. Carpenter declined to say when the next version will be available. Microsoft disclosed that it is also integrating the touch and object-recognition controls for Surface into the Windows Presentation Foundation (WPF) version 4. That version of the WPF graphics subsystem is due in 2010. WPF support should help developers more easily create Surface-enabled apps, Carpenter said, as well as make Surface applications run similarly to Windows 7 touch-enabled software. Carpenter said that the Surface is now available in 18 countries, including 16 in Europe. New customers include Hard Rock Cafe, Barclays Bank and mobile operator Vodafone, which has deployed Surfaces in 62 retail stores to provide customer service. Surface's stumbling blocks also continue to be its high price and bulkiness. Microsoft is working on a less-expensive version of Surface which will likely be thinner and wall-mountable, like an LCD television, said Carpenter. The technical difficulty would be packing cameras behind the touchscreen to enable object recognition capabilities, as well as the PC hardware -- an Intel Core 2 Duo processor mounted on a desktop motherboard. But, Carpenter said, "I definitely believe it's do-able." However, when asked whether future Surface versions would enable in-air gestures like the Xbox 360's Project Natal, Carpenter sounded less optimistic. "We are mostly focused on touch. In-air gestures is not something we are enabling yet," he said. Carpenter wouldn't talk about the cost of new Surface versions, but did say a new version should be coming soon. "Our goal was to have a consumer version of the Surface in two to four years. We are on track for that," he said.

All about Windows RT, the OS behind a Microsoft tablet

The Internet began boisterously buzzing last week that Microsoft will unveil its own tablet later today, perhaps one powered by Windows RT, the offshoot of Windows 8. On Monday, the speculation grew even more adamant, with the New York Times claiming that Microsoft sources told it that the company will indeed introduce its own tablet, and that the device would run Windows RT. While Microsoft has aggressively touted Windows 8 with scores of blog posts spelling out often picayune details of the upcoming operating system, the company has been relatively quiet about Windows RT, the all-mobile OS destined for tablets. How is Windows RT different from its better-known cousin? Why did Microsoft create two versions when Windows 8 also boasts some of the same features and relies, at least in part, on the same design motif and user interface (UI)? Questions, questions, questions. And because there's a growing chance Microsoft will make a landmark move -- it's never directly competed with its PC- or tablet-making partners -- we have some answers. Where do I buy Windows RT? You don't. Not separately, anyway, as Windows has been sold for decades. Windows RT is OEM-only -- OEM, for "original equipment manufacturer" is simply a computer maker, like Dell or Hewlett-Packard or Lenovo -- and the OS can't be purchased by individuals or Microsoft's corporate customers. Instead, it is pre-installed on devices, most likely tablets, although Microsoft has been trumpeting a claim that at some point, low-cost, power-miserly notebooks will also run the OS. The rumored tablet that Microsoft is to unveil later today would run Windows RT, making Microsoft its own OEM for the first time ever for a computer or computer-like device. So Windows RT is the same as Windows 8? No, it's not. They're two separate lines of Windows, and to delve into family history, cousins at best -- maybe once removed. Think of it this way: Windows RT is to Windows 8 as Apple's iOS is to OS X. The two within each pair clearly have a shared history, some shared code, but are distinct operating systems designed for different classes of devices, and run on completely different, and incompatible, processor platforms.. . . . . . . . . . Both OS X and Windows 8 run on Intel's x86/64 processor architecture, while iOS and Windows RT work only on devices with ARM-licensed CPUs. So I'm guessing that apps designed for Windows 8 -- or older version of Windows -- won't run in Windows RT. You are correct. Programs designed for Windows 8, the operating system that runs on devices powered by Intel's x86/64 processors, will not only not run on Windows RT, they're not even allowed to try. With a few exceptions..., because there are always exceptions. Analyst credits Surface sell-out to Microsoft swinging conservative Best Buy does what Microsoft won't: Takes Surface tablets in trade Deja vu all over again: Microsoft warns of Surface 2 sell-out Microsoft steers same strategic course in Surface do-over Dumping a Surface? eBay averages double the return of a buyback vendor Microsoft's Surface to be under revenue microscope Microsoft's most loyal users ask for Surface trade-in program Microsoft takes second swing at tablets with new Surface 2 lineup Microsoft sticks to guns, will unveil refreshed Surface on Sept. 23 Surface channel distribution tempo shows Microsoft lacks Plan B after sales debacle More on Surface

Microsoft Surface RT: First impressions

We finally go hands-on with the Surface RT. Here's our first impressions. Design and build Latest news and slideshows on Apple The first thing that strikes you about the Surface is its build quality. In short, it's excellent and really feels like a premium product from the moment you pick it up. Microsoft has made a lot of fuss about the stand in particular, but it's the overall design of the Surface RT that impressed us most. The edges angle outwards from the back and the matte finish leaves a very positive first impression. The overall look and feel of the Surface RT is unique, too. In a world where many tablets look similar, the Surface's design is quite distinctive and can't really be mistaken for any other products on the market.. . . . . . . . . . The kickstand built into the back allows the Surface RT to stand up on a desk or table, though we weren't able to test how well it works on your lap. The stand definitely feels very well constructed and durable, though Microsoft claiming it sounds like the door of a "luxury car" when closed is a little far fetched. The stand is easy enough to kick out thanks to an indented slot on the left side that allows space for your fingertip. However, we wish the same slot was built into the right side, too. Accessories Microsoft had both keyboard accessories on show with the Surface RT, the $139.99 'Touch Cover' and the $149.99 'Type Cover'. The 3mm thin Touch Cover received the most attention and worked relatively well in our brief hands-on time. However, it will certainly have a steep learning curve for those used to regular keyboards and you'll no doubt make plenty of typing mistakes with initial use. For people concerned about steep learning curves, the Type Cover is undoubtedly going to be the better option. At 5.5mm, it's thicker than the Touch Cover but still impressively thin. We found that the keys themselves aren't too cramped and the travel feels natural and provides good tactility. We did notice the keyboard itself flexed slightly, especially when typing letters in the middle of the keyboard (like Y, G and B), but this wasn't a huge issue overall. We liked the felt backing of the Type Cover, too, which felt good to hold when the keyboard was closed onto the Surface RT.. . . . . . . . . . Microsoft has made plenty of noise about the strong magnets holding the Type and Touch Covers to the Surface. Like we've seen in some promotional videos of the device, including the company's new commercial, the reassuring click when you connect the Surface RT with the Type or Touch Cover is a nice touch. And yes, the magnets are strong enough to dangle the Surface on the hinge if you so desire, though the Microsoft employee demonstrating the device still felt the need to hold his hand below the tablet in case of an accident.

Surface Pro again out of stock; Microsoft underestimated demand, argues analyst

Less than a week after Microsoft began taking reservation orders for its 128GB Surface Pro tablet, the company on Thursday again slapped a sold-out sign on its website. Yesterday afternoon, Microsoft's online store displayed "Out of stock" and refused to accept orders for that configuration. The message remained in place Friday. The new shortage makes Microsoft's blog post of Feb. 15 seem prescient. Then, as the company announced it would start taking orders for the 128GB Surface Pro, it warned customers that, "Once inventory is depleted, the system will show as 'out of stock' until new inventory is available to ship." That's exactly what it did. The Surface Pro has had an up-down-up-down history, brief as it's been. Microsoft started selling the 128GB Surface Pro on Feb. 9 for $999, but within hours supplies dried up. Customers were furious, frustrated at coming up empty in their searches for the tablet, and took it out on Microsoft in scathing comments on the company's own blog and others.. . . . . . . . . . A week ago, Microsoft reopened online ordering, telling customers that their tablet would ship on or before March 1. Rather than simply extend that shipping date into the future as supplied dwindled -- a practice most other vendors, including Apple, take when orders exceed demand -- Microsoft shut down orders completely. The $899 64GB Surface Pro, which has been derided by some for having only about 30GB of storage space for customer content and apps, has remained available throughout the sell-outs of its sibling. The on-again, off-again 128GB Surface Pro availability shows that Microsoft seriously underestimated demand for the tablet-becomes-an-ultrabook, said Ezra Gottheil, an analyst with Technology Business Research. "It's beginning to look like this isn't a problem with building up enough inventory for the launch, but that Microsoft underestimated demand," said Gottheil, countering those who two weeks ago accused Microsoft of a marketing gimmick by purposefully holding back the tablet. Instead, Gottheil traced the supply snafu to Microsoft's change in Surface strategy last year. "Surface was first to be an inspiration to the OEMs, a marketing device to increase awareness of Windows 8, a challenge to the OEMs to come up with better designs," said Gottheil, echoing pundits' takes of mid-2012 when Microsoft surprised the technology industry with tablets of its own design that it would sell itself.. . . . . . . . . . Analyst credits Surface sell-out to Microsoft swinging conservative Best Buy does what Microsoft won't: Takes Surface tablets in trade Deja vu all over again: Microsoft warns of Surface 2 sell-out Microsoft steers same strategic course in Surface do-over

Surface channel distribution tempo shows Microsoft lacks Plan B after sales debacle

Microsoft's slow expansion of commercial sales of its struggling Surface line is proof that the company had no backup plan after completely misreading the market, an analyst said today. "This goes back to their gross miscalculation," said Patrick Moorhead of Moor Insights & Strategy. "This goes back to their belief that customers want what they think they delivered. They thought they would sell a ton of Surface RTs in the holiday season [of 2012] and that Surface Pro would just fly off the shelves." And when that didn't happen, Microsoft was at a loss. "They didn't have a Plan B," Moorhead said. Moorhead was referring to the deliberate pace Microsoft has taken in getting Surface into the hands of corporate customers. Last week the Redmond, Wash. company announced it would start selling Surface in Canada and 16 countries in Europe through a two-tier scheme, where a limited number of distributors will sell to selected resellers. Those resellers, in turn, were authorized to sell Surface to commercial accounts, such as businesses, government agencies and schools. That move was a follow-up to one in the U.S.. . . . . . . . . . . . last month, when several partners were given the go-ahead to sell Surface devices. But in an Aug. 15 blog announcing the expansion into Europe and Canada, Cyril Belikoff, the company's marketing director for Surface, used the words "thoughtful" and "measured" to describe the distribution tempo. "Our plan has been to expand commercial distribution for Surface in a thoughtful way," said Belikoff (emphasis added). "This measured approach helps us to quickly gather feedback and improve while we grow our geographical reach in the business channel." Words like "thoughtful" and "measured" don't impart any sense of urgency, which seems odd, well, on the surface, since Microsoft's tablets are, by all accounts, barely breathing. According to estimates by researcher IDC, Microsoft shipped just 300,000 Surface RT and Surface Pro tablets in the second quarter, which ended June 30. In the same period, Apple shipped 14.6 million iPads, while Android tablet makers shipped 28.2 million devices. Windows' portion of the second quarter's tablet market was 4.5% -- up from the previous quarter's 3.7% -- but most of those were devices from Microsoft's OEM partners. Microsoft's Surface accounted for just 15% of all Windows-powered tablets, or only 0.7% of the total of all tablets. In other words, for every 1,000 tablets of all kinds shipped last quarter, 7 were Surface devices. Moorhead traced Microsoft's lack of urgency to its inability to quickly shift strategy. "'Measured' and 'thoughtful' are code for 'limited distribution.' It's not smart to blast it out to everyone in every channel, especially when 80% of the business is going through the resellers and distributors they announced," said Moorhead. "If Microsoft had sold Surface as it expected, we would be saying, 'This is just more volume.'" But Microsoft did not sell Surface RT and Surface Pro in anything like the volumes it had anticipated.. . . . . . . . . . Analyst credits Surface sell-out to Microsoft swinging conservative Best Buy does what Microsoft won't: Takes Surface tablets in trade Deja vu all over again: Microsoft warns of Surface 2 sell-out Microsoft steers same strategic course in Surface do-over Dumping a Surface? eBay averages double the return of a buyback vendor Microsoft's Surface to be under revenue microscope

Microsoft expands buyback deal to goose sales of Surface, Windows phones

Microsoft has expanded a buyback program intended to boost sales of Windows smartphones and tablets, and will pay up to $350 for a wide variety of rival hardware powered by Apple's iOS and Google's Android. Stephen Baker, an analyst at the NPD Group who specializes in retail, applauded the deal. "This is clearly a marketing ploy, [but] they usually prove to be good programs for getting people into stores," said Baker. The new program followed an earlier, more limited buyback deal that dealt only in Apple iPads. Customers can trade in a used iPad for a minimum of $200, with the funds placed on a gift card good for purchases at Microsoft's own retail stores. Microsoft's expanded buyback accepts numerous rival devices, including smartphones and tablets running Android made by the likes of Samsung, Lenovo and others; Apple iPhones and iPads; and even BlackBerry smartphones. Customers receive quotes online from Clover Wireless -- one of the many "re-commerce" companies bidding for used hardware that they then refurbish and resell, mainly in developing markets outside the U.S. -- and then ship their hardware along with proof of purchase of a Windows phone or tablet. Assuming everything's approved, Clover returns a prepaid Visa card loaded with the payment amount. The caveat: Customers must first buy a Windows smartphone or tablet. "The Microsoft device must have been purchased within thirty days of the date you ship your old device," the program's FAQ states. The new purchase does not have to be a Surface RT or Surface RT tablet, but can be a third-party Windows-based phone from Nokia, HTC, Huawei and Samsung; or a tablet made by Acer, Asus, Dell, Lenovo, Microsoft, Samsung, Sony and Toshiba. Clover Wireless' quotes for used hardware were in line with those generated by other cash-back rivals. Clover quoted $75 for a used 16GB iPhone 4 running on Verizon's network, while Gazelle and NextWorth -- two popular buyback vendors -- offered $75 and $65 for the same device on Thursday. Some critics panned the expanded program -- and earlier, the original -- saying that Microsoft was essentially paying for new customers, or trying to. "Of course they are," retorted Baker. "That's the whole point of marketing and advertising. Whether it's rebates or buybacks or lower prices or advertising, companies pay for new customers. That's how things work." Nor are Microsoft's buyback programs a mark of desperation, an easy-to-conclude analysis because the Redmond, Wash. company has struggled to sell its Surface tablets since their introduction last October. "Anyone who says that knows nothing about consumer marketing, knows nothing about how to drive traffic into stores," said Baker, rejecting the desperation thesis. "These are smart moves, not stupid moves. If you're not doing something to drive traffic, that's a stupid move. Buyback and trade-in programs are generally effective, Baker added, as long as the retailer doesn't use the tactic too often. "People are not always thinking of these opportunities, but they lose their effectiveness if you go to that well too often," said Baker. While Microsoft's iPad buyback deal has an expiration date of Oct. 27, the expanded program run in conjunction with Clover Wireless has no apparent end date. Microsoft's website contains more information about the buyback program and links to start the quote process. Microsoft broadened its rival hardware buyback program and will accept trades of Android and iOS smartphones and tablets when customers buy a Windows phone or tablet. (Image: Microsoft.)