Friday, December 21, 2012

Nokia to get payments in patent deal with RIM

HELSINKI (Reuters) - Struggling Finnish mobile phone maker Nokia has settled its patent dispute with BlackBerry maker Research in Motion in return for payments, as it tries to exploit its trove of technology patents to boost its finances.

Terms of the agreement were confidential, but Nokia said on Friday it included a one-time payment to be booked in the fourth quarter, as well as ongoing fees, all to be paid by RIM.

Nokia is one of the industry's top patent holders, having invested 45 billion euros ($60 billion) in mobile research and development over the past two decades.

It has been trying to make use of that legacy to ensure its survival, amid a fall in sales as well as cash. The Finnish firm is battling to recover lost ground in the lucrative smartphone market to the likes of Apple and Samsung.

The agreement with RIM settles all existing patent litigation between the two companies, Nokia said, adding similar disputes with HTC Corp and ViewSonic still stood.

'This agreement demonstrates Nokia's industry leading patent portfolio and enables us to focus on further licensing opportunities in the mobile communications market,' said Paul Melin, Nokia's chief intellectual property officer.

Nokia has earned around 500 million euros a year from patent royalties in key areas of mobile telephony.

Some analysts have said it could earn hundreds of millions more if it can negotiate with more companies successfully.

Analysts estimated its June 2011 settlement with Apple was worth hundreds of millions of euros.

($1 = 0.7555 euros)

(Reporting by Ritsuko Ando; Editing by Hans-Juergen Peters and Mark Potter)



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Thursday, December 20, 2012

Apple presses case for Samsung sales ban in appeals filing

WASHINGTON (Reuters) - Tech giant Apple Inc, battling Samsung Electronics Co over patents in several countries, argued on Thursday that a U.S. appeals court should reconsider its decision to overturn a pretrial sales ban on Samsung for infringement.

The U.S. Court of Appeals for the Federal Circuit in October overturned a pretrial sales ban ordered by a lower court in California. The order was to stop sales of Samsung's Galaxy Nexus smartphone.

Apple argued that this was inappropriate and asked for an 'en banc review,' which means that a larger panel of judges would reconsider the decision made by the three-judge panel in October.

The fight is over a single patent - one that allows the smartphone to search multiple data storage locations at once. For example, the smartphone could search the device's memory as well as the Internet with a single query.

Apple argued that the sales ban should be reinstated because it uses the patent in question and competes with Samsung. The three-judge panel had said that consumers did not buy Samsung phones primarily because of the patent, and thus, a sales ban was inappropriate.

It has become increasingly difficult for companies to win sales bans related to patent infringement in recent years. Such sales injunctions have been a key for companies trying to increase their leverage in courtroom patent fights.

Apple, in a different patent lawsuit, scored a sweeping legal victory over Samsung in August when a U.S. jury found Samsung had copied critical features of the hugely popular iPhone and iPad and awarded Apple $1.05 billion in damages.

The Nexus phone was not included in that trial, but is part of a tandem case Apple filed against Samsung earlier this year.

The case in the Federal Circuit is Apple Inc vs. Samsung Electronics Co Ltd et al., 12-1507.

Earlier this week, U.S. District Judge Lucy Koh rejected Apple's request for a permanent sales ban against 26 mostly older Samsung phones, though any injunction could potentially have been extended to Samsung's newer Galaxy products. Koh cited the Federal Circuit's Nexus ruling as binding legal precedent in her order.

In a separate court filing on Thursday, Apple said it intended to appeal Koh's ruling.

(Reporting by Diane Bartz; Editing by Leslie Gevirtz)



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RIM posts smaller than expected loss; subscriber base slips

(Reuters) - Research In Motion reported a smaller-than-expected quarterly loss on Thursday, but recorded the first-ever drop in its subscriber base barely a month before the crucial launch of the new BB10 smartphone line.

Excluding one-time items related to restructuring and other issues, the struggling BlackBerry maker reported a loss of $114 million or 22 cents a share.

Analysts, on average, had forecast a loss of 35 cents a share, according to Thomson Reuters I/B/E/S.

Waterloo, Ontario-based RIM, which hopes to reinvent itself and revive its fortunes with the launch of the Blackberry 10 line next month, reported fiscal third-quarter net income of $9 million, or 2 cents a share. That compared with a year-ago profit of $265 million, or 51 cents.

The company said its subscriber base in the quarter fell to about 79 million from about 80 million in the period ended September 1.

(Reporting by Euan Rocha; Editing by Janet Guttsman)



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Deutsche Telekom finance chief to replace CEO Obermann

FRANKFURT (Reuters) - Deutsche Telekom chief executive Rene Obermann has unexpectedly announced he will step down at the end of 2013 and be succeeded by finance director Timotheus Hoettges.

Hoettges, 50, said on Thursday he was not planning major changes to strategy and would continue Obermann's drive of investing in the United States and Germany as the firm battles to return to revenue growth against a tough economic backdrop.

'I have worked with Obermann for 12 years, and I don't expect to change a lot in the way that we do things,' he told journalists during a conference call.

He is, however, expected to bring a fresh spark to Germany's former state telecoms monopoly, as he is considered by analysts to have the energy to take on challenges and an ability to absorb knowledge. But he has a big job ahead of him.

The European telecoms industry is struggling with sluggish economic growth, costly investments and cut-throat competition, and on top of that Deutsche Telekom has had its hands full with trying to fix its troubled T-Mobile USA business.

The German government, Deutsche Telekom's biggest shareholder with a 32 percent stake, said it welcomed the choice of Hoettges as new CEO because it promised continuity.

'The chief strategist so far becoming the new captain indicates that the course will be held,' a spokesperson for the finance ministry told Reuters.

Hoettges joined the group in 2000 after playing a central role in the merger of VIAG AG and VEBA AG to form E.ON, now Germany's biggest utility.

In 2009, he was promoted to finance chief at Deutsche Telekom and, among other things, oversaw the move to put its British mobile business in a joint venture with France Telecom,.

'Hoettges is extremely good as a CFO, he's well respected by investors, but it remains to be seen whether he has the vision and political clout to succeed as CEO,' Espirito Santo analyst Will Draper said.

Hoettges said the company had not yet decided on a new finance director to replace him.

THE ENGINE ROOM

Obermann was the youngest-ever chief executive of a German blue-chip firm at the time when he took over in 2006, aged only 43. He gained a reputation for being eager to keep unions and politicians happy and wary of making big strategic decisions.

One of his boldest moves was a deal to sell T-Mobile USA, to AT&T, but it collapsed last year amid concerns from competition regulators, dealing a blow to Obermann's reputation.

T-Mobile USA was a growth engine for Deutsche Telekom in its early days but is a rundown asset now that has been haemorrhaging customers. Deutsche Telekom is now trying to merge the business with smaller rival MetroPCS.

Obermann said he was leaving to work for a smaller company where he was 'closer to the engine room' than he could be at an international corporation, without providing details.

Analysts were split over whether to believe Obermann's assurances that he was leaving of his own volition.

'If the board or the main shareholders were unhappy about the CEO's performance, they probably would have appointed an outsider, not the CFO, who also has been responsible for what has happened at the company over the last few years,' Exane BNP analyst Mathieu Robilliard said.

Espirito Santo's Draper meanwhile said: 'Obermann has had a lot of opportunity to fix the U.S. and yet it still remains Deutsche Telekom's biggest problem.'

Obermann also disappointed investors with a bigger than expected dividend cut announced earlier this month as the company's investment drive eats away cash.

European peers Telefonica, the Netherlands' KPN, Telekom Austria, and France Telecom had already cut their dividends earlier this year, hurt by a weak economy and fierce competition that has driven down prices.

Deutsche Telekom shares closed 0.5 percent higher at 8.63 euros, outperforming a 0.2 percent fall in the STOXX Europe 600 European telecoms index.

(Additional reporting by Paul Sandle and Rene Wagner; Editing by Mark Potter and Helen Massy-Beresford)



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Deutsche Telekom finance head to become CEO at end 2013

FRANKFURT (Reuters) - Deutsche Telekom Chief Executive Rene Obermann will step down at the end of next year and be succeeded at the helm of Germany's former state telecoms monopoly by finance director Timotheus Hoettges.

Hoettges, 50, said on Thursday he was not planning major changes to strategy and would continue Obermann's drive of investing in the United States and Germany as the firm battles to return to revenue growth against a tough economic backdrop.

'I have worked with Obermann for 12 years, and I don't expect to change a lot in the way that we do things,' he told journalists during a conference call.

This month, Deutsche Telekom announced a cut in dividends for the next two years by almost a third as its investment drive eats away cash.

European peers Telefonica, the Netherlands' KPN, Telekom Austria, and France Telecom had already cut their dividends earlier this year as the industry struggles with sluggish economic growth, costly investments and cut-throat competition.

Obermann, with Deutsche Telekom since 1998, became the youngest-ever chief executive of a German blue-chip company at the time when he took over in 2006 at just 43.

His image has been that of a low-key leader, eager to keep unions and politicians happy and wary of taking big strategic decisions.

One of his boldest moves was a deal to sell troubled T-Mobile USA to AT&T, but it collapsed last year amid concerns from competition regulators, dealing a blow to Obermann's reputation.

T-Mobile USA was a strong growth engine for Deutsche Telekom in its early days but is a rundown asset now that has been hemorrhaging customers for a while.

'This is the right time to prepare to pass the baton and ensure a smooth transition,' said Obermann, 49, adding he was not being pushed out, and that he wanted a change.

He is going to work for a smaller company where he can be 'closer to the engine room', he said, without giving details.

Exane BNP analyst Mathieu Robilliard said it looked like a personal decision.

'If the board or the main shareholders were unhappy about the CEO's performance, they probably would have appointed an outsider, not the CFO, who also has been responsible for what has happened at the company over the last few years,' he said.

Hoettges promises to bring a fresh spark to Deutsche Telekom, as he is considered by analysts to have the energy to take on challenges and an ability to absorb knowledge.

Hoettges joined the group in 2000 after playing a central role in the merger of VIAG AG - where he was a member of the extended management board - and VEBA AG to form E.ON, now Germany's biggest utility.

He was promoted to finance chief at Deutsche Telekom in 2009 and, among other things, oversaw the move to put its British mobile business in a joint venture with France Telecom.

Hoettges said the company had not yet decided on a new finance director to replace him.

At 11:05 ET, Deutsche Telekom shares were up 0.6 percent at 8.633 euros, outperforming a 0.2 percent fall in the STOXX Europe 600 European telecoms index.

(Editing by Mark Potter)



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Oracle to buy software maker Eloqua for $810 million

(Reuters) - Oracle Corp agreed to buy Eloqua Inc, a maker of marketing automation software that listed on the Nasdaq in August, for about $810 million, underlining Oracle's efforts to drive growth through cloud-computing services.

Eloqua makes software to enable businesses predict and grow revenue by monitoring and measuring marketing and sales initiatives. The company has over 1,000 customers including Cisco Systems Inc, Dell Inc and the Miami Heat and Sacramento Kings teams in the NBA.

The $23.50 per share offer represents a 31 percent premium to Eloqua's close on the Nasdaq on Wednesday.

'Eloqua's leading marketing automation cloud will become the centerpiece of the Oracle Marketing Cloud,' said Thomas Kurian, Executive Vice President of Oracle Development.

Eloqua's board has unanimously approved the deal, which is expected to close in the first half of 2013.

Oracle said on Tuesday that software sales growth will stay strong into the new year despite fears that there could be big tax hikes and U.S. government spending cuts that could cause a slump in spending by customers.

(Reporting by Sayantani Ghosh in Bangalore; Editing by Don Sebastian)



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Patent agency rejects Apple "pinch-to-zoom" patent in initial ruling

(Reuters) - U.S. patent authorities rejected Apple Inc's key 'pinch-to-zoom' patent in an initial ruling, the second setback in less than two months for the iPhone maker in its patent battle with Samsung Electronics Co Ltd.

Apple's shares have taken a beating recently, with investors worried about rising competition from Samsung and other mobile device makers using Google Inc's Android platform.

Apple scored a sweeping legal victory over its South Korean competitor in August when a U.S. jury found Samsung had copied critical features of the hugely popular iPhone and iPad and awarded Apple $1.05 billion in damages.

Samsung and Apple, the world's top two smartphone makers, are locked in patent disputes in at least 10 countries as they vie to dominate the lucrative mobile market and win over customers with their latest gadgets.

The U.S. Patent and Trademark Office on Wednesday temporarily invalidated the 'pinch-to-zoom' patent, which had been contested at the trial in August. The jury had ruled that Samsung had infringed six of seven Apple patents.

The 'pinch-to-zoom' feature distinguishes between single-touch and multitouch gestures on a mobile device screen and allows the user to zoom in or out by moving two fingers apart or closer together while touching the display.

A U.S. judge denied on Monday Apple's request for a permanent injunction against Samsung's smartphones.

Samsung won a preliminary invalidation of Apple's 'rubber-banding' patent in October that had the 'bounce' feature. The patent allows a user with a touch screen to bounce back to the image on the screen if the user goes beyond the edge.

When the U.S. patent office rules against a patent, the full process involves multiple steps and can take years. It can also often be appealed in court, further tying up the process.

The ruling by the U.S. patent office after Samsung requested an examination of the patent was included in documents filed by Samsung in a federal court in San Jose, California.

Apple's claims were rejected on the grounds that prior patents covered the inventions.

Representatives for Apple and Samsung were not immediately available for comment.

A Dutch court ruled in October that Samsung did not infringe on Apple's patent by using certain multi-touch techniques on some of the Samsung Galaxy smartphones and tablet computers.

(Reporting by Balaji Sridharan and Sayantani Ghosh in Bangalore; Editing by Edwina Gibbs and Don Sebastian)



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