Lawsuit Says Microsoft Illegally Tracks Customers

Microsoft allegedly tracks the location of its mobile user even after customers request that tracking software be turned off, according to a new lawsuit.

The proposed class action, filed in a Seattle federal court on Wednesday, states Microsoft intentionally designed camera software on the Windows Phone 7 operating system to ignore customer requests that they not be tracked.

A Microsoft representative could not immediately be reached for comment.

The lawsuit comes after concerns surfaced earlier this year that Apple’s iPhones collected location data and stored it for up to a year, even when location software was supposedly turned off. Apple issued a patch to fix the problem.

However, the revelation prompted renewed scrutiny of the nexus between location and privacy. At a hearing in May, U.S. lawmakers accused the tech industry of exploiting location data for marketing purposes — a potentially multibillion-dollar industry — without getting proper consent from millions of Americans.

The lawsuit against Microsoft cites a letter the company sent to Congress, in which Microsoft said it only collects geolocation data with the express consent of the user.

Will HP Temporarily Resurrects The TouchPad?

Hewlett Packard Co plans to produce “one last run” of TouchPads, days after declaring it will discontinue a line of tablets that failed to challenge Apple Inc’s domination of the booming market.

A day after the chief of HP’s personal devices division told Reuters the TouchPad might get a second lease on life, HP announced a temporary about-face on the gadget after being “pleasantly surprised” by the outsized demand generated by a weekend fire-sale.

HP slashed the price of its tablet to $99 from $399 and $499 the weekend after announcing the TouchPad’s demise on August 18, part of a raft of decisions intended to move HP away from the consumer and focus on enterprise clientele.

That ignited an online frenzy and long lines at retailers as bargain-hunters chased down a gadget that had been on store shelves just six weeks.

“The speed at which it disappeared from inventory has been stunning,” the company said. “We have decided to produce one last run of TouchPads to meet unfulfilled demand.”

HP may lose money on every TouchPad in its final production run. According to IHS iSuppli’s preliminary estimates, the 32GB version carries a bill of materials of $318.

“We don’t know exactly when these units will be available or how many we’ll get, and we can’t promise we’ll have enough for everyone. We do know that it will be at least a few weeks before you can purchase,” HP said in a blogpost.

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Was Apple’s Victory, Really A Victory?

As we heard this week Apple had won an injunction barring Samsung from selling some of its Galaxy smartphones in Europe.

However, it is likely that an update from Android 2.x to Android 3.0 will resolve the patent issue, which concerns the way photos are viewed on a touchscreen.

According to OS news, only the Gallery application infringes the patent in question, and Samsung has confirmed it will update the software to get around the problem.

“The injunction has been granted due to the method of scrolling in the Gallery. If that’s replaced, there is no more reason to uphold the injunction,” said Bas Berghuis van Woortman, one of Samsung’s lawyers.

The injunction doesn’t come into effect until mid-October, giving the Korean phone maker plenty of time to change the software. OS news points to evidence showing that although Apple entered into battle with three patents and a community design, all but the Gallery patent were thrown out by the judge.

The swipe-to-unlock patent will likely be declared invalid, the judge wrote, specifically referring to the Neonode N1m mobile phone as prior art, which has the exact same unlock method as the Iphone.

Apple’s complaint about the design of Galaxy smartphones was also thrown out, with the judge citing numerous cases of prior art, including the LG Prada. And in the case of the Android GUI patent, the judge cited the Nokia 7710 as prior art.

Although Samsung’s PR firm in the UK hadn’t heard anything about an Android update, Samsung said that it expects only the Netherlands to be affected by the ruling. It said, “[The] ruling is an affirmation that the GALAXY range of products is innovative and distinctive. With regard to the single infringement cited in the ruling, we will take all possible measures including legal action to ensure that there is no disruption in the availability of our GALAXY smartphones to Dutch consumers.

“This ruling is not expected to affect sales in other European markets. We will continue our plans to introduce new products and technologies that meet and exceed consumer expectations. And we will defend our intellectual property rights through the ongoing legal proceedings around the world.”

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RIM Heads To The Cloud

Canada’s Research In Motion (RIM) will take the wraps off of a new cloud-based social music sharing service called BBM Music, as companies begin to bet on entertainment delivered over the Internet that incorporates social networking features.

Research in Motion, the maker of BlackBerry phones, said select music from Universal Music Group, Sony Music Entertainment, Warner Music and EMI would be available for the users.

A closed beta trial of the BBM Music service is starting on today in Canada, the United States and the UK, the company stated.

The music service is expected to be commercially available to customers later this year for a monthly subscription of $4.99 in a number of countries, it said.

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RIM To Launch Music Service

BlackBerry maker Research In Motion is making plans to roll out its own music streaming service that will work across its mobile devices, according to people familiar with the plans.

The new service is likely part of an attempt by RIM to improve its BlackBerry Messenger service as it competes with the mobile media platform strengths of rival Apple Inc and Google Inc’s Android.

RIM is in late-stage negotiations with major labels, including Vivendi SA’s Universal Music Group, Sony Corp’s Sony Music, Warner Music Group and EMI Group. The new service is expected to be announced by Labor Day in the United States, September 5.

RIM has been enhancing its BlackBerry Messenger offering, popularly known as BBM, since announcing its “social platform” at last September’s DevCon event where it unveiled the PlayBook tablet computer.

A RIM spokeswoman declined comment on the report but said BBM is one of the largest mobile social networks in the world.

RIM’s BlackBerry smartphones have been hit by a sharply declining market share in the United States, even as the company has expanded sales in other parts of the world, partly because of BBM’s popularity.

Analyst Matthew Thornton at Avian Securities said he doubted the music service would attract new users but might help the company keep its existing BlackBerry customers interested.

“I just don’t think trying to replicate Apple is really going to change their situation near term,” he said.

“For RIM it’s going to be the new OS 7 product first and foremost … and then it’s about QNX and making that transition.”

RIM has just launched an updated operating system on three new touchscreen devices intended to catch up with the technical specifications of Android and other rivals. The company plans to launch the first BlackBerrys using the QNX software, used on its PlayBook tablet, early next year.

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Beetel Teletech, part of India’s Bharti Enterprises that controls top mobile carrier Bharti Airtel (BRTI.NS), unveiled a tablet computer priced at 9,999 rupees ($220) on Wednesday.

The 7-inch tablet, branded Beetel Magiq, uses Google’s (GOOG.O) Android operating system and supports both 3G and Wi-Fi networks, Beetel said in a statement.

Beetel is one of the largest makers of fixed-line phones in India. A company spokesman said China’s Huawei HWT.UL was their manufacturing partner for the tablet.

India is the world’s second-biggest and the fastest-growing market for mobile phones, although computer penetration is still low.

Apple Inc (AAPL.O) began iPad sales in India in January this year, while Samsung Electronics (005930.KS) launched its Galaxy Tab in India in November last year.

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Does Linkedin Share User Data?

Linkedin has upset many of its 100 million users by opting them into a programme that reveals their personal details to advertisers without telling anyone about it.

Linkedin changed its privacy policy to allow it to display the names and pictures of users with ads. The system works by showing friends and colleagues who’ve followed a brand name, effectively making them an unwitting salesperson for that brand, since people are more likely to click such advertisements on the basis that it looks like someone they know is recommending them. In reality, the other person has no idea that their photo and name are being used to sell things.

It’s a clever approach to advertising, but an absolutely abyssmal approach to privacy, as Linkedin has decided to automatically opt-in all of its users without informing them of the change.

Users can opt out if they want, but the option is buried in the Settings page, a ploy similar to that used by Facebook to hide its privacy settings. The big problem here is that if users don’t know that their name and photo are being used in this way, then how can they opt out of it?

Linkedin could face legal trouble for this decision. Digital Trends reports it is likely that Linkedin broke Dutch privacy law, which requires user consent for employing user images with advertisements. It could also be brought up before the European Commission and the UK Information Commissioner’s Office (ICO).

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AMD Not Chasing Smartphone Market

Advanced Micro Devices is not immediately pursuing opportunities within the smartphone markets as it does not align with the company’s strength in technologies like graphics, an executive said on Monday.

Smartphones are constrained on battery, pixels and screen space, and AMD has other areas it can focus on in order to grow, said Rick Bergman, senior vice president and general manager for AMD’s product group during the Pacific Crest Securities Technology Leadership Forum in Vail, Colorado. The company sees an opportunity to apply its graphics and chip technologies to tablets, where customers are demanding better video and battery life.

“We haven’t announced any plans to go in that handheld space. We’ve got plenty of opportunities… in server, notebook and now tablets, that’s our immediate focus. But if the right circumstances come up and we can see a way to impact the market, we’ll obviously continue to look,” Bergman said.

AMD has faced criticism for not aggressively pursuing the booming smartphone or tablet markets. The company in June rushed to release its first dedicated tablet chip, called the Z-series. The chip is a low-power variant of PC chips based on the Fusion microarchitecture, which includes a graphics processor and CPU on a single chip. Based on the x86 architecture, the chip can help tablets deliver a full PC and graphics experience, the company has said.

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Apple Tech Support Satisfaction Plummets

Apple customers are increasingly unhappy with the company’s technical support, which could affect the firm’s bottom line in the future, a researcher said today.

Although Apple continues to outperform rival computer makers Hewlett-Packard and Dell in overall customer satisfaction with technical support, in several areas Apple’s slippage over the last year is alarming, said Peter Leppik, CEO of Vocalabs, a Minneapolis-based company that surveys consumers after they’ve contacted customer or technical support.

“Apple is still definitely ahead of its competition, but what we are highlighting are deeper metrics that are showing negative trends,” said Leppik. “Customers are upset with the automated part of support calls to Apple, and that might be trickling into higher metrics.”

Those higher metrics Leppik referenced include the likelihood customers will return for another purchase in the future, or continue to recommend Apple products to friends and family.

In the past 12 months, consumers who said they were “very satisfied” with Apple’s technical support dropped 15 percentage points, from 73% at the mid-point of 2010 to 58% halfway through 2011, said Leppik.

The primary cause of the tumble was a turnabout in customers’ opinion of the automated section of their calls to Apple. In the last year, the percentage of those who said they were very satisfied with the quality of Apple’s automation fell 13 points to 24%. That’s a new low for Apple in Vocalabs surveys, and a whopping 28 points off the peak of 52% a year-and-a-half ago.

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RIM Unveils New BlackBerry Torch Phones

Research In Motion on Wednesday unveiled two more powerful versions of its touchscreen BlackBerry Torch, hoping to buy time until it can introduce a radically new software package in its smartphones.

The new smartphones, along with a Bold upgrade unveiled earlier, are part of what the Canadian company called its biggest global launch ever as it seeks to claw back North American market share losses from Apple’s iconic iPhone and a slew of devices running on Google’s Android software.

The three touchscreen phones, running on the new BlackBerry OS 7, each boast an improved screen display and pack a 1.2 GHz processor from Qualcomm, the most powerful ever for a BlackBerry phone. All three devices will launch with carriers globally by the end of August, RIM said.

The browser for the new phones is 40 percent faster than the original Torch, RIM’s last major phone launch which hit shelves almost a year ago.

But since co-chief executive Mike Lazaridis has already promised “superphones” next year using the QNX-based operating system running RIM’s PlayBook tablet
computer, analysts are looking beyond the launch.

“This is a necessary product refresh in advance of the big bang that we hope and expect will happen with QNX-based phones,” said CCS Insight vice-president of research John Jackson.

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