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Facebook makes Mobile Push at Mobile World Congress

One of the interesting things about the discovery period for Facebook’s initial public offering was that the social media giant reported that it had literally no income from the mobile environment. Since mobile is the top form of access this is surprising.

It is obvious that this is one of the most important market segments for the company to monetize as the opportunities are huge. And it has started to lay out its plans during a public speech by Bret Taylor, Facebook’s chief technology officer at this week’s Mobile World Conference in Barcelona.

In its push it is also striking a blow against a number of companies such as Apple that have been able to cash in on the markets demand for apps. Apple reaps as much as 30% of the revenue from app sales.

Taylor laid out a series of moves the company is currently working on that could tremendously enhance its position in the mobile market, including an effort to partner with mobile carriers for billing on Facebook transactions and the establishment of cross platform standards.

In the mobile payments market it is working with carriers to fix a process that it calls broken and fragmented. It is talking with a number of players including Vodafone, AT&T, Deutsche Telekom, Orange, Telefónica, T-Mobile USA, Verizon, KDDI and Softbank.

It wants to streamline the process and reduce the number of steps needed to make mobile payments. App developers would sell their offerings from the carriers via Facebook, allowing carriers to garner some of the revenue for the apps that are often used on their networks and allow app developers to avoid paying Apple, Sony and others a portion of their revenue.

It seems to me that the issue here is that this is letting Facebook become a partner in this, how do you then later stop them from gaining a more controlling position and adding on revenue for themselves from the users and or carriers as well?

On the standards side Facebook is part of a workgroup called W3C Mobile Web Platform Core Community Group that is seeking to develop HTML5 standards for the mobile web. The recently formed group has 30 members that come from a wide spectrum of mobile players from carriers to web browser developers according to its web site.

The current members of the group have a very impressive lineup. Samsung, HTC, Sony Mobile Communications, Nokia, Huawei, ZTE, TCL Communication, AT&T, Verizon, Vodafone, Orange, Telefónica, KDDI, SOFTBANK MOBILE Corp., Qualcomm Innovation Center, Inc., NVIDIA, ST-Ericsson, Intel, Texas Instruments, Broadcom, Mozilla, Opera, Microsoft, Adobe, Netflix, VEVO, Zynga, @WalmartLabs, Electronic Arts, Sencha and Bocoup.

Of course a prestigious lineup is no guarantee of a successful solution but it seems that it is the interest of these players to have a more efficient mobile web and as long as there are no hidden agendas in the group hopefully we will see a stead stream of updates from the W3C showing progress.

Friday Grab Bag: Apple pays $50 million for Chomp

Apple buys app search engine company
Apple has purchased Chomp, a startup that has developed technology that enables users to search the iOS App Store in unique ways including searching for features that are not listed in any other search category.

The app has a very wide range of features including checking on what apps your Facebook and Twitter friends have reviewed. It also lists a free app of the day and shows which apps are currently trending

Apple paid $50 million for the company but has given no clear direction as to what it intends to do with the technology that it has acquired. The company recently noted that it has already had 25 billion apps downloaded from the store.

Nike takes a second step with Nike +
Mike has made another move into digital sports with a pair of products, the Nike+ Basketball and the Nike+Training, both of which are shoes. The Nike+Basketball is designed to provide digital feedback about a players game including how high a player jumped, how fast they are and how hard they play. The first shows will be the Nike Hyperdunk+.

The second is the Nike+Training will be a line of shows that also feature a training program that has a series of workouts designed to improve performance. The first shows in this lineup will be the Lunar Hyper Workout+ for Women and the Lunar TR 1+ for men.

The shoes use a new sensor technology from the company called Nike+ Pressure Sensor built into each shoe. The sensor collects data and then wirelessly transmits data to their phone. Additionally Nike has started shipping its NikeFuel Band.

Microsoft files antitrust claim against Motorola with the EU
Microsoft has filed a complaint with the antitrust regulators in the European Union claiming that Motorola and Google are seeking to block sales of Microsoft products by seeking unfair terms for licensing their technology.

The complaint is very similar to the one that Apple filed last week and comes at a time when the EU has already said that it is quite willing to look at not only present but past patent licensing efforts by Motorola.

Microsoft said that Motorola is attempting to block sales of Windows PCs, our Xbox game console and other products by refusing patents. I imagine this is a good time to be a patent lawyer.

The Ryan Braun story keeps getting better
Braun, the MLB MVP winner from last season was found to have huge amounts of testosterone in his body according to two tests, and he has not disputed this. The issue was with the chain of custody and that his sample was not handled properly. Of course it also does not mean that he is guilty since he was acquitted by MLB.

The flame wars have been a lot of fun, here is one with a good deal of common sense as well- more so that the author of the piece had. And just for fun here is a second, in case you did not get enough the first time.

Apple wins on a different front
Apple’s dispute with a Chinese company over the name iPad looked to prevent the company from selling the devices in the world’s largest market but a court in Shanghai has ruled in Apple’s favor. Proview Technology had been arguing that Apple infringed on its trademark rights.

The Shanghai Pudong New Area People’s Court ruled against Proview saying that there was a lack of evidence that iPad sales would be a trademark violation. It said there was no law or regulation that would prohibit Apple from selling iPads and terminated the litigation of the case.

Fun with Amazon
I recently received a survey request from Amazon saying it was part of the company’s ongoing effort to provide better services and support. It was supposed to take between 10-15 minutes. Looking for any excuse not to work I decided to give it a stab.

I only managed to get to about question 6. When I said that I was unlikely to buy an e-reader in the next six months or whatever the question was exactly, it terminated the survey and said that I did not fit the customer profile they were looking for. Now that is good customer service, saving me 9-14 minutes!

Teddy bear gone bad
A truly frightening gift for a baseball fan- or any fan for that matter. But pretty funny if real.

Government Intervention in On-line Privacy Issue Likely

Users to have select rights about when and how data is collected

With growing reports of data harvesting from people’s accounts with and without permission coming out in a constant stream, and many major on-line players only paying lip service to the idea of individual privacy it now looks like state and Federal Governments will intervene to differing degrees.

Google will be changing privacy rules March 1.

From California to Federal level efforts are now being made to rein in the app developers and afford a level of privacy, or at least provide upfront information about information sharing policies prior to purchase and installation.

On the Federal level the Obama administration has proposed Consumer Privacy Bill of Rights, a seven point proposal that will seek to dramatically increase the privacy of users of the Internet that seeks to protect Americans’ privacy as they use the internet.

The core of the Bill of Rights has seven points:
INDIVIDUAL CONTROL: Consumers have a right to exercise control over what personal data companies collect from them and how they use it.
TRANSPARENCY: Consumers have a right to easily understandable and accessible information about privacy and security practices.
RESPECT FOR CONTEXT: Consumers have a right to expect that companies will collect, use, and disclose personal data in ways that are consistent with the context in which consumers provide the data.
SECURITY: Consumers have a right to secure and responsible handling of personal data.
ACCESS AND ACCURACY: Consumers have a right to access and correct personal data in usable formats, in a manner that is appropriate to the sensitivity of the data and the risk of adverse consequences to consumers if the data is inaccurate.
FOCUSED COLLECTION: Consumers have a right to reasonable limits on the personal data that companies collect and retain
ACCOUNTABILITY: Consumers have a right to have personal data handled by companies with appropriate measures in place to assure they adhere to the Consumer Privacy Bill of Rights.

While this is only a guideline it is being proposed as a regulation that would be administered by the Federal Trade Commission after details of each of these is worked out. The White House has said that it will be working with industry groups and web app developers and publishers on this issue.

In at least one case a state is simply enforcing privacy standards that are on its books. In California the State Attorney General Kamala Harris has announced a deal with the state’s six largest mobile web app providers.

The companies, Apple, Google, Hewlett-Packard, Microsoft, Research-in-Motion and Amazon, which according to Harris account for 95% of all mobile apps distributed worldwide, must now adhere to the California Online Privacy Protection Act that was passed in 2004.

Under the agreement, the companies will place prominent and easy to understand privacy disclosures before a user downloads an app. The push will cover both app developers as well as the larger players such as Apple that distribute the apps.

A lot of players have a vested interest in this. Google and Facebook are massive data harvesters and in a number of ways they will remain unaffected. However Google’s recent move to change its privacy policies looks like one of the many events that have helped quickly push this to the forefront.

Another issue was the discovery that a number of apps were downloading users’ cell phone contacts and address books without clearly letting the user know that they were losing that information.

The Viva! Vision: Former NFL Players Create ‘App Enablement’ Firm for Athletes, Celebs

Joe Tafoya (left) and Kerry Carter of Viva! Vision, at the AT&T Developer Summit. (Screen shot courtesy AT&T)

Anytime you go to a “developer’s conference” hosted by some large firm, you can pretty much count on at least several instances where groups of geeks are shepherded to the stage for their 15 seconds of fame. Look! The big-company execs will say. Developers who believe in us!

At the recent AT&T Developers Summit ahead of CES, however, there was a twist: During the meet-the-developers segment the audience saw 6-foot-4 Joe Tafoya take the stage and tell a quick tale about how he and some other ex-NFL players were getting into the development game, previewing a cool forthcoming “locker room” app featuring their friend, NBA star Jason Terry.

After shaking hands with some AT&T execs and Microsoft CEO Steve Ballmer, Tafoya was gone, but not after causing no small amount of buzz among the thousands in the audience. Ex-NFL guys? Doing sports apps? Cool! And then everyone went back to checking their email.

Tafoya, however, stuck around the summit, wandering the exhibit-hall booths with one of his partners, Kerry Carter, an ex-NFL running back who is still playing in Canada. Towering over most of the real geeks present, Tafoya and Carter were happy to stop and talk about Viva! Vision, a company formed in a unique manner and with a unique purpose. Over several phone and email interviews and some research we have a fuller picture of Viva! and what we think its purpose is: Though Tafoya and co. may not exactly agree with this definition, we see Viva! Vision as not a true app development company but instead an “app enabler.”

What do we mean by that? In Viva! Vision’s case it means that Tafoya and his partners aren’t doing any of the actual coding of apps but instead are bringing to the table their ability to bring people to the table — on one hand, corralling talented technology outsourcing firms to help develop cool, custom apps, and on the other hand bringing in athletes, entertainers and other celebrities who want to maximize their personal brand via online channels. How did this all get started and where might it end up? We’ll need more than a short blog post to tell you.

Next: From the NFL cut line to the command line

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Apple has Sold 55 Million iPads

Company believes that they will soon outpace PC sales
The pace at which new technology gets adopted seems to be faster than ever, or it might be more accurate to say that once it is popularized it gets adopted faster than ever, as Apple showed when it revealed the sales numbers of its popular iPad tablets.

The iPad is not the first, or even the second tablet to hit the market, attempts have been ongoing for more than a few decades including Alan Kay’s Dynabook computer concept, Motion Computing’s Tablet PCs, and the Microsoft PC Tablet to name just a few.

There are a number of failed attempts over the past years, in part because the technology was just not there in terms of enabling developers to create fully functional devices that were lightweight, tough and yet could rival a computer.

However that issue is a thing of the past and tablet sales have been growing at a tremendous rate- according to a recent report from market analyst firm BI Intelligence, tablet sales are expected to hit 500 million units a year by 2015. The firm estimates that tablets will be a $100 billion market and surpass PC sales by a good percentage- it believes PC sales will be approximately 360 million units. No wonder Intel is working so hard to enter this space.

So how is Apple doing in this space you wonder? Well according to Tim Cook, Apple’s CEO the number is around 55 million units. He revealed the number during a presentation at the Goldman Sachs Technology and Internet Conference.

He attributed the healthy ecosystem for the iPad platform as being very important for the growth and said that there were 170,000 apps that have been optimized for the platform as well as peoples previous experience with the iPhone.

He said that since its introduction he and others at Apple have believed that in the long run tablets would outsell PCs. As a user he said that he now spends between 80-90% of his time on an iPad. He said that it is cannibalizing Mac sales but if someone is going to do that he prefers it be Apple.

To put the sales figures in prospective with other Apple products Slashgear points out that it took Apple three years to sell that many iPhones and 22 years to sell that many Macintosh computers.

Motorola/Google Deal Gets OK-With a Warning

The deal gets approval but EU said it is watching

As expected both the EU and the United States Department of Justice have given Google’s $12.5 billion purchase of Motorola Mobility the go-ahead. At the same time the US approved the purchase of Nortel wireless patents by an Apple-Microsoft led consortium.

From the outside it looks like this sets up a battle royal in the patent space as both now are armed with a host of additional patents and the players on both sides have shown a very ready willingness to go to court to enforce them.

Apple has been strongly going after a number of Android smartphone developers, in particular Samsung, HTC and Motorola. Motorola has been returning fire at Apple, with Google’s approval, while https://www.microsoft.com/Presspass/press/2012/jan12/01-12LGPR.mspx has been quietly but efficiently getting developers’ to pay it for select patents.

However hopefully we will not see a yearlong battle in this space, something that could temporarily blunt the strong growth of smartphones and tablets. No one wants what happened in the last years of dial up modems when conflicting technologies made for incompatibility.

According to a careful analysis of the agreements published in Foss Patents, Florian Mueller said that the approvals are not without caveats. The EU said specifically that it will be looking at future and past enforcement of patents by Google and that it is ready, willing, and able to step in if it believes they are being abused.

He said that the end result of these deals will be business as usual, which currently means a series of lawsuits working their way through court. At the same time he notes that just because no action has been taken to date does not mean that none is forthcoming.

From the European Commission’s press release announcing approval is this important paragraph. “Today’s decision does not mean that the merger clearance blesses all actions by Motorola in the past or all future action by Google with regard to the use of these standard essential patents. Our decision today is without prejudice to the legality under EU antitrust law of Motorola’s past and Google’s future actions. However, the question whether Motorola’s or Google’s conduct is compliant with EU antitrust law cannot be dealt with in the context of the merger procedure.”

So while it may be business as usual in the short run, the court cases could result in the addition of another player, and one that has a lot more clout than any of the individual players involved, or all of the players for that matter.