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Antitrust lawyers claim Apple deleted competing songs from users’ iPods

Apple has been accused of deleting music from users’ iPods that had been downloaded from competing music services, according to a new report in the Wall Street Journal. In the recently commenced class-action antitrust suit against Apple regarding iPod and iTunes Store lock-in, lawyers for the consumers told jurors that between 2007 and 2009, Apple knowingly had procedures in place to delete music found on iPods from competing music services without telling users. When users who had downloaded music from a rival service attempted to sync an iPod to their iTunes library, an error message would be displayed by iTunes instructing the user to restore to factory settings, a process that removes all content on the portable device and then reloads it from the user’s iTunes library. This process caused songs from rival services to disappear, the lawyers said, further alleging that Apple directed the system “not to tell users the problem.” The plaintiffs in the case claim that this demonstrates that Apple was stifling competition for music players and downloads from other services; they are seeking $350 million in damages based on the claim that Apple’s lock-in forced them to pay more for music players by being forced to keep buying iPods rather than being able to consider competing options.

Apple responded by stating the moves were legitimate security measures, with the company’s security director, Augustin Farrugia, testifying that Apple did not provide detailed information as the company doesn’t “need to give users too much information,” and doesn’t “want to confuse users” – an approach that is typical in the software designed by the company. Farrugia noted that Apple was “very paranoid” about protecting iTunes in light of hackers that were working to crack the FairPlay copy protection used by iTunes and the iPod, and that updates which removed non-Apple music files were intended to protect customers. “The system was totally hacked,” Farrugia said. E-mails from Steve Jobs presented in evidence revealed similar security concerns.

Iovine told Apple it had ‘a hole in music’ prior to Beats acquisition

Beats co-founder Jimmy Iovine was recently profiled in GQ as one of the publication’s “Men of the Year,” where he provided some additional commentary on Apple’s acquisition of his company. Iovine explains that he approached Apple more than two years ago, telling them that he wanted to work for “Steve’s company” and nobody else, as he believed them to be a company capable of of understanding popular culture.

I convinced them that they had to buy this company. I said, ‘I don’t want to work for anybody else. I want to do this at Apple. I know I can achieve this at Apple. I don’t want to shop it. I wanna come here, to Steve’s company. I know you guys; I know what you’re capable of; I know you get popular culture. I know you have a hole in music right now; let me plug it.’ I think it was two years before they said yeah.

Iovine describes the “hole” in music as Apple’s need to do something “after Steve died” to respond to the rise in streaming services, and that he felt Beats Music was the right fit for Apple to get into the streaming business. The article also goes on to note that he spends time at Apple headquarters each week working on “this music service we’re doing.”

Class action on iPod, iTunes Store lock-in nears trial

A decade-old series of lawsuits regarding iPod and iTunes Store lock-in is nearing trial, according to the New York Times. Having circulated in various Bay Area federal courts for years, the collection of lawsuits was amalgamated, accusing Apple of using Digital Rights Management (DRM) on iTunes Store purchases to lock customers into continuing to purchase iPods from Apple, rather than cheaper alternatives. The report notes that previously-unreleased e-mails from Steve Jobs during that timeframe will likely factor into the evidence, revealing anticompetitive statements made by Jobs regarding ensuring that the iPod could not be used with competitors’ music stores. While Apple dropped DRM completely from iTunes music purchases in 2009, the class-action lawsuit dates back to when the alleged lock-in was occurring, and could result in damages being awarded to customers who purchased iPods during that time.

Microsoft, Yahoo hope to replace Google for Safari default search?

With Apple’s contract with Google for default search placement in Safari scheduled to end next year, both Yahoo and Microsoft are now actively courting Apple to be the next default search provider, according to a new report from The Information (subscription required). Google and Apple last renewed the contract in 2010, a deal that reportedly nets Apple around $100m per year. Yahoo and Microsoft both have existing relationships providing data for Apple’s built-in iOS apps, such as stock data and Bing search results, and executives from both have apparently approached Eddy Cue, Apple’s SVP of Internet Software and Services to attempt to woo Apple into considering one of them as the default search engine for iOS devices and Macs.

Apple had discussions with Microsoft about having Bing replace Google Search back in 2010, and a report last spring suggested that Yahoo’s CEO Marissa Mayer was already attempting to influence Apple in Yahoo’s direction for some time as well; iOS 8 notably switched away from Yahoo for weather data, opting to get its data from The Weather Channel instead. There is no other indication that Apple is considering making any changes to its current arrangements at this time, and the company is likely to focus on whichever company can provide the best user experience. [via MacRumors]

Report: ‘Deep Organizational Issues’ at Apple affecting iCloud progress

A new report from The Information (subscription required) as summarized by MacRumors provides some insight on internal issues that Apple has apparently been experiencing in developing new cloud-based features and services. The report specifically alleges that “deep organizational issues” are holding up development on new features for iCloud such as iCloud Drive and iCloud Photo Library. New iCloud features introduced with iOS 8 got off to a somewhat rocky start, with the promised iCloud Photo Library feature basically removed from the iOS 8 release, later to return as a “public beta” in iOS 8.1, whilst a companion desktop app is not expected to be introduced until sometime next year. The report cites interviews “with nearly a dozen current and former Apple employees” that “paint a different picture” from the progress that Apple executives repeatedly claim the company is making in this area. This latest report of problems in the iCloud team resembles recent reports of Apple’s struggles in other areas, including CarPlay delays and problems with iOS 8.0.1 and Apple Maps.

Apple announces (PRODUCT)RED Gift Cards for Black Friday

In addition to the new (PRODUCT)RED app collection announced earlier today, Apple has released information on the Product(RED) iTunes Gift Cards that it will be giving out with qualifying purchases on Black Friday, with a percentage of each Gift Card donated to the (RED) Global Fund. Qualifying products include the iPhone 6, iPhone 6 Plus, iPhone 5s, iPhone 5c, all iPad Air and iPad mini models, iPod touch, iPod nano, Apple TV, all current iMac and MacBook Pro and MacBook Air models, and Beats Headphones and Speakers. iPhone and iPad buyers will receive a $50 gift card, Mac buyers a $100 card, and iPod, Apple TV, and Beats buyers will receive a $25 card. iPhone 6 and iPhone 6 Plus purchases are limited to two gift cards per household, as are iPad Air and iPad mini purchases. [via MacRumors]

Apple unveils (PRODUCT)RED apps for World AIDS Day 2014

To mark World AIDS Day 2014, Apple has announced that a collection of (PRODUCT)RED apps will be appearing in the App Store over the next two weeks to generate donations for the (RED) Global Fund to fight AIDS. Updates to popular apps such as GarageBand, Monument Valley, Star Walk, and Threes began appearing on the App Store yesterday, and Apple has now created a special “Apps for (RED)” section of the App Store offering 25 apps containing special new in-app content, in which all proceeds from the purchase will go directly to the (RED) Global Fund. In addition, Apple will be donating a portion of all of its sales at its retail and online stores on Black Friday (Friday, November 28th), and Cyber Monday (Monday, December 1st).

Examples of new (PRODUCT)RED content include an exclusive “(GarageBand)RED” loop pack in Apple’s iOS GarageBand app, an Ida’s (RED) Dream chapter in Monument Valley, a free (PRODUCT)RED theme in Threes, and an in-app purchase of detailed information on the RED Planet: Mars in Star Walk 2. Many of the special (RED) edition features are only available until the end of the promotion.

Square plans to accept Apple Pay in 2015

Mobile payments company Square is working toward accepting Apple Pay for transactions through its system by some time next year, according to a new report from CNN Money. Although Square offers its own payment sending service in the form of Square Cash, the company is primarily focused on providing a mobile merchant solution, and the ability to accept Apple Pay would be a logical fit. Square’s current hardware is only designed to support swiping of traditional credit cards, and Apple at this time does not allow third-party developers to access the NFC hardware in the iPhone 6 and iPhone 6 Plus. Square would presumably develop an NFC add-on module similar in concept to their current Square Reader that could accept Apple Pay transactions in the same manner as traditional payment terminals.

Google settles patent litigation with Apple’s Rockstar consortium

Google has come to an agreement with patent consortium Rockstar to settle all pending litigation, Reuters reports. Although the terms of the deal were not disclosed, a Texas federal court filing made public on Monday indicated that the two companies have agreed to settle “all matters in controversy between the parties.” The Rockstar group, consisting of Apple, Microsoft, and Blackberry (formerly RIM), among others, successfully outbid Google in 2011, paying $4.5 billion for over 6,000 patents from former telecom giant Nortel, covering a wide range of Internet and wireless communications technologies. Google subsequently penned an open letter accusing the group of waging “a hostile, organized campaign against Android” using “bogus” patents.

Last October, Rockstar filed a lawsuit against Google, claiming that the company was infringing seven Nortel patents related to search engine technology. At that time, Rockstar also filed infringement lawsuits against several other Android handset manufacturers concerning other patents. However, Google intervened on behalf of the handset makers, successfully halting the Texas proceedings while it petitioned a California judge to rule that devices using the Android operating system did not infringe the cited patents. This week’s filing does not indicate whether Rockstar has also settled with the Android handset makers, or whether Google has taken any further action in that regard.

Report: GT Advanced struggled with sapphire production

A new report from the Wall Street Journal reveals some interesting background on the breakdown between Apple and GT Advanced Technologies, pointing to the problems and challenges the erstwhile sapphire supplier faced in trying to meet the terms of its agreement with Apple. Apple originally began using sapphire last year for the iPhone camera lens and Touch ID sensor, and after having success with the material, began looking for a larger supplier that could provide enough sapphire to cover the full iPhone screen. Apple originally discussed buying 2,600 sapphire furnaces from GT, which was developing a new furnace design that could yield larger boules and therefore greater quantities of sapphire. However, Apple later reportedly decided that it did not want to pay the 40 percent margin for the furnaces, and began shopping around for a company that could supply sapphire at the prices Apple was willing to pay for the material.

After failing to find a viable supplier, Apple chose to set up GT Advanced Technologies to produce the sapphire itself, agreeing to lend them $578 million to build 2,036 furnaces in a new facility that Apple would build in Mesa, Arizona and lease to GT for $100/year. However, the new report reveals that the deal turned out to be troubled from the very beginning, as GT had no experience mass-producing actual sapphire, and the first 578-pound cylinder it produced was “flawed and unusable.” GT also reportedly mismanaged the project, hiring hundreds of workers without placing them in clearly defined roles or telling them who they reported to, and failing to have policies in place for attendance, leading to an “unusual number of sick days.” Managers at GT also authorized “unlimited overtime” to fill furnaces with material to grow sapphire – a growing process that takes about 30 days to complete – however the company had not yet manufactured enough furnaces to fill, resulting in many workers effectively being paid overtime to do nothing more than sweep floors once the initial furnaces had been prepped and filled. Many boules that were produced reportedly continued to be unusable, and an area of the Mesa factory eventually became known by employees as the “boule graveyard.”

In their court filings, both companies blamed each other for GT’s ultimate failure. Apple told creditors that GT failed due to “mismanagement” and that it “never wavered from our commitment to make the project successful.” GT claimed it lost three months of production due to Apple’s failure to build the facility to GT’s specifications and provide adequate power, and to meet Apple’s own changing specifications for the sapphire, alleging that it cost the company more than twice the financing that Apple had provided in order to get the factory up and running. Further, GT stated that Apple had turned the company “into a captive supplier, bearing all of the risk and all of the cost,” making it impossible to turn a profit due to Apple’s “dictated pricing.” While Apple and GT reportedly tried to renegotiate terms in late September — which included an offer by Apple to renegotiate loan repayment schedules, raise the price it would pay for sapphire and relax its exclusivity requirements — GT Advanced Technologies filed for bankruptcy less than a week following Apple’s offer.

Report: Apple plans to integrate Beats Music directly into iOS

Apple will integrate its Beats music subscription service directly into a future iOS update, according to a new report from Financial Times. Citing sources familiar with the situation, the report notes that the inclusion of the paid Beats service in an iOS software update could happen “as early as March” of next year. Although Apple has in the past debuted new services such as iBooks and Podcasts as standalone apps with their own update cycle, only later choosing to bake them into the core OS, music services such as iTunes Radio have traditionally been incorporated directly into the iOS “Music” app, suggesting that a redesigned music subscription service would be implemented in a similar manner, rather than as the separate app that currently exists for Beats Music.

After acquiring Beats earlier this year, Apple began working toward integrating the company’s Beats Music subscription service with its own music services, appointing Beats Music chief Ian Rogers to head up iTunes Radio, working to negotiate better subscription music rates with the labels, and reportedly planning to reposition Beats Music into a future service under the iTunes brand. Apple also notably included a Beats Music channel in an Apple TV update earlier this fall.

Apple plans to ‘repurpose’ Arizona manufacturing plant, save jobs

Apple plans to continue supporting manufacturing operations in Arizona despite the failure of its sapphire supplier, GT Advanced Technologies, earlier this year. According to a new report from Bloomberg, Apple has been speaking with officials in Mesa, Arizona and reiterating its commitment to bring jobs and manufacturing to the area. Mesa City Manager Christopher Brady noted in a recent interview that Apple wants to repurpose the building used by GT, saying it’s focused “on preserving jobs in Arizona.”

The Mesa-based GT sapphire plant was considered a milestone in Apple’s efforts to bring manufacturing back to home soil and help rebuild the U.S. manufacturing base, and it was a boon to the economy of the Arizona city, which was hit hard by the 2007 housing bust. The closing of the plant this fall resulted in the loss of more than 700 jobs in the area — however the 1.3 million square-foot factory and its related infrastructure remains, including a new power substation that uses 100 percent renewable energy and the area’s designation as a foreign trade zone with reduced property taxes. Apple has not divulged any specific plans for the facility, and spokespeople for Apple and GT Advanced Technologies declined to comment.

Apple announces WatchKit software tools available to developers now

Apple has announced the official availability of its WatchKit SDK for iOS developers. WatchKit provides developers with the tools to design apps for the new Apple Watch, and is being released today so that developers can begin preparing for the new wearable device when it ships next year. The new software development tools will allow third-party developers to build apps for the watch which will let users respond or take action from the watch, or get quick looks at other information — which Apple calls Glances. WatchKit is bundled with the iOS 8.2 beta SDK, available for registered iOS developers to download now as part of the Xcode 6.2 beta. The release is also accompanied by a developer beta of iOS 8.2.

Apple ordered to pay $23.6M in pager technology settlement

Apple has been ordered to pay $23.6 million to a Texas company after a jury found that the iPhone and other devices infringed on a patent for SkyTel pager technology, Bloomberg reports. The patents in question were issued in the 1990s for the SkyTel two-way paging network, and are owned by Mobile Telecommunications Technologies (MTel). In responding to a claim by MTel that Apple’s Airport, iPhone, iPad, and iPod touch devices were infringing upon the SkyTel technology, a federal jury in Texas ruled that the patents were valid and infringed by Apple, awarding MTel about a tenth of what it had been seeking in damages.

For its part, Apple denied infringing the patents in question, arguing that MTel was trying to take credit for emojis and calendar invitations and that the patents should be deemed invalid as they didn’t cover new innovations even when they were first issued. MTel claimed that Apple’s devices “rely on foundational technology for the transmission and storing of messages” and that the company should therefore be required to pay royalties — the company was seeking damages of approximately $1 per infringing device. Notably, Samsung is also accused of infringing the same patents, although that case remains pending.

Apple opens up Lightning port to third-party manufacturers, begins accepting HomeKit plans

Apple will soon allow third-party manufacturers to use its Lightning port, according to a new report from 9to5Mac. Although Apple has long allowed accessory makers to produce accessories that connect to the Lightning and Dock Connector ports on iOS devices, it has not traditionally permitted third-party manufacturers to include the female versions of these ports in their accessories. For example, battery cases can include a Lightning connector for an encased iPhone, but must charge using some other form of connection, usually Micro-USB.

During Apple’s annual briefing for companies in its Made-for-iPhone/iPad (MFI) program, Apple revealed new Lightning connectors as well as specifications for female Lightning ports that manufacturers will be able to use in their own accessories. This will allow third-party accessory makers to reduce costs and create an easier product experience for users by providing a consistent charging connector between an accessory and an iPhone, iPad, or iPod. In addition, the new Lightning connector provides a lower profile design that should allow for easier compatibility with accessories such as docks and cases. Apple plans to make the new Lightning port and connector designs available to third-party manufacturers starting in early 2015.

Also during the summit in Shenzhen, Apple officially began accepting plans for HomeKit products for approval, according to another 9to5Mac report. As Apple’s MFI approval process is one of the final steps before third-party manufacturers are allowed to announce new products, this move suggests that new products designed to work with iOS 8’s HomeKit features may start to be revealed in the near future.

Apple releases iOS 8.1.1

Apple has officially released iOS 8.1.1 to the public, a minor maintenance release that notes “bug fixes” as well as “stability and performance improvements” for the older iPhone 4S and iPad 2 models. iOS 8.1.1 is available as an over-the-air update or by updating via iTunes on a Mac or PC.

Apple adds UnionPay support to Chinese App Store

Apple announced today that UnionPay has now been added as a payment option for customers in China. As the most popular payment card in China, this will make it easier for Chinese App Store customers to purchase content on the App Store, and customers can now link their Apple ID with a UnionPay debit or credit card for one-tap purchases. UnionPay is responsible for China’s national inter-bank clearing and settlement system, and has issued more than 4.5 billion of its own debit and credit cards worldwide. It’s previously been reported that Apple is looking to bring Apple Pay to China, in conjunction with UnionPay.

Lawsuit against Apple over unsent text messages will proceed

A lawsuit filed last May against Apple regarding lost text messages will be allowed to proceed, Reuters reports. U.S. District Judge Lucy Koh stated that Apple will be required to face Adrienne Moore’s complaint that iMessage interfered with her contract with Verizon Wireless, which serviced her Samsung Galaxy S5 after switching from an iPhone 4. Although Apple acknowledged the issue in May, it did not come up with a viable solution until this week, releasing an iMessage deregistration tool for former iPhone users to deregister their cellular numbers from Apple’s iMessage network, thereby allowing messages sent from iPhone users to revert back to using the standard carrier SMS network, rather than being directed to the user’s former iPhone via Apple’s iMessage network. It’s noteworthy that Apple’s alternative solution—manually turning iMessages off on your old device after inserting a SIM card—would not have worked for the iPhone 4 or 4S, the Verizon versions of which did not use SIM cards.

In its own court filing, Apple noted that it has never made any claims that its iMessage service and Messages application would recognize when iPhone users switched to competing devices, stating that “the law does not provide a remedy when, as here, technology simply does not function as plaintiff subjectively believes it should.” In her decision, Judge Koh said that Moore deserved a chance to show that Apple disrupted her wireless service contract and in doing so violated a California unfair competition law by blocking messages sent to her after she switching to a rival device. Koh wrote that the plaintiff “does not have to allege an absolute right to receive every text message in order to allege that Apple’s intentional acts have caused an actual breach or disruption of the contractual relationship.” Moore is seeking class-action status and unspecified damages on the basis that Apple failed to disclose how its iOS operating system would obstruct the delivery of “countless” messages if iPhone users switched to non-Apple devices. [via MacRumors]

Apple Pay: 1% of Whole Foods transactions, Alibaba key in China?

With only three weeks since the launch of Apple’s new mobile payments service, Whole Foods has reported that it has processed 150,000 Apple Pay transactions – about 1% of the retailers total transactions in the same time period, according to calculations by Mike Dudas, former mobile commerce lead at Google and PayPal. Apple also appears to be moving ahead in establishing an Apple Pay partnership with Chinese e-commerce firm Alibaba, as noted by Apple CEO Tim Cook during his interview last week at WSDJ Live. Such a partnership would likely help facilitate a much faster rollout of Apple Pay in China, according to a report by 9to5Mac, which notes that Alibaba is the key player in online shopping in the country, with an estimated 80% marketshare. Alibaba has already met the often complicated regulatory requirements to operate in China, suggesting that the Chinese government would be more receptive to a partnership between Apple and an existing major player in the Chinese market.

Apple releases iMessage Deregistration Tool

Apple has released a new web-based tool to allow users to deregister phone numbers from iMessage. Designed to address a long-standing problem that users have experienced when switching away from the iPhone to other devices, the site provides instructions on how to deregister a phone number from Apple’s iMessage servers so that text messages sent from other iPhone users will be sent as SMS messages instead of via Apple’s iMessage network. The problem exists because the iPhone automatically registers a user’s cellular phone number with Apple’s iMessage servers when the user first sets up their device or inserts a new SIM card in their iPhone. Messages from other iOS devices sent to that phone number will travel via the iMessage servers instead of the cellular carrier’s SMS network — if users later switch their SIM card to a non-iPhone device, their number does not get deregistered automatically, so messages to that phone number will continue to travel over the iMessage network.

Apple acknowledged the issue back in May, shortly before a lawsuit was filed by a former iPhone user who was losing text messages as a result of the problem. Apple promised a fix was coming shortly thereafter, but other than advising users to disable iMessage before removing their SIM card—a suggestion that is often unreasonable as many users will have already switched to another device before discovering the problem even exists—the company has not provided a solution until now. The new web portal provides the same advice to deactivate iMessage manually for users who still have their iPhones, but failing that, users can now enter their phone number directly on the web page, and after confirming their number via an SMS confirmation code, their number will be deregistered from Apple’s iMessage servers.

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