Samsung may help Apple get rid of a $533 million verdict

Samsung Electronics Co. may end up saving arch nemesis Apple Inc. about $533 million.

That's how much Apple was told to pay after a jury in February said its iTunes service infringed patents owned by Texas licensing firm Smartflash LLC.

This week, Samsung, which is being sued over the same technology, convinced U.S. regulators to review whether two of Smartflash’s patents should have been issued in the first place.

If a review board at the U.S. Patent and Trademark Office tosses those patents, it will not only benefit Samsung but also Apple -- the company it spent four years battling over smartphone technology on four continents.

“Can Apple put off paying any damages until there’s resolution of the Samsung case?” said Justin Oliver, who heads Fitzpatrick, Cella, Harper & Scinto’s office for contested patent office proceedings. “If it’s forced to pay damages, it’s very difficult to get that back.”

Smartflash’s patents cover ways of controlling access to digital data through payment systems. The inventor, Patrick Racz, originally sought to commercialize the invention in 2002 with pop singer Britney Spears, according to the complaint.

A patent agency review board issued preliminary findings this week that the patents aren’t eligible for legal protection because they cover abstract ideas, not actual inventions. A panel of judges will consider arguments from both Samsung and Smartflash before reaching a final decision in about a year.

Poor Odds

The odds of Smartflash winning the case aren’t good, based on the agency’s prior reviews. In the small number of cases based on claims that the invention was an abstract idea, 100 percent were found ineligible for patents, according to a study by the Fitzpatrick law firm.

Smartflash’s lawyer said the company has been through this fight before. The district judge that presided over the trial already considered the same issue and sided with Smartflash, said Jason Cassady of Caldwell, Cassady & Curry in Dallas.

“This is just the institution” of the review, Cassady said. “It’s a little different than most cases and we feel confident.”

Working against Smartflash is a U.S. Supreme Court decision last year that scaled back the type of software inventions that are eligible for patent protection. The high court said that merely having a generic computer do an established business method isn’t really an invention. The agency’s preliminary decision put Smartflash’s patents squarely within the Supreme Court’s ruling.

‘High Burden’
“Once that determination is made, it’s a very high burden to reverse that in trial,” Oliver said. Smartflash’s patents “puts them in a category of patents that are more susceptible to challenge.”

The patent office’s reviews, created as part of a sweeping change to U.S. patent law that took effect in late 2012, allow challenges for data processing patents related to financial products or services. They allow a more expansive investigation than the popular type that is allowed for any type of patent.

Samsung didn’t file the petitions to save Apple -- its own fight with Smartflash is scheduled for an August trial in Tyler, Texas, though Samsung may ask that it be put off until the patent office completes the reviews. In the suit, Tyler-based Smartflash claims Samsung’s Media Hub uses the technology without paying royalties.

Six Patents
In all, six Smartflash patents were asserted against both Apple and Samsung. The patent office has already agreed to review five of them. Some were based on Apple petitions, and the most recent on Samsung petitions. A Samsung petition to invalidate the third patent involved in the Apple case is still pending.

Officials with Suwon, South Korea-based Samsung didn’t immediately return messages seeking comment.

The patent office review sets up a sort of race against time for both Apple and Smartflash. Apple needs to either win on its own or stretch out the civil case until the patent office rules on the Smartflash patents. The appeals court that specializes in patent law will hear both Apple’s appeal and consider the patent office review. (Bloomberg)

Seoul Fashion Week amps up color in vivid womenswear Bold, unpredictable color coordination fast becoming staple of Korean fashion

Brown and burgundy are no longer the go-to colors for the cooler seasons in Korea, it seems. Brimming with color, experimental fabrics and unexpected twists, the first day of Seoul Fashion Week 2015 Fall/Winter Womenswear kicked off on March 23 at the Dongdaemun Design Plaza.

“So many designers elsewhere use similar colors, especially for the fall-winter season, but the color mix of Korean fashion is unique.” said Ritta aka Miss X, a buyer from the Chinese city of Chongqing. 

Kaal E. Suktae: Cartoon character meets sophistication

Korea’s favorite green dinosaur cartoon turned sophisticated in designer Lee Suk-tae’s new collection, which was also previously shown at New York Fashion Week on Feb. 12-19. 

The show began with the theme song of Dooly, a long-loved Korean cartoon that for many is the epitome of childhood. 

Lee incorporated Dooly and his multicolored friends into his signature structured tailoring, turning the playful characters into avant-garde, pop kitsch accent points.

“There are a lot of fashion and cartoon collaborations abroad,” said Lee in a backstage interview after the show, perhaps referring to American designer Jeremy Scott’s recent collection inspired by Looney Toons characters. 

Models present creations by designer Gee Choon-hee of Miss Gee Collection during the Seoul Fashion Week at Dongdaemun Design Plaza in Seoul on Monday. (Yonhap)

“But they’re always based on foreign cartoons ... so I wanted to work with a distinctly Korean cartoon,” he said.

The characters were emblazoned onto dark, structured outerwear, making for an unexpectedly elegant harmony. Vibrant primary colors like red, white, blue, yellow and green adorned luxurious camel-shade coats and jet-black safari jackets. Bright rectangular lines were added to military jacket-like outerwear, making for chiseled silhouettes with a striking edge.

“I didn’t want Dooly to seem cute or goofy ― I wanted to give him a modern twist.” Lee said. 

To highlight the theme of childhood meeting sophistication, the models sported huge rubber pacifiers in their mouths for the finale. Rather than looking comic, the witty accessories added a futuristic, high-end vibe to the collection.

“I hope more Korean cartoon characters can be incorporated into other areas in the future,” said Lee. 

pushBUTTON blends working girl with fashionable slacker 

One of the most star-studded shows of SFW, pushBUTTON boasted its signature 80s look and poked fun at traditional gender roles with its usual witty, bold style. Actress Bae Doona, rapper Cheetah, Heo Ga-yoon of girl group 4minute, Hyomin of girl group T-ara and Zico of boy group Block B were among the celebrities who lined the front row. 

Oversized jackets were the key look for this season, said designer Park Seung-gun.

“We see a lot of women wearing ‘boyfriend-fit’ baggy jackets today,” he said, “but I decided to make men wear them, too, and spin things around. This way, men appear more feminine and thin, maybe a little reliant on the women, and not the other way around as usual.” 

With gold chains around the nape of their brightly-colored round-neck tees, baggy pants that gathered at the ankle and crew cut hairstyles, the men looked like modern renditions of fashionable delinquents a la Ponyboy from “The Outsiders.” 

The women, on the other hand, trotted down the runway in hair fuzzily teased into sky-high bumps, platform tassel loafers and calf-length white socks; they sported two-piece suits with daisy-yellow tweed patterns and flamboyantly pink felt purses, making for a flirtatious twist on the modern professional woman. 

Park described his brand concept as both retro and female-empowering. 

“I always try to recreate the mood of the 80s, which is the era when I grew up,” Park said. “I also want to show the image of today’s strong and independent working girl. ... Unlike before, it is the men who are becoming more attentive to their looks today.”

Other highlights

Big Park also incorporated strong colors and oversized jackets for its “Psyche and Cupid” theme. The stage was decorated like a modernized medieval cathedral, with lurid cupid statues and distorted stained glass. Eye-catching pieces included patchwork dresses, draped biker jackets and oversized coats, all cut effortlessly and embedded with cupid prints and artful color-blocking. 

Miss Gee Collection presented its usual sophisticated city woman with a subtle sentimental edge. The show’s star model Jang Yoon-ju, whose engagement was announced in news reports minutes before the opening, sported a cheeky schoolgirl outfit in Mary Janes, knee-high socks and hunting cap, a flowing champagne-colored evening dress, and more.

Steve J & Yoni P named their collection “SteveYoni Laboratory,” fusing beakers, magnifying glasses, dropping pipettes and other science lab tools into their vivacious casual wear. Transparent lab coats were layered with various garments to accentuate the theme. 

Up-and-coming brand ROCKET X LUNCH made its debut this year with Beastie Boys-inspired outfits. Designed by Woo Jin-won, the collection’s neoprene sweatshirts, mermaid skirts and overalls in pink, blue and purple hues showed off the brand’s free-spirited and adventurous approach to fashion.

By Rumy Doo (bigbird@heraldcorp.com)

‘Xiaomi is Internet firm, not hardware maker’ Chief of rising Chinese smartphone-maker underlines software, Internet content

Top management of Xiaomi, a rising star in the consumer electronics world, said the Chinese smartphone-maker could differentiate itself from its top two global competitors ― Samsung and Apple ― by seamlessly integrating its software and Internet content with hardware. 

“From the beginning, Xiaomi has considered the mobile phone to be a converged gadget of software, Internet services and hardware, not just as a simple device (for communication),” Xiaomi CEO Lei Jun said in a meeting with South Korean ICT Minister Choi Yang-hee, who visited the firm’s headquarters in Beijing Friday. 

Lei, who founded Xiaomi ― often called “the Apple of Asia” ― with eight software experts from Google and Microsoft in 2010, led the tech firm to the top spot in the Chinese smartphone market and to third place in terms of global smartphone shipments in the first quarter of this year. 

“Developing hardware is just a part of Xiaomi’s businesses, and the driving forces behind those devices are its software and Internet content,’’ he said.

Xiaomi has its own operating system, MIUI, for mobile and home appliances such as TVs. It also runs an app store and the online payment solution Alipay.

“Xiaomi’s smartphone and TV operating system MIUI, which supports 27 languages, now has 85 million users,” the CEO said.

ICT Minister Choi Yang-hee (right) and Lei Jun, chief executive of Chinese smartphone maker Xiaomi, have a discussion session at the Chinese firm’s head office in Beijing, Friday. (ICT Ministry)

Aiming to beef up its software capacity, Lei hired a slew of software and tech experts including Hugo Barra, a former vice president of Google.

Having shipped 26 million smartphone units in the first half, the Chinese smartphone-maker is aiming to sell 60 million this year. 

The Mi2, the firm’s second flagship model and a hit product, helped catapult the Chinese smartphone-maker into the world’s top three, with more than 17 million units sold worldwide since its release in 2012. 

Actively reflecting customers’ voices and needs in product development and services was a contributing factor for Xiaomi’s explosive growth during the past years, Lei added. 

Even though Xiaomi is working closely with Korea’s electronic parts suppliers such as LG Display and Samsung, he said the company has no plans to partner with Korean firms to create a new OS ecosystem.

Global electronics-makers Samsung and LG Electronics are currently devoted to making their own operating systems, Tizen and Web 2.0, respectively, to wean themselves off Google’s Android.

For those Korean firms aiming to tap the Chinese market, he advised that they should first find local partners who are familiar with the Chinese market environment.

By Kim Young-won (wone0102@heraldcorp.com)

S. Korea, New Zealand initial bilateral FTA

South Korea and New Zealand on Monday initialed their free trade agreement (FTA), concluded last month, that will eliminate import tariffs on more than 90 percent of goods traded between them.

The FTA was initialed in Wellington by South Korean Deputy Trade Minister Choi Kyong-lim and New Zealand Deputy Secretary of Foreign Affairs and Trade David Walker, the Ministry of Trade, Industry and Energy said.

Initialing of a free trade pact means that the two parties confirm every word on each page is final and will not be subject to changes before the official signing, according to the ministry.

The English version of the FTA, whose negotiations were concluded Nov. 15, was made public immediately after the initialing ceremony at www.fta.go.kr.

The ministry said the two countries have agreed to officially sign the agreement within the first half of next year. It will then be sent to the respective legislatures for approval before it can go into effect.

Under the pact, New Zealand will eliminate its import tariffs on 92 percent of all shipments from South Korea, in terms of their value, immediately after its implementation, and completely remove all tariffs on South Korean products within seven years.

South Korea will reciprocate by removing tariffs on 96.4 percent of shipments from New Zealand over a 15-year period following the implementation of the deal. The two sides have agreed to exclude some products from the deal, mostly agricultural goods, such as rice, that are considered most sensitive in South Korea.

In 2013, bilateral trade between the two countries came to US$2.8 billion, making New Zealand South Korea's 44th-largest trading partner and South Korea New Zealand's 41st, according to the ministry. (Yonhap)

New shopping trend pushes Korean shoppers to splurge on Black Friday

South Korean shoppers joined the Black Friday shopping craze this year as local shoppers eagerly embraced the growing shopping trend of buying directly from overseas retailers, a poll showed Thursday.

Some 55 percent of 1,000 Koreans who opted for overseas direct shopping during Black Friday season said they spent more than the US$200 duty-free ceiling, according to the survey by global cashback operator EBATES. 

The figure marks a sharp rise from the first-half result where only 2 percent of the respondents said their purchases have exceeded the $200 threshold, the company said. Comparable results from last year's Black Friday season were not available.

Black Friday, which falls on the day following U.S. Thanksgiving, is considered the official start of the holiday shopping season and offers a myriad of discounts. The sales period includes Cyber Monday three days later.

More than 75 percent of the shoppers said they were willing to pay additional tariffs for overseas direct buying, while a whopping 99 percent said they plan to continue the shopping habit even after Black Friday.

Under local customs regulation, shoppers who order from U.S.bretailers are mandated to pay a tariff rate of roughly 5 to 13 percent for fashion, cosmetics and food products that exceed the

$200 limit. A higher tariff is fixed for luxury products such as mobile phones, golf clubs and watches.

The data also showed that Black Friday shopping has settled down as a common shopping habit, with 41 percent of the respondents saying their Black Friday shopping amount accounted for more than half of their overall online spending last month.

The poll comes as overseas direct buying, or "jikgu" in Korean, is gaining popularity as a way to save money. A growing number of people are putting cost over the multi-shopping process and the longer shipping period after finding out they can buy imported products and even those by South Korean household names, such as Samsung and LG, at a lower cost.

The trend has also reshaped the local retail industry. While South Korea does not celebrate U.S. Thanksgiving, key retailers such as Lotte and Shinsegae introduced special promotions themed under Black Friday and Cyber Monday as part of efforts to capture shoppers breaking away.

South Korea's imports made via jikgu ballooned nearly five-fold between 2009 and 2013, according to the customs office. The amount reached $718 million in the first half, forecast to break last year's $1 billion record. (Yonhap)

Korean retailers offer bargains to compete with Amazon on Black Friday

South Korean retailers are offering Black Friday bargains to lure local consumers who are buying Samsung TVs and foreign goods overseas with just the click of a mouse.

Local department stores and e-commerce sites have launched sales ― with up to 60 percent off ― ahead of U.S. retail sales on Friday, challenged by the increasing popularity of direct-buying at foreign e-commerce sites. 

“Many retailers are afraid of losing young consumers, who go to U.S. websites to buy Samsung and LG’s electronic devices and luxury goods, which are also sold at Seoul department stores,” said Lee Ki-won, a marketing manager at Hyundai Home Shopping. 

With Black Friday and Cyber Monday approaching, they were growing even more worried. 

An increasing number of people here have been posting online about deals they have gotten on expensive appliances. Buying the products overseas allows them to dodge local retailers’ high markups.

They claim that they can pay much less for the same or similar products at foreign websites, as South Korean electronics-makers charge higher prices on their home turf. 

Adding to the fever, U.S. online retailers, such as Amazon.com, are expected to steal a march on local stores, as they have been offering a week of discounts in the runup to the biggest shopping days of the year. 

Samsung’s 55-inch Smart LED TV, for example, is currently being sold for $797.99 on Amazon through a Black Friday promotion, including free shipping and 30-day tech support service. 

At home, the lowest price for the same model was 1.23 million won ($1,112) on Thursday, though the price was falling as Black Friday grew nearer.

The same was the case with LG Electronics’ products. LG’s 84-inch Cinema 3-D 4K Ultra HDTV was being sold for $6,199 on Amazon, while the cheapest price here was $9,602. 

“The more I know about the benefits of buying products overseas, the more I feel like I was a fool in the past, paying twice as much for the same thing,” said Jason Moon, 34, a local consumer. 

Samsung and LG explained that the higher prices at domestic stores include delivery and installation fees, as well as taxes. 

“It also has to do with culture. When buying a product, South Korean consumers think they’re buying service along with it. They expect to receive top quality after-sales service and free installation services,” an LG Electronics spokesman said. 

“It’s inevitable that the pricing differs in each region and each country.” 

By Suk Gee-hyun (monicasuk@heraldcorp.com)

Detekt: New tool against government surveillance – Questions and Answers

Detekt is a free tool that scans your computer for traces of known surveillance spyware.

© Aiham Dib / Demotix

DETEKT

What is Detekt and how does it work?

Detekt is a free tool that scans your computer for traces of known surveillance spyware used by governments to target and monitor human rights defenders and journalists around the world. By alerting them to the fact that they are being spied on, they will have the opportunity to take precautions.

It was developed by security researchers and has been used to assist in Citizen Lab's investigations into government use of spyware against human rights defenders, journalists and activists as well as by security trainers to educate on the nature of targeted surveillance.

Amnesty International is partnering with Privacy International, Digitale Gesellschaft and the Electronic Frontier Foundation to release Detekt to the public for the first time.

Why are you launching Detekt now?

The increasing use of intrusive surveillance has had a dramatic impact on the right to privacy and other human rights like freedom of association and freedom of expression.

The latest technologies enable governments to track, monitor and spy on people’s activities like never before. Through the use of these technologies, governments can read private correspondence and even turn on the camera and microphone of a computer without its owner knowing it.

By increasing people’s awareness of these issues we hope they will be able to take practical steps to protect themselves.

We also hope that by knowing more about the dangers of these technologies more people will join Amnesty International in calling for stricter controls on their international trade to stop their use in violation of the right to privacy, freedom of expression and other human rights.

Our ultimate aim is for human rights defenders, journalists and civil society groups to be able to carry out their legitimate work without fear of surveillance, harassment, intimidation, arrest or torture.

Has anyone used Detekt successfully to know if they were being spied on? 

Detekt was developed by researchers affiliated with the Citizen Lab, who used a preliminary version of the tool during the course of their investigations into the use of unlawful surveillance equipment against human rights defenders in various countries around the world.

For example, according to research carried out by Citizen Lab and information published by Wikileaks, FinSpy – a spyware developed by FinFisher, a German firm that used to be part of UK-based Gamma International-- was used to spy on prominent human rights lawyers and activists in Bahrain.

How effective is this tool against technologies developed by powerful companies? 

Detekt is a very useful tool that can uncover the presence of some commonly used spyware on a computer, however it cannot detect all surveillance software. In addition, companies that develop the spyware will probably react fast to update their products to ensure they avoid detection.

This is why we are encouraging security researchers in the open-source community to help the organizations behind this project to identify additional spyware or new versions to help Detekt keep up to date. Contact information is available here.

It is important to underline that if Detekt does not find trace of spyware on a computer, it does not necessarily mean that none is present. Rather than provide a conclusive guarantee to activists that their computer is infected, our hope is that Detekt will help raise awareness of the use of such spyware by governments and will make activists more vigilant to this threat.

In addition, by raising awareness with governments and the public, we will be increasing pressure for more stringent export controls to ensure that such spyware is not sold to governments who are known to use these technologies to commit human rights violations.

SURVEILLANCE

How widely do governments use surveillance technology?

Governments are increasingly using surveillance technology, and targeted surveillance in particular, to monitor the legitimate activities of human rights activists and journalists.

Powerful software developed by companies allows governments and intelligence agencies to read personal emails, listen-in on Skype conversations or even remotely turn on a computers camera and microphone without its owner knowing about it.

In many cases, the information they gather through those means is used to detain, imprison and even torture activists into confessing to crimes.

It's impossible, however, to give an accurate estimate of how many people are affected by this surveillance spyware. This is because the companies that build and sell such software market themselves on their ability to hide it from users.

Recent research has shown that known spyware has been found present in dozens of countries, covering all regions of the world.

Detekt is the first public tool that will assist activists, journalists and civil society groups to scan their computers for spyware.

How big is the unregulated trade in surveillance equipment? What are the main companies and countries involved? 

The global surveillance industry is estimated to be worth approximately US$5 billion a year – with profits growing 20 per cent every year.

European and American companies have been quietly selling surveillance equipment and software to countries across the world that persistently commit serious human rights violations.

Industry self-regulation has failed, and government oversight has now become an urgent necessity.

Privacy International has extensively documented the development, sale and export of surveillance technologies by private companies to regimes around the world. Recipient countries include: Bahrain, Bangladesh, Egypt, Ethiopia, Libya, Morocco, South Africa, Syria and Turkmenistan.

Isn't publicizing the existence of this tool giving governments a heads up about how they can avoid being caught (by adapting new equipment which avoids detection)?

The technologies that allow governments to efficiently and covertly monitor the digital communications of their citizens are continuously improving. This is happening across the world.

The growing trend in indiscriminate mass surveillance on a global scale was laid bare by the Edward Snowden disclosures. Following the lead of the USA and other industrialized countries, governments everywhere now justify the use of such surveillance. This has a chilling effect on the rights to freedom of expression and peaceful assembly in countries across the world.

In addition to mass surveillance technologies, many governments are using sophisticated tools to target specific human rights defenders and journalists who work to uncover abuses and injustice.

The new spyware being developed and used is powerful and dangerous and putting many human rights activists and journalists at risk of abuse.

As surveillance technologies develop in sophistication, it is vital that civil society groups learn how to protect their digital communications. No one tool or intervention will be enough to do this. We hope Detekt will become a new approach for investigating surveillance while sensitizing people to the threats.

However, long term we must also demand that governments live up to their existing commitments to human rights and that they and companies put in place stronger protections to ensure that new technologies are not used to violate human rights.

Surveillance is also used to carry out legitimate criminal investigations, why are you against it? 

Targeted surveillance is only justifiable when it occurs based on reasonable suspicion, in accordance with the law, is strictly necessary to meet a legitimate aim (such as protecting national security or combatting serious crime and is conducted in a manner that is proportionate to that aim and non-discriminatory.

Indiscriminate mass surveillance – the widespread and bulk interception of communication data that is not targeted or based on reasonable suspicion – is never justifiable. It interferes with a range of human rights, particularly the rights to privacy and freedom of expression. 

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