RIM Preparing for a rash of Blackberry Failure Lawsuits

Troubled Canadian mobile phone outfit RIM is about to be sued for taking three days to sort out a fault which shut down its email services worldwide. Last week's problems began with a failure in a European data centre which spread across the world before it began to recover.

Law firms in the United States and Canada are exploring possible consumer lawsuits against Research In Motion and are trying to make up their mind if they have enough common claims against RIM to team up in a single lawsuit.

As might be expected, the lawyers are looking at breach-of-contract or consumer-fraud claims, Reuters reports.

The breach-of-contract argument is based on the fact that RIM failed in its obligations to provide a service and could include carriers for BlackBerry as additional defendants. If the lawyers go for a consumer-fraud claim it would be based on the fact that customers were misled about the reliability of RIM's networks.

While the outage did not rise to the level of seriousness comparable to a dangerous medication or tainted food, it inconvenienced and angered customers. Frustrated BlackBerry users, turning to blogs, message boards, Twitter and Facebook, complained about losing important emails and missing meetings withing the period. 

What might save RIM from the wrath of the courts is that it will be hard to prove damages beyond loss of service. US state laws make the chances of bringing a nationwide consumer-fraud class action remote.

A recent US Supreme Court consumer class-action ruling in April made it more difficult for consumers to sue if a contract they signed with a company demands that disputes be settled through arbitration. RIM has this clause in its contracts. 

"Here, you just have the loss of (BlackBerry) use, so tons of class-action firms are not running to the courthouse steps," said Jay Edelson, a partner with the law firm Edelson McGuire in Chicago, who represents plaintiffs. "But there are definitely consumers motivated to lend their names to the case to make sure these problems don't happen again in the future." 

Because consumers can hire lawyers on a contingency basis, they would not have to fund the litigation, an added incentive, he said. Winning a class action case for BlackBerry users, in turn, would raise the profile of a small or medium-sized law firm. 

RIM has not offered to compensate customers and is offering subscribers access to premium apps "as an expression of appreciation for their patience during the recent service disruptions." The apps will be available for four weeks and are worth more than $100 per customer, RIM claims, but it's not a thrilling list.

If it did pay back customers and service carriers for the days of service lost, the cost to the company has been estimated at $26 million. Given RIM's problems it needs this like a hole in the head. It would be even worse if consumers go to court, because there would be expensive legal costs on top of this. 

BlackBerry devices have experienced similar, but more short-lived outages each year since 2007. The system failures came as RIM struggles to hold on to market share for BlackBerry smart phones, as more customers opt for Apple Inc's iPhone and Google Inc's Android. RIM did not respond to messages seeking comment on potential lawsuits.

VIA Technologies drags Apple to court

Just before it is to release its highly anticipated iPhone 5, Apple Inc. faces new litigation, this time from a Taiwanese firm.

VIA, the world’s largest independent motherboard manufacturer based in Taiwan, has suied Apple this week for copyright infringement. VIA are claiming that Apple have infringed the copyright on a series of patented microprocessors that are used in the iPod, iPad, iPhone and Apple TV.

VIA have issued a complaint with the US International Trade Commission and the American district court over the alleged infringement of the way the chips in the Apple products manipulate and transfer data.Wen Chi Chen, CEO, VIA Technologies, Inc. in a statement said “We are determined to protect our interests and the interests of our stockholders when our patents are infringed upon.” Apple has not released a statement concerning the lawsuit at this time.

The lawsuit is believed to be connected to an on-going series of legal battles between Apple and the smartphone company HTC. Cher Wang, VIA's chairwoman, is also the chairwoman of HTC. So far Apple has won lawsuits against HTC which state that HTC have infringed on two of Apple’s copyrighted patents. HTC are planning on appealing that ruling and have three other lawsuits filed against Apple at the moment.

Also, VIA claimed it has built up an extensive intellectual property portfolio including more than 5,000 patents after years of heavy investments in technology research and development.

Similarly Apple and mobile phone producer Samsung are having legal battles in Europe which have caused the ban of the Samsung Galaxy Tab 10.1 in Germany as well as bans on three different types of smartphone in Holland due to the successful claim by Apple that they used Apple’s intellectual property. These are just some the most recent of a series of mobile phone lawsuits, concerning the patents of the hardware and software of top of the range smartphones across the world. Lawsuits have been filed against and by Apple, HTC, Samsung and Nokia as well as others.

Sony in Bravia TV Recall...suspends Gaming Accounts over Hacking

Sony Corp., has recalled 1.6 million Bravia flat-panel TVs sold worldwide since 2007 because a faulty component may cause them to melt or catch fire. Sony recalled the liquid-crystal display (LCD) TVs after a September incident in which a customer noticed a small fire and smoke, said Yuki Shima, a Tokyo-based spokeswoman for the world’s third-largest maker of televisions. Eleven incidents have been reported in Japan since 2008, according to a company statement, and no injuries have been reported.

A faulty component in the backlight systems may be the source of overheating that can melt the top of the TV set, Shima said. It’s the second recall involving Sony products in a month, with KDDI Corp., Japan’s second-largest mobile-phone operator, saying it would replace Sony-made batteries in as many as 2 million handsets because they may overheat and melt.

“Sony-related recalls are following one another, and that may ruin the company’s brand image,” said Keita Wakabayashi, an analyst at Mito Securities Co. with a “neutral plus” rating on the stock. “Considering Sony’s overall business size, the TV recalls won’t shake the company’s grounding.”

The same transformer is used in the five Bravia models in Japan being recalled, according to a Sony statement. The recalled sets, 40-inch models sold in regions including China, the Americas, the Middle East, Africa and Europe, will be repaired if faulty parts are found. Sony will dispatch a service crew to inspect sets, Shima said. The company won’t offer refunds or replacement TVs, she said.

There haven’t been any reports of overheating incidents outside Japan, the statement said, but the recalls are carried out globally. Sony rose 3 percent to 1,562 yen in Tokyo trading, narrowing its loss this year to 47 percent. Japan’s benchmark Nikkei 225 Stock Average gained 1.1 percent. The recall was announced after Tokyo markets closed.

“It could impact the stock negatively if the recall causes a significant amount of expense,” Wakabayashi said. The repairs will have a negligible impact on Sony’s earnings, Shima said. The recall was voluntary, she said.

Sony shares declined to their lowest in 24 years earlier this month on speculation the yen’s strength and slumping demand for televisions will hurt earnings. The company, which forecast full-year operating profit of 200 billion yen ($2.6 billion) in July, loses about 6 billion yen of annual operating profit, or sales minus the cost of goods sold and administrative expenses, for every 1 yen decline against the euro.

This is the company’s first recall of flat-screen televisions, though not the first associated with the Bravia line. In April 2010, Sony offered to repair the stands attached to two models because the screws weren’t strong enough and the stands could collapse. Later that month, the company recalled 535,000 Vaio personal computers because of possible overheating caused by a temperature-control defect.

Separately, the world’s second-largest maker of video-game machines said yesterday it temporarily suspended about 93,000 user accounts of its online gaming and entertainment services after finding they were hacked.

“A massive number” of unauthorized attempts by intruders were detected between Oct. 7 and Oct. 10, Sony spokesman Satoshi Fukuoka said. The efforts included usernames and passwords that matched 93,000 accounts, including at least 35,000 in the U.S. and 24,000 in Europe, he said. Personal information, including home addresses, in some accounts may have been compromised, he said.

India Post rejects Cisco’s IT upgradation equipment

India's postal department has rejected the bids of four companies - HCL Comnet, Wipro, Dimension Data and UTL - to build an IT network that connects 30,000 post offices across the country, citing the 'obsolete equipment' being provided by Cisco, the technology partner for these bidders. 

After the disqualifications, the department has shortlisted HP, IBM, TCS and Sify for its Rs 1,300-crore project aimed at modernisation of the IT infrastructure of postoffices, two officials with direct knowledge of the development has said. All these companies have opted for a combination of Juniper and HP to be their technological and hardware partners for the project. Cisco is the world's largest company in networking equipment, such as routers, and customer premise equipment. 

The contract will be awarded after the financial bids of these companies are examined . But the project could run into a hurdle as Cisco has approached the Communication & IT ministry against the rejection of bids of companies partnering with it. 

It is also learnt that Cisco has besieged the postal department not to open the financial bids of the shortlisted companies until its concerns are addressed. Cisco denied to comment on a detailed questionnaire sent by ET. "As you would expect, several Cisco Partners participated in the RFP process. 

Any questions relating to that should be directed to the Department of Post," a Cisco India spokesperson said. Department of Post officials who evaluated the bids said companies partnering with Cisco were rejected for three primary reasons. 

"As per Cisco's own public announcement in November 2010, a significant majority of the routers and switches it plans to supply its partners for this project, has reached their end-of-life. The manufacturing of these products would stop by 2012-end, the period when we will be awarding the contract. 

Besides, the software updates for these products will also end within two more years," a top official said. This official also added that awarding the project to any company using Cisco hardware would compromise a key requirement of the project being scalable in the future due to obsolete equipment. Cisco has not yet replied to the allegations. Another official in the postal department explained that all bidders partnering Cisco had submitted an undertaking from the IT hardware major that it would support these products for seven years.

Aviat Networks Sells off WiMAX Business To Canadian firm

In line with previous predictions, Aviat Networks, Inc., a leading expert in wireless transmission solutions, has announced that it has sold its WiMAX business to EION Networks, Inc., which is a privately owned Canadian Company headquartered in Ottawa, Canada. The WiMAX business will be consolidated into a division of the company, EION Wireless, as a result of the sale. EION Wireless, a global provider of broadband wireless products, plans to extend its broadband wireless solutions portfolio with the purchase of this business.

Aviat Networks acquired the WiMAX business in 2009 to expand its technology portfolio and capabilities to address opportunities in the wireless broadband and mobility markets. In May 2011, as part of a company restructuring aimed at reducing costs, streamlining operations, and optimizing the Company’s business model, Aviat Networks announced its intentions to sell the WiMAX business for an undisclosed amount.

“The sale of the WiMAX business will enable us to better focus our resources and investments on our microwave transmission products, further positioning us for long-term success,” said Michael Pangia, president and CEO of Aviat Networks. “We will work with EION Wireless to ensure a smooth transition for both our customers and employees.” The sale of the WiMAX business to EION Wireless was effective as of September 2, 2011.

Eion Networks said that the purchase of the WiMax division of Aviat Networks includes its StarMAX fixed and mobile base stations, gateways and end-user devices. “This is a big strategic step for Eion, both from the product and customer point of view,” Kalain Kalaichelvan (pictured), chairman and CEO of privately-held Eion said in an interview. “Their portfolio of products really compliments what we are doing because they have 4G (fourth generation wireless) products.

“The second main reason is Aviat sells to Tier 1 and 2 service providers, and we sell to a lot of enterprises … so this can be the springboard for us into launching LTE.” Eion’s upgrade solution to LTE will be ready by next summer, he said. Over the next six to 12 months WiMax providers will want to convert and “we are already in their living room,” Kalaichelvan said.

Four years ago WiMax and LTE (Long Term Evolution) were fighting to be the next generation of wireless broadband technology, promising to offer at least wireline speeds. Fixed WiMax (also known as the IEEE’s 802.16 standard) got off the mark first and has been chosen by a number of carriers to serve small communities. At the time LTE standards were barely set. But WiMax's mobile version (802.16e) was shunned by major carriers in favour of LTE because major equipment makers like Ericsson LM offered a clear upgrade path from the GSM technology used by most leading cellular operators.

In the U.S., WiMax’s biggest supporters, Clearwire and Sprint-Nextel Corp., have signed they will eventually switch to LTE. That has left WiMax operators in a fix, looking for equipment makers who have to face the inevitable: eventually upgrading to LTE. WiMax equipment makers, meanwhile, have faced struggling sales as service providers wonder whether they should invest in the technology. But in some parts of the world – such as emerging countries with very little in the way of phone lines, WiMax makes sense. Which is why 80 per cent of Eion’s sales have gone to countries outside North America, Kalaichelvan said. In Canada it counts only a few oil and gas companies as customers.

Airtel introduces Specialized Packages for Corporate, SME & HNIs

Riding on its promise to provide more value to subscribers on its network, leading telecoms operator, Airtel Nigeria, has launched new pocket-friendly packages tailored for corporate organisations, Small and Medium Scale Enterprises (SMEs), post-paid individuals and BlackBerry users.
The new packages, which offer attractive tariffs including generous data volumes, will now make it possible for Airtel customers on this platforms to communicate freely with ease and use their data enabled devices without burning holes in their pockets.
According to Deepak Srivastava, Airtel’s Chief Operating Officer, the latest development is in line with its commitment in endearing the brand to Nigerians with affordable telecoms solutions for their delights. He said the package was conceived to address the needs of its customers in various segments namely: Corporate Organisations, Small and Medium Enterprise (SME), individual postpaid customers and BlackBerry users.
For Corporate organisations to benefit from the latest offer, Srivastava revealed that three distinctive categories namely Corporate Plus; Corporate Pro and Corporate Premium have been created, each of which comes with its own unique voice, SMS and data tariffs. Also, free talk minutes, SMS and data of up to 1GB is available. Customers under a Close User Group (CUG) of 100 staff and above can make Airtel to Airtel calls for 17k/sec and 25k/sec to other networks.
For the Small and Medium Enterprises (SMEs), the plan is split two-ways namely; SME Plus and SME Pro. Both plans have discounted tariffs in voice (including international calls) for 17k/sec and 30k/sec to other networks, SMS and data. In addition, there is free airtime, complimentary data and up 30 free SMSes. A SME should have 10 to 99 lines under the CUG to benefit from this plan.
Under the Retail or individual category, there are four different plans; The Advance plan (annual), Intermediate plan (monthly), Basic and Family plans. Here, it is possible to make 15k/sec for Airtel to Airtel calls and 25k/sec to other networks. Also, free calls, SMS and data as well as up to 150 free CUG minutes is available.
To complete the customer cycle, BlackBerry users were not left out in the package plans as Srivastava stated. He said the company is offering heavily discounted monthly subscription in both the Enterprise and Internet services with free CUG Airtel to Airtel airtime.
“Airtel is aware of the critical role the Small and Medium Enterprises play as the engine of growth in any economy especially in Nigeria, hence the need for us to focus on assisting this segment achieve their goals of which communication plays a critical role. In the same vein, we also recognise that the corporate world is just as important for growth and development, therefore, the need to  empower the corporate sector with telecoms offerings that will make life and business more enjoyable and profitable became necessary”,  Srivastava reiterated. 

“We are restating unequivocally here that we are not going to rest on our oars on the delivery of quality products and services to our customers irrespective of class as we move closer to fulfilling our promise of being the most loved brand in the daily lives of Nigerians.”

LG joins BMW, Audi to Osram infrigment suit row

LG Electronics said that they have officially filed a lawsuit with a South Korean court seeking to block some local branches of Germany’s BMW AG and Audi AG from selling vehicles equipped with lighting products made by Osram, which the Korean company allege infringe their patents.

“We’ve expanded the legal fight to auto makers using LED package products manufactured by Osram, as the infringed products are having an increasingly negative impact on the fast-growing local LED industry,” LG Electronics said in a statement.

Osram is the world’s No.2 lighting company after Philips, ahead of General Electric Co. The lawsuit is the latest in a series of patent litigation involving LG Electronics, Samsung LED and Osram.  This move however, is seen as a retaliation after Osram recently filed a complaint in Korea against LG, as well as Samsung, for patent violations ― a move it has already taken in four other countries including China and the United States.

``LG sued Osram at the Seoul Central District Court for purportedly infringing on LG-owned patents such as LED chips and packaging technologies that are widely used in LED light bulbs and cars,’’ said Lim Young-min, a senior LG spokesman.  LEDs are becoming increasingly popular and are widely used in aviation, automobiles, televisions and mobile phone screens. The two LG companies have 4,000 patent rights globally related to LED technology. The move opens a new front in the continuing legal spat between the South Korean companies and Osram over light-emitting-diode lighting technology, as they struggle for dominance in a fast-growing LED lighting market. LED lights, once used primarily in indicator lamps, are now installed in television screens and aviation and automotive lighting, as well as traffic signals.

"We've expanded the legal fight to auto makers using LED package products manufactured by Osram, as the infringed products are having an increasingly negative impact on the fast-growing local LED industry," LG Electronics said in a statement. The company asked the court to issue an interim injunction to block the sales while the case is being argued.

Osram's Korean unit declined to comment. A spokesman for BMW said he couldn't yet confirm that an injunction had been received, adding that the company would have to "examine the matter extensively" before it could comment. A spokesman for Volkswagen AG's Audi brand said it hasn't yet received an injunction.

Osram's move is said to be in response to a complaint LG had filed to the trade commission against Osram in July, seeking a ban on the importation of the company's LED products into Korea. 

If the court allows LG's request, that could be a setback to BMW, the world's largest luxury carmaker, and Audi, a unit of Volkswagen. Korean sales account for just around 1 percent of these carmakers' global sales, but European models are steadily gaining market share in Korea following a free-trade deal with the European Union in July.

BMW, the most popular imported brand in Korea, raised its market share sharply in the country as Japanese rivals lost ground following the earthquake there in March. BMW sold 16,579 cars in the first eight months of this year, up 62 percent from a year ago, and owns 24 percent of the imported-car market in Korea, according to data by Korea Automobile Importers and Distributors Association.

Audi also increased sales by a quarter to 6,668 cars in the first eight months of this year to take 9.6 percent of the imported-car market. Imported cars account for less than 10 percent of South Korea's auto market dominated by local brands such as Hyundai Motor , but sales growth is far outstripping that of domestic companies.