Patently Bold: Paul Allen's Internet Lawsuit (AAPL, EBAY, GOOG, MSFT, NFLX, ODP, YHOO)

Another day, and yet another audacious-sounding lawsuit in the tech world. This time it's Microsoft (Nasdaq: MSFT) co-founder Paul Allen's company, Interval Licensing, LLC, suing a host of big-name companies: Google(Nasdaq: GOOG), Facebook, eBay (Nasdaq: EBAY), Apple (Nasdaq:AAPL), Yahoo! (Nasdaq: YHOO), AOL, Netflix (Nasdaq: NFLX), Office Depot (NYSE: ODP), OfficeMax, Staples, and YouTube.

The lawsuit claims patent infringement over some basic, ubiquitous, and vital Web functions like reading news in a Web browser and information alerts. In the video below, Fool analyst Rex Moore and Fool Chief Legal Officer Lawrence Greenberg discuss Allen's possible motives, including monetary rewards and credit for inventing these things. The defendants may claim the patents are not valid because the inventions do not meet the patent law's requirement that they be "non-obvious," because people who understood the Internet at the time of their invention would have anticipated them.

The lawsuits may take a long time to work their way through the system if they're litigated and not settled quickly. Most of these companies have very deep pockets and the ability to absorb the costs involved. Though it seems unlikely these companies would be seriously hurt by the final outcome in a meaningful way, it's unlikely that they are happy to have been sued.

Watch the video here:

by Fool TV September 4, 2010

Patently Bold: Paul Allen's Internet Lawsuit (AAPL, EBAY, GOOG, MSFT, NFLX, ODP, YHOO)

Five Ways Gmail Chat Looks Better than Skype - PCWorld Business Center

Your Gmail account sends e-mail, allows video and online chat, and now can call your contacts in the United States and Canada for free.

Google announced on its corporate blog today that its U.S. users will enjoy free calls, with slightly higher rates to other countries, by using the voice and video service embedded in Gmail Chat. The service is expected to bite into Skype's VoIP service, with Google posting rates that it says beat a "leading Internet telephony client."

Here are some reasons why Gmail Chat may be a better choice, at least for now.

1. Rates

International rates for Gmail calls range wildly, from $6.90 a minute to call Inmarsat, a British mobile satellite company, to 2 cents a minute to call Poland or Brazil. Other rates compare fairly closely, with Gmail voice calling rates 2 cents a minute to France versus 2.4 cents a minute for Skype (2.1 cents plus connection fee), but Google is offering free, unlimited phone calls to the United States and Canada.

That could best Skype’s rate by $60 for the rest of the year, since Skype charges $12 each quarter for a phone number and $2.99 each month for unlimited calls to North America on its pay-as-you-go program.

2. Google Voice

This service, offered free by Google, consolidates all your phone numbers into a single number, and is being incorporated into the new Gmail system. Users already with Google Voice numbers will have that number displayed on caller ID and can receive calls to this number. Skype has to use a different number than your phone number (unless, for instance, you use Google Voice). In many ways, Google is cutting out the middle man in this relationship by offering to skip over Skype entirely.

3. Videoconferencing and Other Business Apps

While Skype offers free video chat, it also plans on packaging videoconferencing for business as a way to raise revenue for shareholders. Gmail also offers free video chat. While it hasn't been added yet, a spokesman said Google plans also to add voice chat to Google Apps, which is specifically aimed at companies.

Google has also expanded its Gmail contacts page to include more data like addresses and phone numbers. Along with the additions, Google has taken security seriously by alerting users of suspicious activity on their Gmail account.

4. The Google Cachet

Granted, Skype has 560 million registered users and 8 million paying users. Google's various sites have about 179 million unique users each month, according to ComScore. Google regularly expands its services' interfaces to meet users' needs.Skype, which just made its IPO, is still working on its untested business model. In five years I'm confident that Gmail will still be around, but I'm not so sure about Skype.

5. It's Free to Try

Gmail's free rate in the United States and Canada lasts at least until the end of the year, and Google said it plans to roll out the new system in the next few days. As soon as users see "Call Phones" showing up in their Gmail chat list, they're ready to go.

There are a few concerns about Gmail's phone call system, the biggest being when the free rate will end. So far Google hasn't give any answers, except to say it will be free until the end of the year. Unless the voice calls continue to be cheaper than Skype in January, Google doesn't have a prayer.

However, for now, business owners who have never used Skype will lose nothing if they try the new Google service. Perhaps they may even find that the international call costs are cheaper than their current calling plan, Skype included.

By Barbara E. Hernandez, PC World August 25, 2010

Five Ways Gmail Chat Looks Better than Skype - PCWorld Business Center

YouTube - Gmail voice and video chat

YouTube - Gmail voice and video chat

salesforce Shocks the Skeptics (CRM, GS, MSFT, NUAN, ORCL, SAP)

Shares of on-demand software maker salesforce.com (NYSE: CRM) are soaring today, up more than 15% at last count -- and rightly so. When the company reported earnings last night, the numbers were properly boffo:

• "Record" revenues rose, up 25% to $394 million
• Total customers contributing those revenues grew as well, up 30% year over year
• Revenue guidance got "raised" to $1.6 billion for this fiscal year 2011
• And free cash flow increased 77% to $48.3 million

Sure, there were other aspects to the story: The fact that non-GAAP earnings stagnated, while GAAP earnings per share actuallydecreased 35% to $0.11. The likelihood that even if salesforce succeeds in hitting its earnings guidance this year, its projected per-share earnings range of $0.43 to $0.45 per share will have this stock trading at a simply astonishing P/E ratio of perhaps 250.

Go, go, Goldman!
These quibbles aside, it looks like Goldman Sachs (NYSE: GS) was right on the money when it named salesforce an outperformer last month. My needling notwithstanding, it does now appear that ... Goldman isn't wrong about every tech stock it recommends. (Just yours,Nuance Communications (Nasdaq: NUAN) shareholders.) Judging from these numbers,Microsoft's (Nasdaq: MSFT) patent lawsuit doesn't seem to be slowing down salesforce a whit, and the company's still firing on all cylinders.

But is that enough?
If salesforce's guidance is any guide at all, fiscal 2011 sales will trump fiscal 2010 by a good 23%. And seeing as gross profit margins eked out about a 10 basis point gain over last year's Q2, while the gross for this year-to-date is even stronger, it would appear we can expect at least as good gains in profits (and free cash flow?) going forward.

Still, there's the nagging question of valuation still to be considered. With free cash now flowing through salesforce's doors at the rate of $285 million per year, salesforce shares sell for nearly 50 times annual cash production. Sure, free cash flow grew 77% in Q2 -- but sales appear to be increasing at only a 23% or 25% pace. And while more mature software makersOracle (Nasdaq: ORCL) and SAP (NYSE: SAP) struggle to break the 80-percent barrier, salesforce's gross margins already regularly reach north of 80%, suggesting there's little room for further expansion there.

Long story short, as great a success as salesforce has been for us already, I have to wonderhow much longer this growth story's "legs" might be. Long enough to justify paying the 50 times FCF cost of admission? I doubt it.

by Rich Smith Motley Fool August 20, 2010

salesforce Shocks the Skeptics (CRM, GS, MSFT, NUAN, ORCL, SAP)

Intel-McAfee Deal Underscores Importance of Mobile Security - WSJ.com

SAN FRANCISCO (Dow Jones)--Intel Corp. (INTC)'s $7.7 billion bid for McAfee Inc. (MFE) highlights the growing importance of mobile security, a field that is expanding rapidly as handheld devices become more important to both consumer and business users.

On Thursday, the Santa Clara, Calif.-based chip giant said it will pay $48 for each share of McAfee, a 60% premium to Wednesday's closing price. The deal will help Intel incorporate McAfee security products into its chips.

The deal comes as computing moves away from desktops amid the growth of wireless Internet access, which creates new security threats for users as well as opportunities for security providers. In March, data tracker IDC forecast world-wide mobile-security license and maintenance revenue would more than double to $2.7 billion by 2014 from $1.3 billion in 2009.

The Intel-McAfee deal, as well as the explosion of threats, may rekindle interest U.S. publicly traded security companies, like Symantec Corp. (SYMC) and Websense Inc. (WBSN). It may also pique interest in overseas security companies, such as Japan's Trend Micro Inc. (4704.TO), Finland's F-Secure Oyj (FSC1V.HE), as well as privately held companies like Spain's Panda Security and Russia's Kaspersky Lab.

"This deal opens the eyes of investors to the value of the security market, which over the past year has been out of favor," said Daniel Ives, a senior analyst with FBR Capital Markets & Co. in New York.

Investors quickly reacted to the deal, bidding up shares of McAfee competitors that might now be on the radar screens of potential partners or buyers. In late afternoon trading, Symantec shares were up 6.7% at $13.45, while Websense Inc. was up 5.2% at 19.40.

"Maybe some of Intel's competitors need to have tighter relationship with security companies to emulate what Intel is doing," said Steve Ashley, an analyst at Robert W. Baird.

Like McAfee, Mountain View, Calif.-based Symantec has rushed to be part of the mobile security landscape. In May, Symantec unveiled Norton Everywhere, a family of products targeted primarily mobile devices. It also made an undisclosed investment in Mocana Corp., a venture-backed San Francisco start-up that specializes in mobile security.

Other firms have done the same. Kaspersky Mobile Security 9, from Moscow-based Kaspersky Lab, protects consumer smartphones from data loss, viruses and spam, while Tokyo-based Trend Micro offers two products for protecting mobile phones, one for consumers and one for companies.

by Jeanette Borzo Wall Street Journal August 19, 2010

Intel-McAfee Deal Underscores Importance of Mobile Security - WSJ.com

Facebook Places: What You Need To Know - PCWorld

As expected, Facebook on Wednesday launched its new location-sharing feature called Places. Similar to other location-based services such as Gowalla and MyTown, it allows you to signal your presence at a bar, restaurant, arena, or other location via Facebook. The social network's focus appears to be on simply sharing your location with your friends as opposed to including gaming elements or promotional check-in incentives that you find with other location services such as Foursquare

Places promises to be an interesting addition to Facebook, and could increase the popularity of location sharing in general. But before you start checking in to every restaurant, movie theater, and bar you visit, here's what you need to know.

Places Basics

At launch, Places will be available to U.S. users only. You can check into a location in two ways: through the Facebook iPhone application or by pointing your mobile browser to touch.facebook.com. The browser-based version of Places will work only if your device supports HTML5 and geolocation.

Just tap the Places icon and you'll see a list of nearby Places. Tap on your location from the list, and you can check in, tag any friends who are with you, and add a status update. When you tag a friend, you will be checking them in if they allow third party check-ins. If your friend doesn't allow third party check-ins, then tagging them will be just like tagging them in a status update. No actual check-in will happen.

You can only check in people who are on your Facebook friends list and only when you first check into a location yourself. You can see who else is at your location under the "People Here Now" section for that place.

Facebook says all Places check-ins are visible only to friends by default unless your master privacy control is set to "Everyone."

For more detailed information about Places, consult PC World's report from Facebook's Places launch event. You can also find more information in this Facebook blog post and the Places information page.

Plays Nice With Others

Facebook has decided not to wipe other location-based services off the face of the Earth. Instead these services can use Places to enhance their own offerings.

It's not entirely clear how this will work, but Gowalla Chief Technical Officer Scott Raymond said in an interview with VentureBeat that Gowalla's plan was to allow users to push their check-ins from Gowalla into Facebook's Places feature. It appears you will also be able to import your check-in badges, pins, and Gowalla passport stamps into Facebook.

Bing Maps

It should come as no surprise that Facebook is using Microsoft's Bing Maps to pinpoint locations in Places.

Microsoft made a considerable investment in Facebook several years ago, and other Microsoft services such as Bing search and Microsoft Docs are already integrated with Facebook.

Not Yet Fully Functional

Some have reported seeing messages that Places is not yet available in their area, while others say they can activate Places but the check-in function is not operational.

If you're experiencing similar problems, hold tight the functionality is coming soon. Facebook is slowly rolling out the service and will make it available across the U.S. over the next few days, according to TechCrunch.

The Onslaught Begins Thursday

Facebook says it plans on turning on the Read API for third-party functionality on Thursday. What that means is that third-party services will be able to read your check-ins when you interact with those apps as well as the check-ins of people on your friends list (if their privacy settings allow it), according to programmableweb.

Any third-party application that wants to use your check-in data must specifically ask you for it when you authorize the app, according to Facebook. However, be aware of some downsides.

It appears there's no way to deny access to your Places data and still use the application. So if you want to use an application that requires your Places data, you either must deny the application completely or accept the fact that the application will be harvesting your location data. You can find out more about Facebook's privacy permissions here.

Privacy Concerns

The first criticisms over Places and privacy appear to be from the American Civil Liberties Union of Northern California. The civil rights group doesn't like the fact that there isn't a flat out "No" option to stop friends from checking you in.

If someone checks you in at a location, you receive a mobile notification that a friend has checked you in. Then you must decide to either permanently authorize third-party check-ins or deny them by selecting "not now," according to the ACLUNC. The concern is that by selecting "not now," the request to authorize third-party check-ins may come up again and again until you finally say yes. Also, if you use Places to check yourself in, then third-party check-ins are turned on automatically unless you adjust your privacy settings, according to the ACLUNC.

The ACLUNC also says that the "People Here Now" feature doesn't have enough granular control. The feature only has an option to be turned on (everyone can see your check-in) or turned off (no one can see your check-in). The ACLUNC would prefer to see an option that allows only your friends to see you under the " People Here Now" feature. It also appears that "People Here Now" is turned on by default "if you have previously selected that "Everyone" can see even a single piece of your information," according to the ACLUNC.

Have you tried Places yet? What do you think of the new service?

by Ian Paul PC World August 19, 2010

Facebook Places: What You Need To Know - PCWorld

How People Are Signing In Across the Web [STATS]

Identity management provider Janrain has just released its latest usage study detailing what social networks and services people use to sign in and share activities across the web.

As in its last report back in April, Google and Facebookcontinue to dominate websites that offer third-party login options. Across the 250,000 sites that use Janrain Engage,Google represents the preferred sign-in option for 38% of users.

Facebook is in second place, with 24% of sign-ins and Yahoo is in third place with 14%. Twitter, which is a popular option in certain segments, only accounts for 5% of generalized sign-in data.

Google is the dominant catch-all login in the aggregate, but other services, particularly Facebook, really take the lead when websites are segmented by type.

For example, for news media sites, Yahoo represents approximately 34% of all logins. For magazine publishers, Facebook is the clear choice amongst website visitors. Fifty-seven percent of logins are from Facebook, nearly triple its nearest competitor, Google, at 20%.

Likewise, with music sites, Facebook leads with 55% of logins and second place Twitter is at 18%. Retailbrand logins are also largely dominated by Facebook.

It makes sense that Facebook has such a strong presence in magazines, retail brands and in music. This can likely be tied with the brand and publishers’ usage of Facebook pages.

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Facebook and Twitter Dominate Sharing

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More and more publishers are integrating sharing options like Facebook Like buttons or the new Twitter Tweet buttons into their sites. Many publishers are seeing increases in traffic as a direct result of these sharing tools.

According to Janrain’s data, Facebook is the preferred sharing network for 53% of users. Twitter is close behind with 37%. Keep in mind, Janrain’s platform allows users to cross-share to multiple networks at once, which indicates that there may be some overlap.

Still, this is an important distinction from the single sign-in data. To us, this represents that while Google may be used as a frequent sign-in option — perhaps because of how closely the service is tied to an e-mail address — when it comes to engaging and identifying with information online, Facebook and Twitter are where users value their time.

by Christina Warren Mashable August 16, 2010

How People Are Signing In Across the Web [STATS]