MacRumors

The U.S. International Trade Commission today reached a decision [PDF] in the ongoing Apple vs. Samsung case, ruling that Apple infringed on Samsung Patent No. 7,706,348, titled "Apparatus and method for encoding/decoding transport format combination indicator in CDMA mobile communication system."

The ITC has issued a cease and desist order that prohibits the sale and distribution in the U.S. of older Apple products that infringe on specific claims (75–76 and 82–84) of the '348 patent, which includes AT&T models of the iPhone 4 and 3GS, the iPad 3G and the iPad 2 3G.

Under the modified constructions, the Commission has determined that Samsung has proven that the accused iPhone 4 (AT&T models); iPhone 3GS (AT&T models); iPhone 3 (AT&T models); iPad 3G (AT&T models); and iPad 2 3G (AT&T models) infringe the asserted claims of the '348 patent. The win is the first in the United States for Samsung, after losing a major jury trial in 2012.

During the dispute, Apple unsuccessfully argued that as the '348 patent relates to standard technology that Samsung helped to establish, Samsung has a fair, reasonable, and non-discriminatory (FRAND) obligation that requires the company to license the patent on fair terms and prevents it from using the patent for an exclusion order.

The ITC did not agree, however, stating that Samsung's FRAND declarations "do not preclude issuance of the limited exclusion order and cease and desist order." Samsung reportedly demanded a licensing fee of 2.4% per device sold, which Apple found to be unreasonable.

The Commission has further determined that the properly construed claims have not been proven by Apple to be invalid and that Samsung has proven that a domestic industry exists in the United States with respect to the '348 patent.

The ITC's decision is a final ruling, but the ban will not go into effect immediately and could be overridden by the White House in the next 60 days. If the decision is not vetoed, Apple will be able to file an appeal.

Newer versions of Apple's iPad and iPhone, including the fourth generation iPad, the iPad mini, the iPhone 4S and the iPhone 5, use different technology that does not infringe on Samsung's patent and these later devices will not be subject to the cease and desist order.

Update: Apple spokesperson Kristen Huguet issued the following statement to AllThingsD.

We are disappointed that the Commission has overturned an earlier ruling and we plan to appeal. Today's decision has no impact on the availability of Apple products in the United States. Samsung is using a strategy which has been rejected by courts and regulators around the world. They’ve admitted that it’s against the interests of consumers in Europe and elsewhere, yet here in the United States Samsung continues to try to block the sale of Apple products by using patents they agreed to license to anyone for a reasonable fee.

AllThingsD has has also posted the full ITC order banning some of Apple's devices.

After a beta period spanning several weeks, Apple today released the final version of OS X 10.8.4. The update, which can be accessed via the Mac App Store, includes several notable bug fixes including a fix for an issue that caused iMessages to display out of order along with Microsoft Exchange and Calendar compatibility improvements.

- Compatibility improvements when connecting to certain enterprise Wi-Fi networks
- Microsoft Exchange compatibility improvements in Calendar
- A fix for an issue that prevented FaceTime calls to non-U.S. phone numbers
- A fix for an issue that may prevent scheduled sleep after using Boot Camp
- Improves VoiceOver compatibility with text in PDF documents
- Includes Safari 6.0.5, which improves stability for some websites with chat features and games
- A fix for an issue that may cause iMessages to display out of order in Messages
- Resolves an issue in which Calendars Birthdays may appear incorrectly in certain time zones
- A fix for an issue that may prevent the desktop background picture from being preserved after restart
- A fix for an issue that may prevent documents from being saved to a server using SMB
- Addresses an issue that may prevent certain files from opening after copied to a volume named “Home"
- A fix for an issue that may prevent changes to files made over NFS from displaying
- Resolves an issue saving files to an Xsan volume from certain applications
- Improves Active Directory log-in performance, especially for cached accounts or when using a .local domain
- Improves OpenDirectory data replication
- Improves 802.1X compatibility with ActiveDirectory networks
- Improves compatibility when using mobile accounts

The update also includes Safari 6.0.5, which improves stability for websites with chat features and games.

After eight different beta builds, Apple closed its 10.8.4 Beta Testing Program last Friday. During the beta, Apple had asked users to focus on Wi-Fi, Graphics Drivers, and Safari. The public version of OS X 10.8.4 is the same 12E55 build that was seeded to developers on May 24.

- OS X Mountain Lion Update v10.8.4 (342.33 MB)
- OS X Mountain Lion Update v10.8.4 (Combo) (809.98 MB)

Alongside OS X 10.8.4, Apple has also released security updates for OS X Lion and Snow Leopard:

- Security Update 2013-002 (Lion) (57.69 MB)
- Security Update 2013-002 Server (Lion) (105.61 MB)

- Security Update 2013-002 (Snow Leopard) (329.85 MB)
- Security Update 2013-002 Server (Snow Leopard) (404.83 MB)

According to Time Warner Cable CEO Glenn Britt, who spoke to investors at the Bank of America Merill Lynch Global Telecom and Media Conference today (via FierceCable), Time Warner is in talks with Apple, Microsoft, and Samsung over potential streaming video deals that are similar to its existing partnership with Roku.

Time Warner Cable brought its authenticated cable service, TWC TV, to Roku in March. With the app, Time Warner Cable subscribers are able to watch up to 300 live TV channels with any TV connected to a Roku device, without the need for a cable box. Time Warner has a similar deal with Samsung to deliver cable programming to its connected TVs.

"You should assume we're talking to everyone who makes devices like this, whether it's Samsung smart TVs, Apple, Microsoft," Britt said at the Bank of America Merrill Lynch Global Telecom and Media conference. Britt's remarks suggest Time Warner Cable may eventually offer the TWC TV app through the Apple TV set-top and Microsoft's new Xbox One gaming console, which will debut later this year.

Apple recently struck a deal with the CW network to bring content to the Apple TV through a dedicated CW app, and it appears that Apple is open to other deals that could potentially bring the TWC TV to the Apple TV. Presumably, such an app would function similarly to the version offered via Roku, allowing Time Warner Cable subscribers to use the Apple TV to stream live television channels.

Britt's comments confirm a Wall Street Journal report from last year, which suggested that Apple was working on deals to create a set-top box that would allow user to view live cable channels.

Such deals with cable companies are necessary if Apple wants to expand its product lineup with additional TV-centric products like the "iTV," which has been rumored to be in the works since 2011. At the D11 conference last week, Apple CEO Tim Cook reiterated that television continues to be an "area of great interest" for the company.

President Obama has today announced a set of executive actions directed at cracking down on patent-holding firms that interfere with competition and abuse the patent system, reports The Wall Street Journal. Many technology companies, such as Apple, have dealt with multiple lawsuits from so-called "patent trolls," which aim to make money through licensing fees.

Mr. Obama's actions, which include measures he wants Congress to consider, are intended to target firms that have forced technology companies, financial institutions and others into costly litigation to protect their products. These patent-holding firms amass portfolios of patents more to pursue licensing fees than to build new products.

The firms say they are doing nothing wrong, just using patents that were legally granted by the U.S. Patent and Trademark Office. They say they promote a fair market by protecting smaller inventors.

Obama has constructed a five-step plan with a total of seven legislative changes, which will be released as part of a White House report on patent trolls. The plan includes a recommendation that the U.S. Patent and Trademark Office create rules that require patent owners to be identified and a request for Congress to pass legislation that puts sanctions on questionable lawsuits filed by patent-holding firms.

Additionally, Obama hopes to cut down on the International Trade Commission's involvement in patent disputes. Claims filed with the ITC are often resolved more quickly than standard federal lawsuits.

The Obama administration would like Congress to change certain ITC legal standards and ensure that the agency has flexibility in hiring its judges. The president will order a review of existing procedures at the ITC, officials said.

Reliance on the ITC has not been limited to patent trolls, as a number technology companies like Apple, Samsung, and Google have increasingly used the International Trade Commission to settle a number of patent disputes.

According to President Obama, patent-holding firms are a drain on progress. The firms, he says, "don't actually produce anything themselves. They’re just trying to essentially leverage and hijack someone else’s idea to see if they can extort some money out of them."

Over the years, Apple has faced litigation from a number of patent-holding companies like Lodsys, which has targeted app developers over in-app purchases, and VirnetX, a company that was awarded $368.2 million over VPN connectivity in Facebook in 2012.

Note: Due to the political nature of the discussion regarding this topic, the comment thread is located in our Politics, Religion, Social Issues forum. All MacRumors forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Apple today released a 30+ page report [PDF] from real estate consultancy Keyser Marston Associates examining the direct and indirect financial impact of Apple on the City of Cupertino and Santa Clara County. The document is part of the building process for the company's new 'Apple Campus 2' -- the Spaceship -- planned for opening in 2016.

As the document is aimed at the municipal governments in the area, it is heavy on tax revenue and job numbers, but there are a few bits of information that are interesting to Apple watchers.

- Phase 1 of the the Apple Campus 2 building will accommodate some 13,000 employees across 2.8 million square feet of space in the main building. Other buildings on site will include an auditorium, fitness center, parking structures, buildings to house research and development and a central plant, for a total of 3.42 million square feet of new building space.

Phase 2 will add 300,000 more square feet of space, adding room for 1,200 more employees -- however this phase has been delayed indefinitely for cost-saving reasons.

- The analysis uses a conservative hiring growth rate of 10% per year, estimating that 7,400 employees will be hired at Apple's Cupertino headquarters between June 2013 and the opening of the new campus in 2016. This would tally a total employee count at 23,400, though over the past 5 years, Apple has seen an annual hiring growth rate of 18%.

- Apple's 16,000 current Cupertino employees account for 40 percent of the city's job base, making Apple Cupertino's largest single employer.

- Apple will pay $9.2 million in tax revenue directly to Cupertino in 2013, approximately 18% of the city's annual general fund budget. The consultants estimate that Apple will generate a net fiscal surplus of $8 million to the city this year, with that expected to grow to $11 million when the new campus is finished. This means Apple will pay millions of dollars more to the city than it uses in services.

- The construction of the new campus will generate 9,200 full-time jobs in the county over the three-year construction period, and will generate one-time revenues to the City of Cupertino in the form of construction taxes and fees totaling more than $38 million. The company has agreed to direct its contractors to purchase all construction materials from within the city, ensuring that Cupertino collects millions of dollars in sales taxes as a result.

- The report touts $66 million in public improvements to be built around the campus, including bicycle and pedestrian facilities, park land, and a voluntary $2.5 million contribution to Cupertino's affordable housing fund.

The full report, available from Apple's public relations page [PDF], includes dozens of pages of charts and tables to support the assertions. The new Spaceship Campus is not expected to have any significant opposition and has already received broad approval from the city.

Intel today officially announced the launch of its latest family of Core processors, formerly known as "Haswell". The new processors are making their way into a number of new computers, and are expected to be included in Apple's next-generation Macs, some of which are likely to make their debuts at next week's Worldwide Developers Conference (WWDC).

The new chips offer significant improvements in integrated graphics performance, as well as modest CPU performance improvements and a major effort toward increasing battery life in notebooks.

Delivering Intel's largest generation-over-generation gain in battery life enablement in company history, 4th generation Intel Core processors can bring an 50 percent improvement in battery life over the previous generation in active workloads when watching movies or surfing the Internet, and two to three times improvement in standby battery life. For some systems coming to market this year, over 9 hours of active use battery life or 10 to 13 days of standby with fresh data on a single charge is expected.

Ars Technica has been providing overviews of the new chips, beginning with the quad-core desktop and notebook chips that were unveiled over the weekend. That group included six Core i7 and six Core i5 chips for desktop machines, as well as ten varieties of Core i7 notebook chips.

All of the mobile parts being announced today belong to the i7 family and, like their desktop counterparts, they're all quad-core chips with Hyperthreading enabled. The differences here come in the suffixes: the MX and MQ parts (reversed from Ivy Bridge's QM and QX suffixes) come with the Intel HD 4600 GPU, while most of the HQ parts come with the faster Iris Pro 5200 GPU.

With today's announcement of dual-core Haswell chips highlighted by AnandTech, the picture for Apple's notebook lineup comes into more focus. Intel has emphasized mobile chips for this round of dual-core launches, a move that will likely see the chips showing in updated MacBook Airs and 13-inch MacBook Pros as soon as next week.

A notebook refresh is expected to be the hardware highlight of WWDC alongside previews of OS X 10.9 and iOS 7. The latest rumors suggest that Apple may even be able to slim down the 13-inch Retina MacBook Pro, which is currently slightly thicker than its 15-inch sibling. Less substantial tweaks are expected for the MacBook Air, although the move to Haswell should offer significant performance improvements in certain areas.

Morgan Stanley analyst Katy Huberty released an extensive new report today offering a look at how Apple's base of 500 million iTunes/App Store customers fits in with other services and how Apple can leverage that user base to drive future sales and revenue growth.

Huberty notes that Apple's account base is second only to Facebook's one billion accounts among technology companies seeking to build out e-commerce or subscription services, easily topping third-place Amazon's 200 million accounts. Apple's 55% growth in 2012 also led the field by a comfortable margin, while its users also generate the most revenue per account. With Apple also scoring well in iCloud/iTunes Match adoption and user loyalty, the company is primed to take further advantage of its massive ecosystem with new services. Huberty outlines three possibilities for these new services:

1. Mobile payments. With hundreds of millions of credit card numbers on file, Apple could easily turn iTunes/App Store accounts into a payment service. With rumors of fingerprint recognition and perhaps near-field communication (NFC) coming to future Apple hardware, the company already has a number of pieces nearly in place for such a service.

2. Streaming music. Apple is rumored to be introducing its "iRadio" streaming service next week at its Worldwide Developers Conference, and Huberty suggests that Apple could generate $1 billion per year in revenue from such a service. Huberty's numbers do, however, include both subscription and display ad revenue, while recent rumors have indicated that Apple's service would be free to users with no mention of paid tiers.

3. Ad exchange. Earlier this week, it was reported by a source in the ad industry that Apple is looking to launch its own ad exchange, leveraging its existing iAd business and its massive ecosystem of users and devices to provide targeted advertising.

Developers could potentially charge higher rates than ad impressions on other devices, as Apple could offer better targeting given its insight into the user from information gathered from the hardware (GPS, accelerometer, gyroscope and digital compass), the software (operating system and some applications), iTunes and app stores, user profiles and cloud storage. Of course, some of the data will be stored anonymously and Apple will need to clearly disclose what data is gathered and how it is used.

Apple CEO Tim Cook has been playing up the potential of services, repeatedly referring to the "magic" happening at the interaction of hardware, software, and services. At his D11 interview last week, Cook touted iMessage, the iTunes Store, and FaceTime as examples of how Apple's services are tying Apple's ecosystem together, and acknowledged that the company is working hard on improvements to its services.

Late last year, Apple introduced the iPad mini alongside an update to the full-size iPad lineup, with many observers believing that Apple would continue to update the two lines simultaneously going forward.

Volume production of a new-generation 9.7-inch iPad will begin in July-August with shipments in the third quarter estimated at five million units. Meanwhile, a second-generation iPad mini may see its volume production postponed from September to November, according to Taiwan-based supply chain makers.

The updated full-size iPad is widely expected to see a significant redesign that will take design cues from the iPad mini and be roughly 15% thinner and 25-33% lighter than the current models.

Digitimes believes that Apple may be pushing back the next iPad mini launch in part to give more focus to the redesigned full-size iPad in the face of the iPad mini's popularity, but also due to mass production issues with the iPad mini, which has been rumored to be gaining a Retina display. Today's claims from Digitimes are not necessarily new, but they do provide a fresh direct comparison between Apple's potential plans for the two iPad lines.

Reliable KGI Securities analyst Ming-Chi Kuo had previously reported that technical challenges would likely see the next iPad mini pushed back from Apple's original internal timeline, with an introduction likely coming in the September-November timeframe rather than earlier as some had thought. Digitimes' claim today suggests that the launch could be at the end of that timeframe, bumping up against the holiday shopping season.

The Apple Online Store recently added a "Ship to Store" option for refurbished products, allowing customers to pick up refurbished items at their local Apple Retail Store. Ship to Store is a service that Apple first began offering in 2011.

Currently, Apple offers the Ship to Store option for the majority of its refurbished items, with the exception of the fourth generation iPod touch, which was discontinued last week with the introduction of the new low cost 5th generation iPod touch.

At the end of the checkout cycle for a refurbished product, customers can now choose whether they wish to pick up the item at a local store, or have it shipped to a home or business.

Ship to Store delivery times are similar to home delivery times, so while the option does not eliminate wait times, it does allow Apple customers to avoid home delivery.

Update: A number of MacRumors readers have reported that the in-store pickup option for refurbished items is not new, although there seem to have been some issues over the past several weeks with in-store pickup not being available for orders through the Apple online store.

Apple's iAd engineers and sales personnel are preparing to handle new advertising duties to support Apple's new streaming music service nicknamed iRadio, Bloomberg reports. Apple hopes to launch the major new advertising-supported initiative next week at WWDC.

In an extensive report, citing 'people familiar with the changes', Bloomberg reports that the company has been negotiating with major advertising companies to line up exclusive launch advertisers, similar to when it launched iAd in 2010.

Apple intends to make its new radio service free to users and supported by advertising, similar to how Pandora’s mobile app works, people familiar with the plans said. The new service will be different from Apple’s iTunes in that the songs played won’t be limited to what a user has purchased, and listeners won’t own the songs they stream for free.

The shift in iAd’s focus to buttress the music service is being made by Eddy Cue, the senior vice president who oversees iTunes, App Store and iAd, as well as Todd Teresi, whom Apple hired last year from Adobe Systems Inc. to lead the company’s advertising business.

When iAd launched, it was envisioned mainly as a way to help developers earn money on the iOS platform. With the expansion to audio ads for iRadio, iAd is going into new territory for the company. As it stands, iAd revenue remains a drop in the bucket for the company.

Bloomberg says that Apple has enticed advertisers to iAd by mentioning the data it holds for targeting users, including purchased movies, music, apps, books and more.

The site also says the iRadio service will launch later this year alongside the public release of iOS 7, much the same way that iTunes Match was announced at WWDC but was released months later.

In a Manhattan courtroom this morning, the U.S. Department of Justice presented its opening arguments in USA v Apple Inc, the antitrust e-book price fixing trial. The DoJ filed suit last April and Apple has consistently defended itself and has said the accusations are "simply not true".

According to AllThingsD, Justice Department attorney Lawrence Buterman presented the government's case this morning, using a slideshow filled with email and phone record evidence that the government says shows Apple colluded with book publishers to drive up the cost of e-books ahead of the launch of the iBookstore.

Apple's opening statement […] tried to pull the rug out from under everything the DOJ had just presented. [Apple SVP Eddy] Cue, Snyder claims, was just trying to break into a crowded e-book market (one dominated by Amazon) using precisely the same approach he used when he got the company into the music market with iTunes and the applications market with the App Store. Those innovation poured billions of dollars into the U.S. economy, he said. "Apple should be applauded, not condemned."

Eddy Cue -- Apple's senior vice president for Internet Software and Services, and one of its chief negotiators -- sits squarely at the middle of the DoJ's case and was responsible for much of the email and phone traffic mentioned in the government's opening argument. He is expected to take the stand on June 13th.

The Department of Justice has settled with all of the book publishers initially accused, while Apple remains the main target of the suit.

As part of a shift to lower repair costs, Apple has begun replacing iPhone 5 screens at its retail locations. The new display replacement service is priced at $149 and can be purchased with or without AppleCare+.

Changes to Apple's repair policies first surfaced last month, where a town hall session revealed that Apple would begin in-house repairs of displays in June in an effort to save approximately $1 billion per year.

MacRumors heard from a tipster this morning that the new repair policy had been implemented and the changes have since been confirmed in a forum post from iPhone repair site Quick iFix. The repairs are available for cracked displays as well as screens that experience multitouch issues.

Quick iFix notes that Apple's $149 repair cost is competitive, causing the site to change its own repair costs. Quick iFix charged $174.99 for a display replacement in early May, but began offering repairs for $139.99 a few days later.

Apple's new display repairs are in line with AppleCare+ pricing, which costs $99 up front and then $49 for each replacement. The repair service is a more affordable alternative for iPhone users who opted not to purchase AppleCare+, as iPhone replacement previously cost $229.

Apple is expected to roll out additional in-house repair options in July, offering repairs of the iPhone's camera, sleep/wake buttons, and logic boards. Additional changes to AppleCare are also reportedly in the works, with Apple rumored to be switching to a subscription based plan tied to customers rather than individual devices.

It's been reported for several months that Jony Ive is overseeing a redesign of the user interface in iOS 7, removing signs of skeuomorphism and gloss in favor of a 'flat design'.

iDownloadBlog has posted what may be the new home screen in iOS 7. While the authenticity of poor-quality photo can not be confirmed, 9to5Mac seems to believe that it is likely legitimate but of an early iOS 7 alpha. The site tweeted its own version of the same image, claiming that "things have changed a lot since this was taken".

When you look at the current state of stock apps icons, it seems that all of them were designed by different teams. Most of them have a different look. They don’t have unified features that tie them all up together. Some of them have a gloss effect. Some of them don’t. Some of them have borders. Some of them don’t, etc…

From what we’ve seen, we believe Jony Ive’s touch on iOS 7 will homogenize the look of Apple’s stock apps icons.

As with many things Apple does, the WWDC iOS app released earlier today is being closely examined for changes. TechCrunch noted that the app is 'flatter' than past versions.

What started out with textures meant to mimic 3D effects, more use of contrasting colors and shaded buttons, has now become a much flatter design. The changes are mostly subtle, but from what we’ve heard recently, that’s what’s in store for iOS 7, too; sweeping, system-wide changes, but ones that tweak the interfaces rather than overhaul them completely.

The new iOS 7 is expected to be unveiled at Apple's Worldwide Developers Conference next week.

9to5Mac reports that it has received an initial set of leaked model numbers for products expected to be released at next week's Worldwide Developers Conference.

The first series of codes that we have received are:

MD711LL/A — Better — USA

MD712LL/A — Best – USA

MD760LL/A — Better – USA

MD761LL/A — Best – USA

While the identities of the products corresponding to the four model numbers is unknown, the pattern showing two sets of two models suggests that they may be either MacBook Air or Retina MacBook Pro models at two different screen sizes, corresponding to Apple's current stock configurations. Apple's non-Retina MacBook Pro is currently offered in only a single stock configuration at the larger 15-inch size, suggesting that these model numbers may not represent that line.

A second set of model numbers have also leaked, but it is unclear to what products they refer:

ME177LL/A — Better — USA

ME182LL/A — Best — USA

ME918LL/A — Good — USA

A notebook refresh is expected to the hardware highlight of WWDC, although Apple is likely to introduce a number of new products once accessories and configuration options are accounted for.

9to5Mac also notes that, beyond the notebooks, supplies of the Mac Pro and Mac mini are also somewhat constrained, although not to the same level as seen for notebooks. As a result, desktop updates may come somewhat later in the year.