MacRumors

Steve Jobs threatened to file a patent suit against Palm if they didn't agree to not hire Apple employees, according to a Reuters report on a court filing (via AppleInsider) made public Tuesday. The court filing is a part of a class action lawsuit against Apple, Google, Pixar, Lucasfilm and others over an agreement those companies made to not actively solicit each other's employees to hire them away.

The companies attempted to keep an array of documents secret, but that request was rejected in parts by Judge Lucy Koh, which is why a statement from former Palm executive Edward Colligan has become public record. Colligan said that Jobs proposed the agreement to Palm, and that Jobs suggested that if Palm didn't agree they could face lawsuits "alleging infringement of Apple's many patents." Colligan responded to Jobs with an email:

Your proposal that we agree that neither company will hire the other's employees, regardless of the individual's desires, is not only wrong, it is likely illegal.[...] Palm doesn't target other companies-we look for the best people we can find. l'd hope the same could be said about Apple1s practices. However, during the last year or so, as Apple geared up to compete with Palm in the phone space, Apple hired at least 2% of Palm's workforce. To put it in perspective, had Palm done the same, we'd have hired 300 folks from Apple. Instead, to my knowledge, we've hired just three.

Colligan also told Jobs that he was not intimidated by patent litigation and said that Palm had recently acquired some patents from Siemens that it could use against Apple and its iPhone patents. Jobs responded:

Just for the record, when Siemens sold their handset business to BenQ they didn't sell them their essential patents but rather just gave them a license. The patents they did sell to BenQ are not that great. We looked at them ourselves when they were for sale. I guess you guys felt differently and bought them. We are not concerned about them at all. My advice is to take a look at our patent portfolio before you make a final decision here.

Walter Isaacson's biography of Steve Jobs revealed that Jobs was angry at Palm for hiring former employees, although the threat of patent litigation in Colligan's statement is certainly a new revelation.

"Jobs was so furious that Palm was hiring some of his former employees that he complained to Bono, who was a cofounder of a private equity group, led by the former Apple CFO Fred Anderson, that had bought a controlling stake in Palm."

These aren't the only instances that Jobs became angry at the poaching of Apple employees, however. In January 2012 it was revealed, also according to a court filing, that Jobs complained to then-Google CEO Eric Schmidt about the hiring of Apple employees at Google.

Recently, current CEO Tim Cook was ordered to give a deposition in this case, so more nuggets of information are likely to be released as court filings are made public.

As TechCrunch reports, Apple has pulled photo sharing app 500px for iOS from the App Store because of concerns over nude photos. Though the company says that its recent acquisition ISO500 for 500px from Pulpfingers was also removed from the App Store, it remains available for download.

500px is a popular website for both professional and amateur photographers, and according to 500px COO Evgeny Tchebotarev, the company's mobile apps have been downloaded by more than a million users. TechCrunch has a rundown on what happened:

The apps were pulled from the App Store this morning around 1 AM Eastern, and had completely disappeared by noon today. The move came shortly after last night's discussions with Apple related to an updated version of 500px for iOS, which was in the hands of an App Store reviewer.

The Apple reviewer told the company that the update couldn't be approved because it allowed users to search for nude photos in the app. This is correct to some extent, but 500px had actually made it tough to do so, explains Tchebotarev. New users couldn't just launch the app and locate the nude images, he says, the way you can today on other social photo-sharing services like Instagram or Tumblr, for instance. Instead, the app defaulted to a "safe search" mode where these types of photos were hidden. To shut off safe search, 500px actually required its users to visit their desktop website and make an explicit change.

Tchebotarev said the company did this because they don't want kids or others to come across these nude photos unwittingly. "Some people are mature enough to see these photos," he says, "but by default it's safe."

According to Tchebotarev, 500px does not allow explicit pornographic images, and he explains that most of the nude images on 500px are "artistic."

Though the app has been in the App Store for 16 months, it runs off of the 500px site, which is currently limited to community moderation for inappropriate photos. 500px is working on a solution that will automatically flag questionable photos to prevent them from appearing in searches, but the technology is not yet finished.

Flickr, Tumblr, and other photo sites that function in the same way, with user-based moderation, remain available in the App Store.

500px has created a fix to address the nude photo issue, which has already been submitted to Apple and could result in the return of the apps to the App Store shortly.

The U.S. Patent and Trademark Office today officially granted Apple a patent (via AppleInsider) describing methods for automatically adjusting screen brightness to suit the content being displayed. The patent, which was originally filed for in mid-2006 and can actually be traced back to a separate 2002 application, addresses techniques for saving battery life on portable devices.

The improved techniques reduce power consumption by lowering display intensity at appropriate times. In one embodiment, the display intensity can be controlled depending on the type of content being displayed. For example, when displaying certain types of content, the display intensity can be lowered from its otherwise high, constant intensity level. In another embodiment, the display intensity can be controlled depending on the characteristics of the content being displayed. For example, when displaying images that are light, the display intensity can be lowered from its otherwise high, constant intensity level. In still another embodiment, the display intensity can be controlled depending on the type and characteristics of content being displayed.

Apple's battery-powered devices have long had the capability to automatically dim displays based on such criteria as power source (battery vs. wall power), ambient light levels and usage (dimming the display of a device that hasn't been used for a particular time interval). Dimming the screen based on content, such as when a particularly bright image is displayed, requires a more sophisticated approach, something that Apple has clearly been working on for some time.

Apple actually now uses a variation on this invention for its Passbook application in iOS 6 for the iPhone, automatically boosting the display's brightness to maximum when the app is launched in order to make it easier for scanners to read the 2D barcodes used on passes within the app.

The patent suggests that Apple's plans for content-sensitive automatic brightness adjustment could even extend as far as frame-by-frame or scene-by-scene adjustments when viewing videos, with users also being able to configure their own preferences for content-based brightness.

Microsoft today announced that its Surface Pro tablet will go on sale on February 9 in the United States and Canada. Originally slated to arrive in January, the Surface Pro tablet is priced at $899 for the 64GB model and $999 for the 128GB model.

The Surface Pro sports an Intel Core i5 processor with Intel HD Graphics 4000, 4GB of RAM, and a more robust battery. Unlike the RT version of the Surface, it is able to run the full version of Windows 8 as well as Windows 7 applications.

Both versions of the Surface Pro ship with a Surface pen, but the Touch or Type Covers, which retail for $100, are not included.

Anandtech took a preliminary look at the tablet, and created a chart comparing the Surface Pro to the Surface RT and Apple's iPad.

Beginning on February 9, the Surface Pro will be available for purchase on Microsoft’s website, at Microsoft retail outlets, and third party retailers like Staples and Best Buy.

Alongside the Pro, Microsoft is planning to release a 64GB standalone version of the Surface RT for $599, $100 less than the version that ships with the included Touch Cover, and a slew of new Surface accessories.

Earlier this month, Digitimes claimed that Apple was planning to launch a larger and cheaper iPhone in the second half of this year, seeking to make an impact on emerging markets and combat the growing screen sizes seen on Android devices.

Rumors of cheaper and larger iPhones as part of a multi-pronged product strategy for Apple have continued to circulate, but the idea of a new iPhone being both larger and cheaper drew skepticism and questions about how the company would be able to accomplish both goals in a single device.

Digitimes has now published a new report backtracking on its earlier claim and indicating that Apple only plans to launch two new 4-inch iPhone models in 2013, presumably the iPhone 5S and some form of a new iPhone 5, perhaps revamped into a cheaper form factor based around a plastic shell. A larger iPhone is reportedly still in the works, but will not be seeing a launch this year.

Previously it was said that Apple would release a lower-cost version of its iPhone with a bigger screen in 2013. But the sources claimed that Apple is indeed developing an iPhone with a bigger screen, but that will not be among the models to be launched this year.

One of the two versions to be introduced this year will target the midrange market segment, but both will adopt in-cell touch technology.

The report notes that Apple may struggle to bring in-cell display technology to a lower-cost iPhone given issues with yields on the panels, which allow for the thinner profile seen on the iPhone 5, but yields on the new technology are reportedly improving.

Amazon is continuing its full-frontal attack on Apple's iTunes and App Store platforms, announcing today that it is expanding its In-App Purchase program to include virtual goods and currencies on Mac, PC and Web-based games. Amazon has previously offered IAP for Android and Kindle Fire developers, including the ability to order physical goods from within apps.

Further expanding its multi-platform, end-to-end offering for game developers, Amazon today announced a new In-App Purchasing service that enables developers to let customers use their Amazon accounts to purchase virtual goods and currencies from within Mac, PC and Web-based games. With today’s announcement, Amazon now provides In-App Purchasing services for Mac, PC and Web, Android and Kindle Fire developers, enabling them to offer Amazon’s millions of customers a convenient, trusted and secure buying experience.

This isn't the only development in Amazon's digital store efforts. Recently, Amazon optimized its MP3 music store so mobile iOS devices could purchase music directly on the device via Safari.

Apple and Amazon have been dueling in court over the trademark for the "app store" term, with the most recent development sending Apple and Amazon into court-ordered settlement talks.

Research firm Kantar Worldpanel today issued a report indicating that Apple continued to maintain its position as the best-selling smartphone platform in the United States during the fourth quarter of 2012. Kantar Worldpanel, which releases its rolling quarterly data on a monthly basis, indicated that Apple retook the lead from Android in the August-October period and gathered a majority share for the first time in the September-November period.

Looking at year-over-year comparisons, iOS increased its market share in the final quarter of 2012 to 51.2% from 44.9% in the same quarter the previous year. Android sales remained almost constant at just over 44%, with nearly all of Apple's gains coming at the expense of Research in Motion and other smaller players.

“Apple’s continual improvement is thanks to both the iPhone 5 and older models attracting various customer groups, from repeat Apple buyers, first time smartphone buyers and those coming from other smartphone brands," said Kantar Worldpanel ComTech analyst Mary-Ann Parlato.

Kantar Worldpanel notes that 35% of Apple's sales during the period were to those upgrading from a previous iPhone, with 36% switching from a competitor platform and 30% upgrading from a feature phone to their first smartphone.

Kantar's data comes just as Verizon announced its results for the fourth quarter, revealing that the iPhone represented approximately 63% of the carrier's total smartphone activations.

Verizon today became the first major U.S. iPhone carrier to announce earnings for the fourth quarter of 2012. Overall, the carrier activated 9.8 million smartphones during the quarter, and GigaOM notes that Verizon revealed on its conference call that 6.2 million, or nearly two-thirds, of those were iPhones.

Perhaps most interestingly, only half of those iPhones activated during the quarter were of the iPhone 5 variety, indicating that Verizon continues to enjoy strong sales of the lower-cost iPhone 4S and iPhone 4.

It sold 7.3 million LTE devices the last three months of 2012, and it activated 9.8 million smartphones in total. It activated 6.2 million iPhones, about half of which were the LTE-enabled iPhone 5.

Approximately 23% of devices on Verizon's base are now LTE-compatible, with those devices representing almost half of the carrier's data traffic. And AllThingsD notes that Verizon has halted any further additions to its 3G networks in favor of continuing to expand its already substantial 4G LTE networks.

Last quarter, Verizon reported total iPhone activations of 3.1 million, representing 46% of the carrier's smartphone sales.

Apple will be reporting its own earnings tomorrow after the close of trading, at approximately 4:30 PM Eastern / 1:30 PM Pacific. MacRumors will have full coverage of Apple's earnings release and associated conference call taking place at 5:00 PM Eastern / 2:00 PM Pacific.

Apple today announced its annual Lunar New Year sale, a one day event for Asian countries that is also known as "Red Friday" because of its similarity to November's Black Friday sales.

As with its Black Friday event, Apple will be offering limited time deals on Macs, iPads, iPods, and accessories like the Smart Cover.

Last year's sales saw discounts of up to 8% on iPads, 10% on iPod touches, and a flat discount of HK$ 770 on all models of the MacBook Air, the MacBook Pro, and the iMac. This year’s discounts are expected to be similar, and free shipping will be offered.

Apple has also published a gift guide for the event, which features its flagship products like the iPad mini and the iPhone, alongside several third-party accessories from manufacturers like Bose, Logitech, and Griffin.

The Red Friday sale will take place on January 25 and is valid in China, Hong Kong, Malaysia, Singapore, South Korea, Taiwan, and Thailand.

Ashton Kutcher and Josh Gad, the actors who play Apple co-founders Steve Jobs and Steve Wozniak in the upcoming independent movie jOBS, will be hitting up the annual Macworld/iWorld conference in San Francisco next week.

The two actors will be attending a talk where they discuss their experiences portraying the two Steves, who famously began Apple Computer in 1976. The session is titled "Playing Steve & Woz," and it will take place on the main stage of room 2005 at 9:00 a.m. on the first day of the event.

jOBS will be premiering at the Sundance Film Festival later this week, with a public release set for April.

Musician Will.i.am also plans to attend the Macworld/iWorld conference this year, pairing with Intel futurist Brian David Johnson in a discussion on future technology and gadgets. Fred Armisen, of Portlandia and Saturday Night Live, will also be present.

Though Apple has not attended Macworld/iWorld since 2009, the conference has continued to be popular with third party companies, developers, and Apple enthusiasts. Over the years, Macworld/iWorld has expanded to include Apple's mobile operating system in addition to the traditional Mac hardware and software.

The conference, which features upcoming products, apps, and tech talks, is open to the public. Tickets can be purchased beginning at $25 for access to the Expo hall.

Macworld/iWorld begins on January 31 and will run until February 2 at Moscone Center West in San Francisco.

IDG News Service reports that Kariem McFarlin, the burglar who stole $60,000 worth of Apple products and other items from the home of Steve Jobs' family last July, has been sentenced to seven years in prison. McFarlin entered the home while it was undergoing renovation and stole two iMacs, three iPads, three iPods, an Apple TV, jewelry, and other items.

REACT officers found McFarlin with help from Apple security, which tracked where the stolen devices were being used by matching their serial numbers with connections to Apple iTunes servers. The IP address in use matched a line in McFarlin's apartment in nearby Alameda that was also being used by an Apple device registered to a member of his family, according to a police report. [...]

McFarlin admitted to the burglary under questioning by Palo Alto police and said he had stolen from other homes in the San Francisco Bay Area, including two homes in Marin County, four homes in San Francisco County and one home in Alameda County.

Immediately following the burglary, officials indicated that it appeared to be a random crime of opportunity due to the renovation going on at the house, with McFarlin having been unaware that he was targeting the home of Steve Jobs' family. At the time of his arrest, McFarlin still had a number of the stolen items in his possession, while others had been distributed to friends, including an iPad that made its way into the hands of a local clown.

According to new information from the China Times translated by BrightWire, Apple is planning to release the iPhone 5S alongside a larger phone, deemed the "iPhone Math" by the report.

Because the iPhone Math name is highly unusual and does not fit in with Apple's traditional naming scheme, it is not clear if it is a code name or a potential mistranslation, although the actual "iPhone Math" terms appears in English in the China Times report.

China Times says that the larger phone will come equipped with a 4.8-inch screen and an 8-megapixel camera. It is said that it will launch in June alongside an updated iPhone 5, which will also feature an 8-megapixel camera. An additional iPhone update is said to be coming during the holiday season, with a 12-megapixel camera.

Though the report contains detailed information on suppliers, manufacturers, and production times, it is difficult to believe that Apple will produce a bigger iPhone and that the company will release two iPhones in a six month time frame.

The shipments for components, including touchscreens and cameras, will start rising significantly in March, and iPhone manufacturers will begin production in late April. Hence, Apple's suppliers will see major growth in 2Q 2013.

Hon Hai Precision Industry Co. Ltd. will undertake 90% of the manufacturing orders, and Largan has received orders for 8 million camera lenses. Fujikura, Flexium and Zhen Ding will share production orders for printed circuit boards.

Foxconn Technology and Coxon will provide molding parts for Apple's new models; Foxlink will continue to offer connectors; Hon Hai Precision's Microelectronics Technology will start designing 4G network solutions for Apple.

This is not the first rumor that has featured a larger iPhone. Jefferies analyst Peter Misek first reported in December that Apple was working on an iPhone with a 4.8-inch display, but just last week noted that he has seen no further signs of the device. Digitimes also reported in early January that Apple was working on a bigger, more affordable iPhone that was targeted towards emerging markets, and analyst Brian White suggested that Apple might be considering launching its next iPhone in multiple sizes.

While rumors from the The Wall Street Journal and Bloomberg support the introduction of an additional iPhone at a lower cost, the device is said to be smaller, not larger.

As we noted the first time the 4.8-inch iPhone rumors emerged, Apple has just increased the size of the iPhone with the iPhone 5, and may be reluctant to face the same resolution and pixel density obstacles attempting to create an even larger iPhone.

Aubrey Johnson, a former Color employee, shares two stories behind the scenes at Apple's acquisitions of both Color and Lala -- both firms were founded by Bill Nguyen before being acquired by Apple for two very different reasons.

Like Pandora, Lala's music was streamed from the internet rather than stored locally. This allowed users to listen to a catalog of over 7 million songs for free as a stream over the web -- much like Pandora or Spotify today. Songs could also be purchased and downloaded, typically for a lower price than iTunes was offering.

Johnson writes that Lala's biggest strength was that it was at or near the top for many Google searches of particular songs, thanks to a search placement deal with Google. As a result, the firm was siphoning sales away from iTunes. As well, Google and Lala had partnered on Google's Music service. Both Nokia and Google made lowball offers for the firm, and Nguyen headed to Apple to see if they'd be interested in buying his company.

In late November [2009], Nguyen was seated at the dinner table in Steve Job’s home on Waverly St in Palo Alto. Also present were Eddy Cue and Tim Cook and other Apple executives. Steve led the conversation while eating a beet salad:

“I’m going to give you a number, Bill, and if you like it, let’s do it and just be done with this whole thing. Okay?” Bill agreed.

Jobs passed a piece of paper to Nguyen and Bill nodded. The deal was done.

After the acquisition, a number of Lala employees left the company with Nguyen, leaving millions in options on the table. Later, Apple apparently bought back some of those same engineers when the company purchased the remnants of Color, getting more experienced personnel for a significant savings.

Update: Johnson's post has been removed.