Monday, July 4, 2011

Maths powers Google bid strategy

Google's bids for a pool of wireless patents were based on mathematical constants, say sources.

The portfolio of 6,000 patents was auctioned to realise some value from the assets of bankrupt telecoms firm Nortel.

During the sale, Google's bids were based on pi, other constants and the distance between the Earth and the Sun.

Google lost the auction as a consortium including Apple and Microsoft made the winning bid of $4.5bn (�2.8bn).

Deep pockets

"Google was bidding with numbers that were not even numbers," a source involved in the auction told the Reuters news agency.

The sale of the patent portfolio started as a five-way scrap between two separate consortia and individual firms including Google and Intel.

Initial estimates suggested the portfolio would attract around $2bn (�1.24bn) but the four days of intense bidding saw the total rise sharply.

During its bids, Google picked numbers including Brun's constant and Meissel-Mertens constant that were said to have "puzzled" others involved in the auction. When bids from rivals hit $3bn, Google reportedly bid pi, $3.14159bn, to up the ante.

"Either they were supremely confident or they were bored," Reuters' source said.

It is not clear what inspired Google to draw on obscure mathematics for its bids. However, Google co-founder Sergey Brin is widely acknowledged to be a maths prodigy and the bids may reveal his influence.

As the bids got bigger some firms dropped out and others became partners to pool their resources. From going it alone, Apple joined a consortium that included Microsoft, Research In Motion and Sony.

"It did become clear to us very quickly that this was something that a bunch of big companies with humongous balance sheets had decided was strategic for them," said John Amster, Chief Executive of RPX that led one consortium. The RPX-led group dropped out as the price climbed.

Fee fight

Ultimately the portfolio was being fought over by two groups: Google and Intel on one side and the Microsoft/Apple-led consortium on the other.

Google's failure to secure control of the patents could cost it dear in the future, warned intellectual property analyst Florian Mueller.

"I would have thought they would seize this once in a lifetime opportunity to become a new wireless patent player," Mr Mueller told the BBC. "It's not going to have, any time soon, a comparable opportunity to acquire such a diversity of relevant patents in a single purchase."

Currently Google had about 700 patents in its mobile portfolio, he said, many of which relate to using handsets to serve its core competences such as search.

By contrast, he said, the Nortel patents relate to future technologies that will make mobile networks faster and handsets more powerful.

Controlling that, he pointed out, would be very useful as a bargaining chip with rivals. Owning the patents could also ease the burden on firms making Android devices as they would have fewer licence fees to pay.

Use of Android technology from Google is free provided handset makers pipe traffic back to the search giant so it can make money with adverts.

However, the numbers of companies asking for cash to use the non-Google developed technologies found in Android phones was rising, he said.

For instance, Microsoft has announced licensing deals with many Android phone makers including General Dynamics and HTC.

With the control of the patents passing to a consortium that includes firms that are Google's bitter rivals in the mobile phone world, licence fees could increase.

"It's reducing the claim that Android is free to an absurdity," said Mr Mueller.

Google has not issued a formal statement on the auction outcome but has reportedly called it "disappointing".



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Fox News hack declares Obama dead

Hackers have taken over a Twitter account belonging to US broadcaster Fox News and declared President Obama dead.

The @foxnewspolitics feed stated: "BREAKING NEWS: @BarackObama assassinated, 2 gunshot wounds have proved too much."

More than two hours after the malicious postings appeared, they had still not been removed.

A group or individual, calling themselves The Script Kiddies appeared to claim responsibility.

Fox News Politics began posting bizarre messages around 07.00 BST on July 4.

The first read: "Just regained full access to our Twitter and email. Happy 4th."

The next posting stated: "@BarackObama has just passed. The President is dead."

Script Kiddie

Fox News Politics is one of the Twitter accounts associated with the industry-leading cable news network.

Its Twitter account carries the "verified" tick icon, indicating that the feed belongs to the organisation it claims to be.

In among the messages about President Obama, a couple of tweets appeared from a user called The Script Kiddies. However, that account was quickly suspended.

The phrase "Script Kiddie" is internet slang for an inexperienced person who uses off-the-shelf hacking technology, developed by other people.

It is unclear why Fox News has been attacked in this instance. However, the broadcaster's conservative stance has made it unpopular with many Americans.

Fox News is the most watched cable news network in the United States, with its prime time shows attracting almost two million viewers, well ahead of rivals CNN and MSNBC.

An attack on another Fox Entertainment Group website, Fox.com was the first confirmed hit by hacker group Lulz Security in May 2011.

The now-disbanded organisation stole the personal details of 73,000 applicants for the US version of X Factor.



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Rare earth find helps Japan tech

Japanese researchers say they have discovered vast deposits of rare earth minerals, used in many hi-tech appliances, in the seabed.

The geologists estimate that there are about a 100bn tons of the rare elements in the mud of the Pacific Ocean floor.

At present, China produces 97% of the world's rare earth metals.

Analysts say the Pacific discovery could challenge China's dominance, if recovering the minerals from the seabed proves commercially viable.

The British journal Nature Geoscience reported that a team of scientists led by Yasuhiro Kato, an associate professor of earth science at the University of Tokyo, found the minerals in sea mud at 78 locations.

"The deposits have a heavy concentration of rare earths. Just one square kilometre (0.4 square mile) of deposits will be able to provide one-fifth of the current global annual consumption," said Yasuhiro Kato, an associate professor of earth science at the University of Tokyo.

The minerals were found at depths of 3,500 to 6,000 metres (11,500-20,000 ft) below the ocean surface.

Environmental fears

One-third of the sites yielded rich contents of rare earths and the metal yttrium, Mr Kato said.

The deposits are in international waters east and west of Hawaii, and east of Tahiti in French Polynesia.

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Mr Kato estimated that rare earths contained in the deposits amounted to 80 to 100 billion tonnes.

The US Geological Survey has estimated that global reserves are just 110 million tonnes, found mainly in China, Russia and other former Soviet countries, and the United States.

China's apparent monopoly of rare earth production enabled it to restrain supply last year during a territorial dispute with Japan.

Japan has since sought new sources of the rare earth minerals.

The Malaysian government is considering whether to allow the construction of an Australian-financed project to mine rare earths, in the face of local opposition focused on the fear of radioactive waste.

The number of firms seeking licences to dig through the Pacific Ocean floor is growing rapidly.

The listed mining company Nautilus has the first licence to mine the floor of the Bismarck and Solomon oceans around Papua New Guinea.

It will be recovering what is called seafloor massive sulphide, for its copper and gold content.

The prospect of deep sea mining for precious metals - and the damage that could do to marine ecosystems - is worrying environmentalists.



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