Apple - page 69

No Charges for Apple Over Options – New York Times

Federal securities regulators said yesterday that they would bring no civil charges against Apple over the backdating of executive stock options. But they stopped short of removing the cloud that for nearly a year has hung over the company’s chief executive, Steven P. Jobs.

… “Steve Jobs dodged a bullet,” said Mark C. Zauderer, a trial lawyer in New York specializing in white-collar cases. “This is another circumstance where the government is going after an easier target. It will generally shy away from situations where the evidence is ambiguous or subject to different interpretations.”

Oh, what a tangled web we weave, when we do but first allegedly manipulate stock option grant dates to make more money for ourselves. Or something. Former Apple CFO Fred Anderson and general counsel Nancy Heinen had civil charges brought against them by securities regulators relating to the back-dating of stock options to Apple leaders, including Steve Jobs, almost six years ago.

As you might expect, the cone of silence has officially been broken. Anderson, who settled with the Securities Exchange Commission today, went straight after his former boss Steve Jobs, as well as Heinen, the board of directors, and probably everyone reading this post, according to the San Jose Mercury News:

As for the responsibility for the backdating of an earlier grant in 2001 that was made to Anderson, Heinen and other members of Apple’s executive team, Roth pointed fingers at Jobs, Heinen and Apple’s board. Jobs and Heinen picked the date for that grant – and the board verified it – after Anderson warned Jobs that moving the grant date might result in an accounting change, Roth said.

Roth’s statement marks the first time that anyone has suggested that Jobs had reason to know the accounting implications related to backdating. Although Apple has acknowledged that Jobs knew that backdating was going on at Apple and that he picked some favorable dates, the company said he didn’t commit fraud, because he didn’t know that there were any legal or accounting implications with the practice.

Anderson “was told by Mr. Jobs that the board had given its prior approval (for the grant) and the Board would verify it. Fred relied on these statements by Mr. Jobs and from them concluded the grant was being properly handled,” Roth said in a statement.

Heinen, of course, blames the Board. This is so sordid. If only Fake Steve Jobs could tell us what’s really going on… Oh, here he is!

He didn’t settle. He flipped. They played him and Nancy Heinen off each other. Made them both an offer. Nancy, being a lawyer, figured she’d be cute and reject the first offer and bump them to something better. Instead, Fred rolled. And now Nancy is going to trial. I just mailed her a pamphlet that shows you how to make a shiv out of a bar of soap.

All this stuff about how the Jobsmeister is off the hook? Fuggedaboutit. Fred is the Big Pussy Bonpensiero of the Apple crime family. He’s betrayed us. Note to Fred: I’d stay away from boats if I were you.

Zing!

Technorati Tags: back-dating, fake steve, fred anderson, steve jobs, Steve Jobs

Pete Doherty, the shambolic baby of a lead singer for the Babyshambles, is a Mac user. According to GeekSugar, Doherty, boy-toy of Kate Moss, chased paparazzi away by focusing the iSight on his MacBook on them and recording their activity on video. Kind of takes those fun surveillance-cam videos and photos from MacBooks to the next level, doesn’t it? Now they’re active security systems, not stealth ones. Wherever shall we go next?

Thanks, Angelica!

Technorati Tags: apple, isight, macbook, pete doherty

No, it’s not April Fool’s Day. A company calling itself IP Innovation, LLC, is suing Apple for allegedly infringing mid-1970s user interface technology that was patented filed on behalf of Xerox PARC in, ahem…1991. Ars Technica has a pretty comprehensive run-down of the situation. This is the best bit:

Xerox did get around to suing Apple eventually in 1989, prompting Steve Jobs to dismiss the company as an organization so dysfunctional that they “couldn’t even sue anyone on time.”

IP Innovation has filed at least 32 patent-related lawsuits over the last few years. I love the guts behind the name, don’t you? “We let others innovate, then we buy the patents so we can sue even more successful companies!” I understand that they’re soon going to go after GE for infringing on Prometheus’s patent on light. In all seriousness, I’m a tremendous admirer of the innovators at Xerox PARC. Unfortunately, I really doubt any of them wills ee a dime if this frivolous lawsuit strikes gold.

Apple sued over vague user interface patent [Ars Technica]

Technorati Tags: apple, parc, gui

Apple’s ex-CFO has cut a deal with the SEC in Apple’s backdated options scandal, the Wall Street Journal reports, citing anonymous sources. Anderson will pay a fine of $150,000 and repay about $3.5 million worth of options. The deal does not include an admission of wrongdoing, the WSJ says.
The SEC reportedly intends to pursue civil charges against Nancy Heinen, Apple’s ex-general counsel, who will contest the case, according to the WSJ.

The AP reports:

Cris Arguedas, a lawyer for former Apple counsel Nancy Heinen, said Monday that the Securities and Exchange Commission has informed attorneys in the case that it plans to file a lawsuit against Heinen alleging fraud in connection with two options grants. One involved a grant to Apple Chief Executive Steve Jobs on Oct. 19, 2001, for 7.5 million shares and another involved a grant made to top executives, including Heinen herself, on Jan. 17, 2001.

“We do expect them to file against our client and we will be defending those charges because they are a misunderstanding of the activities of Apple,” Arguedas said.

I’m sorry, Dave. I can’t let you do that. AppleInsider has reams of photos taken at the National Association of Broadcasters conference last week in Las Vegas. Apple was out in full force: 3/4 Petabytes of storage space, 3 miles of fiber optic cable, 4 M2 Gb networks, 90 Xserves and 40 Xserve RAIDs.

Sadly, that config is not available for purchase from the Apple Store at this time. Check it out.

Technorati Tags: apple, nab, geekhead, xserve

Apple’s insistence on secrecy has many unintended consequences: Mac fans are hard to please, rumor sites do their best to steal information about unannounced products, and, most interestingly, it gets easy to forget that Apple is a company made up of real people with feelings and lives. That’s why this spectacular farewell to Cupertino written by Buzz Andersen, formerly the author of shareware app Podworks and for four years an Apple software engineer, hits me square in the left ventricle. There is love and life in Cupertino, folks:

Like the Macintosh team of old, I started out at Apple as a young engineer willing to subordinate my life (for a time) to something I was passionate about. When I left my first position at Apple (in OS X Integration) for a real engineering job in Pro Apps, I was eager to make the features I was assigned the best they could be, even if it meant putting in difficult hours to get them done on schedule. So I put in the hours. I worked evenings and weekends. I worked while I was ill. Even when I ended up laid up at home in the throes of what turned out to be mononucleosis (a condition, for those who haven’t had the pleasure, that lends itself more to constant unconsciousness than constant concentration), I sat in bed fixing bugs. And little by little, I burnt myself out.

<sniff>No, no, go on, Buzz. I’m not crying. It’s just something in my eye, that’s all.</sniff> That just killed me. Maybe I’ll see you on the other side, man. When the fighting’s through.
Apple: A Romance – Buzz Andersen
Via Digg.

Technorati Tags: apple, buzz andersen

A giant, five-story Apple retailer just opened opposite the biggest, swankiest plaza in Milan and look what they have displayed in the window — my crummy books!

The Apple stores here in the states won’t carry the books because they only sell “how-to” titles. We were told the decision went “right to the top.” We suspect you-know-who doesn’t like the jokey “Cult of…” titles. Clearly not a problem across the pond.

Gary Allen at IFOAppleStore reports:

The grand opening of the five-story Mondadori Multicenter in central Milan (Italy) was important enough for Apple’s CEO of Italy operations to attend, perhaps because the store includes a large Apple sales area. Enzo Biagini viewed the 1,200 square-foot space on the second level that includes displays of laptops, iMacs, MacPros and Cinema displays, as detailed in a story and photos on the setteB.IT Web site. The interior design includes white-painted walls and wood display furniture similar to U.S. Apple stores.

Check out the Genius Bar — now serving coffee and fine food!

(Ignore the HP kit in the pic below. Apparently the store sells all kinds of junk.)

Pictures by SetteB.it.

Sometimes, users of high-end, professional software despair when Apple buys the company that makes it. Stu Maschwitz, one of the founders of <a href=”https://www.theorphanage.com/”>The Orphanage</a>, a San Francisco FX studio responsible for Sin City, The Host, and a bunch of others, explains:

When you buy expensive software from small companies, you effectively become best friends with the development team. You know them by first names and you send them holiday cards. You have a folder full of emails from and to them. Apple, however, mistakenly applies the same strategy of black-box secrecy that works so well for iPods and iPhones to its Pro Apps division as well, cutting off developers from users and vise versa. I have struggled with this enough that my company, The Orphanage, no longer has any special relationship with Apple. It’s just too much of a one-way street. I can’t buy my bread-and-butter tools from someone who can’t conduct an open conversation with me (under NDA of course) about the future of the product.

Maschwitz’s post is about the new Color tool in Final Cut Pro, and though he has misgivings about what used to be a separate app from a small, friendly company going behind the Apple firewall, all in all he’s delighted with the outcome.

Silicon Valley’s hometown paper, the San Jose Mercury News, says Steve Jobs is unlikely to face criminal or civil charges in Apple’s options backdating scandal.

A close review of the events that led to the controversial grant reveals that the backdating emerged from a good-faith, although clumsy, attempt by Apple’s board of directors to reward its star chief executive for resurrecting a moribund company.

The Merc’s story details a series of stock grants given to Jobs by Apple’s board between 1999 and 2003. The grants were often generous (and one was a record breaker) but because of fluctuations in Apple’s stock price, Jobs’ grants were often underwater. Several times, Jobs gave the underwater grants back, and the board gave him new ones.

However, according to the Merc, Jobs sometimes spent weeks negotiating the price of these new options, which affected their value. Jobs held out for the lowest price, and sometimes the board backdated the options to keep their price low.

The upshot is that neither Jobs nor the board were very good at picking the right number of options at the right price. If Jobs had simply kept all his grants, instead of constantly swapping them for new ones, they would be worth considerably more:

… Last year, Jobs handed back to Apple 4.6 million of his restricted shares – worth $295 million – to pay the taxes on them. His remaining restricted shares are now worth about $494 million.

But given the rise in Apple’s stock over the past four years, even that turned out to be a bad deal for the iconic CEO. Had he held on to all of his options, they would be worth about $4 billion right now, even if the 2001 grant had been given the December date.

Reuters | Apple seen having upper hand in music negotiations:

NEW YORK, April 20 (Reuters) – When Apple sits for contract negotiations with the major record companies over the next month, it will probably seek further concessions from them on selling music without copy-protection software.

AppleInsider | Target stores to pick up Apple TV:

Big-box retailer Target is poised to become just the second third-party retailer to market Apple Inc.’s new Apple TV device at its brick-and-mortar retail stores, AppleInsider has learned.

Fortune | Inside China’s PC frenzy:

While MP3 players are everywhere, and imitations of an Apple iPod Nano go for about $50 (a two gigabyte model with a larger screen than Apple (Charts, Fortune 500) offers), if you want the genuine article you’ll get fleeced. For an 80 gigabyte black iPod like one Amazon sells for $330, one salesman quotes me a price of about $700. As for PCs, Apple’s presence here is minimal.

Signs you’ve ready made it, No. 2,789,879 of a 3 million-part series: McDonald’s teams up with “American Idol” and makes a toy based on you. Yes, iPod, you’re on top. Starting tomorrow, little kids across the land (and probably a few Mac geeks) will dig into Happy Meals filled with “American Idol” toys, including a fake mp3 player that looks, shockingly, exactly like an iPod with the Idol logo on it.

It can’t be loaded with music, but it seems to have at least contain a tiny amount of music. Anyway, it beats a Dell Digital Jukebox.

Via BuzzSugar.

Technorati Tags: apple, ipod, American Idol

MacNN:

Gartner pegs Apple’s current U.S. market share at 5 percent — a whopping 30 percent increase of the 4 percent figure estimated for the first quarter of 2006. According to the research firm, this makes Apple’s market share the fastest growing among PC vendors in the U.S, with Toshiba following closely at 26.8 percent growth. Dell, meanwhile, saw a 15.5 percent decrease in market share, though it retained its spot as top PC vendor in the U.S.

Yep, you knew it was going to happen. News about Monday’s Virginia Tech shooting has officially leaked into every other domain. How do I know? Well, the blogger at Habla Mierda has begun speculation that killer Cho Seung-Hui… might be a Mac user:

I was reading the article and found this line pretty interesting.

Among the materials are 23 QuickTime video files showing Cho talking directly to the camera, Capus said. He does not name anyone specifically, but he talks at length about religion and his hatred of the wealthy.

Quicktime Video? Talking directly to camera?

Let’s check Apple’s site real quick.

<snip>
<sigh>
I don’t even know what to make of this. The guy over at Mierda is pretty juvenile about all this — he wouldn’t throw ethnic terms around casually otherwise — but I don’t think he’s suggesting Mac use as playing a role in Cho’s attack. Give it a rest, everyone. Sometimes, people just do horrible things, and we can’t blame an external forces. A few dozen people are dead right now not because of gun control (or lack of it), video games, terrorism, video games, illegal immigration, conservatism or liberalism. They lost their lives because one very mentally ill individual chose to do something incredibly destructive.
Habla Mierda. VT Killer probably a Mac User

Via Digg.

Technorati Tags: cho

Activists have been working for a few years now to try to convince Mac fans that we should be extremely upset about Apple’s environmental record. Most people, however, haven’t been that bothered. The cause actually has real proof now, however, as Apple has been ordered to pay a $43,200 fine to the Sacramento Metropolitan Air Quality Management District for a violation a year ago, reported the Sacramento Business Journal.
The fine is a pittance, obviously, and I don’t think this is the kind of issue Greenpeace had in mind when they set up Green My Apple (the source of our delightful image)…

The violation occurred over several days as Apple operated its emergency standby generator for a purpose other than maintenance or emergency power. Apple was notified that it violated its permit requirements April 21, 2006.

I imagine they want Apple to stop using toxic metals in its products or something, right? Yeah, this doesn’t even make a dent.

Technorati Tags: apple, environment

As ever, Ars Technica has the best technical coverage of Intel’s Developer Forum. For those of us who care less about the details of things like systems-on-a-chip and pinball grid arrays, they always manage to cut to what really matters. Here’s what you need to know: The upcoming Penryn chip, the mooted successor to the Intel Core2 Extreme line, is going to absolutely scream at video encoding.
The developmental iron came through with a 221 percent speed improvement on DiVX encoding. That’s unheard of in this era. Most of the performance improvements are more linear, but this chip is coming to rock. I’ll take four quads, please.
Intel details Penryn performance, new SSE4 extensions:

Technorati Tags: intel, Penryn

Ah, the Joy of Tech. The venerable geek cartoonists nail the Leopard delay with their strip today. Click through to see the full strip.

Technorati Tags: joyoftech, leopard, software

Apple’s executives raked it in last year, and Steve Jobs took his customary $1 in salary.
According to an SEC filing reported by Marketwatch:
“¢ Chief Financial Officer Peter Oppenheimer realized $56 million in value from the exercise of options during 2006. Oppenheimer also received a $615,000 salary, a $450,000 bonus and restricted stock valued at $14 million.
“¢ Chief Operating Officer Timothy D. Cook received restricted stock valued at $22 million, a salary of $697,000 and a $525,000 bonus for 2006.
“¢ Jobs has received the majority of his compensation through an equity grant and isn’t eligible for a bonus, according to Monday’s filing. He doesn’t receive any other compensation, the company said.

On the off chance that the Coen Bros. talking up the virtues of Final Cut Studio 2 doesn’t have you reaching for your charge card yet, you could try out this testimonial from director Miranda July, who made the truly wonderful “Me and You and Everyone We Know” last year.
If nothing else, this NAB keynote is bringing us plenty of insight into the creative process for a wide range of directors.

Technorati Tags: apple, director, final cut studio, testimonial

Despite rumors of its demise, Apple’s Get a Mac ad campaign rolls on. Introduced this week are Stuffed (above) Computer Cart and Flashback, both after the jump. Of the three, the journey back to the childhood of Mac and PC is my favorite, but this series is really starting to feel tired. There’s only so much more that Apple can do here, and I’m ready to see them, you know, actually show the goods with OS X instead of just going abstract.
Just my 2 cents. Click through to see the others.

Technorati Tags: apple, get a mac

I’ve been thinking a lot about Apple’s much-analyzed decision to delay the release of Leopard, Mac OS X 10.5, until October. Ultimately, it’s not that big a deal. If you read between the lines, the diversion of software development resources to finish the iPhone could have long-term benefits for the platform.
As a refresher, here’s what Apple had to say for themselves:

iPhone has already passed several of its required certification tests and is on schedule to ship in late June as planned. We can’t wait until customers get their hands (and fingers) on it and experience what a revolutionary and magical product it is. However, iPhone contains the most sophisticated software ever shipped on a mobile device, and finishing it on time has not come without a price we had to borrow some key software engineering and QA resources from our Mac OS X team, and as a result we will not be able to release Leopard at our Worldwide Developers Conference in early June as planned. While Leopard’s features will be complete by then, we cannot deliver the quality release that we and our customers expect from us. We now plan to show our developers a near final version of Leopard at the conference, give them a beta copy to take home so they can do their final testing, and ship Leopard in October. We think it will be well worth the wait. Life often presents tradeoffs, and in this case we’re sure we’ve made the right ones.

I have to agree. After all, many of the best innovations — or at least great new products, are created by mixing the DNA of one successful platform with another. OS X and the iPhone OS share a hell of a lot of code. Apple should have no trouble at all adding multi-touch support to Macs. I’m hoping to see the world’s greatest tablet laptop — and the first one worth owning — emerge from this delay in the first place.
John Gruber of Daring Fireball has an interesting view of just why Apple fell behind in the first place, too. Check it out.

Technorati Tags: apple, iphone, mac os x

Don’t you just love when mainstream business media try to use technology code names? For the future record, guys, Apple is working on Leopard. Jaguar came out almost five years, under the unsexy name “Mac OS X v10.2.” But hey, it’s all big cats, right?

Technorati Tags: apple, jaguar, mac os x

There’s several new screenshots lighting up the internet that are purportedly taken from a new Leopard build (9A410).

Posted to Hackintosh, MacRumors, Flickr and elsewhere, the screenshots show a new, simple UI that’s darker and sharper than the current — note the corners of windows are no longer rounded. There’s less brushed metal, more soothing grey.
The screenshots on Flickr look much more like the current UI (Tiger) ,except Mail now has a metallic look.
But there’s something fishy about them. The interface is too plain and stripped back.

Many on the MacRumors’ forums think the screens are fake, and one poster on Flickr is sure about it.:

“Fake! Fake! Fake!

I write themes for OSX. And, I can tell you how this was most probably done:

The file Extras.rsrc still kinda works in the betas for 10.5 although, I hope that it will be removed before release.

Anyway, Installer based themes (though out of favor in 10.4) still work by replacing Extras.rsrc among other files.

Someone swapped out the normal Extras.rsrc and took some screen shots. Since most of the guts of 10.5 do not depend upon Extras.rsrc anymore, I am confident that 10.5 would run with a 10.4 Extras file for now.

Note that you do not see any signs of resolution independence! That is what would break this fake theme (since res independence calls to images not stored in Extras.rsrc).”

More screens after the jump

AppleInsider:

Filings discovered today by AppleInsider and noted on April 5th at the US Patent and Trademark Office show that Apple Corps has given up more of the trademarks associated with The Beatles’ own company than was expected as part of the landmark settlement in February… (Steve Jobs’ Apple Inc.) received the rights to use imagery virtually inseparable from Apple Corps’ music business, including the centerpiece green apple and two variants with the fruit cut in half.

FT.com — Music labels ask Apple to adopt subscription:

The world’s biggest music companies are expected to ask Apple to introduce a music subscription service to its iTunes digital media store as part of negotiations to renew their agreements with the computer company.

Ars Technica — Why Apple can’t sell movies:

There are at least five problems the Apple TV alone cannot solve for the iTunes Store:

3. Access: At present, there is no option to rent movies on the iTunes Store, and, unlike music purchases versus subscription services, renting movies is a preferred method of consuming content. Further, purchasing movies through the iTunes Store still requires a computer, rather than direct shopping using the touted Apple TV.

Webomatica — Apple iTunes: Music Subscription No, Movie Subscription Yes:

If Apple is even remotely thinking about offering iTunes Store subscriptions for its music, I really hope they don’t – and instead apply the subscription model to iTunes Movies instead.