intellectual property

The Federal Trade Commission needs to do a better study of Intel and chip the market before it pulls the trigger with a veritable scattershot of last-minute accusations.

In addition to the FTC's litany of charges against Intel relating to the chipmaker's alleged anticompetitive behavior in the central processing unit, or CPU, market for PCs, the FTC document also refers to "Intel's unfair methods of competition...and future competition in the relevant GPU (market)." GPUs, or graphics processing units, and CPUs comprise the two main processors in all PCs.

A more thoughtful, studied, and contemporaneous analysis by the FTC would reveal that future personal computing markets are not so much about graphics chips--which is the basis of its new found emphasis on Nvidia as the object of Intel bullying and misbehavior--but about small mobile devices. And here Intel faces a raft of competition and is at least a year behind its rivals.

And that includes Nvidia, whose tiny Tegra processor is already in the Microsoft Zune HD and the Samsung M1 and whose next-generation Tegra 2 chip will be in dozens more handheld devices and smartphones. Intel's current offerings in this space? Zero.

Nvidia's Tegra processor is based on the same ARM design that other competitors use such as Qualcomm, Texas Instruments, Samsung, Apple, and Freescale Semiconductor use. And which Nvidia's CEO Jen-Hsun Huang said is expected to account for half of Nvidia's business in a few years.

Unbelievably, the only reference to ARM in the FTC complaint is: "Another example of a non-x86 microprocessor architecture is ARM. ARM is used primarily in handheld devices and mobile phones." One sentence in a 20-plus page document seems oddly dismissive, as though ARM was practically irrelevant to future chip market competitive dynamics as relates to Intel. Especially when you look at it in the context that that FTC is referring to the world's most popular consumer chip architecture--that is, ARM.

How large is this exploding market today? The ARM processor market totaled well over 2 billion units shipped in 2008. The "x86" PC chip market, where Intel and Advanced Micro Devices compete, a fraction of this--a few hundred million.

"The growing market is...a whole swath of interconnected devices and Intel doesn't have much a presence there," said the CEO of ARM Warren East in an interview I had with him recently in Los Angeles. And he accurately asserted that ARM can either match or exceed Intel in market clout and spending because it works, to some extent, in concert with the manufacturers--like TI, Nvidia, Samsung--that collectively have a massive revenue stream to tap into for marketing and research and development. "Well, actually there's about $25 billion of ARM semiconductor revenue coming in through the front door. So, it isn't Intel versus ARM, it's Intel versus everybody else," he said.

And if there is any truth to the Google Netbook rumors,… Read more

Microsoft's apology Tuesday about a contractor copying blogging site software from a small company called Plurk might not be enough to take the lawyers off alert.

"We are still thinking of pursuing the full extent of our legal options available due the seriousness of the situation," Plurk co-founder Alvin Woon said in a statement posted Thursday. "Basically, Microsoft accepts responsibility, but they do not offer accountability."

Microsoft accepted responsibility for the copying, blaming it on a third-party company. It suspended access indefinitely to the site at MSN China, called Juku. "We apologize to Plurk and we will be reaching out to them directly to explain what happened and the steps we have taken to resolve the situation," Microsoft said Tuesday. … Read more

The Federal Trade Commission's complaint against Intel for alleged anticompetitive practices has a new twist: graphics chips.

To date, the antitrust actions of regulators worldwide toward Intel have focused on sale practices for central processing units, or CPUs, a market over which the company has fought heavily with Advanced Micro Devices. On Wednesday, however, the FTC spelled out a litany of allegations about Intel's alleged anticompetitive behavior in the market for graphics-processing units, or GPUs, in which Nvidia is a major player.

Nvidia is the world's leading supplier of "discrete," or standalone, graphics chips but takes a distant second place in overall market share to Intel, which supplies "integrated" graphics built into the chipsets that accompany all of its processors. Mercury Research estimates the total market for graphics chips, including integrated graphics, at almost $10 billion in 2009.

Why graphics, and why now? "It would be really hard to sell the public on expending resources to take Intel through administrative proceedings when it had already paid over a billion dollars to AMD," said Joshua D. Wright, a professor at George Mason University School of Law and a scholar in residence at the Federal Trade Commission until 2008.

"[The FTC] needed to be seen as doing something new," Wright said.

"[Nvidia] becomes the remaining star witness, now that AMD has left the field," said Roger Kay, principal at Endpoint Technologies. "And the FTC's focus, which begins to look toward the future, has to take into account how graphics will fit in as computer technology develops," Kay said.

Intel General Counsel Doug Melamed asserted in a statement that the FTC complaint "is based largely on claims that the FTC added at the last minute and has not investigated," referring to the GPU allegations. And Melamed added in a conference call that some of these GPU allegations were made as recently as December 8.

One of the areas the FTC case zeroes in on is the burgeoning competition for chipsets in Netbooks--small, inexpensive laptops that are typically priced around $350. Netbooks are powered by Intel's Atom processor--and integrated graphics silicon built into the chipset. In this market, Nvidia also sells its Ion chipset, which competes with Intel's integrated graphics product. … Read more

It's too tempting not to pose that question as the monthly Apple tablet rumors fly.

Conjecture about future Apple products is always an interesting exercise because it requires a lot of imagination to make up for the copious lack of hard data. This is especially the case for the rumored Apple tablet, despite analyst claims about product specifications, such as the oft-repeated 10.1-inch screen.

But there is one theme that keeps popping up that is highly plausible: it will be a device to view media and book content (rumor: 30/70 revenue split between Apple/publisher) in a &… Read more

Rumors are a dime a dozen in Silicon Valley--and that's probably overvaluing their cumulative worth. But, on occasion, they can be fascinating, especially when they help crystallize the dynamics underlying competition between Valley heavyweights.

Recently an "Intel will buy Nvidia" theory appeared on the blog I, Cringely, written by the former InfoWorld columnist and the author of "Accidental Empires: How the Boys of Silicon Valley Make Their Millions."

The upshot of the Robert Cringely post is that the recent project cancellations and legal wrangling between the two companies (and throw in Advanced Micro Devices, too) … Read more

The Federal Trade Commission has talked to Nvidia as its probe continues into Intel's business practices.

As CNET reported earlier, Nvidia has complained loudly for years about Intel business practices. Last month, Intel agreed to pay Advanced Micro Devices $1.25 billion to settle a long-running antitrust case against Intel.

In addition to the AMD probe, the FTC has approached Nvidia about Intel's business practices. This time in the graphics chip market, according to an Nvidia spokesperson. The Nvidia-related probe was reported by BusinessWeek.

Intel commands about 50 percent of the graphics chip market. Though Nvidia is the … Read more

Although a judge recently ruled in favor of Apple in its copyright infringement case against Psystar, the two companies have reached a new settlement, according to Computerworld and other reports.

Details are sketchy at this point, and there's no confirmation from Apple, but Psystar claimed in a motion filed Monday that a partial settlement has been reached.

"Psystar has agreed on certain amounts to be awarded as statutory damages on Apple's copyright claims in exchange for Apple's agreement not to execute on these awards until all appeals in this matter have been concluded," noted Psystar'… Read more

eBay is criticizing a French court's ruling that orders the company to pay a $2.55 million fine to European conglomerate LVMH.

The auction giant and its European unit were fined 1.7 million euros on Monday by the Commercial Court of Paris, which ruled that the company violated a 2008 court order by not preventing the sale of legitimate LVMH perfumes and cosmetics. LVMH's brands include Christian Dior, Guerlain, and Givenchy perfumes.

In June 2008, the Commercial Court fined eBay $61 million in a lawsuit filed by the conglomerate, which is officially known as LVMH Moet Hennessy … Read more

NEW YORK--Former Six Apart executive and well-read blogger Anil Dash has a new gig: he announced at the Web 2.0 Expo here on Wednesday that he will be the director of Expert Labs, a new nonprofit that will take the dot-com incubator model and apply it to new digital tools for the federal government.

"Despite what our ego tends to think in the tech industry, the issue is not that we need to have more tweeting from the White House," Dash said onstage. "(We can) help them learn the lessons that we've seen over the … Read more