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It's a simple fact that the United States Patent and Trademark Office (the "USPTO") is inundated with patent applications. Given the sheer volume of applications, patent examiners can only spend a limited amount of time examining those applications. Further, given the fact that an applicant for a patent does not have to conduct a "prior art" search before filing, it is virtually impossible for an examiner to turn up all of the prior art that is relevant to a patent application.

Unbeknownst to many patent practitioners, however, the USPTO is getting ready to wrap up a yearlong pilot project directed at giving the examiners a little help in turning up prior art.

Last year the USPTO, in conjunction with the New York Law School, launched a program titled "Peer to Patent." This pilot project enables the public to comment on and submit prior art that may be relevant to pending patent applications. The project is somewhat limited in scope as only patent applications that relate to computer architecture, software, and information security are eligible for this process and applicants must agree to submit their patent applications to this process. However, preliminary numbers reported by the organization indicate that the project may be an effective means of reviewing patent applications.

According to the "Peer to Patent" Web site, over 2,000 people have signed up to participate as reviewers of patent applications and have submitted 192 pieces of prior art on 42 patent applications.

For more information about the process, see the USPTO's description of the program here.

This post was updated at 12:30 p.m. PDT with more detailed information and quotes.

PALO ALTO, Calif.--Facebook plans to unveil a redesign of profile pages in coming weeks to help members cut down on the clutter, executives said here at a press event Wednesday.

Executives also said they'll introduce a beta version this week that will allow developers to test the new pages before it rolls them out to members in June.

The redesign, a preview of which was released Tuesday night, slots member information under five new tabs: personal news feeds; profile information; photos; applications; and a customizable page.

As part of the redesign, Facebook is dramatically playing up the role of its News Feed, which will be the anchor, or first tab, of the new member home page. This shift is meant to make it easier for people to see dynamically changing information from friends and applications first, according to Chamath Palihapitiya, Facebook's vice president of product marketing.

"We see this big trend," Palihapitiya said. "People are publishing feeds all the time, and the point is, people are increasingly telling a narrative, and we want to make that easier for our users to do. And we want people to consume that narrative more easily."

The company will unveil design changes at the risk of angering application developers that rely on Facebook for distribution and member usage. Designers of less popular widgets, for example, could feel somewhat marginalized by Facebook's placement of external applications on a dedicated profile tab.

Company executives, however, said the design overhaul will ultimately give developers more reason to engage with members. "We think there's more opportunity for distribution, but (also) for more meaningful application," Facebook product manager Mark Slee said.

Palihapitiya added that some developers could suffer in the more dynamic environment of News Feeds on member home pages. "Applications that are much more static in nature will not be as successful as they used to be."

Here is an overview of the changes:

The news feed will take the role of the member home page, with one stream of information that people can reformat into three different sizes. From the main page, people can also update information on new Facebook applications, post a wall message, or upload photos from one point next to the news feed.

The reason for that change, Palihapitiya said, is the company's desire to make the home page cleaner and simpler, and allow people to see dynamically changing information first.

Developers can also get front-page play through the news feeds. "Developers can integrate into the feed through the publisher box, so I could draw some graffiti or send a SuperPoke," said Facebook product manager Ruchi Sanghvi.

Facebook moves the static information on members to its second tab, or the information tab. That page will contain detailed data about the person's address, personal history, and preferences. Executives said developers can get creative with new applications that help members tell a story about who they are.

Next is a tab for photos, which are commanding a lot of attention from Facebook users, according to Palihapitiya. So far, he said, members have uploaded 6 billion photos to the site, or 14 million on a cumulative daily basis. "Photos are just one example of an application that could blow up for us," Palihapitiya said.

The profile box tab, or where applications will reside, lets people see a record of the widget they downloaded.

The last tab gives people a choice to customize a page, much like a new feature on the iPhone. People can add a new tab to highlight an application like Scrabulous that they play often. Executives said this is "a huge new opportunity for developers" that could increase advertising revenue.

That said, developers will need to try it out of themselves.

"We are going to give developers a beta period in which they will be able to step into the sandbox and tweak their application," product manager Slee said, "so that they're ready for when this thing gets rolled out in coming weeks."

A recent Gartner study estimates that 189 billion mobile messages have been sent by U.S. mobile-phone subscribers in 2007. It forecasts 301 billion mobile messages sent in 2008.

If correct, those figures would still account for only a small fraction of the 2.3 trillion messages to be sent across major markets worldwide in 2008 (a 19.6 percent increase from the 2007 total of 1.9 trillion messages). Asia is the biggest mobile-messaging market worldwide. China is in the lead, with approximately 560 billion SMS messages sent in 2007, followed by the Philippines' 430 billion and Japan's 190 billion.

The vast majority of the 189 billion mobile messages to be sent in the United States are expected to be SMS text messages, with an average use of about two SMS messages per U.S. subscriber per day. That is similar to the level of SMS activity in the United Kingdom in 2005 and still only at the global average of 2.1 SMS messages per day. The average number in the U.K. today is six SMS messages per day. Singapore is at 12, and the Philippines even at 15.

While the U.S. is still lagging behind Asia and Europe, its adoption of SMS is obviously accelerating. Gartner predicts that this will further propel mobile-payment solutions, as SMS will continue to be the dominant channel for mobile payments.

The analyst house believes that the number of consumers making payments using their mobile phones is set to soar from 32.9 million in 2008 to 103.9 million in 2011.

Despite the continued growth of SMS usage, however, Gartner expects growth rates to slow as direct mobile connections are becoming increasingly cannibalized by mobile-IM communities and social-network portals.

As I wrote before, there is huge potential for an elegant, seamless, cross-platform, and cross-media IM solution that enables the ideal of the "never-ending conversation."

It looks like Apple might again be the first mover here. The company is apparently developing a chat application for the iPhone, as revealed recently through a patent application that describes a "portable electronic device with a touch-screen display, comprising (a) means for displaying a set of messages exchanged between a user of the device and another person in a chronological order." That's basically the description of an UI for an iPhone IM application.

CNBC analyst Jim Cramer thinks that an iPhone IM application is going to be to instant messaging what the iPod was to the Walkman. And Ars Technica is not alone when it suspects that most of the iPhone users will probably value "a way to use instant messaging without using up their SMS message quota."

While the iPhone currently relies on SMS, Apple could add AIM, Jabber, or Twitter to the interface and thus become the de facto universal conversation enabler. However, building a native IM application (and adding third-party chat applications) could create conflicts with iPhone operators that might be concerned about losing potential SMS revenue, if users sidestep SMS by using IM programs.

We will soon find out. The momentum is building up toward a possible unveiling of the next-generation iPhone at Apple's Worldwide Developer Conference on June 9.

Oracle announced Tuesday it completed its $6.7 billion acquisition of BEA Systems, bringing to a close a contentious buyout effort that began last fall.

Oracle--which like Microsoft went public with its unsolicited bid for a reluctant acquisition target--cleared its final merger hurdle when European antitrust regulators gave it a thumbs up.

In Oracle's case, the enterprise software applications behemoth spent more than three months applying pressure to its rival BEA, before the parties struck a deal with the help of the middleware software maker's largest individual investor, Carl Icahn.

BEA initially rejected Oracle's bid as too low, prompting Oracle to pull its bid and go quiet for a couple months as BEA's stock fell. But with the help of Icahn serving as a quasi-mediator, a deal was struck at a slightly higher premium than what Oracle initially offered.

"The addition of BEA will accelerate innovation by bringing together two companies with a common vision of a modern service-oriented architecture infrastructure," Charles Phillips, Oracle's president, said in a statement. "Together, Oracle and BEA will provide a series of complementary and well-engineered middleware products, allowing customers to more easily build, deploy, and manage applications in a secure environment."

With the tech industry closing the chapter on one contentious merger effort that eventually turned "friendly," it waits to see if another will begin with Microsoft going "hostile" with its bid to acquire Yahoo. Microsoft is weighing its options this week.

Intacct announced Monday it raised a $15 million round of venture funding, led by Bessemer Venture Partners.

The on-demand financial management and accounting applications company also received a portion of the round from its existing investors Emergence Capital, Sigma Partners, and Sutter Hill Ventures. That brings total funding for Intacct, which was founded in 2000, to approximately $80 million.

Intacct, which also raised a $14 million round last summer, plans to use the funding to accelerate its growth via product line additions and enhancements to its channel and sales force, said Mike Braun, Intacct's chief executive. He added that although the company is profitable on an operational basis, the recent rounds will help it ramp up its growth at a quicker pace.

Hackers have turned their attention to Facebook's hundreds of independent applications. The results are not terribly surprising, but do not tell a good tale: app developers don't seem to know a thing about basic security, and are putting private user information at risk. As a result, malicious hackers are able to access and change what should be private user data managed by the application providers.

Just a few months after this blog brought you exclusive news of privacy problems in Facebook's application system, we are now already seeing the consequences of Facebook's decision to pass the buck on on application security and privacy. Facebook shares user data with a large number of third-party application developers (without user consent), who then leave the data open to hackers due to nonexistent security and privacy protections. We at Surveillance State would be lying if we said we didn't see this coming.

Third-party developers

As I mentioned in a blog post back in January, Facebook permits application developers to get access to large amounts of sensitive data, all without clear user consent. Simply put, whenever a user installs a Facebook app, the developers of that application get access to data on every person who that user is Facebook 'friends' with, as well as most of the people in that user's network. While Facebook makes it perfectly clear when users install an application that developers will get access to their data, it doesn't do anything at all to warn users that the same data sharing occurs when their friends install apps.

Facebook has its legal bases covered though, as its Terms of Service clearly state that the company is in no way responsible for anything that the developers do with user data. It further notes that the company does nothing at all to verify that developers are doing anything at all to protect user data, or that they are not storing data beyond the time needed to process the application request (a strict no-no). The terms of service state:

"[each application] has not been approved, endorsed, or reviewed in any manner by Facebook...we are not responsible for...the privacy practices or other policies of the Developer. YOU USE SUCH DEVELOPER APPLICATIONS AT YOUR OWN RISK."

Flaws in apps, users at risk

According to a recent article in 2600, the Hacker Quarterly, many popular Facebook applications are vulnerable to trivial attacks, which permit a nefarious person to both set and read the data associated with that app. The 2600 article uses apps Moods, Free Gifts, and Super Wall to prove its point.

Quite simply, the developers have no authentication mechanism in place on their own servers when processing queries issued by a Facebook application. The developers rely instead, on the Facebook app itself playing by the rules. A nefarious hacker merely needs to intercept the Web request issued by the app, and replace his/her own Facebook ID with that of a potential victim.

While the 2600 article is not online, a reader of the Consumerist blog summarized it online:

In all three of those applications, User A can very easily modify User B's data by intercepting a form and modifying the uid (Facebook user ID) before transmission. In addition, with some applications, User A can gain access to stored application data (e.g. history, etc.) for any User B, whether they are friends or not. Such applications blindly trust form data that can easily be tampered with, which is very clearly a bad idea.

The Moods application allows unauthorized users to view the mood histories of non-friends, and with Firebug, anyone with the app can intercept their own mood change form before submitting it, change the uid in the form, and change someone else's mood.

Super Wall has a similar vulnerability that allows someone to intercept the form in a similar way and spoof messages from ANYONE to ANYONE (even a non-friend) just by changing the to and from uid's.

This is not rocket science, but far closer to computer security 101. Microsoft's Larry Osterman has written about these kinds of flaws on his own blog, describing his effort to educate Microsoft's programmers:

It takes a special mindset to think like a bad guy. Not everyone can switch into that mindset. For instance, I can't think of the number of times I had to tell developers on my team "It doesn't matter that you've checked the value on the client, you still need to check it on the server because the client that's talking to your server might not be your code."

On Wednesday, I spoke with Adrienne Felt, the University of Virginia researcher whose report first highlighted the excessive and dangerous data sharing that happens between Facebook and its Application developers. When asked for her thoughts on the lack of authentication and security at major Facebook apps, Adrienne told me that, "sadly i am not surprised at all" as "apps are written by people who just barely know anything about coding."

For those of you interested in learning more, someone has taken the time to record a screencast of the attack in action. All that's needed is a Facebook account, the Firefox browser, and the Firebug browser add-on.

Adobe Systems opened up Photoshop Express on Thursday, its long-anticipated Web-based image editor aimed at the millions of consumers that want a simple way to touch up, share, and store photos.

Photoshop Express, available for free with 2 gigabytes of storage at www.photoshop.com/express, is a significant departure from Adobe's desktop software business and a big bet that it can make money offering Web services directly to consumers.

The application, which needs Flash Player 9 to run, pushes the limits of browser-based applications and will likely ratchet up the competition on the dozens of free and online photo-editing products available now (see our full review of Photoshop Express and gallery of screen shots of the application).

The MyPhotos page of Photoshop Express, a Web-based application for editing and sharing photos.

(Credit: Adobe)

Since then, Adobe has expanded the scope of the project, one reason why the product launch has taken longer than expected, according to executives. Rather than only an image editor, Photoshop Express also has ties to social networking sites like Facebook and other image-sharing sites.

Also, Adobe needed to build the back-end infrastructure needed to offer the service directly to consumers, rather than partner with another photo-sharing site, as it did with its online video editor, Premiere Express.

"We've seen a convergence of trends where the everyday consumer is becoming overwhelmed with the number of images and they have the desire to share images in new and interesting ways," said Doug Mack, the vice president of consumer and hosted solutions at Adobe.

"We're at the point now with bandwidth that most consumers can use really rich Internet applications and also have a relationship with a service where they store and upload images," he said.

The service will go live in beta test mode on Thursday. Mack said that the company intends to use the test period as a way garner feedback from customers.

Adobe intends to offer more features to consumers who pay a yearly fee. Some planned features include a printing service, more storage, support for audio and other media, and the ability to read additional image file types (the service works with .JPGs now.)

Adobe also plans to build an offline client using AIR (the Adobe Integrated Runtime) so that people can edit photos offline, executives said.

Under the hood
Adobe already has a few other Photoshop-branded products--Photoshop Creative Suite 3 and Photoshop Lightroom are aimed at professional and serious amateur photographers, while $99 Photoshop Elements is a consumer-oriented product.

Photoshop Express is designed to be used essentially by anyone who uses a point and click digital camera, said Mack.

People can organize photos by dragging them into albums or create a gallery to share images. The service also lets people email links images stored online, embed them in a Web page, or download them.

When people hover a mouse over an image, a menu appears that lets people do tasks, such as rotating an image. The editing tools are designed for speed, with an autocorrect option, redeye removal, and a touch-up tool.

Adobe has sought to make Photoshop Express intuitive enough for people to use without any training but still have features that appeal to more sophisticated photographers, said Geoff Baum, director of Adobe's Express products.

For example, the touch-up tool will automatically choose a color from a surrounding item to, say, remove a blemish on a face. Or, a person can choose where to sample a color to replace the blemish.

Photoshop Express also includes several ways to tweak photos just for fun. There are a number of effects to change the color of one item in a photo, like a hat on someone's head, or blur parts of an image.

While editing, the application displays thumbnail images that let people view how effects will change a photo before saving it and people can revert back to an original. The connections to Facebook and other social networking sites let people edit and update images from within Photoshop Express.

First impression
Adobe engineers wrote Photoshop Express from scratch using its Flex development framework and ActionScript, its JavaScript-compatible language.

"We had some of the top Photoshop engineers who understand the technology and science behind Photoshop rewrite some of the algorithms in ActionScript 3," Baum explained.

Having used Photoshop Express for a short time, I can say that it is simple to use. It's attractive, too. The use of Flash animation makes for a dynamic page and smooth transitions between operations.

Adobe is hoping that people who use Picasa, Google's free downloadable application, will be tempted by Photoshop Express.

As someone who uses Picasa for both work and personal photo editing, I'd say that Photoshop Express is indeed tempting because it's slick yet easy to use. You can get edits done quickly, particularly using the thumbnail preview feature.

However, launching the editor and actually saving changes is far slower than Picasa. That's not surprising, given that Photoshop Express has to download photos and upload changes, while Picasa doesn't. By design, Photoshop Express also has a broader range of options for sharing photos on other sites.

For a first review of from CNET Reviews, click here..

REDWOOD CITY, Calif.--When up-and-comer Facebook opened up its developer platform last May, it had a trickle-down effect for the Web's largest auction house.

"Thanks to Facebook, everybody wants to develop applications for platforms," Max Mancini, eBay's senior director of platform and disruptive innovation, said here Tuesday at the Dow Jones Web Ventures conference.

Mancini said although eBay has offered developers a platform for creating specialized eBay applications for the last six-plus years, Facebook popularized the concept in the Web community. In fact, five or six other developers beat eBay to the punch by building a Facebook app for the auction house, Mancini said. But the company has long benefited from third-party developers.

eBay, for example, gets about 6.7 million new listings a day on its auction site. Of those, he said, about 60 percent originate from Web services, and a third come from applications built by third parties. Mancini added that eBay generates hundreds of millions of dollars of gross revenue annually from applications such as Wired Buyer, which alerts eBay shoppers via phone call to changes in an auction.

"Guess what? We don't have to pay a dime to do that," Mancini said in an interview on stage.

Unlike Facebook, he said, Web developers can make money immediately when they create an application on eBay's platform. They don't have to worry about selling advertising, he said--developers make money from affiliate fees generated from auction sales. "We pay 50 to 75 percent on that revenue," he said.

The comments come as eBay is undergoing a seismic shift. Longtime CEO Meg Whitman is leaving the company at the end of the month after 10 years, and John Donahoe, head of eBay Marketplaces, will take her place. Mancini said that Donahoe is a big proponent of a distributing eBay across the Web through services and applications.

"He understands the power of the platform," Mancini said.

"It's not about eBay.com as a destination. It's about distributing eBay anywhere on the Web."

The long-awaited iPhone software development kit, which will be released in June, was finally unveiled Thursday.

And with it came a few applications, developed in a couple weeks by some very high-profile names in tech. Apple demonstrated seven new applications in a variety of categories: business, communications, and games.

• Touch FX: Adds Photo Booth-style effects to a photo using your finger on the iPhone touch screen. Pinch or tap to introduce fun-house mirror style effects.

• Touch Fighter: The first official game for the iPhone, developed by Apple engineers over two weeks. You fly through space and steer by using the iPhone like a pretend control wheel, with both hands on the side.

• Spore: Electronic Arts created a mobile version of the game.

• Salesforce.com management application: Salesforce.com created an application that does more than you can do with its Web-based application. For instance, it can talk to Maps to plot directions to your next appointment, figure out how many more widgets you need to sell to make your quota, and more.

• AIM: AOL made an iPhone version of the instant-messaging service. You can switch between conversations with a swipe of the finger, like if you're scrolling through photos on the iPhone. You can also upload photos from your iPhone to serve as your buddy icon.

• Medical records app: Epocrates, a maker of software for medical professionals built a native iPhone application that can access an SQL database for accessing medical information, pictures of pills, and checking for potentially harmful drug interactions.

• Super Monkey Ball: A game from Sega. A skiing game, where you hurtle down a ramp trying to get bananas, and other things. It uses the accelerometer for control, just like Tough Fighter.

See my colleague Tom Krazit's blow-by-blow chronicling of the event as it unfolded in Cupertino on Thursday morning.

CNET News.com's Tom Krazit contributed to this report.