Google sues US govt for favouring Microsoft

Google has filed suit against the US government claiming the terms for a large Department of the Interior contract favour rival Microsoft.

The lawsuit was filed by Google and Onix Networking Corp, a reseller of Google products, in the US Court of Federal Claims.

Google argues that the terms of the bid for an email, calendar and document collaboration system for some 88,000 Interior Department employees implicitly rule out a Google product and favor one from software giant Microsoft.

The company is promoting its Internet-based suite of office tools, Google Apps, for the contract over Microsoft's solution.

It said it was told there would be a "full and open competition" for the contract but the bid request "specified that only the Microsoft Business Productivity Online Suite-Federal could be proposed."

Google said it was bringing suit on the grounds "that such specification is unduly restrictive of competition" and in violation of US law.

The Internet giant said it was told its product was "not compliant with (Interior Department) security requirements," but that is not the case.

Google announced in September that three million businesses and more than 30 million people are using Google Apps, which are hosted on the Internet "cloud" as services on demand.

Google Apps include products or services such as Gmail, Google Calendar and Google Docs and are seen as the Mountain View, California company's challenge to Microsoft's popular Office software.

The Wall Street Journal said the Department of the Interior contract is estimated to be worth $58 million over five years.

Google Voice Opens Up, No More Invites Required

Google has announced that its Google Voice service would now be available for all U.S. citizens - without the need of an invite.

In a blog post announcing the decision, Google Voice product manager Craig Alker quipped, "We're proud of the progress we've made with Google Voice over the last few years, and we're still just scratching the surface of what's possible when you combine your regular phone service with the latest web technology."

Since the service was launched in U.S., Google Voice has managed to garner a decent userbase of about 1 million users. If you are one of those people who are wondering what Google Voice is all about, let us explain briefly. Google Voice basically gives you a single phone number that can be used to reach you if you have multiple numbers. Google Voice also offers its own voicemail message transcription service.

Google Voice was in the news not long ago when Apple blocked the Google Voice application from entering its App Store saying that it duplicated native iPhone capabilities. This led to the once good friends turn into foes.

iPhone Gets Windows Live Messenger

It's not like you cannot login to Windows Live Messenger on the iPhone already (using chat clients like Nimbuzz). But then, an official Windows Live Messenger app for the icon is always newsworthy, right?

That's exactly why we are talking about it too. Microsoft already had the Bing app out there for download at the Apple App Store. And now, it is the turn of Windows Live Messenger to make it there. That's right. Microsoft's Windows Live Messenger app has made an official entry into the Apple App Store and from what we see, it looks quite slick and replicates its PC version.

The client is now available in U.S., Canada, the UK and France and is a free download. The app is capable of updating your status message and see your friends' updates. Users will also soon be able to access other services like Facebook, MySpace, LinkedIn (coming soon), and more through the new Windows Live Messenger for iPhone.

While the messenger has gone social in its approach, the core functionality of instant messaging is still in there. Starting an IM with friends is easy. You just tap a person's name on the Friends tab, or tap their picture from anywhere in the app. So, if you're scanning through the highlights on the Social tab and you see some new pictures that a friend just uploaded, you can instantly send her compliments on her new photos. Microsoft is also working to add Facebook chat support in the app later this year.

The app can also notify you about new e-mails in your Hotmail account. All you need to do is to tap the Hotmail icon inside the Social tab. This takes you to the mobile web version of Hotmail right inside the app.

Kodak sues Apple, BlackBerry

Eastman Kodak Company is suing Apple and BlackBerry maker Research in Motion (RIM) for infringement of its imaging technology by the two giants in digital cameras in their iPhone and BlackBerry devices.

In a lawsuit filed with the US International Trade Commission (ITC), Kodak claims that digital cameras in Apple's iPhones and RIM's BlackBerry devices infringe its patent that covers technology related to previewing images.

Laura G Quatela, vice president of Eastman Kodak Company, said they "had discussions for years with both companies in an attempt to resolve this issue amicably, and we have not been able to reach a satisfactory agreement.

"In light of that, we are taking this action to ensure that we protect the interests of our shareholders and the existing licensees of our technology.''

Urging the trade commission to bar Apple and RIM from shipping infringing devices, including mobile phones and wireless communication devices featuring digital cameras, Quatela said, "Our primary interest is not to disrupt the availability of any product but to obtain fair compensation for the use of our technology.

"There is a basic issue of fairness that needs to be addressed. Those devices use Kodak technology, and we are merely seeking compensation for the use of our technology in their products."

Kodak also filed two separate suits against Apple Thursday for alleged infringement of its patents related to digital cameras and certain computer processes.

In the first lawsuit, Kodak alleges infringement of two patents related image preview and the processing of images at different resolutions.

In the second suit, it alleges infringement of patents that describe a method by which a computer programme can 'ask for help' from another application to carry out certain computer-oriented functions. The infringement allegations apply to any Apple product that uses the processing method described above.

"We remain open to negotiating a fair and amicable agreement with both Apple and RIM, which has always been our preference and our practice with other licensees,'' said Quatela who is also chief intellectual property officer of Kodak.

"We seek to avoid litigation in our licensing programmes whenever possible. But when the infringement is persistent, we will act to defend the interests of our shareholders and licensees, and to promote the fair compensation that is the bedrock of innovation.''

Based at Rochester in New York State, Kodak invented the first digital camera in 1975 and claims to have more than 1,000 digital imaging patents.

The photographic and optical equipment maker employees more than 20,000 people worldwide.

China slams US criticism of Internet control

China needs no lessons about its Internet from the United States, the head of an online media association said through official media on Saturday, after the United States rapped Beijing over information freedom.

Following a speech by U Secretary of State Hillary Clinton, on Thursday, Beijing has issued a stinging response that it is jamming the free flow of words and ideas on the Internet, accusing the United States of damaging relations between the two countries by imposing its "information imperialism" on China. In her speech in Washington, Clinton cited China as among a number of countries where there has been "a spike in threats to the free flow of information" over the past year. She also named Tunisia, Uzbekistan, Egypt, Iran, Saudi Arabia and Vietnam. Washington, meanwhile, carried its message on Internet freedom directly to Chinese bloggers. The U S Embassy in Beijing, and consulates in Shanghai and Guangzhou, hosted Internet-streamed discussions with members of the blogging community on Friday afternoon - the latest example of Washington's outreach to Chinese bloggers as a way of spreading its message.

Clinton's speech came on the heels of a Jan. 12 threat from Google to pull out of China unless the government relented on censorship. Eric Schmidt, Google's chief executive, said on Thursday that the company hoped to find a way to maintain a presence in China but intended to stop censoring search results within "a reasonably short time."

"On the Internet question, China doesn't need any lessons from the United States on what to do or how," said Min Dahong, Chairman, Beijing Association of Online Media.

Internet control is considered a critical matter of state security in China, and Beijing is not expected to offer any concessions. Beijing promotes Internet use for commerce, but heavily censors content it deems pornographic, anti-social or politically subversive and blocks many foreign news and social media sites, including Twitter and Facebook and the popular video site YouTube.

Responses to the Google issue have ranged widely among Chinese Internet users, with some placing flowers at its Beijing headquarters and others penning screeds bidding good riddance.

U S State Department officials have said they intend to lodge a formal complaint with Chinese officials soon over the Google matter. Clinton not only urged China to investigate the cyber intrusions but openly publish its findings.

India Inc buys 143 US cos in 2 yrs

The greater engagement of US with India seems to have benefited the former during the economic downturn as thousands of Americans managed to save their jobs when Indian corporates went on a major acquisition drive in the US.

During the last two years, Indian companies acquired 143 US firms across various sectors. While 94 deals were concluded in 2007-08, in the following year when the economy was on the downturn, Indians bought as many as 50 US entities that were on the verge of closure, saving thousands of jobs.

A study, jointly conducted by Indian industry association FICCI and Ernst & Young, said Tata Chemicals, Wipro, Reliance Communications and Firstsource Solutions were some of the top Indian entities that were involved in bailing out US companies in the red.

The report released on Thursday said IT&ITeS, manufacturing and pharmaceuticals were the prime sectors in which most of the deals were formalised. Indian companies from the IT sector have over the years been aggressively expanding in the US market.

The deals were predominantly debt financed with cash being a popular mode of payment. "This trend probably extends from India Inc's traditional preference for cash transactions in the domestic merger and acquisition space," the report observed.

The Ernst & Young report says the boom in the Indian economy in the last three to four years made the domestic companies cash-rich which provided them with access to more capital than in the past.

Interestingly, one of the key factors, as the report cites, behind more acquisitions has been the liberal policies introduced by the government and RBI for overseas investments.

According to RBI data, in 2007-08 the total outbound investments of Indian companies amounted to $18 billion. In the first half of 2008-09, at least 2,000 proposals valued at $9 billion were cleared for overseas investments in joint ventures and wholly owned subsidiaries.

Google’s China hack, an insider’s job?

Google is investigating whether one or more employees may have helped facilitate a cyber-attack from China that the US search giant said it was a victim of in mid-December, two sources told Reuters.

Google, the world's most popular search engine, said last week it may pull out of the world's biggest Internet market by users after reporting it had been hit by a "sophisticated" cyber-attack on its network that resulted in theft of its intellectual property.

The sources, who are familiar with the situation, told Reuters that the attack, which targeted people who have access to specific parts of Google networks, may have been facilitated by people working in Google China's office.

"We're not commenting on rumour and speculation. This is an ongoing investigation, and we simply cannot comment on the details," a Google spokeswoman said.

Security analysts told Reuters the malicious software (malware) used in the Google attack was a modification of a trojan called Hydraq. A trojan is malware that, once inside a computer, allows someone unauthorised access. The sophistication in the attack was in knowing whom to attack, not the malware itself, the analysts said.

Local media, citing unnamed sources, reported that some Google China employees were denied access to internal networks after January 13, while some staff were put on leave and others transferred to different offices in Google's Asia Pacific operations. Google said it would not comment on its business operations.

Google, which has denied rumours that it has already decided to shut down its China offices, said on Monday it contacted the Chinese government last week after the announcement.

"We are going to have talks with them in the coming few days," Google said. Google is also still in the process of scanning its internal networks since the cyber-attack in mid-December.

China has tried to play down Google's threat to leave, saying there are many ways to resolve the issue, but insisting all foreign companies, Google included, must abide by Chinese laws.

Washington said it was issuing a diplomatic note to China formally requesting an explanation for the attacks.

The Google issue risks becoming another irritant in China's relationship with the United States. Ties are already strained by arguments over the yuan currency's exchange rate, which US critics say is unfairly low, trade protectionism and US arms sales to Taiwan.

Washington has long been worried about Beijing's cyber-spying programme. A congressional advisory panel said in November the Chinese government appeared increasingly to be penetrating US computers to gather useful data for its military.

'China tried to hack India's computers'

Chinese hackers have tried to penetrate computers in the offices of National Security Adviser MK Narayanan, a British paper quoted him as saying.

Narayanan said his office and other government departments were targeted on December 15, the same date that US defence, finance and technology companies, including Google, reported cyber attacks from China.

"This was not the first instance of an attempt to hack into our computers," Narayanan told The Times in an interview, adding the would-be hackers sent an e-mail with a PDF attachment containing a Trojan virus.

The virus, which allows hackers to download or delete files, was detected and officials were told not to log on until it was eliminated, Narayanan said.

"People seem to be fairly sure it was the Chinese. It is difficult to find the exact source but this is the main suspicion. It seems well founded," he told The Times, adding that India was cooperating with the US and Britain to bolster its cyber defences.

The Chinese government has denied any role in the attacks, with a foreign ministry spokeswoman saying: "Hacking in whatever form is prohibited by law in China."

Narayanan said that while he expected China to be an increasingly high security priority for India, the main threat still came from militants based in Pakistan.

He said Islamabad had done nothing to dismantle militant groups since the 26/11 Mumbai attacks, and criticised Britain for accepting its excuse that such groups were beyond its control.

"The British are still blinkered on this. We believe Pakistan's policy of using terror as a policy weapon remains," Narayanan said, adding India is anxious to prevent an attack from Pakistan during the Commonwealth Games in October.

"From Pakistan's point of view, it's important to disrupt the Games so you can claim that India is not a safe place," Narayanan said.

We will stay in China: Microsoft

Microsoft Corp has no plans to pull out of China, its chief executive has said, playing down concerns about recent cyber-attacks and censorship raised by rival Google Inc.

The company's stance indicates the world's largest software maker is not likely to support its fierce rival in its battle with China and rebuffs broad US political backing for Google.

"There are attacks every day. I don't think there was anything unusual, so I don't understand," Microsoft CEO Steve Ballmer told Reuters after a meeting on modernizing government services at the White House.

"We're attacked every day from all parts of the world and I think everybody else is too. We didn't see anything out of the ordinary."

Recently, Google threatened to pull out of China - the world's biggest Internet market by users - citing censorship and cyber attacks on rights activists' email accounts there.

Google claimed more than 20 other large companies had been the target of cyber-attacks originating in China, but Microsoft has said it has no evidence any of its e-mail services or corporate networks being specifically attacked.

When asked if Microsoft had any plan to pull its business out of China, Ballmer answered "No."

"I don't understand how that helps anything. I don't understand how that helps us and I don't understand how that helps China," Ballmer said.

Microsoft has high hopes for its Bing Internet search engine in China, which has only a small share of the market, but could benefit if Google, the No. 2 player behind dominating local rival Baidu Inc, pulls out.

Ballmer's comments run counter to broad political support for Google. The White House said on Thursday it is backing Google's decision to no longer support China's censoring of searches.

A group of Republican lawmakers on Thursday called for tech heavyweights Cisco Systems Inc, Yahoo Inc and Microsoft to speak out against censorship, while House Speaker Nancy Pelosi urged tech companies not to assist China's attempts to prohibit free exchange of ideas.

Google may pull out of China

Google Inc said it may pull out of China because it is no longer willing to accept censorship of search results and after hackers coordinated a sophisticated attack on email accounts of human rights activists using its Gmail service.

Google's surprise announcement on Tuesday came shortly after an adviser to US Secretary of State Hillary Clinton said she will announce a technology policy next week to help citizens in other countries to gain access to an uncensored Internet.

More than 20 other companies were also attacked by the China-based hackers, Google said. Google said the hackers had tried to access the Gmail email accounts of Chinese human rights activists but only managed to access two unidentified accounts, and then only headlines and other data such as when the account was created.

It did not say what information the hackers tried to access from the other corporations, nor which they were. Google said it was now notifying the other affected corporations, adding that it was working with the US authorities.

"These attacks and the surveillance they have uncovered -- combined with attempts over the past year to limit free speech on the Web -- have led us to conclude that we should review the feasibility of our business operations in China," Google said in a statement.