Technology Trends

I used to think Ubuntu was destined to lead Linux into the mainstream, but now it's looking much more like Google–not Canonical–will be the first Linux vendor to truly challenge Microsoft.

Google's migration into the operating system business has been so gradual that many industry watchers have shrugged it off. When the company announced its Android OS for phones, it looked interesting. There was nothing new about the idea of using Linux on a handset, and (apart from Google's involvement) little reason to expect it would carve out substantial market share in the competitive smartphone arena. But, with about 20 distinct Android handsets in the hands of more than three million users worldwide–and about 30 more devices expected to roll out in 2010–Google's mobile OS is now looking like a force to be reckoned with.

What's most striking about Google's apparent success in the OS market is that it has chosen not to fight Microsoft where it is strongest (on the desktop), but where it is waning. While Windows Mobile 6.5 is a competent mobile OS, Microsoft has failed to generate genuine excitement for users who've been dazzled by the far more compelling iPhone OS. Simultaneously, Microsoft has not managed to convert its dominance in the data center into a serious challenge to RIM's BlackBerry devices among business users.

Carolina Milanesi, Gartner research director for mobile devices, reports that Windows Mobile slipped to 7.9 percent in the third quarter of 2009. World leader Symbian also slid, from 49.7 percent to 44.6 percent. Meanwhile, BlackBerry and iPhone have grown to 20.8 percent and 17.1 percent, respectively. Amid all this shuffling, Google Android has carved out a 3.5 percent share for itself in the mobile marketplace. Not bad for a newcomer.

The desktop market, over which Microsoft utterly dominates with a market share exceeding 92 percent according to the latest Net Applications stats, is another story entirely. In this arena, all desktop Linux distributions combined comprise less than one percent of the total market–a statistic that hasn't budged in years despite great strides in both the overall quality of Linux distributions and support from major PC vendors.

Google appears to have effectively executed its entry into the OS business by targeting the rapidly expanding mobile sphere, and it's now starting to reap rewards for its efforts. Android isn't just building a user base, it's generating real buzz among consumers. This excitement doesn't appear likely to let up anytime soon, either. With big-name manufacturers rolling out handsets across all major carriers in a steadily flowing stream of hot product announcements, Android's momentum will almost certainly continue to build.

Here Comes Chrome OS

Now Google is eyeing somewhat larger devices with Chrome OS, an open-source operating system for x86 and ARM-based netbooks that will be available for free and may actually surface in beta as soon as this week. While it would be foolhardy to make any bold predictions about this still-unseen OS, conditions look good for Google. Microsoft has regained some clout with netbook buyers by making Windows 7 netbook-worthy, but has also managed to disrupt its own success by placing needless restrictions on which versions of Win 7 will run on certain devices.

Microsoft has reason to be glib. After all, it handily trounced Linux on the netbook platform–even after Asus, Dell, and Acer sold large numbers of Linux-based systems, creating what may have been the largest-ever influx of new users to Linux. Now Microsoft is sitting squarely on top of the netbook market and has begun dictating terms its usual manner. But the battle is not yet won, and there remains a solid opportunity for open source software on netbooks.

Microsoft's main attraction–on netbooks, laptops, or desktops–is its familiarity. Both as a name and as an interface, Windows is a comfortable standard for users. Ubuntu offers a look and feel familiar enough for any mildly savvy user to get comfortable with, but not familiar enough outcompete Windows with mainstream users. Chrome OS, which will use a new windowing environment with the Chrome browser as its main interface, won't compete with Windows on familiarity. Instead, it will focus on two things Windows still lags in that are critical to success on small-form devices: simplicity and cloud connectivity. Once again, Google is attacking Microsoft at its weak points.

In bringing Chrome OS to market, Google has taken on some powerful partners. Intel, HP, Lenovo, Toshiba, Acer, Qualcomm, Freescale, and Adobe are all on board. This is about as close as you can get to a netbook-building dream team. As the hardware makers in this group vie to differentiate their Chrome OS devices, consumers are bound to get a wealth of interesting options. The strong will survive, the weak will go back to the drawing board, and Chrome will likely evolve–just as Android has–into a compelling platform all its own.

Living In the Cloud

Chrome OS will be a cloud-based environment, depending on access to online services. Most notably Chrome OS will support Google's own services, though the early announcements have included a call for broad development of third-party Web-based apps for Chrome OS devices.

Android devices have already shown the power of this model. I personally own a Motorola Droid handset, and use Gmail, Google Calendar, Google Docs, and other related services for most of my work. In fact, switching to Android has quickly strengthened my dependence on Google services, as it has allowed me to do more work from wherever I happen to be standing. Like most Android users I know, I'm increasingly open to the idea of a larger device that offers the same seamless support for cloud computing and lets me get more done.

Of course, living in the cloud does come with drawbacks. The biggest problem, of course, is what to do when the cloud is down. Over the past year, we've seen numerous outages for Gmail, and each one has been greeted by an uproar from users whose lives and work are disrupted by the service failures. Fortunately for users, these outages have consistently been brief, and have not tended to disrupt access via IMAP. And for those who work offline through Google Gears, access to existing e-mail, documents, and calendar items remains constant even when the servers go down.

Community Action

Whether a Chrome OS beta rolls out this week, next week, next month, or next year, its success will depend heavily on the vast community of sophisticated users and developers who have helped to create such a staggering array of Linux distributions from the kernel up over the last 18 years. Google's name and industry clout can only take a new OS so far.

Fortunately for Google, the company has spent years cultivating relationships throughout the open source community. So it should quickly find a large base of experienced testers willing to download this beta the instant it hits the Web.

It's encouraging to bear in mind that, for most Linux users, the expectation from beta software is generally tempered by a reasonable expectation of finding–and more importantly, reporting–bugs. This deeply engrained practice within the Linux community sets the stage for a productive beta test for Google, while ensuring that those most likely to run the beta are unlikely to be deterred by a normal round of bug fixes before launch.

Plenty of Other Fish

It may be tempting to think that Chrome OS could spell an end to other, less widely supported distributions of Linux, but I think such concerns are ill founded. The Linux world is based on nothing so much as a deep desire for diversity and choice in computing. It's no accident that there are hundreds of distributions available, and the introduction of a successful new leader will only serve to expand opportunities for other distributions. This is just the way things work with open source.

For the last several years, Ubuntu has managed to steal most of the limelight from other consumer distros, while workhorses like Red Hat and SUSE have continued trucking along in the business market. But for the Linux enthusiast, any new distro is good news and an opportunity to play, learn, and explore.

The advantage of having a major name in the game is that it attracts more users and developers to the platform. Google is no exception. Even a Microsoft Linux (as long as it complied with the GPL) would be good for the open source community. Companies like these bring big partnerships to the table, as Google has already managed to do for Chrome OS. And in return, according to the terms of the GPL, these companies must make a significant portion of their own code available to the open source community. In this scenario, everyone wins.

Waiting On Google

For now, of course, there is no Chrome OS to speak of. Google has yet to offer so much as a preview of the OS, and stories of prerelease downloads have proven bogus. Until we see an actual announcement from Google, almost everything we can say about this OS is speculation based on scant information.

What is certain, however, is that when the beta does launch, it will put a serious toll on Google's servers.

Robert Strohmeyer is a senior editor at PC World, and has been an open source advocate for 15 years. He tweets as @rstrohmeyer.

U.K. police are hailing the sentencing of four people who used a sophisticated Trojan horse program to siphon money out of online bank accounts and send it to Eastern European countries and Russia.

The case marks the first collaboration between the financial industry and the Police Central e-Crime Unit (PCeU), which was established earlier this year after accusations the U.K. government wasn't doing enough about cybercrime.

The men used a Trojan horse program called PSP2-BBB that executed a so-called man-in-the-browser attack when potential victims logged into online bank accounts. The Trojan would insert a special page within the customer's browsing session asking for more personal information, according to police. The Trojan would then set up a transfer to another account, according to police.

The security company RSA cited an increasingly number of attacks in the U.K. using PSP2-BBB in a report released last month about online fraud.

In such attacks, the money would be transferred later in the day to a "dump" account, or one belonging to a money mule. A mule is someone who has either been deceived into receiving illegal funds or knowingly agrees to accept the money in their own account.

Typically, the mule withdraws the money, takes a small cut as a fee and transfers the rest using a service such as Western Union. In the U.K. case, most of the money went to Russia or other places in Eastern Europe, according to the PCeU.

Multiple financial institutions were attacked and "hundreds of thousands" of pounds were stolen, said Richard Jones, spokesman for the Specialist Crime Directorate of the Metropolitan Police Service, under which the PCeU falls. The exact cost of the fraud hasn't been released.

For the first time, the PCeU worked closely with financial institutions and other entities such as ISPs, Jones said. Without their cooperation, "you can only get so far," Jones said.

In April, more than 50 officers raided several addresses in southeast London to pursue the gang, which originated in Eastern Europe, police said.

On Friday in Southwark Crown Court Azamat Rahmonov, 25, of Uzbekistan, was sentenced to four and a half years for conspiracy to defraud and money laundering. Shohruh Fayziev, 23, of Uzbekistan, was sentenced to four years for conspiracy to defraud and possession of articles for use in fraud.

Joao Dos Santos Cruz, 33, of Angola, was sentenced to three years for conspiracy to defraud, possession of articles for use in fraud and possession of false identity documents. Paolo Jorgi, 36, of Portugal, was sentenced to 21 months for money laundering. A fifth person, Edgar Orlando Henriques, 21, of Venezuela, is still at large.

The convictions come as the U.K. is undertaking new efforts to fight online crime and fraud. The PCeU will receive about £7 million (US$11.7 million) in funding over the next three years from the Home Office and Metropolitan Police, a figure police officials have said isn't enough. The U.K. is also developing the National Fraud Reporting Center that will comprehensively track all forms of e-crime and fraud.

The police have their work cut out for them. According to figures released last month, online banking fraud increased 55 percent to £39 million for the first half of this year compared to the same period a year ago, according to Financial Fraud Action UK (FFA), which collects data reported by U.K. financial institutions. FFA blamed an increase in sophisticated malicious software programs.

What mythical product will simultaneously kill off the Kindle, iPod, Zune, iPod, Nintendo DS, and a whole slew of cheap netbooks? Oh, and during recharges, it'll save newspapers and magazines, reinvent TV viewing (and maybe deep-six the cable guys), and make mobile Web browsing a lot more enjoyable with a lot less finger dragging and pinching.

The answer, of course, is the mysterious and as-yet-unannounced Apple tablet, which reportedly will ship next year, according to ongoing rumors from numerous sources. Steve Jobs himself is said to be spearheading the project.

CNN on Monday was the latest media outlook to speculate on Apple's hottest non-product. The report didn't dredge up any new details, but it did provide a clear indication of the tech industry's high expectations for the mysterious device.

CNN's David Goldman quotes several industry watchers, some bullish on the tablet, others skeptical. What's interesting is how much the optimists see the tablet as a potential tech industry game-changer:

"This will be the next big thing," said Laura DiDio, principal analyst at ITIC. "Apple is going to wow everybody with the tablet."

And then there's this quote:

"Apple will come out with the tablet and blow everyone away," said Dan Ackerman, senior editor at CNET.

Now, neither DiDio nor Ackerman say they've seen a prototype of the Apple tablet, and yet they're convinced the product will be huge. To be fair, if they have seen it under a nondisclosure agreement, they couldn't say so. But given Apple's legendary secrecy with its unannounced products, I'll assume they haven't.

Apple's reputation for amazing the tech world is clearly the driving force behind the tablet's positive buzz. Then again, not everybody is upbeat about the prospects of a notebook-sized slate that may be awkward to carry around.

Yankee Group analyst Zeus Kerravala tells CNN that multifunction devices seldom perform as well as their single-use counterparts. Example: Would an Apple tablet with a gorgeous, high-resolution color display and a (likely) limited battery life be a better e-book reader than a Kindle, which can last for days between charges?

I guess we'll find out soon enough. Personally, I'm excited to see what Apple has up its sleeve. The company has amazed us before. Can it do so again?

Contact Jeff Bertolucci via Twitter
(@jbertolucci
) or at
jbertolucci.blogspot.com
.

Microsoft is making its Windows Marketplace for Mobile available to phones running older versions of its mobile software, although not all of the apps may be available to all Windows Mobile users.

On Monday, Microsoft said users of phones running Windows Mobile 6.0 and 6.1 can now shop for and download apps from its Marketplace. The Marketplace was initially only accessible by users of Microsoft's most recent software, Windows Mobile 6.5.

It also said that the store now has 800 apps, triple the number available at the launch of the store in October.

But not all of those are available to everyone. Microsoft's Web site that lets anyone browse through the Marketplace has just 376 applications.

"People may not see all of them on the Marketplace website or smartphone catalogue, either because of regional access or because certain apps have specific device requirements such as GPS, screen sizes, etc.," Todd Brix, senior director of mobile services and platform product management for Microsoft, said in an e-mailed statement.

The discrepancy between the total number of apps and the number of apps in the online store demonstrates the downside to a business model like Microsoft's, with an OS that can be used on different kinds of phones. The model allows end-users the luxury of choosing the phone design they prefer, but it comes with limitations in interoperability. However, Google's Android operating system is also running on phones with different form factors. The Android Market has 12,000 apps and so far doesn't seem to have significant issues with application interoperability.

Apple is on the other end of the spectrum, because it makes both the software and the hardware and also runs the app store. That vertical integration is at least part of the reason that there are now 100,000 applications in the iPhone App Store.

Microsoft says there are more than 18,000 commercial applications available for Windows Mobile. Developers of those apps must submit them in order for them to appear in the new Marketplace. Otherwise, they are only available through third-party sites. "Windows Marketplace for Mobile will not aggregate all available applications, but rather provide customers with a single source for purchasing quality tested applications backed by a money back guarantee," Microsoft said in a statement.

tar can't catch a break. After spending more than a year in a legal battle w ith Apple for selling Intel based systems pre-loaded with Mac OS X, the company lost its battle on Friday when a federal judge ruled in favor of Apple.

Apparently the federal government doesn't support companies violating copyright law, EULA restrictions, and the Digital Millennium Copyright Act — too bad for Psystar.

Here's a play-by-play of events in the long legal battle:

April 2008 - The $399 Mac Clone

Psystar started selling $399 Mac clones that shipped running Mac OS X Leopard, despite the license agreement clearly stating that Apple software could not be installed or run on a non-Apple computer.

The base configuration Open Computer sported a 2.2GHz Intel Core 2 Duo Processor and 2GB memory. At the time the cheapest Apple computer, the Mac Mini shipped with a 1.83GHz Intel Core 2 Duo Processor and 1GB of memory.

Psystar's Web site directly challenged Apple hardware by asking, "Why spend $1999 to get the least expensive Apple computer with a decent video card when you can pay less than a fourth of that for an equivalent sleek and small form-factor desktop with the same hardware."

July 2008 - Apple Files Suit:

Apple filed suit against Psystar claiming it violates copyright and licensing agreements by selling computers with Mac OS X, starting the long legal battle between the two companies.

August 2008 - Psystar Accuses Apple of Antitrust:

Lawyers for Psystar announce the company plans to free Mac OS from the "anticompetitive tactics" of Apple and its hardware prices by filing an antitrust lawsuit against Apple.

"My goal is to provide an alternative, not to free the Mac OS," said Rudy Pedraza, owner of Psystar. He added that he wanted to provide a cheap alternative to Apple's hardware.

November 2008 - Apple Wins Antitrust Case:

Psystar takes a major hit when U.S. District Court Judge William Alsup says its allegations that Apple holds a monopoly over its operating system are "internally contradictory" and "circular." Alsup dismissed the antitrust case.

Apple ensues to pour salt on Psystar's wounds by adding a DMCA violation charge against the company saying it broke through antipiracy defenses.

February 2009 - Green Light for Psystar Countersuit:

U.S. District Court Judge William Alsup rules that Psystar can rethink its countersuit against Apple.

Instead of arguing that Apple is in violation of antitrust law, Psystar proposes that Apple is stretching copyright laws by linking its operating system to its hardware.

Alsup also hints that Psystar may become a hero of the tech industry, boosting Psystar's moral after several months of tough battle against Apple. Alsup said if Psystar proves its case, other companies may be able to sell computers pre-installed with Mac OS X.

October 2009 - Software Runs Mac OS:

Psystar provokes Apple by starting to sell Rebel EFI on its Web site for $50. The software contains the company's Darwin Universal Boot Loader that allows up to six operating systems to be crammed onto one hard drive, including Mac OS.

June 2009 - Suit OK'd Despite Psystar's Chapter 11:

Florida Bankruptcy Judge Robert Back lifted a hold placed on Apple's lawsuit against Psystar after the company filed for Chapter 11 bankruptcy protection, allowing Apple to move ahead with the case.

July 2009 - Psystar Seeks to End Bankruptcy:

Psystar aked a Miami federal bankruptcy court to dismiss its Chapter 11 case since it could not reach a payment agreement with its legal firm. Psystar owed the firm $88,000.

July 2009 - New Legal Counsel for Psystar:

Unable to reach a payment agreement with its previous legal representation, Psystar hires Houston-based Camara & Sibley as its new legal team. The firm represents plaintiffs for a flat fee instead of a success-fee basis.

August/September 2009 -Snow Leopard Suit:

Psystar sues Apple again.

This time it accuses Apple of breaking antitrust legislation by tying its new operating system, Snow Leopard, to Apple hardware. Sound familiar?

Despite a continuing legal battle with Apple and new law suit, Psystar makes the new operating system available to its customers as a $69.99 optional upgrade.

Sept 26, 2009 - Apple Seeks Dismissal:

U.S. District Court Judge William Alsup rejected Apple's request to throw out Psystar's suit over Snow Leopard. The judge also criticized Apple for releasing the new operating system after the discovery period of the previous case closed. He said the suspicious timing effectively took Snow Leopard out of the case.

October 2009 - Apple, Psystar Seek an End:

Psystar agrees to stop selling machines with Mac OS X Leopard, conceding to an injunction.

Lawyers f rom Apple and Psystar submit motions for summary judgment to U.S. District Court Judge William Alsup. The motion for summary judgment asked the judge to reach a decision based on the arguments that had already been made.

Uncertain Future:

Although the larger battle goes to Apple with the recent victory over Psystar, the legal battle is far from over.

Apple is still waiting a judgment on several accusations against Psystar including breach of contract, trademark infringement, trademark dilution, trade dress infringement, and unfair competition.

Psystar's antitrust suit against Apple linking its hardware and Snow Leopard is still on the table, but things aren't looking good for the Mac cloner.

A federal judge has ruled in Apple's favor in its lawsuit against Mac-clone maker Psystar. Prevailing in the court battle seems like it should be a good thing, but what Apple really gets out of the victory is limited market share potential. Uhm, congratulations?

Obviously, I am not a lawyer, but it does seem like Apple's case against Psystar was pretty solid. In order to make the Mac operating system work on the PC clone hardware Psystar had to actually hack part of the operating system and replace it with unique code of its own. Even if Apple was being compensated, the result still seems that Psystar was profiting from a derivative work that violates Apple's copyright.

U.S. District Court Judge William Alsup explains in his ruling "In sum, Psystar has violated Apple's exclusive reproduction right, distribution right, and right to create derivative works."

I don't agree that Apple should have the ability to restrict the hardware that I install the Mac OS X software on, but based on the application of existing laws I can understand why Apple won this case. The fact that Apple can leverage existing law to maintain draconian control over how its products are used is a flaw with the laws and their application, not with Apple.

I don't understand or agree with most copyright law and EULA restrictions as they pertain to computer hardware and software. As far as I am concerned, Apple dictating what hardware I can install Mac OS X on is like Doubleday Books telling me where I am allowed to read Dan Brown's The Lost Symbol, or like Sony restricting me from playing The Taking of Pelham 123 on a Toshiba DVD player.

Imagine if other industries worked like that. Let's use cars as an example. You pay $30,000 for the privilege of indefinitely 'borrowing' a Chevy Camaro, but General Motors reserves the right to tell you where you can park it. And, if you try to customize or modify it in any way, like changing the factory-default rims or installing a new stereo system, General Motors sues you for creating a 'derivative work'. There would be riots.

I fully understand that I can't reproduce the product in part or whole for redistribution as my own. Got it. But, once I have paid Apple for my copy of Mac OS X it shouldn't be Apple's business any longer what I do with it. If I want to modify it to make an automated toaster oven, or use the DVD as a coaster for my coffee mug that should be my prerogative. Its mine, I paid for it.

This judgment comes in the wake of the recent update Apple released for the Mac OS X operating system that prevents users from creating 'Hackintosh' systems. By removing support for the Intel Atom processor, Apple effectively disabled the ability for users to install Mac OS X on inexpensive netbook hardware.

The Psystar case and the Hackintosh 'update' both work to ensure that Apple retains complete, draconian control of every aspect of Mac ownership. From developing the operating system, to what hardware the operating system can run on, to where you can buy the hardware and software, Apple dictates the customer experience.

The result is a solid operating system and a wonderful customer experience, with little or no potential of growing much beyond its current market share. Apple seems to be generating huge profit and maintaining high customer satisfaction just fine though, so choosing draconian control over market dominance seems to be working out OK.

Tony Bradley tweets as @PCSecurityNews, and can be contacted at his Facebook page.

Right up against a deadline to submit a revised settlement agreement to a judge overseeing a lawsuit filed against Google by the Authors Guild and the Association of American Publishers, the parties filed their second take near midnight on Friday. The original settlement agreement had come under fire from many parties but most notably from the U.S. Department of Justice, whose withering and broad critique of the deal led the judge to demand revisions in the proposal.

At issue is Google's Book Search program, which drew a class-action lawsuit in 2005 when authors and publishers challenged Google's plan to scan hundreds of thousands of books without always securing advance permission from copyright owners. The parties crafted a settlement in October last year that was broadly criticized. The DOJ's concerns about the settlement's compatibility with copyright and antitrust law were the final nail in the coffin of the original draft, and Judge Denny Chin from the U.S. District Court for the Southern District of New York gave Google and the plaintiffs until midnight Friday to submit a revised proposal.

Google listed the following revisions in a statement issued early Saturday:

– The settlement will only include books that were either registered with the U.S. Copyright Office or published in the U.K., Australia, or Canada. Rightsholders in those countries are joining the case as named plaintiffs.

– The Book Rights Registry that Google and the plaintiffs had agreed to establish will search for rightsholders who have not yet come forward and to hold revenue on their behalf. The settlement now also specifies that a portion of the revenue generated from unclaimed works may, after five years, be used to locate rightsholders, but will no longer be used for the Registry's general operations or redistributed to other rightsholders. The Book Rights Registry is intended to manage a royalty system to compensate authors and publishers from the sale of digitized books.

– Explicitly written into the settlement is the provision, offered by Google in September, that any book retailer will be able to sell consumers online

access to the out-of-print books covered by the settlement, including unclaimed books.

– The revision clarifies that rightsholders can choose to make their books available for free or allow re-use under Creative Commons or other

licenses. Rightsholders can also choose to modify or remove restrictions placed on Google's display of their books, such as limits on the number of pages that users can print.

– The Registry is now free to license to other parties without ever extending the same terms to Google.

The Open Book Alliance immediately came out against the revised settlement, issuing a statement early on Saturday claiming that the new proposal does not address "the fundamental flaws illuminated by the Department of Justice and other critics that impact public interest."

"By performing surgical nip and tuck, Google, the AAP, and the AG are attempting to distract people from their continued efforts to establish a monopoly over digital content access and distribution; usurp Congress's role in setting copyright policy; lock writers into their unsought registry, stripping them of their individual contract rights; put library budgets and patron privacy at risk; and establish a dangerous precedent by abusing the class action process," Open Book Alliance co-chair Peter Brantley said in the statement.

(Juan Carlos Perez contributed to this report.)

Cyber-criminals have started preying on Verizon Wireless customers, sending out spam e-mail messages that say their accounts are over the limit and offering them a "balance checker" program to review their payments.

The e-mail messages, which look like they come from Verizon Wireless, are fakes; the balance checker is actually a malicious Trojan horse program.

"If you run the tool, obviously, your computer is toast," said Nick Bilogorskiy, manager of antivirus research at SonicWall. "You get infected with a Trojan that SonicWall catches under the name Regrun."

The scammers started sending out the messages around 11:30 a.m. Pacific on Friday, and they quickly flooded the Internet with their spam. Within a few hours, SonicWall had intercepted the messages at about 16 percent of its customers, Bilogorskiy said.

That translates to about 200,000 messages per hour on SonicWall's sensors. "The volume of these e-mails is just huge," Bilogorskiy said.

Victims who download the software open up a back door to their computer, where more malware can be downloaded from the Zbot botnet, which is known for stealthily lifting online banking credentials and emptying accounts. For the bad guys, the payoff is big. Recently, the U.S. Federal Bureau of Investigation said this type of financial fraud has removed US$100 million from U.S. bank accounts.

Criminals are always looking for new ways to trick people into downloading their software, and this billing-cycle scam is simply the latest, Bilogorskiy said.

This week, PC World editors Steve Fox, Robert Strohmeyer, and Tim Moynihan are joined by Macworld's Jason Snell for to explore all the hubbub over allegations that Microsoft has copied Apple in the design of Windows 7.

But first, Steve Fox walks us through the history of Intel's disputes with rival chip maker AMD, and sheds light on the settlement between the two companies.

Also, do Microsoft retail stores make sense? The gang weighs in.

Download the podcast here.

We want to read your feedback, so drop us a line! You can reach us at iTunes. Also, you can subscribe to the weekly PC World Podcast either on iTunes or via thePC World RSS feed.

Cell phone lovers, get ready to rumble: AT&T and Verizon are duking it out in an ad-based battle, and the fight isn't showing any signs of slowing down. Now, some new data suggests the public is starting to take notice.

AT&T's Verizon Ad Battle

First, let's set the scene: In one corner, you have Verizon. The company recently launched a series of ads attacking AT&T's 3G network. The spots, revolving around the phrase "there's a map for that," show side-by-side maps of AT&T's and Verizon's networks and claim Verizon has five times more 3G coverage. Combine those with the ongoing series of iPhone-bashing Droid commercials, and you've got a powerful one-two punch heading straight toward AT&T's kisser.

In the other corner, of course, is AT&T. The company that's taken countless
beatings over its network is taking a stand against this latest round. AT&T sued Verizon over the 3G-focused ads, claiming the clips were misleading and causing the loss of "incalculable market share."

To be clear; AT&T's beef isn't with what the ads say about its 3G network, but rather what it believes the ads might imply: The maps, AT&T says, could lead a consumer to believe the company has no wireless coverage whatsoever in the whited-out areas, rather than believing only that it has no 3G coverage in those spots (a fact AT&T does not dispute).

"Through the use of a coverage map in [Verizon's] ads, they suggest through all white or blank space not only that AT&T doesn't offer 3G coverage but [also that it offers] no coverage at all," a spokesperson says.

The ads, by the way, feature clear captions that indicate it is the 3G networks being compared.

Now, AT&T's taking things a step further. The company issued a public statement this week to "set the record straight" with its customers. It also expanded its initial complaint to request Verizon pull its more recent ads, too — the ones that show an iPhone on the "Island of Misfit Toys."

AT&T vs. Verizon: The Public Perception

Okay — caught up with all the drama? Good. Now here's the important part: The ads, and perhaps the surrounding bickering, are in fact making a difference.

According to BrandIndex, a service that measures thousands of consumer brands year-round, public perception of Verizon has shot up since its ad campaigns began in October. AT&T's public perception, at the same time, has plummeted.

BrandIndex surveys a representative sample of the U.S. population every weekday. Prior to Verizon's recent campaign, Verizon had a "buzz score" among adults 18 to 34 years old of 8.3, while AT&T measured 1.4. By the end of last week, Verizon had jumped up to 24.2 and AT&T had dropped to -2.4. The buzz score ranges from -100 to 100 and represents how much positive news people report hearing about each company.

Perhaps even more telling, BrandIndex also measured how willing people said they were to recommend AT&T versus Verizon. In late October, the two companies were tied with scores of nine (on the same -100 to 100 point scale). By early November, Verizon had climbed up to 25, while AT&T had fallen to -8.

If all of that's not enough, the number of people reporting they're satisfied with AT&T has dropped in the past few weeks, too, according to BrandIndex's data — while the satisfaction score for Verizon has remained constant.

"It's a pretty significant movement," says Ted Marzilli, global managing director of BrandIndex. "A fair number of people are believing or responding to Verizon's positive message, and they're also second guessing or altering their opinions of AT&T."

The effect could be a combination of the map-driven ads and the general buzz surrounding Verizon's launch of the Motorola Droid, Marzilli points out. And how long the impact will last, he says, is hard to gauge.

Regardless, it seems the majority of bloggers agree upon one thing: Whatever damage Verizon's ads may be doing, AT&T's flailing is only making it worse. The company could stand to take a lesson from a lifeguard: When you're drowning, the worst thing you can do is kick and scream. It only makes you sink faster.

JR Raphael is the co-founder of geek-humor site eSarcasm. You can keep up with him on Twitter: @jr_raphael.

Google's Chrome operating system could mark a turning point in computing, but many questions remain. Today's rumor is the OS will be released to developers next week, answering some questions but probably raising even more. Google had previously promised Chrome OS, in some form, before the end of this year.

Chrome OS strikes me as being just enough Linux to allow an underpowered computer to run Chrome browser and connect to cloud-based applications. How exciting can that really be?

On a netbook, Chrome OS may be enough to provide mobile functionality. On a desktop, Chrome OS may turn a PC into a glorified terminal, relying on the Internet for nearly everything the user does.

There are many questions about Chrome OS, some of which may be answered when Google releases whatever it decides to make available to make good its promise to release the OS, in some form, before the end of this year.

Among those questions:

• Just how limited will Chrome OS be? What will and won't it do?
• Will it natively run third-party applications on the hardware where it resides? Or just to connect to applications in the Internet cloud?
• Will cloud apps need to be written specifically for Chrome?
• Will Chrome create a standard for the look-and-feel for cloud application?
• Might Chrome only run applications that Google hosts?
• Will Chrome require–or even use–a hard drive? Might Chrome OS netbooks have a small silicon drive and nothing else?
• When Google promises an end to security hassles, such a viruses, malware, or updates, what trade-offs are required?

Google has previously said Chrome is intended to be lightweight and get users connected to cloud applications quickly. The company seems to believe that cloud apps will become pervasive and will not require a very powerful machine to run them.

Thus, Google is creating a very lightweight browser (Chrome) to run atop what amounts to an embedded operating system (Chrome OS) running on netbooks (to be released next year).

I also expect the OS to include Gears, Google's technology for offline access to its cloud-based applications.

What will Chrome do beyond that? Maybe nothing. If Google really believes its cloud rhetoric and is really serious that Chrome OS will be virus-free, maybe the new OS won't run applications, just the browser and Gears?

Add a robust security mechanism, to make certain the cloud-based applications and Web sites haven't been tampered with, and Chrome could be a more secure operating system than we're used to. If only by keeping the computer from doing anything besides interacting with Web sites and web-based applications.

I find that idea strangely attractive, though it will certainly result in devices with limited functionality, just like today's netbooks. However, performance may actually be better since netbooks could be freed from laboring to run Windows and heavy Windows applications.

Google Chrome OS introduces a new computing model and may even change how we think about operating systems. Its importance hinges upon how widely and quickly cloud applications take center stage, what trade-offs customers are willing to make, and most importantly, what Chrome OS actually turns out to be.

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A hacker eager to reconnect modded Xbox 360s banned by Microsoft in recent days may be on the verge of releasing a workaround. According to 360Mods (by way of DailyTech), user 'c4eva' has shifted gears from developing Lite-on and Hitachi optical drive mods to creating a firmware rev that would allow modded Xbox 360s to bypass Microsoft's online security tests.

Called iXtreme LT (for 'light touch') the mod's being designed to resemble the Xbox 360's standard firmware while performing minimal security checks. If successful, it would allow gamers with modded Xbox 360s to play custom-burned DVDs as well as illegal versions of games online without drawing Microsoft's eye.

DailyTech initially reported the fix was available, then retracted the story and later published a revised version, noting "No ETA for fix, but modders are hard at work."

Modifying an Xbox 360 isn't technically illegal, but using it to play pirated games is. Some gamers argue the modified systems are only used to create backups of legitimately purchased games, install alternative operating systems, or play DVDs from different regions, though given general piracy rates, it seems likely a majority use the mod chip to access pirated versions of games, or keep illegal copies of otherwise legitimate versions they've sold.

It's still not exactly clear exactly how Microsoft's ban selection works or whether it only affects modded Xbox 360s whose owners actually engaged in illicit activities, but estimates of affected ranged from "a small percentage" of LIVE subscribers to a more significant 600,000 players on up to 1 million LIVE accounts, depending who you read.

DailyTech's sources claim the ban blocks game installations to the hard drive and the Windows Media Player extender, corrupts save games and Gamertags, and disallows the console from accessing Xbox LIVE.

Is it really just a matter of time before someone comes up with a workaround? Will we shortly be referring to Xbox 360s as either "stock" or "jailbroken"?

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Deep inside its top secret labs, Google has been piecing together a Frankenstein that will rise and forever change the Web. It's called Google Chrome. SPDY (pronounced "speedy"), a new application-layer protocol. SPDY is true to its name and is capable of revving Web download speeds up to 55 percent. (Developers are expecting to get a closer look at Chrome's newest build next week.) So what will Google do with this behemoth, and how will it affect the Web as a whole?

SPDY improves upon — but will not replace — our beloved HTTP protocol. It overrides parts of HTTP such as connection management and data transfer formats to intensify speeds. Google has opened the SPDY code to those interested, and, of course, requests feedback on its endeavors. There is no wide release date for SPDY, and Google notes it is still an "early-stage research project."

PC World touched base with MÃ¥ns Jonasson, a Web developer at IIS, which is responsible for the top-level Swedish Internet domain ".se." Jonasson said that in order for SPDY to become a success, all Web browsers need to be on board. Mozilla's always-open Firefox will likely join the parade; Microsoft might grumble and complain before deciding to maybe sign up.

But Google has the opportunity here to hoard SPDY, make it a Chrome-exclusive enhancement, and create a niche for speed-freaks who want the best possible Web browsing experience. Or Google could "do the right thing" and turn SPDY into a Web standard for all browsers, revolutionizing the playing field but passing off the chance to monopolize in favor of its credo, "Don't be evil."

Given its (relatively) smiley-face history, it is likely Google will choose the latter option and advocate for SPDY across the board. But I almost want Google to play hardball with its browser and technology. If SPDY lives up to expectations and indeed slams the pedal to the metal, Google could have on its hands the only logical choice when it comes to downloading a Web browser. It could totally disseminate the competition and put the eternally dominant Internet Explorer to shame. I'm rooting for the Dark Side.

Sony's PS3 continued to outpace Microsoft's Xbox 360 in October hardware sales according to US NPD Group data, though Microsoft cleaned up in top 10 software sales, claiming five slots and 44 percent of units total. The Wii took top honors overall, but plummeted in year-over-year comparisons, falling from 803k units in October 2008 to 507k units last month.

In a surprise tumble, October video game retail software sales fell to $573m, an 18 percent decline from last year's record $698m. Wedbush Morgan analyst Michael Pachter had earlier this week forecast October console software sales would be $620 million, up 20 percent compared to last year’s $515 million.

NPD analyst Anita Frazier put a positive spin on the data, noting October was "the third best October on record, behind October 2007 and October 2008."

"Based on typical industry seasonality, the industry is on track to generate full-year revenues in the range of $20-$21B in the U.S.," she said, a range that would fall only slightly below last year's record sales of $21.3 billion.

On the other hand, she noted economic tracking indices suggest consumers don't feel so hot about their personal finances, which could result in decreased spending over the holidays.

While gamers preferred the Wii and PS3 over the Xbox 360 in hardware unit sales, Microsoft's console contributed most to overall industry numbers (hardware, software, peripherals), accounting for 27 percent of total for the month. The PS3 was a close second, with 26 percent, an 8 point improvement over last October.

Hardware

507k - Wii458k - Nintendo DS321k - PlayStation 3250k - Xbox 360175k - PSP118k - PlayStation 2

Sony's PlayStation was the only system to realize a year-over-year sales increase, jumping 18 percent from 190k in October 2008 to 321k last month. The Xbox 360 and Wii decreased most, dropping 33 percent and 37 percent respectively.

"Hardware sales were down 17% in units for the month," said Frazier. "Compared to last month, which was a five-week month as compared to four weeks this month, Wii, PSP and NDS sales increased on an average sales per week basis, while the PS3 and Xbox 360 declined."

The Nintendo DS continues to sell strongly (it's approaching an all-time single-year US hardware sales record for the year) and Frazier says that while overall handheld unit sales are down, "dollar sales are up thanks to an increase in the average selling price of portable hardware generated by the higher price points of the new portable systems and bundles."

Year-to-date sales look worst for hardware, with unit sales off 10 points contrasted with the same period last year. Frazier notes that while the recent price cuts helped, they're not sustaining sales momentum, and that it'll be difficult to gauge the impact of those drops on holiday sales, as "those are always the two best months for the industry anyway, and we'd expect to see a sizeable lift in hardware unit sales as a result of seasonality."

Software

537k - Uncharted 2 / PlayStation 3441k - Wii Fit Plus / Wii418k - Borderlands / Xbox 360314k - Wii Sports Resort / Wii311k - NBA 2K10 / Xbox 360271k - Halo 3 ODST / Xbox 360213k - NBA 2K10 / PlayStation 3175k - Forza Motorsport 3 / Xbox 360169k - Kingdom Hearts 358/2 Days156k - FIFA Soccer 10 / Xbox 360

PS3-exclusive Uncharted 2 (released on October 13) was tops in software sales with 537k units, though it failed to best last October's Xbox 360-exclusive bestseller, Fable 2, which managed 790k units despite a later launch date of October 21.

Software revenue was off 18 percent for the month, but only 11 points on a year-over-year unit basis, owing to an average retail price decline of 8 percent.

While Wii Fit Plus ranked second, the game actually debuted on October 4, making that 441k figure less impressive. Contrast with the original Wii Fit, which sold 487k units last October, having debuted six months earlier in May 2008. NPD's Frazier notes that "roughly half the sales [of Wii Fit Plus] were generated by the bundled SKU, which points to a lot of newcomers to the franchise." Estimated sales of the original were 22.5 million as of October 2009, which could mean prior version buffs have been waiting to pick it up (or gift it) during the holiday shopping season.

Though you rarely see games like NBA 2K10 covered in the sports-allergic games media, Visual Concepts' licensed basketball game was actually October's multi-platform bestseller, with 575k total units–a 60 percent sales increase over NBA 2K9's launch month sales.

If you follow music/dance game sales, you know 2009's been a tough year for the genre, with steady year-over-year declines. The genre's only generated $53 million in sales this year, year-to-date, compared with $137 million last year, according to NPD. This, despite high profile sequels like Guitar Hero 5 and key launches like The Beatles: Rock Band.

Despite the downturn, expect November sales to be strong. Modern Warfare 2, which launched last Tuesday, turned the biz upside down by shattering launch-period sales records across the entertainment industry. Ubisoft's Assassin's Creed 2 arrives for PS3 and Xbox 360 next Tuesday, along with Assassin's Creed: Bloodlines for the PSP, and New Super Mario Bros. Wii should be in stores this Sunday.

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Google is bulking up its phone offerings with the acquisition of Gizmo5, a company that offers voice-over-IP software for mobile phones and computers.

The companies did not reveal terms of the deal, which was announced Thursday following rumors earlier this week that the acquisition might happen.

In a blog posting about the deal, Google said that while current Gizmo5 users can continue to use the service, no new customers can sign up for now.

Very little information remains on the Gizmo5 Web page. The service is similar to Skype's in that it allows users to make low-cost or free calls using a software client on their computers. Gizmo5 also offers a client for mobile-phone users.

The acquisition follows Google's purchase of Grand Central more than two years ago. Fans of that service began to worry it might die at Google since it took about two years for Google to begin accepting new customers for the service, now called Google Voice.

Google Voice offers users a variety of services including transcribed voicemails and low-cost calling. Users can also get a new phone number and use that same number on multiple phones.

The service has been the subject of some controversy. It is the subject of a U.S. Federal Communications Commission inquiry, launched as a result of complaints that Google blocks some calls.

Gizmo5 and Google Voice are already integrated; Google Voice customers can include a Gizmo5 account as one of their phones.

It is the fourth acquisition Google has announced this year. Earlier this week it said it would buy AdMob for $750 million.