Speed Press

Top Searches: #6 Whitney Houston

Like Michael Jackson and Amy Winehouse before her, superstar Whitney Houston galvanized an online rush with her unexpected death on Feb. 11. The singer-actress, who had a well-chronicled drug addiction, had been missing in action for some time.

Olympic moments of 2012

On July 27, 2012, more than 200 nations gathered in Olympic Stadium in London for the start of the 2012 Olympic Games. For 17 days we watched as the world's top athletes competed in more than 30 sports -- running, swimming, rowing,

Best New Artists Of 2012: Swimming Pools, Cemetaries And Too Much Blood

As the year comes to a close, and the holiday stress puts your therapist on speed dial, why not take a moment from your debilitating rage against the department store cashier to reflect upon the last calendar .

Most Viral Photos: #9 Most retweeted Obama photo

The night of the election, as networks began calling the race for President Obama, his campaign tweeted this photo of the president and first lady Michelle Obama hugging with the caption .

Wonders in Space: #5 Space Jump

Extreme athlete Felix Baumgartner made history with his amazing space jump on Oct. 14. After floating to the edge of Earth's atmosphere in a balloon-lifted capsule, Baumgartner performed a record-breaking free-fall jump, covering 23 miles at 834 mph

Monday, June 3, 2013

3-D printing goes from sci-fi fantasy to reality

SAN MATEO, Calif. (AP) — Invisalign, a San Jose company, uses 3-D printing to make each mouthful of customized, transparent braces. Mackenzies Chocolates, a confectioner in Santa Cruz, uses a 3-D printer to pump out chocolate molds. And earlier this year, Cornell University researchers used a 3-D printer, along with injections of a special collagen gel, to create a human-shaped ear.
Once a science-fiction fantasy, three-dimensional printers are popping up everywhere from the desks of home hobbyists to Air Force drone research centers. The machines, generally the size of a microwave oven and costing $400 to more than $500,000, extrude layer upon layer of plastics or other materials, including metal, to create 3-D objects with moving parts.
Users are able to make just about anything they like: iPad stands, guitars, jewelry, even guns. But experts warn this cool innovation could soon turn controversial — because of safety concerns but also the potential for the technology to alter economies that rely on manufacturing.
"We believe that 3-D printing is fundamentally changing the manufacturing ecosystem in its entirety — how and where products are made and by whom," said Peter Weijmarshausen, CEO of New York-based Shapeways, an online company that makes and sells 3-D printed products designed by individuals. Products include a delicate, twig-like egg cup (cost: $8.10) and a lamp that looks like a nuclear mushroom cloud (cost: $1,388.66).
"We're on the verge of the next industrial revolution, no doubt about it," added Dartmouth College business professor Richard D'Aveni. "In 25 years, entire industries are going to disappear. Countries relying on mass manufacturing are going to find themselves with no revenues and no jobs."
On ground, sea or air, when parts break, new ones can be made on the spot, and even the tools to install them can be made, eliminating the need for staging parts in warehouses around the world, said Jeff DeGrange, vice president of Direct Digital Manufacturing at Stratasys Inc., currently the industry leader in a field of about 50 3-D printer companies.
"We're going to see innovation happening at a much higher rate, introduction of products at a much higher rate," said DeGrange. "We live in an on-demand world now, and we'll see production schedules are going to be greatly compressed."
Airplane mechanics could print a replacement part on the runway. A dishwasher repairman could make a new gasket in his service truck. A surgeon could print a knee implant custom-designed to fit a patient's body.
But the military, D'Aveni said, is likely to be among the first major users of 3-D printers, because of the urgency of warfare.
"Imagine a soldier on a firebase in the mountains of Afghanistan. A squad is attacked by insurgents. The ammunition starts to run out. Is it worth waiting hours and risking the lives of helicopter pilots to drop it near you, or is it worth a more expensive system that can manufacture weapons and ammunition on the spot?" he said.
In the past two years, the U.S. Defense Department has spent more than $2 million on 3-D printers, supplies and upkeep, according to federal contract records. Their uses range from medical research to weapons development. In addition, the Obama administration has launched a $30 million pilot program that includes researching how to use 3-D printing to build weapons parts.
NASA is also wading into this arena, spending $500,000 in the past two years on 3-D printing. Its Lunar Science Institute has published descriptions of how it is exploring the possibility of using the printers to build everything from spacecraft parts while in orbit to a lunar base.
While the U.S. is pursuing the military advantages of 3-D printing, it's also dealing with the potential dangers of the technology. On May 9, the State Department ordered a group to take down online blueprints for a 3-D printable handgun, and federal lawmakers and some state legislatures are contemplating proposals to restrict posting weapons plans in the future.
Since 2007, when these printers first entered the mainstream marketplace, sales have grown by 7.2 percent each year, according to IBIS World, a company that tracks the industry. Sales are projected to jump from about $1.7 billion in 2011 to $3.7 billion in 2015.
Cliff Waldman, a senior economist at the Manufacturers Alliance for Productivity and Innovation, a group that promotes the role of manufacturing in global economies, said it's still too soon to know exactly what impact this 3-D technology could have on more traditional manufacturing. However, he doesn't envision it changing the "fundamental shape" of manufacturing, as others suggest.
"I think 3-D has the capacity to impact both products and processes," he said. "I am not ready to say that it is completely disruptive, however. It might be in a few narrow industries."
Starting in June, office supply chain Staples plans to be the first major retailer to supply 3-D printers with "the Cube," a plug-in device that uses 16 colors and costs $1,299. And in September the smallest and cheapest 3-D printer on the market — a printing pen priced from $50 — is due to start shipping. Similar to a glue gun, the 3Doodler plugs into the wall and is filled with cylinders of plastic that come out of a 518-degree Fahrenheit tip. Once the plastic leaves the pen it cools and hardens.
Makers Peter Dilworth, an inventor at the Massachusetts Institute of Technology, and Maxwell Bogue, a toy maker, first pitched their pens earlier this year on a website for startup projects. They sought $30,000 and wound up collecting $2.3 million from more than 26,000 investors, who each got one of the 3-D pens. Four artists who teamed up with the men have used the pens to make a mini Eiffel Tower, earrings and butterfly pendants.
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Follow Martha Mendoza on Twitter at twitter.com/mendozamartha

Gold Bullion Development Initiates Trenching Program at Granada

VANCOUVER, June 3, 2013 /PRNewswire/ - Gold Bullion Development Corp. (GBB.V) (GBBFF) (the "Company" or "Gold Bullion") is pleased to announce it has started its trenching program at Granada. The Company, based on SGS Geostat QP's recommendation in charge of the study, has initiated a trenching program aimed at validating the existence and position of mineralized zones at surface.
The main goal is to characterize and validate new shallow high grades zones identified in the drill holes GR-12-413, GR-10-21, GR-11-380, GR-11-313 GR-10-104, GR-10-105, GR-10-125, GR-10-97, GR-10-53 and GR-10-100. To reach those targets, digging parameters were set for each trench and pit. The trenching work consists of 4 trenches and 4 test pits to be done with an excavator. The trenches should be from 0 to 2 metres deep, 4 metres wide and the lengths are summarized in the following table. The test pit will consist of hoes 4 metres wide and 2 metres deep. The names correspond to the type of hole, TT for "Test Trench" and TP for "Test Pit". The second number is the year of work and the last number the hole tag. Channel sampling will be done in each trench and pit.
Table of Work Location and Type
  Starting coordinates Size  
Name Easting Northing Azimuth Depth Length Width Type
TP-13-01 647107.60 5338095.96 - 2 4 4 Test pit
TP-13-02 647032.87 5338016.26 - 2 4 4 Test pit
TP-13-03 647026.79 5337949.86 - 2 4 4 Test pit
TP-13-04 647084.17 5337967.73 - 2 4 4 Test pit
TT-13-01 646289.90 5338036.84 103 2 200 4 Trench
TT-13-02 646691.44 5338117.55 103 2 110 4 Trench
TT-13-03 647050.62 5338158.92 103 2 110 4 Trench
TT-13-04 646529.48 5337982.43 103 2 50 4 Trench
A map and details of the location of the trenches and test pit program, totalling approximately 470m in length, can be viewed on the Company's website the website at www.GoldBullionDevelopmentCorp.com.
The Company wants to take this opportunity to inform the community that it will communicate its development plan in the coming weeks with public consultations. The Company has retained the services of C.C. Consultants of Rouyn-Noranda to assist for the communication with the community.
Claude Duplessis, P. Eng., is acting as the qualified person (QP) for Gold Bullion Development Corp. in compliance with National Instrument 43-101 and has reviewed the technical contents of this press release.
About Gold Bullion Development Corp.
Gold Bullion Development Corp. is a TSX Venture-listed junior natural resource company focusing on the exploration and development of its Granada Property near Rouyn-Noranda, Québec.  Additional information on the Company's Granada gold property is available by visiting the website at www.GoldBullionDevelopmentCorp.com and on SEDAR.com.
"Frank J. Basa"
Frank J. Basa, P.Eng.
President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Is gold’s rally over?

Gold’s decade-long rally has been called into question lately as the Federal Reserve’s talk of possibly unwinding its four-year quantitative easing “experiment” has caused investors to tire of the yellow metal.
In addition to the QE unwinding, other explanations that have been offered include the relation between gold prices and Japanese government bond volatility as well as the general unwinding of dollar shorts as the U.S. shifts from an economy where consumption is funded by debt, to one where consumption is funded by income. We concern ourselves less with the theories behind gold’s decline and focus instead on the metal’s price/volume action.
StockCharts.com Chart 1 — Gold weekly chart, 2001-present. The long-term trend is just barely intact.
Chart 1, the weekly chart of the gold index, reveals that this is the first time since the big bull rally in gold began in 2001 that gold has broken below the lows of a consolidation of “basing” pattern as it reaches a critical price point. We’ve drawn a long-term lower trend line on the gold index chart to show that gold is certainly at a crossroads as its long-term trend approaches a potential tipping point. A breach of this trendline could send gold back to major support at around the $1,000 price level.
The question most on investors’ minds is whether such a decline would set up a major buying opportunity for those who still believe that over the longer-term, holders of fiat currencies will move to seek a more reliable alternative. Given gold’s historical and cultural acceptance as money, gold is viewed as an alternative currency. Worries that an unwinding of QE will cause gold’s ultimate demise rely on the erroneous belief that gold’s price move has been driven solely by quantitative easing, which is not the case. Chart 1 shows that gold’s move began in earnest in 2001, long before the Federal Reserve’s creative QE liquidity machine was conceived and put into action in 2009, but well after the Fed’s easy money policy became well-entrenched during the Greenspan era of the late-1990s and early 2000s, leading to the longer-term devaluation of the dollar.
StockCharts.com Chart 2 — Gold daily chart, 2001-present. A retest of the April lows may be critical for gold.
Our view is that investors should simply let the current decline in gold run its course, at least until a technical low can be discerned. Chart 2, the daily chart of the gold index, provides one example of a potential bottoming formation as the metal retests its April low, an area that also coincides with gold’s long-term uptrend line as shown in Chart 1. The question is what could trigger a recovery and rally in gold?
Aside from all the other theories that have been offered, we consider the fact that the paper gold market, consisting of futures contracts and exchange traded funds such as the SPDR Gold Trust (GLD), is about 100 times the physical market. Recent declines in the price of gold have been met by huge surges in demand for physical gold which has proven much more difficult to get ahold of than paper gold which has been figuratively tossed out the window. Thus the paradox of declining paper gold prices versus surging physical demand where steep drops in gold have not led to the wholesale dumping of physical metal. Rather the opposite has occurred. This has resulted in relatively high premiums for physical precious metals, in particular for the “poor man’s gold,” silver.
In pondering this, we have to wonder whether the selling in precious metals is due to the realization that when a currency dislocation occurs, whether in the U.S. dollar, the euro, the yen, or some other currency, paper metals will do you no good — you must have physical. Therefore, the current selling could simply be an unwinding of the paper precious metals trade in anticipation of this. We find some indication of investors looking to alternative, less “printable” currencies, such as Bitcoin and the phenomenon of some U.S. states and municipalities creating their own local currencies. Thus, in such a realm, investors may decide that paper gold is not the solution.
In our view, the Fed is in no position to begin unwinding QE as the U.S. economy remains much weaker than most pundits and government statisticians and number massagers would have you believe, and the Japanese have taken a stance we like to refer to as “Kamikaze QE” as they go all in on the ill-fated delusion that they can suddenly jumpstart their decades long economic stagnation with some sort of steroidal version of what they’ve been doing for about the last 30 years. Meanwhile, Europe remains between a rock and a hard place. This is illustrated when even a small dislocation such as was seen recently in Cyprus, finds no other solutions other than the rote financial engineering and money-printing as bailouts persist as the rule of the day.
Our general view is that a major buying opportunity in gold may be at hand, but because we rely on price/volume action, in other words, market facts, we shun a reliance on theories of all stripes. If gold is able to successfully test its April low and mount a rally from here, then the yellow metal may be able to shine once again.
Gil Morales and Dr. Chris Kacher are both principals and managing directors of MoKa Investors LLC and Virtue of Selfish Investing, LLC, cofounders of www.selfishinvesting.com and co-authors of “Trade Like An O’Neil Disciple: How We Made 18,000% in the Stock Market” (Wiley, August, 2010) and their newest book, “In the Trading Cockpit with the O’Neil Disciples,” (Wiley, December 2012). Both are former internal portfolio managers for William O’Neil + Co., Inc., where Dr. Kacher also served as a senior research analyst and co-authored an in-house proprietary book “The Model Book of Greatest Stock Market Winners”, while Mr. Morales also served as Chief Market Strategist, Vice-President and Manager of the firm’s Institutional Services group, and co-authored with William J. O’Neil a book on short-selling, “How to Make Money Selling Stocks Short” (Wiley, 2004).     

Gold rebounds on softer dollar, US data eyed

By A. Ananthalakshmi
SINGAPORE (Reuters) - Gold edged higher on Monday, recovering from a near 2-percent slide in the previous session, as weak U.S. data hurt the dollar and strengthened hopes the Federal Reserve would stick to its bullion-friendly stimulus program.
Gold fell more than 6 percent in May amid concerns the Fed could slow its monthly bond purchases as the U.S. economy shows signs of improvement. But a flurry of disappointing U.S. data including Friday's report on a decline in U.S. consumer spending weakened arguments for a near-term tapering of the central bank's bond-buying stimulus.
The U.S. data watch continues this week as the Fed heads for its next policy meeting later this month.
"Everyone is waiting for U.S. non-farm payroll data this Friday to see what the central bank would do," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
The Fed has said it would keep up the stimulus campaign until the employment situation improved.
Spot gold rose 0.6 percent to $1,394.56 an ounce by 0440 GMT after falling by 1.9 percent on Friday. The drop in the last session was gold's steepest single-day fall since May 17, helping to push the metal to a second straight monthly decline.
U.S. gold was little changed at $1,394.30.
The softer dollar is also supporting gold prices, said Peter Fung, head of dealing at Hong Kong's Wing Fung Precious Metals.
Fung said Friday's sharp price drop lured Chinese buyers on Monday, despite data pointing to slowing economic momentum in the world's second-biggest gold consumer.
China's factory activity shrank for the first time in seven months in May as both domestic and external demand softened, according to HSBC's Purchasing Managers' Index. An official manufacturing PMI, released on Saturday, rose only slightly.
Physical demand for gold has been strong since a mid-April drop in spot prices. Premiums in Asia are at or near all-time highs as gold has dropped nearly 17 percent for the year.
Gold demand in India will be as strong as last year in the second half of 2013 due to prospects of good monsoon rains that will boost the income of farmers, the key buyers, the World Gold Council CEO said on Friday.
Hedge funds and money managers increased their bullish bets in gold futures and options for the first time in four weeks, a report by the Commodity Futures Trading Commission showed on Friday.

Declines in the holdings of SPDR Gold Trust, the largest gold-backed exchange traded fund, have stopped after nearly three weeks. Holdings rose last Wednesday and have been unchanged since.

Sunday, June 2, 2013

Barclays pulled into U.S. money laundering investigation

LONDON (Reuters) - Barclays (BARC.L) has been dragged into an international money laundering investigation after U.S. prosecutors discovered that Arthur Budovsky, the founder of digital currency exchange Liberty Reserve, held an account with the British bank.
U.S. prosecutors have filed an indictment against the operators of Liberty Reserve, accusing the Costa Rica-based company of helping criminals around the world launder more than $6 billion in illicit funds linked to everything from child pornography to software for hacking into banks.
"Barclays can confirm it is co-operating with the investigation, following the notification it received from the authorities," a spokesman for the bank said on Sunday.
The 119-page indictment from U.S. authorities unsealed on Tuesday says on page 45 that Budovsky held an account with Barclays Bank in Spain (http://www.justice.gov/usao/nys/pressreleases/May13/LibertyReserveetalDocuments/Liberty%20Reserve,%20et%20al.%20Redacted%20AUSA%20Appln%20with%20exhibits.pdf).
Budovsky, who was arrested in Spain last Friday, opened the personal account in 2009, a source familiar with the situation said on Sunday.
The source added that Barclays has not been accused of any wrongdoing.
(Reporting By Christine Murray; Editing by Greg Mahlich)

Finance Week Ahead: June Swoon to Come?

If every day this month had been like Friday, then "sell in May and go away" would be an accurate statement for 2013. However, despite the steep late-day selloff on the final day of the month, the major indices ended May firmly on the upside, with the Dow gaining 1.86%, the S&P up 2.08% and the Nasdaq seeing a 3.82% rise.
Yahoo! Finance
Still, as Yahoo! Finance Editor in Chief Aaron Task and Henry Blodget point out in this Daily Ticker segment, the "tally doesn’t really count until the end of the 'worst six months' period." With June traditionally being a weak month for Wall Street, are we headed for a swoon over the next 30 days? Or, as our Breakout colleagues asked on Friday: What comes after a seven-month rally? Crash, correction or pullback?
And as the 10-year note yield soars above 2% and Treasuries see their worst month since 2010, is this bond selloff the "real thing?" (For your edification: Goldman Sachs (GS) says "Yes" while UBS (UBS) says "Not really.")
In a world where investors might "fear the taper" and bad news can be good for the market, all of this remains to be seen as we head into the final month of the second quarter of 2013. And busy days are ahead, with the key jobs report for May capping a week that includes a meeting between President Obama and Chinese President Xi Jinping, another IRS hearing, several Fed speakers, an ECB policy meeting, auto sales numbers and a smattering of earnings reports. Scheduled guests on Daily Ticker and Breakout include Meredith Whitney, Paul Hickey and former Yahoo! Finance columnist Daniel Gross.
Oh, yes, and if you have a few million bucks on hand, you can bid for a chat and chew session with Warren Buffett (Dairy Queen burgers, anyone?). Hey, it did wonders for Ted Weschler.
Here's a look at highlights of the week ahead:
Sunday, June 2
  • Warren Buffett’s annual lunch auction for charity kicks off. Last year’s winner paid $3,456,789 to eat a meal with the Oracle of Omaha.
  • Commencement speech season: Fed Chairman Ben Bernanke speaks at Princeton, where he worked as a tenured professor from 1985 to 2005.
  • China PMI manufacturing index released at 9:45 p.m. ET
Monday, June 3
  • First trading day of the final month of the second quarter
  • Possible IPOs this week: RCS Capital Corp., Colony American Homes, LightintheBox Holding Co., Textura
  • Press conference in Taipei to possibly reveal the Mozilla/Foxconn tablet discussed this past week on Daily Ticker
  • WikiLeaks scandal: Court martial of U.S. Army intelligence analyst Bradley Manning, who faced charges related to the passing of government secrets to the WikiLeaks site
  • Another IRS hearing: Acting Commissioner Danny Werfel testifies to House Appropriations Committee oversight hearing
  • Data: ISM manufacturing index, 10:00 a.m. ET; construction spending, 10:00 a.m. ET
  • Foreign data: EU manufacturing index, 4:00 a.m. ET
  • From Breakout: No, this is NOT a stock bubble! says Ben Stein; Will there be a June swoon in stocks?
  • From Daily Ticker: Heidi Moore and former Yahoo! Finance columnist Daniel Gross debate the economic recovery
Tuesday, June 4
  • Auto sales roll out throughout the day
  • Shareholders meeting: The recently “supercharged” Tesla (TSLA), which broke $100 a share for the first time this week (and is up a whopping 96% in May alone)
  • Fed speakers: Esther George, Sarah Bloom Raskin, Richard Fisher
  • Earnings: Dollar General (DG)
  • Obama meets with Chile President Sebastian Pinera at the White House
  • Secretary of Health and Human Services Kathleen Sebelius testifies to House committee on fiscal year 2014 budget
  • Data: International trade, 8:30 a.m. ET
  • Foreign data: EU PPI, 5:00 a.m. ET; China PMI composite, 9:45 p.m. ET
  • Auction: 4-week bill
  • From Breakout: Elliott Wave socioeconomics researcher Euan Wilson on why stock market highs might hurt marijuana legalization efforts; Paul Hickey from Bespoke Investment Group
Wednesday, June 5
  • Data: ADP employment report, 8:15 a.m. ET; productivity and costs, 8:30 a.m. ET; factory orders, 10:00 a.m. ET; ISM non-manufacturing index, 10:00 a.m. ET; EIA Petroleum Status Report, 10:30 a.m. ET
  • Foreign data: EU PMI composite, 4:00 a.m. ET; EU GDP and retail sales, 5:00 a.m. ET
  • Shareholders meetings: Las Vegas Sands (LVS), Yelp (YELP)
  • Earnings: Annie’s (BNNY), Hot Topic (HOTT), Hovnavian (HOV) Restoration Hardware (RH)
  • Fed beige book, 2:00 p.m. ET
  • From Daily Ticker: Banking analyst Meredith Whitney
Thursday, June 6
  • ECB meeting, with ECB President Mario Draghi presser to follow; the latest chatter points to no action being taken here after rates were cut at the last meeting
  • Chain store sales out in the a.m.
  • Other data: Challenger job-cut report, 7:30 a.m. ET; jobless claims, 8:30 a.m. ET, GDP by state, 8:30 a.m. ET; quarterly services survey, 10:00 a.m. ET
  • Shareholders meetings: Wal-Mart (WMT), Google (GOOG), GM (GM)
  • Earnings: Smucker (SJM), Ann (ANN)
  • Fed speakers: Sarah Bloom Raskin, Charles Plosser
Friday, June 7
  • Key jobs report from BLS for May, 8:30 a.m. ET
  • Other data: Consumer credit, 3:00 p.m. ET
  • Obama meets Chinese President Xi JinPing for two-day meeting in California; it’s their first meeting since Xi became president.
  • Warren Buffett lunch auction closes
  • From Breakout: Jim Paulsen from Wells Capital for reaction to jobs report
  • From Daily Ticker: Analyst Maria Ramirez reacts to jobs report

U.S. takes Apple to trial over e-books price-fixing

By Nate Raymond
NEW YORK (Reuters) - Apple Inc goes to trial Monday over allegations by federal and state authorities that it conspired with publishers to raise the price of e-books.
The trial pits the maker of the popular iPad and iPhone against the U.S. Justice Department in a case that tests how Internet retailers interact with content providers.
"This case will effectively set the rules for Internet commerce," said David Balto, a former policy director for the U.S. Federal Trade Commission.
The Justice Department filed its case against Apple and five of the six largest U.S. book publishers in April 2012. The lawsuit accused them of conspiring to increase e-book prices and break Amazon.com Inc's hold on pricing.
Apple is going to trial alone after the five publishers agreed to eliminate prohibitions on wholesale discounts and to pay a collective $164 million to benefit consumers.
The five publishers were Pearson Plc's Penguin Group, News Corp's HarperCollins Publishers Inc, CBS Corp's Simon & Schuster Inc, Hachette Book Group Inc and MacMillan.
The U.S. government is not seeking damages but instead an order blocking Apple from engaging in similar conduct. However, if Apple is found liable, it could still face damages in a separate trial by the state attorneys general and consumers pursuing class actions.
'DIRECT EVIDENCE'
Based on a comment by the presiding judge at the final hearing before the trial, Apple may face an uphill battle.
"I believe that the government will be able to show at trial direct evidence that Apple knowingly participated in and facilitated a conspiracy to raise prices of e-books," U.S. District Judge Denise Cote, who is hearing the case without a jury, said on May 23.
While those comments suggested Apple might be smart to seek a settlement, Chief Executive Tim Cook said in an interview Tuesday with All Things Digital that Apple was "not going to sign something that says we did something we didn't do."
Apple may be calculating that future damages claims by states and class actions make it worth going to trial, said John Lopatka, a law professor at Pennsylvania State University.
"Apple might think, 'We may lose at the trial level, but we may well convince an appellate court the trial judge mischaracterized the evidence," Lopatka said.
'MARKET IN TURMOIL'
Neither side disputes that in 2009 publishers were concerned about low prices for e-books resulting from the dominance of Amazon.com, which launched its Kindle e-reader in 2007.
As it prepared to launch its iPad and was looking into opening an electronic bookstore, Apple has said it was entering a "market in turmoil," with growing tension between the publishers and Amazon.
Amazon, which declined comment, was selling 90 percent of all e-books in 2009. It was buying books wholesale and at times selling them at a loss, pricing them at $9.99, with the goal of promoting its Kindle.
The Justice Department contends that Apple's entry into the market provided publishers with a means to get together to increase prices.
At the suggestion of Hachette and HarperCollins, the government says Apple began considering an agency model in which publishers set the price and Apple took a fixed percentage.
Former Apple CEO Steve Jobs, who died in 2011, told his biographer that, "we told the publishers, ‘We'll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that's what you want anyway.'"
The Justice Department said Apple provided assurances to publishers their rivals would join.
Apple says that it was unaware of efforts by the publishers to conspire before it entered the marketplace, and said when it did, it act independently.
It also contends that in the wake of its introduction of the iBookstore, prices have fallen rather than risen from $7.97 on average to $7.34.
BIGGER ISSUE
For the Justice Department, many of its goals have been accomplished, thanks to the settlements with publishers, which lifted restrictions on discounting and promotions by e-book retailers. Those deals have already lowered prices for consumers, the department says.
But the government may be aiming at a bigger issue, said Geoffrey Manne, a law professor at Lewis & Clark Law School.
Among other things, the government lawsuit seeks to declare that certain provisions in the agreements between Apple and the publishers are unenforceable.
These provisions, known as most-favored-nation clauses, provided that if other e-bookstores sold the books at cheaper prices, then Apple could reduce its prices. The government has said this provided an incentive for the publishers to raise prices at other retailers.
Similar types of most-favored nation clauses have been central in other content industries such as music and television where content providers have a role in setting the price. They have also become a discussion point in certain antitrust communities, Manne said, and a government win could "send a pretty strong message" about their use.
"If the government wins this case, it would be because the court for some reason determines that most-favored-nation clauses are more harmful to competition than helpful," he said.
The case is United States v. Apple Inc et al, U.S. District Court, Southern District of New York, No. 12-02826.
(Reporting by Nate Raymond; Editing by Eddie Evans and Kenneth Barry)