Tag: litigation

Apple fudges book cartel rulings

Apple's Jonathan IveThe company which designer Jonathan Ive described a week or two back as built on integrity has finally agreed to cough up $450 million after it conspired with five publishers to hike the prices of e-books.

On Friday, US district judge Denise Cole told Apple it must pay $40 million to as many as 23 million people if it lost a hearing that showed it was liable under antitrust laws. But Apple is pushing for a fresh hearing and if it is unsuccessful it won’t have to pay anything.

And if that happens, the same judge may have to preside over the same case all over again.

Even though Apple agreed to settle the case in June, it can continue with an appeal  after it was found guilty last year  of conspiring to hike e-book prices and unfairly compete against Amazon.

Apple’s appeal is due to be heard in mid-December and if it is successful it might go to a new trial and continue to ramp up the cost of lawyers who have already racked up an estimated $20 million.

Dow Jones steps into Apple secrecy row

scalesAn agreement between Apple and its supplier GT Advanced (GTA) to seal documents relating to the latter company filed for bankruptcy earlier this month has been challenged by a third party,

GTA supplied sapphire substrates to Apple, an important ingredient of screens for smartphones but filed for protection under US regulation Chapter 11 earlier this month.

Dow Jones asked a US court to deny a request made by both Apple and GTA to keep some documents relating to their relationship under seal.  It said such a move offended principles of the US constitution.

Apple had threatened GTA with a law suit for over $1 billion alleging damages.

In cases of banruptcy in the USA there are only a few conditions which would allow documents to be made unavailable to the public and Dow Jones claims no documents in this case qualified under those rules.

Apple’s reality distortion shield fights the law


courtroom_1_lgApple’s famous reality distortion field
and obsessive demands for secrecy have suddenly hit the reality of US law courts.

The judge overseeing the mysterious bankruptcy of an Apple sapphire supplier dared to actually question why it should be demanding secrecy in the case.

Jobs’ Mob has managed to keep the entire case locked up with its NDAs and hardly any information has emerged since GT Advanced Technologies filed for bankruptcy.

Key court filings reveal that GT Advanced is terrified of the confidentiality requirements in its Apple contracts which carry fines of $50 million.

However at a hearing in U.S. Bankruptcy Court in Springfield, Massachusetts, Judge Henry Boroff told a lawyer for Apple that the documents do not seem to contain much proprietary information. Boroff instructed Apple to provide him a list by Monday of exactly which elements of the filings are sensitive.

He said that he had a foot high stack of documents, and it could not be all kept secret. This of course runs counter to the Apple view that everything should be very secret and might be a move by the company to prevent information getting out which might make it look bad.

Apple and GT Advanced appeared to have made a complex series of agreements. The two made a deal in November for GT to set up a factory in Mesa, Arizona, to make scratch-resistant sapphire glass exclusively for Apple.

Boroff said that what he was looking at appeared like a construction suit, where a homeowner says to the contractor, ‘It didn’t come out the way I wanted to,’ and the contractor says: ‘Well, it would have come out that way if you didn’t continue to change the specifications.'”

Boroff’s comments came during a hearing that was meant to consider a motion by GT Advanced to keep certain documents sealed and begin the process of winding down its operations. But those issues were postponed until next Tuesday, in light of the recent appointment of GT Advanced’s official creditors’ committee.

However, other than Apple the other creditors involved in the case want to know what happened. The US Department of Justice’s bankruptcy watchdog in court papers said sealing information about GT Advanced’s downfall would “thwart” the objectives of bankruptcy laws and “unjustifiably undermine” the system’s fairness.