MacRumors

According to The New York Times, the U.S. Federal Trade Commission (FTC) has settled a case it brought against California-based public relations firm Reverb Communications for writing paid reviews of App Store games from their clients. The firm's actions had been profiled by MobileCrunch last August after receiving a tip about its practices.

The Federal Trade Commission said on Thursday that a California marketing company had settled charges that it engaged in deceptive advertising by having its employees write and post positive reviews of clients' games in the Apple iTunes Store, without disclosing that they were being paid to do so.

The charges were the first to be brought under a new set of guidelines for Internet endorsements that the agency introduced last year. The guidelines have often been described as rules for bloggers, but they also cover anyone writing reviews on Web sites or promoting products through Facebook or Twitter.

While the settlement did not involve any monetary penalties, Reverb is required to remove all of its paid reviews and to refrain from making similar endorsements in the future without disclosing its relationships with companies whose products it is promoting.

Reverb apparently continues to believe that it did nothing wrong, calling the charges a "frivolous matter" while noting that it settled the case without financial penalty or admission of lawbreaking so that it would not have to devote time and money to defending itself.

The New York Times reports that Apple has parted ways with engineering design firm SurfaceInk, severing a nearly decade-long relationship that saw SurfaceInk assist with the development of several Apple products. The move comes as SurfaceInk has increased the availability of its "Turn-key" services that see it design and build entire products for sale to other companies.

It was that latest part of SurfaceInk's business, which the company began about five years ago, that apparently unsettled Apple. While SurfaceInk had gotten clients mostly through word of mouth, in June it publicized a prototype 12.1-inch tablet during an electronics trade show.

The device was meant to showcase SurfaceInk's design capabilities to potential clients, Mr. Bauswell said. He said that Apple viewed those capabilities as a potential competitive threat.

It is unknown exactly what products SurfaceInk assisted Apple with, but it is clear that SurfaceInk's willingness to design and build competitors to the iPad hasn't sat well with Apple. SurfaceInk founder and CEO Eric Bauswell declined to offer additional information on the relationship between the two companies.

iLounge provides some more details about the upcoming iPod Touch and iPod Nano revisions coming from Apple next week. According to the site, the iPod Touch will contain a back-side camera, microphone and a new shape to the back.

Think of the top of a MacBook Pro, only smaller, which is to say flat rather than curved at the centercloser to the look of the first-generation iPod touchs back, only with modifications.

In addition, iLounge is also hearing that the small touchscreen device that we've been seeing hints of will be thought of as an iPod Nano rather than a Shuffle -- though iLounge admits "it doesn't make much sense" to them at this point.

Apple will be hosting a media event at 10 am Pacific time on September 1st.

Apple has started prepping the Yerba Buena center for their upcoming media event next week. (via Wired / 9to5) The building-sized banner reflects the same guitar artwork that was printed on the media invitation sent out earlier this week.

The reason for the image has been the subject of much speculation on our forums. Apple has been rumored to be releasing new iPods, TV rental service, new Apple TV, iLife and more at the event. The event kicks off at 10am Pacific on September 1st.

MPEG LA, the group that oversees licensing for a number of Internet media standards, today announced that Internet broadcast content using the H.264 video coding standard will remain royalty-free for the entire life of the license, quashing fears that the standard could suddenly become subject to royalty payments in 2016 after the current licensing term expires and is required to be renewed.

MPEG LA announced today that its AVC Patent Portfolio License will continue not to charge royalties for Internet Video that is free to end users (known as "Internet Broadcast AVC Video") during the entire life of this License. MPEG LA previously announced it would not charge royalties for such video through December 31, 2015, and today's announcement makes clear that royalties will continue not to be charged for such video beyond that time.

H.264 is the video content standard that has been embraced by a broad array of content providers including Apple, which owns several of the patents included in the technology's portfolio. Today's announcement also paves the way for H.264 to become the standard video format for HTML5, which had seen some contributors, such as Mozilla and Opera, supporting Ogg Theora as a royalty-free video standard.

Earlier this year, Google announced its own video standard, WebM, claiming that it would be a royalty-free alternative to H.264. Questions were raised, however, about whether WebM truly could be royalty-free, with MPEG LA even going as far as to suggest that it was looking into putting together a patent pool to assert the rights of intellectual property holders associated with the WebM/VP8 standard.

Update: The Register reports on comments from Mozilla vice president of engineering Mike Shaver where he questions the impact of MPEG LA's statement, noting that the announcement changes nothing over the short term and even over the longer term applies only to free video broadcasts using the standard and not to those looking to incorporate H.264 technology into their products.

"The MPEG-LA announcement doesn't change anything for the next four years, since this promise was already made through 2014," he says in the statement shared with the The Reg. "Given that IEC [International Electrotechnical Commission] has already started accepting submissions for patents in the replacement H.265 standard, and the rise of unencumbered formats like WebM, it is not clear if H.264 will still be relevant in 2014."

It should also be noted that the MPEG-LA's license change does not apply to H.264 products and services other than free video broadcasts.

Consequently, Mozilla and Opera may still remain pledged to the WebM format, believing that Google's claims of it being truly royalty-free will hold up under the scrutiny of patent holders.

Apple today released iWork 9.0.4, bringing a number of fixes to Apple's productivity suite but also deploying a new feature: the ability to export Pages documents in the ePub format for compatibility with the company's iBooks application for iOS.

Keynote 5.0.4
- Addresses an issue when printing handouts with rule lines.
- Fixes an issue with the slide switcher.
- Resolves an issue when automatically resizing some images while changing slide size.
- Fixes an issue with tables.

Pages 4.0.4
- Fixes an issue with tables.
- Includes compatibility with the standard ePub file format (for use with iBooks) when exporting.

Numbers 2.0.4
- Fixes an issue with tables.

Apple has also posted a support document offering advice on how to choose between ePub and PDF for a given document and outlining how to create an ePub file from a Pages document.

As noted by AppleInsider, Apple has seeded a third version of 10.6.5, termed Build 10H531, to developers for testing. The new build comes one week after the previous one and suggest that Apple is continuing to make rapid progress on the update.

Whereas the previous version carried no documented known issues, Build 10H531 exhibits one known issue involving USB devices not operating properly after waking from sleep on machines with VMware's virtualization products installed. Focus areas for the latest build are said to include iCal, Mail, USB Devices, 3D Graphics, QuickTime, and Time Machine.

The current version of Apple's Snow Leopard operating system, Mac OS X 10.6.4, was released in mid-June.

iLounge points to a Chinese site showing cases purportedly for Apple's next-generation iPod nano and iPod touch models. The cases come from Chinese case manufacturer X-Doria.

Most interestingly, the iPod nano cases appear to be designed for a device roughly square in shape, suggesting that Apple's redesigned iPod nano could transition away from the widescreen display used in the current generation to a square touch-enabled display. The move would seem to be an odd choice, however, given that Apple specifically widened the device's display in the last revision to allow for true widescreen aspect ratios to go along with the device's integrated video camera.

The nano 6G case features an open strip on the rear - perhaps for a camera or built-in clip - as well as what appear to be volume buttons and a larger button on the top side while a Dock Connector and headphone port are along the bottom.

The redesign would also bring the iPod nano much closer in size to the iPod shuffle, and it is unclear what that device's future might be within that context.

Earlier today, analyst Shaw Wu claimed that Apple has been sourcing parts for a smaller iPod nano that would lack a traditional click wheel, and these case designs obviously seem to match that assertion.

The claimed next-generation iPod touch cases suggest little beyond that revealed in another purported case leaked earlier this month. Based on the cases in circulation, the new iPod touch is expected to gain a video camera with flash in the upper left corner of the rear of the device, as in the iPhone. The cases also suggest that the new iPod touch will retain the tapered back shell of the current design rather than moving to the flat back seen in the iPhone 4.

Neither of the claimed iPod touch cases include a cover for the front of the device, so there is no evidence regarding a front-facing camera. Several part leaks have, however, shown a small hole centered on the front panel of the device, presumably for just such a camera.

iPodNN reports on a new research note from Kaufman Bros. analyst Shaw Wu claiming that Apple may be preparing a significant redesign for its iPod nano that could see the device shrink in size and lose its physical click wheel. While Wu hedges his bets about whether the new design will actually be released, if true it would presumably be introduced at Apple's media event scheduled for next Wednesday.

Apple has allegedly been procuring components for a smaller Nano, which would also take the radical step of eliminating the clickwheel. "We [Kaufman] frankly are not sure if this model will see the light of day," Wu comments. "But this would be a big departure from the design it has had since 2005 when it replaced the iPod mini. From our take, a radical refresh may make sense to jumpstart what was once its top-selling iPod."

Wu apparently has not offered claims on what would replace the click wheel for navigation purposes on the revamped device. An Apple-branded square display measuring 1.7 inches on the diagonal did surface early last month, although that size and aspect ratio would mark a significant departure from the current iPod nano display.

The report also claims that Apple is likely to follow last year's trend of maintaining a previous-generation iPod touch at the entry-level point of that line, while higher-end redesigned iPod touches will gain the expected high-resolution Retina display and FaceTime-capable camera.

Finally, Wu does not expect a revamped Apple TV to make its debut at the media event, citing the early date for the event and the clear focus on music suggested by the guitar image used on the invitation.

All of these claims should be taken with a grain of salt, however, as Wu has a very poor track record for predictions. In recent months, he has incorrectly predicted Mac Pro and MacBook Air updates and an iTunes.com launch at WWDC in June, as well as a delay in the iPad's launch until June.

Late last month, Apple enhanced its iAd mobile advertising platform to allow app developers to purchase ad space for simple banners that expand to display "in-app" App Store pages that allow users to read about and purchase applications without leaving the app they are currently in. Billed at $0.25 per click as opposed to the per-impression and $2-per-click fees for traditional advertisers using interactive ads, iAd for Developers appeared to offer a way for small developers to make use of the company's platform.

Anecdotal evidence from developer David Smith of Cross Forward Consulting (via Silicon Alley Insider) suggests, however, that the program may not be cost-effective for developers, as a test ad campaign resulted in low click-through and conversion rates for an app priced at only $0.99.

From August 19 through August 25 I ran a campaign on the newly released iAd for Developers platform for our Audiobooks Premium app. The results were, to say the least, disappointing. For all the promise of selling your apps directly within an advertisement, it appears that so far this is not a viable way to drive traffic and create an economically sustainable promotion. For $1,251.75, my campaign generated a total of 84 downloads, thus a Cost Per Acquisition (CPA) of ~$15. For a $0.99 app, those economics just can't work out.

The remainder of the post details the process of signing up for an monitoring the iAd for Developers, and while Smith was pleased with the professionalism of Apple's iAd staff and the ease with which he could monitor his campaign, the return on investment was simply nowhere near what would be required to be viable. While an application carrying a higher price tag or significant in-app purchasing content might stand a better chance of seeing a profitable ad campaign, conversion rates would likely be even lower for a more expensive application.

Given that the cost for the campaign is entirely based on clicks, we designed our banner to try and provide the audience with all the basic information they need to understand what Audiobooks is and whether they might be interested in purchasing it. This lead to a more textual treatment than a graphical one. Since we don't pay for impressions we only wanted truly interested people clicking on the advertisement.

Apple's iAd program utilizes a "targeting system" that helps identify which users might be most likely to respond to and purchase a given application, and for that reason, Apple's staff encouraged Smith to continue the campaign beyond the first few unsuccessful days in hopes of refining that targeting and boosting yields. Improvement was non-existent, however, and the campaign was canceled after six days and only 84 downloads on over 2 million impressions.

Smith also performed a comparison campaign using the same banner ad on AdMob's network, finding a click-through rate over five times higher than that for iAd, and with AdMob's cheaper cost structure, Smith's cost-per-click was over six times cheaper on AdMob than on iAd. The reason for the significant difference in click-through rates between the platforms is unclear, especially considering the widely-held belief that the iAd program would offer a "premium" branding that would be more enticing to users than traditional banner ads.

All Things Digital reports that any updates to Apple's iTunes Store set to debut at next Wednesday's media event may be likely to revolve more around creating a social, Web-based environment than a true cloud-based service.

Apple plays its cards close to the vest even with the music labels it works with, so the people I've talked to are making informed guesses. That said, music sources tell me they're expecting a lightweight, Web-based version of the iTunes store. The new version would be designed to sync up easily with the rest of the Internet and make it much easier for customers to share their musical tastes (but not songs) with friends.

A true Web-based iTunes experience would expand upon the iTunes Preview feature launched by Apple late last year that allows users to browse and listen to samples from the iTunes Store music library directly in their browser, requiring the iTunes application only if they wish to purchase content.

Apple has reportedly not yet approached music labels about new licensing deals that would presumably be required to launch a true cloud-based streaming service, although the company could attempt to try its luck at launching such a service without the consent of the labels, hoping to argue that such functionality is covered by existing deals and hammering out the details later.

Alternatively, Apple could deploy a system for wireless syncing of content among devices that would remain within the bounds of current licensing contracts but simplify the process users must currently use to make sure desired content gets moved onto each of their authorized computers and devices.

As promised, Netflix has finally updated their App Store app [iTunes Link] to support the iPhone and iPod Touch in addition to the iPad.

Get Netflix on your iPad, iPhone, or iPod touch. Just download this free app and you can instantly watch TV shows & movies streaming from Netflix.
- It's part of your Netflix unlimited membership. Not a Netflix member? Start your FREE trial today.
- Watch as often as you want
- Resume watching where you left off on your TV or computer
- Browse movies and manage your instant Queue right from your device

Netflix originally launched the app for the iPad-only and later revealed that the App would come for all iOS devices.

The popular app allows iOS device owners to stream video directly from Netflix. The service does require a Netflix subscription which starts at $8.99/month. The iPhone App seems to support streaming over both Wi-Fi and 3G.

Research firm iSuppli today released a report detailing its predictions for how the nascent tablet market will shake out over the next several years, claiming that Apple will maintain its dominant share of the market.

According to iSuppli, Apple will command 74.1% of the tablet market for 2010, a market that includes long-standing "PC-style" tablets and slate styles similar to the iPad. And even though competitors will soon be launching a number of tablet devices seeking to compete directly against the iPad in form factor and functionality, Apple is predicted to maintain its leadership position with 70.4% of the market in 2011 and 61.7% in 2012.

"Although the iPad has been on the market for only a few months, powerful interests throughout the technology business are devoting enormous resources to challenge and topple Apple's domination in this fast-growing marketplace," said Rhoda Alexander, director of monitor research at iSuppli. "However, if recent history is any lesson, it will take some time for these companies to get their products to market, longer for them to offer necessary software support and infrastructure, and an even lengthier period to begin to rival the overall user experience Apple is able to deliver."

Those strong market share numbers, should they bear out, are expected to come against a backdrop of exploding tablet sales. iSuppli last month predicted iPad sales of nearly 13 million this year, surging to over 50 million in 2012 for a total of nearly 100 million iPads sold by the end of that year.

Acer chairman JT Wang reportedly claimed recently that Apple's share of the tablet market will eventually stabilize at 20-30%, and while that range would represent a significant decrease from today's levels, it would of course still be a very substantial portion of the overall market.

Engadget reports that Apple has issued media invitations for a special event to be held on Wednesday, September 1st in San Francisco. The event is scheduled to begin at 10:00 AM Pacific Time and be held at the Yerba Buena Center for the Arts, the traditional location for Apple's fall media events.

Apple is expected to introduce updates to its iPod lines, including a FaceTime-enabled iPod touch. The company is also rumored to be introducing a significantly redesigned $99 Apple TV device, possibly renamed "iTV", as well as 99-cent TV show rentals.

Just yesterday, Bloomberg had claimed that the event would be on Tuesday, September 7th.

Earlier this month, it was revealed that Apple had acquired the rights to use technology owned by Liquidmetal that would allow the company to build its products out of metal alloys carrying high strength and corrosion-resistance that can also be easily cast into any number of forms.

Cult of Mac, which reported last week that the iPhone 3G's SIM card removal tool was made out of the technology as a test of Liquidmetal's capabilities, now takes a look at some of the company's manufacturing capabilities.

Apple will soon start experimenting with a new prototype injection molding machine, says Drew Merkel, who is perhaps the most knowledgeable third-party expert on Liquidmetal Technologies. It may allow Apple to make advanced iPhone antennas and seamless gadget cases with holographic logos cast right into the metal.

"This is the most advanced injection-molding machine ever made," Merkel says. "It is state-of-the-art."

While only a single prototype of the machine used by Liquidmetal is in existence and currently in use in Korea, Apple is obviously expected to order more of the machines to ramp up production for any products requiring the technology.

As an example of what the injection molding machine can do with Liquidmetal's alloys, the report points to a small metal part used in the aerospace industry, which can be fabricated in a single step with Liquidmetal's technology as opposed to the numerous steps required in a traditional manufacturing process.

"The cost savings are tremendous," Merkel said. "This is truly a fantastic representation of the complex design which can be fabricated and ready to go in minutes."

The report also notes that Liquidmetal has been making prototypes for Apple "for a long time", hoping to catch the company's eye and strike a deal. Merkel, a former steel and plastics industry executive and major investor in Liquidmetal, notes that the company's technology must have been extremely enticing to Apple for it to pursue a deal with Liquidmetal. Merkel calls the company "flaky" and "broke for years", as it has struggled to meet its payroll obligations while producing prototypes free-of-charge in attempts to land major deals with other companies.

Bloomberg Businessweek's Peter Burrows writes a follow-up to his earlier report disclosing Apple's plans to announced 99-cent TV show rentals alongside a revamped Apple TV and updated iPod touch at a September 7th media event. The new piece focuses on Apple's ambitions with the video rental service, which Burrows notes is not expected to be a game-changer in the same sense that the iPod and iPhone remade their markets.

My sense is that Apple doesn't plan to overplay its hand, by making too much of this mobile TV opportunity. This isn't another "revolution" in the making. Even if Apple wanted to try for that, studios have all but nullified the possibility by refusing to let Apple sell subscriptions to your favorite shows, to be watched whenever and as many times as you like.

According to Burrows' source, Apple will primarily pitch the video rental service for "catch-up viewing", allowing users to watch episodes of their favorite series they may have missed or to try out shows recommended by friends.

And despite the rumored $99 price tag for the new Apple TV or "iTV", even Apple CEO Steve Jobs himself is reportedly holding only modest expectations for the device's sales potential.

Even with the refresh, Jobs isn't convinced the new version will be a mainstream hit, says the person familiar with Apple's plans. Most consumers aren't ready to cut the cord to their cable company, or put up with the tech-nastics required to stream content from the iTunes collection on their PC to their living room big-screen TV. In other words, it's a product that at best will delight some of the "hobbyists" that have always been interested in the product.

Rumors of a TV show rental service from Apple surfaced early last month as an alternative to the company's original plan to work with the networks to offer a monthly subscription package.

One detail we missed in the earlier report from Bloomberg article today was the date that Apple is expected to launch their new iPod Touch and Apple TV products. According to two sources, the event will take places on September 7th, two weeks ahead of the new prime-time TV season.

According to Bloomberg, Apple will use this venue to launch the new iPod Touch, $99 Apple TV, and the 99-cent TV show rental service. The September 7th date also falls on the last day of Apple's back to school promotion where they are offering a free iPod touch with purchase of a Mac.

The new iPod touch screen parts are already being obtained by 3rd party repair shops as shown here:

The screens contain a hole near the top that suggests the iPod touch will be getting a Facetime camera as part of its fall update.