Amazon says quick end unlikely in dispute with Hachette

(Reuters) - Amazon.com Inc is preparing for a long battle with Hachette Book Group over a contract dispute that led the U.S. online retailer to curtail sales of some of the publisher's books.

In a statement on Tuesday, Amazon said Hachette, a unit of French media company Lagardere SCA, has operated in "good faith" but the two sides remain at odds. The comments, the first by Amazon since the dispute became public in early May, didn't disclose details of the disagreement between the pair.

"Though we remain hopeful and are working hard to come to a resolution as soon as possible, we are not optimistic that this will be resolved soon," Amazon said in a statement posted online. 

Hachette didn't immediately respond to an email seeking comment outside of regularbusiness hours.

Amazon has been buying fewer print books from Hachette and last week removed an option to pre-order Hachette titles that will be published in the future. These include "The Silkworm", an upcoming novel written by author of the Harry Potter series J.K. Rowling, under the pen name Robert Galbraith.

In recent weeks, authors and other publishing insiders have criticized Amazon for unfairly wielding its power as a major retailer to gain an edge in contract talks.

"What I don't understand about this particular battle tactic is how it is in the best interest of Amazon customers," author James Patterson said in a May 13 post on his Facebook page.

In a letter to authors posted on May 23 on the website of the Authors Guild, a group for book authors, Hachette chief executive Michael Pietsch said the publisher was looking for a solution "that preserves our ability to survive and thrive as a strong author-centricpublishing company."

In its statement on Tuesday, Amazon said customers looking to buy one of the affected titles should "purchase a new or used version from one of our third-party sellers or from one of our competitors."

The company said it would put up half the money for a fund to help offset the loss in royalties to Hachette authors as a result of the disagreement if Hachette pays for the other half.

Amazon has a record of being involved in combative negotiations. In 2010, the company blocked consumers from buying works published by Macmillan in a dispute over the price of e-books.

"When we negotiate with suppliers, we are doing so on behalf of customers," Amazon said in its statement. "Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term."

Edward Snowden says he was trained 'as a spy'

Former U.S. spy agency contractor Edward Snowden, who leaked details of massive U.S. intelligence-gathering programs, said in a U.S. TV interview he "was trained as a spy" and had worked undercover overseas for U.S. government agencies.

In an advance excerpt of his interview in Moscow with "NBC Nightly News" that aired on Tuesday, Snowden rejected comments by critics that he was a low-level analyst.

"Well, it's no secret that the U.S. tends to get more and better intelligence out of computersnowadays than they do out of people," Snowden told NBC news anchor Brian Williams.

"I was trained as a spy in sort of the traditional sense of the word in that I lived and worked undercover overseas - pretending to work in a job that I'm not - and even being assigned a name that was not mine."

Describing himself as a "technical expert," Snowden said: "I don't work with people. I don't recruit agents. What I do is I put systems to work for the United States. And I've done that at all levels from - from the bottom on the ground all the way to the top."

He said he worked undercover overseas for both the CIA and NSA and lectured at the Joint Counterintelligence Training Academy "where I developed sources and methods for keeping our information and people secure in the most hostile and dangerous environments around the world."

"So when they (critics) say I'm a low-level systems administrator, that I don't know what I'm talking about, I'd say it's somewhat misleading," Snowden added.

Snowden, who fled to Hong Kong and then Moscow last year, is believed to have taken 1.7 million computerized documents. The leaked documents revealed massive programs run by the NSA that gathered information on emails, phone calls and Internet use by hundreds of millions of Americans.

He was charged last year in the United States with theft of government property, unauthorized communication of national defense information and willful communication of classified intelligence to an unauthorized person.

Edward Snowden says he was trained 'as a spy'

Former U.S. spy agency contractor Edward Snowden, who leaked details of massive U.S. intelligence-gathering programs, said in a U.S. TV interview he "was trained as a spy" and had worked undercover overseas for U.S. government agencies.

In an advance excerpt of his interview in Moscow with "NBC Nightly News" that aired on Tuesday, Snowden rejected comments by critics that he was a low-level analyst.

"Well, it's no secret that the U.S. tends to get more and better intelligence out of computersnowadays than they do out of people," Snowden told NBC news anchor Brian Williams.

 

"I was trained as a spy in sort of the traditional sense of the word in that I lived and worked undercover overseas - pretending to work in a job that I'm not - and even being assigned a name that was not mine."

Describing himself as a "technical expert," Snowden said: "I don't work with people. I don't recruit agents. What I do is I put systems to work for the United States. And I've done that at all levels from - from the bottom on the ground all the way to the top."

He said he worked undercover overseas for both the CIA and NSA and lectured at the Joint Counterintelligence Training Academy "where I developed sources and methods for keeping our information and people secure in the most hostile and dangerous environments around the world."

"So when they (critics) say I'm a low-level systems administrator, that I don't know what I'm talking about, I'd say it's somewhat misleading," Snowden added.

Snowden, who fled to Hong Kong and then Moscow last year, is believed to have taken 1.7 million computerized documents. The leaked documents revealed massive programs run by the NSA that gathered information on emails, phone calls and Internet use by hundreds of millions of Americans.

He was charged last year in the United States with theft of government property, unauthorized communication of national defense information and willful communication of classified intelligence to an unauthorized person.

Hutchison wins EU approval for $1 billion O2 Ireland deal

Hong Kong-based Hutchison Whampoa got the approval of the European Union's competition authority on Wednesday for its $1 billion bid for Telefonica's Irish mobile business in a case that could set the regulatory tone for Telefonica's bigger pending German merger deal.

Approval of the Hutchison takeover and Telefonica Deutschland's $12 billion bid for Dutch firm KPN's German subsidiary E-Plus, could open the way to further consolidation in a sector struggling with its fifth year of declining revenue and the need to upgrade networks for high-speed broadband.

Hutchison, controlled by Asia's richest man, Li Ka-shing, is strengthening its position in Europe, where it operates in six countries. It already has the fourth-largest mobile network in Ireland with 3 Ireland and is now adding the second-biggest operator O2 Ireland, though it will remain behind market leader Vodafone.

The European Commission said approval was conditional on Hutchison selling up to 30 percent of the merged company's network capacity to two mobile virtual network operators (MVNOs), which use the networks of other companies to offer telecoms services.

Sources have told Reuters that Hutchison is now in talks with European cable operator Liberty Global to help the U.S.-listed company become an MVNO in Ireland.

Hutchison will also have to divest five blocks of mobile frequencies in the 900 MHz, 1800 MHz and 2100 MHz bands at a later stage to the MVNOs should they aim to set up their own network, and continue a network-sharing agreement with Ireland's third-biggest operator, eircom.

"It is essential that healthy competition is preserved in mobile telecoms markets. The commitments offered by Hutchison 3G ensure that Irish consumers will continue to enjoy these benefits," EU Competition Commissioner Joaquin Almunia said.

Hutchison's 3 Ireland welcomed the EU clearance.

"It leaves 3 optimally positioned to become the No.1 player by providing the best value and service to our customers," Chief Executive Robert Finnegan said in a statement.

Reuters reported on May 16 that the deal would be cleared by the European Commission with conditions.

Almunia, who is now examining Telefonica's bid to buy E-Plus, told reporters that he would probably decide on the case before the Commission's July 10 deadline.

The outcome could mirror that of the Hutchison deal, telecoms industry lawyer David Cantor said.

"That the Commission does not appear to have insisted on the presence of a fourth mobile network operator (MNO) from day one suggests a similar solution may be found in Germany," he said.

Sources familiar with the matter have said Telefonica Deutschland is now talking to several German MVNOs on leasing up to 30 percent of the network capacity of the merged company, among other concessions.

India's Infosys says board member Srinivas resigns

Infosys Ltd president and board member B.G. Srinivas has resigned, the company said on Wednesday, the latest in a series of senior management exits at India's second-largestsoftware services exporter.

Srinivas' resignation is effective from June 10, the company said in a statement to the exchanges.

Infosys did not give any reason for the resignation of Srinivas, who was seen as one of the candidates to become the next chief executive when Chief Executive S.D. Shibulal resigns early next year.

Srinivas' resignation adds to the exodus of staff and senior executives since Infosys brought back from retirement its founder N.R. Narayana Murthy to help revive its fortunes in June last year.

Canvas Venture poaches NEA partner Paul Hsiao

Canvas Venture Fund, an early-stage investment firm spun out of established venture player Morgenthaler Ventures, has landed its first general partner from outside the Morgenthaler fold.

Paul Hsiao has left behemoth New Enterprise Associates to join the new firm, Canvas said on Wednesday. At NEA, Hsiao worked on enterprise software companies such as Boingo Wireless Inc, digital publisher Say Media and commercial online realtor 42Floors.

Morgenthaler spun Canvas off last year to focus on early-stage software companies. Its inaugural fund, which has $175 million in cash, invested in such holdings as wealth-management company FutureAdvisor, customer-engagement monitor Totango and doctor-patient relationship tool HealthLoop.

Canvas Venture's existing general partners are Rebecca Lynn, Gary Little and Gary Morgenthaler, who remain partners at Morgenthaler. NEA often co-invests with Morgenthaler.

Iranian judge summons Facebook CEO for breach of privacy

A conservative Iranian court opened a case against instant messaging services WhatsApp and Instagram while also summoning Facebook CEO Mark Zuckerberg over complaints of privacy violation, state news agency ISNA reported on Tuesday.

The case underscores the growing struggle between moderate Iranian president Hassan Rouhani's drive to increase Internet freedoms and demands by the conservative judiciary for tighter controls.

The Iranian court in the southern province of Fars opened the cases against the social networks after citizens complained of breaches of privacy.

"According to the court's ruling, the Zionist director of the company of Facebook, or his official attorney must appear in court to defend himself and pay for possible losses," said Ruhollah Momen-Nasab, an Iranian internet official, according to state news agency ISNA, referring to Zuckerberg's Jewish background.

Zuckerberg, whose company owns Instagram and is in the process of buying WhatsApp, is unlikely to heed the summons.

Iran is still under international sanctions over its disputed nuclear activities and it is difficult for U.S. citizens to secure travel visas, even if they want to visit.

Internet use is high in Iran, partly because many young Iranians turn to it to bypass an official ban on Western cultural products, and Tehran occasionally filters popular websites such as Twitter and Facebook.

Roughing, in remarks that challenge hardliners who have stepped up measures to censor the Web, said earlier this month that Iran should embrace the Internet rather than see it as a threat.

A Rouhani administration official said Iran would loosen Internet censorship by introducing "smart filtering", which only keeps out sites the Islamic government considers immoral.

Australian Apple users report 'lost phone' cyber attack

 Multiple users on Apple Inc's online support forum and Twitter have reported an unusual smartphone and tablet hack in which cyber attackers were said to have locked Australian users' smartphones and demanded payment in return for unlocking them.

The alleged cyber attackers, first reported by The Sydney Morning Herald, appeared to use Apple's "Find My Phone" feature to lock the devices' screens and send a message demanding money be sent to a PayPal account, according to multiple users. The anti-theft feature locks phones that are reported lost.

Apple, in response to inquiries about the hacking, confirmed there had been an incident. The technology giant said in an emailed statement it "takes security very seriously and iCloud was not compromised during this incident".

It recommended affected users change their passwords as soon as possible and avoid using the same username and password for multiple services.

An Apple spokeswoman in Sydney said by telephone Apple did not have any details on how widespread the incident was or whether it was contained to Australia.

Multiple users requested information on Apple's support forum about how to reset their phones or otherwise circumvent the lock, while other users also tweeted their concerns.

"I went to check my phone and there was a message on the screen saying that my device(s) had been hacked by 'Oleg Pliss' and he/she/they demanded $100 USD/EUR," said "veritylikestea", a user from the Australian city of Melbourne, on an Apple discussion board.

Other users replied that they had received the same message.

Telstra Corp Ltd, Australia's largest telecommunications provider, said it was aware of the issue, while Vodafone Hutchison Australia said it was encouraging worried customers to contact Apple.

Japan's Renesas to sell display chip business to Synaptics: sources

 Renesas Electronics Corp plans to sell its majority stake in a maker of iPhone display chips to Synaptics Inc, another smartphone chip supplier, according to sources familiar with the matter.

Apple Inc had also been in talks about a possible purchase of the stake in Renesas SP Driver in what was seen as a potential move to shore up its global supply chain, but the sources said those talks failed to make progress and Renesas had narrowed its consideration to Synaptics.

The sources could not be named because they were not authorised to speak to media about the matter.

A Renesas spokesman said the company was considering various options for the unit, including a sale, although no decisions had been made. Synaptics declined to comment.

The news was first reported in the Nikkei business daily's digital edition.

One source said it could take several weeks to reach a formal decision on the sale, given the various stakeholders involved. Renesas has been looking to sell its 55 percent stake in the unit that is the sole supplier of display driver chips for Apple's iPhone, as it focuses on customers in the auto sector and sheds non-core assets.

Display maker Sharp Corp, which holds 25 percent of Renesas SP Driver and is unloading assets to bolster its finances, is also expected to sell its stake once Renesas reaches an agreement.

Taiwan's Powerchip holds the remaining 20 percent.

Renesas shares rose as much as 4.2 percent to 770 yen on Wednesday, a two-week high, compared with a flat Tokyo benchmark Nikkei average. The chipmaker, which is restructuring after it was taken over by a state-backed fund, has more than tripled in value since April of last year.

Microsoft shows off real-time Skype translator

 Microsoft Corp showed off a test version of a real-time, spoken-word translation service for Skype calls on Tuesday, the first time the world's largest software company has demonstrated the breakthrough technology publicly in the United States.

Skype Translator, as it is currently called, allows speakers in different languages to hear the other's words spoken in their own language, according to a demo introduced by Chief Executive Officer Satya Nadella at the Code Conference technology gathering in Rancho Palos Verdes, California.

"It is going to make sure you can communicate with anybody without language barriers," said Nadella, who took over as Microsoft CEO in February and is keen to re-establish the company as a technology leader after a decade of slipping behind Apple Inc and Google Inc in mobile computing.

Nadella described the underlying technology as "magical," but said the task now was turn it into a real product rather than just a research project, promising it would launch by the end of the year. He did not say if it would be a free add-on for Skype users or a paid extra.

Immediate reaction to the demo, featuring an English-speaking Microsoft executive chatting with a German counterpart, was mixed. One German-speaking audience member said the translation was good enough for vacation, but not for business.

The new technology, which Microsoft demoed in a rougher form 18 months ago in China, could represent a significant feature for its Skype online chat service, which boasts hundreds of millions of users. It is an advance on Microsoft's current translation features that only work with written words on its Bing search engine and Internet Explorer browser.

Microsoft has been working hard on speech recognition technology for years. Earlier this year it showed off Cortana, its voice-activated "personal assistant" designed to rival Apple's Siri.