APPLE TO UNVEIL iOS 5, OS X LION AND iCLOUD MONDAY JUNE 6

Apple has confirmed that it will be announcing iCloud on June 6th, what it's calling an "upcoming cloud services offering." That will be part of the keynote for this year's Worldwide Developers Conference, known to the cool kids as WWDC. This is, of course, where everyone has come to expect new iPhones to come to light, but this year we're thinking the focus will be more on software, and indeed Apple's event notice indicates that the big highlights will be Mac OS X Lion and the next version of its mobile operating system, iOS 5.

This is a decidedly non-Apple way to announce something big like iCloud, making us wonder what other surprises Steve Jobs will have for us at the event.

LEAK: TWITTER TO ANNOUNCE PHOTO SHARING SERVICE THIS WEEK

Twitter will announce a photo-sharing service at the D9 conference in Rancho Palos Verdes, Calif., this week, according to sources familiar with the matter. Twitter CEO Dick Costolo is set to speak at D9 on Wednesday. Twitter spokespeople did not reply for a request for comment on the matter.

Currently, Twitter users who wish to post photos in their tweets must host them elsewhere, with popular options including Twitpic, Yfrog, Instagram and Flickr. Users then include links to the photos within their tweets. Many Twitter clients, including those developed by the company, use the links to go fetch the images and display them inline. But the process could certainly be smoother.

ROLLS ROYCE iOS APP ALLOWS YOU TO DESIGN YOUR OWN CUSTOM VEHICLE

One of the most impressive uses for a device like an iPhone or iPad is that it can give potential customers access and capabilities that were previously impossible. In the case of the Rolls-Royce iOS app for iOS, car lovers can now build their own Rolls-Royce Phantom, Ghost, or any other vehicle in the lineup right from their home; And they can do so in a way that we haven’t seen before in an iOS app.

For starters, the 3D modeling and views are beautiful — so good that if you connect your iPad to your TV over HDMI, it still looks smooth and crisp — and besides having the ability to build your car from the ground up, you can even pick a custom paint job by taking or using a photo of something on your device and matching the paint swatch to any color in that photograph.

While the percentage of iOS users that can afford a Rolls-Royce is another story, it’s a smart move from a company that will do whatever the customer wants, and it lets potential customers explore Rolls-Royce in any setting they choose.

APPLE INITIATES MACBOOK BOTTOM REPLACEMENT PROGRAM

Per Apple’s support document, they will now fix the issue with the rubber bottom on the white unibody MacBook coming off due to issues with glue. This applies to any MacBook purchased between October 2009 and April 2011. The program is available free of charge via your local Apple Store or Apple Authorized Service Providers.

A self service is available as well where you order a replacement bottom case kit online. The free kit includes a new bottom case, screws, a Phillips head screwdriver and instructions explaining how to remove the bottom case and install the new one.

The MacBook Bottom Case Replacement Program covers the affected MacBooks for two years from original purchase date, Apple says. They will also issue a refund if you have paid for a repair or replacement due to this issue. The program does not extend your standard warranty in any way.

GOOGLE LAUNCHES FLIGHT SCHEDULE SEARCH

The new flight schedule search feature Google launched last week. By simply typing "flights from / to" a destination in the search bar, it displays specific flight routes or all routes from a particular airport, all of the airlines serving the locales along with flight numbers, and travel dates / times.

The ITA travel search software which the DOJ finally allowed Google to purchase last month isn't powering the feature, although Google stated on its blog that the flight schedule search is a "small step" in an overall effort to make finding flight information simpler.

CALIFORNIA PUBLIC UTILITIES COMMISSION INVESTIGATING AT&T/T-MOBILE MERGER

The Public Utilities Commission in California will investigate AT&T’s planned acquisition of T-Mobile, The Wall Street Journal reported on Friday. The Golden state is one of three states that Sprint has asked to investigate the deal, the other two are West Virginia and Louisiana. “We believe a thorough investigation will reveal the negative implications for pricing, choice, and innovation critical to California’s economy,” Sprint’s public affairs manager, John Taylor, said. “Sprint is pleased that the commission will open up a proceeding to investigate the proposed takeover of T-Mobile by AT&T.” AT&T originally filed its informal notice with California’s Public Utilities Commission on May 3rd, and Sprint protested the filing on May 19th when it asked for a review of the merger. The regulators will consider three options, one of which is a choice to notify AT&T that its purchase is not “pre-approved” after the standard 30-day time period after an application is submitted. Sprint has opposed the acquisition from day one, and its CEO Dan Hesse said the deal would “stifle innovation” in the U.S. wireless market.

ASUS UNVEILS PADFONE

ASUS on Monday unveiled its second convertible tablet just ahead of Computex 2011 in Taipei, Taiwan. Using what ASUS calls the “n+1″ concept, which refers to taking a current product and adding a single change that allows the product to evolve beyond its current capability, ASUS sought to simplify the process of moving between a tablet and a phone.

The result is a unique 10.1-inch tablet that acts as dock for a 4.3-inch Android smartphone dubbed Padfone. Similar to Motorola’s “webtop” design that allows a smartphone to be docked in a laptop, ASUS’ Padfone smartphone powers the tablet when it is docked. All of the data stored on the smartphone is accessible on the tablet’s display, but the UI is tweaked and enlarged to better accomodate various functions. ASUS’ first convertible design, the Eee Pad Transformer, is in high demand in every market where it is available, and ASUS clearly hopes to build on that success with the Padfone.

SKYPE INSTALLING CRAPWARE ALONG WITH PROGRAM

It seems that Skype is automatically installing crapware called EasyBits Go without informing or asking users for installation permission.

Easybit produces a number of game apps and is supported by many major brands including HP, Dell, Acer and Skype among others. When installing Skype, the installation also installs the Easybit Go application without the users permission or any notification.

Skype responded to the accusations:

It has come to our attention that concerns have been expressed from Skype users over the update delivered to Skype Extras for Windows by Easybits software.

The software is provided by our partner EasyBits, and is part of the Skype Extras Manager. The Extras Manager has been included in Windows releases of our software since 2006. This latest update from EasyBits included elements of their desktop games organizer in error, but it neither installs nor un-installs correctly. This update has been disabled while we work with them to correct the problems and user experience.

Skype works closely with its partners to ensure that our users receive the best possible Skype experience and is working with EasyBits to ensure this issue does not happen again.

Users are reporting it is a bit of a issue removing the offending software. To remove the software:

• Disable and remove 3rd party access to the easybitgo.exe file in Skype via Options > Advanced > Advanced Settings > Manage other programs’ access to Skype
• Remove the Easybits Go program via the Install/Uninstall panel under your system’s control panel
• Exit Skype and make sure the Skype.exe is not running in the list of running processes (via Task Manager). Also temporarily disable Skype from starting automatically when Windows starts.
• Then restart your computer since the program will still be is use by the system.
• Once restarted, go to [Drive Letter]:\ProgramData or [Drive Letter]:\Documents and Settings\All Users\Application Data and permanently delete theEasybits GO folder.
• Remove whatever shortcuts it may have placed in the start menu and desktop.
• If you are confident enough to dig around in your registry, go to HKEY_CURRENT_USER\Software and delete the entire EasyBits folder (thanks Christopher)
• Go to the Windows\Prefetch directory and look for the file EASYBITSGO.EXE-364DAFD6.pf and delete it. Also do a search for ezPMUtils.dll and delete them all.
• If you are on Windows 7, delete the go folder in this directory - Users > [YOUR USERNAME] >AppData > Roaming (thanks Lesa)

GOOGLE PULLS EMULATORS FROM ANDROID MARKET

If you're an Android gamer, chances are you've heard of Nesoid, Snesoid, Gensoid, N64oid, Ataroid, Gearoid and Gameboid: they're all video game console emulators developed by yongzh, and many ranked among the most popular paid apps on the Android Market. This week, they've got something else in common, too, they've all been abruptly removed.

Following a complaint from Sega, two emulators were nixed late last month, but we're hearing that Google has since revoked yongzh's developer privileges, just like PSX4Droid comrade-in-arms ZodTTD.

There is some speculation however that yongzh violated the GPL licenses of the open-source code he used as a base for his emulators violating copyright.

NEW VILLAIN REVEALED FOR AVENGERS MOVIE

The Avengers is currently in production and we know a bit about the protagonists. The main villain for "The Avengers" is none other than Thor's adoptive brother and archenemy Loki and that he will need some serious muscle to go up against "The Avengers" and he does this by using the cosmic cube. Loki uses the cube to get a hold of the Aliens (aka The Skrulls) to invade Earth and fight "The Avengers." Skrulls are green-skinned reptilian humanoids with large pointed ears, red or green eyes, and corrugated chins.

But that’s not at all! There is another big time villain in the movie.

According to very trusted sources, the other villain is Thanos! To back up the sources claims we have the Infinity Gauntlet on display at last year’s San Diego Comic Con and it just made an appearance in Odin’s Vault in "Thor".

ALASKA AIRLINES FIRST TO USE iPADS IN LIEU OF PAPER FLIGHT MANUALS

The iPad has already gotten the go-ahead from the FAA as a replacement for paper flight charts and maps, and now Alaska Airlines has become the first major US airline to hop on board the paperless bandwagon. While it's not quite ready to ditch paper navigation charts just yet (though that is under consideration), the airline has announced that it will be replacing its traditional flight manuals with iPads, which will be loaded up with the GoodReader app and PDFs of 41 different manuals and other materials.

According to the airline, that change will result in savings of about 2.4 million pieces of paper, and it says the cost of the project will be offset by fuel savings from the reduced weight, and additional savings that are expected from "fewer back and muscle injuries caused by pilots carrying flight bags," which can weigh up to 50 pounds.

SAMSUNG ASKS JUDGE TO MAKE APPLE SHOW THEM THE iPHONE 5 AND iPAD 3

Samsung lawyers recently asked the court to make Apple show them the as-yet-unannounced iPhone 5 and iPad 3, claiming that they need to know what Apple's products will look like ahead of time to avoid future lawsuits and uncanny similarities. This also highlights the ridiculousness of the original order which compels Samsung to show Apple its products before they launch.

RUMOR: US DEPARTMENT OF TRANSPORTATION TO REQUIRE ALL CARS TO HAVE BLACK BOXES

A few years back, the Department of Transportation recommended that auto makers give car owners a heads up when they slip event data recorders -- also known as "black boxes" -- into new models. Now, it looks like the department is considering taking its policy a step (or several) further: a memo reveals that the National Highway Traffic Safety Administration plans to propose later this year that all new passenger vehicles have EDRs.

So far, heavy-duty vehicles appear to be excluded, and either way, it's unclear how many years auto makers might have to work black boxes into their future models. Interestingly, when we asked a DoT staffer for clarification, he reminded us that the agency hasn't issued a press release and said he wasn't sure where Wired and other outlets were getting their information. Indeed, the Transportation Department hasn't proposed such a law yet, though it's pretty safe to say it's at least pondering it.

To read the entire 197 page document (page 54 is interesting), click here.

HP EXPANDS BATTERY RECALL

HP wants to make sure you don't get burned, literally. For the third May in a row, it's issuing another expansion of its voluntary battery recall on laptops produced from July 2007 to May 2008 -- frankly, we're considering a holiday to mark the occasion. May 2009 saw a recall of 70,000 batteries followed by an expansion to cover 15,000 in China, totaling 85,000 affected laptops.

It didn't end there though, as further expansion was put in place during May 2010 to cover even more models, and this time around, a sizeable number of lappies have been added to the ever-growing list. About five percent of the models from the aforementioned time frame could have problematic batteries, and HP will be providing replacements for those at risk of getting a little too hot under the collar.

If your machine was also part of the previous recalls, HP's saying those should be verified as well, even if you've done so in the past already.

MICROSOFT MAKES MORE MONEY FROM ANDROID THAN ITS OWN WINDOWS PHONE

According to a report by Citi analyst Walter Pritchard, Microsoft may be making more money off Google’s Android operating system than it makes off its own Windows Phone platform, five times more, in fact. Pritchard states that as a result of a patent settlement, HTC is required to pay Microsoft $5 for every Android phone sold.

Analyst Horace Dediu estimates that HTC has sold 30 million Android smartphones to date, which adds up to $150 million in the bank for Microsoft. Dediu notes that Microsoft has reported Windows Phone sales totaling 2 million licenses to date, and he estimates the company’s license fee to be $15 for a total of just $30 million.

Pritchart notes that Microsoft is currently suing other Android phone makers for infringements on the company’s intellectual property, and is seeking between $7.50 and $12.50 per device sold. As much money as the company is making on sales of HTC’s Android phones, it’s easy to see why Microsoft is pursuing other cell phone makers with similar suits.

LODSYS GOING AFTER ANDROID DEVELOPERS TOO

Earlier this week we reported that a firm named Lodsys had started to send out letters to Apple developers claiming that they were infringing on a Lodsys patent related to in-app purchases. Apple stepped in and claimed that, since it licenses Lodsys’ products and services, its developers were also entitled to use the technology.

Now it appears that Lodsys is also going after Android developers for the same reason. “We recently implemented in-app purchases for our Android application and several weeks later we received a letter from Lodsys, claiming that we infringed on their patents,” one programmer said in a Google forum. It is unclear how many Android developers have been contacted, and Google’s Android team has yet to respond, but we hope the search giant backs its developers the same way that Apple did.

SPECIAL STICKER WILL ALLOW NFC-LESS ANDROID PHONES TO USE GOOGLE WALLET

Though it hasn’t been officially announced, during the Q&A session at the Google Wallet press event, Google mentioned it would be releasing a special sticker that will act as an NFC chip and will let NFC chip-less phones work with Google Wallet. This is a good move on Google’s part as the company said most Android phones in the future will support NFC technology but that’s a year away at least.

The sticker would have just one set of credit card information attached to it. So, unlike the way Google Wallet with a built-in NFC chip works, you would not be able to attach different loyalty accounts, use Offers, and so on. It would basically be just a way for you to make purchases with your smartphone.

DEFENSE CONTRACTOR LOCKHEED MARTIN INVESTIGATING SECURITY BREACH

Lockheed Martin is one of the US Department of Defense‘s largest contractors, and the biggest provider of technology services to the government overall. Now, word is trickling out from unnamed sources close to the company that Lockheed Martin’s internal technology team is working overtime to combat major network issues that could be related to a security breach.

It’s important to note that the issues haven’t been confirmed as a hack or security issue as of yet, but if the issues do turn out to be security related, it could be a very serious problem for the Pentagon and the US government as a whole. Lockheed Martin is the company behind a number of high-tech, classified government progrmas, like the F-22 Raptor fighter/bomber: the US Air Force’s next generation air superiority fighter. (Lockheed Martin is also the company behind the famous-but-now-decommissioned SR-71 Blackbird spy jet, which once held the record for fastest manned jet aircraft.)

Lockheed Martin is also the parts and technology manufacturer behind a number of other weapons systems already deployed in conflicts around the globe and at sea, and a major technology partner in a number of NASA’s space exploration projects, like the Phoenix Mars Lander and the Mars Global Surveyor. Reuters reports that Lockheed Martin has notified the Pentagon of its network issues, and has already advised Pentagon officials with access to information shared with Lockheed Martin to take steps like changing their passwords. Lockheed Martin employees have already been advised to take the same steps to protect their own security.

HTC OFFICIALLY ANNOUNCES OPEN BOOTLOADERS

HTC CEO Peter Chou has decreed from on high, through the HTC Facebook page, the company's controversial policy of locking bootloaders is no more.

There has been overwhelmingly customer feedback that people want access to open bootloaders on HTC phones. I want you to know that we've listened. Today, I'm confirming we will no longer be locking the bootloaders on our devices. Thanks for your passion, support and patience.

There is still the possibility this new ruling will be retroactive and HTC will open up the Thunderbolt, Evo 3d, Incredible S and the Sensation.

APPLE'S iCLOUD MUSIC SERVICE WILL MIRROR YOUR iTUNES LIBRARY

There's been so much chatter about Apple iCloud that you'd think the streaming music service had already been announced and the deals inked. But it's still just a rumor until an Apple executive takes the stage and unleashes the Amazon Cloud Player and Google Music competitor in a spate of superlatives. That hasn't stopped Businessweekfrom stepping up with a good summary of all that is "known" thus far, while giving us some insight into the particulars of how the service will work and the motivations to make it happen. One revelation, sourced from three people in the know, claims that Apple will scan customers' iTunes libraries (hello, LaLa) and quickly mirror the contents on Apple's own servers -- no massive DSL-choking upload required. And Apple will do you the solid of "replacing" any low bitrate tracks with the "high-quality" versions it stores in its fully licensed music locker for streaming to your connected devices.

PLAYSTATION NETWORK RETURNING TO ASIA TOMORROW SAYS SONY

Good news, Asia -- the PlayStation Network is finally coming back. Today, Sony announced that it will restore its gaming network across the continent, more than a month after falling prey to a crippling data breach. The company's PSN services are already up and running across other parts of the world and, beginning tomorrow, will light up once again in Taiwan, Singapore, Malaysia, Indonesia, Thailand and even Japan, which had been harboring serious reservations about the network's security. Gamers in South Korea and Hong Kong, meanwhile, will have to wait a little longer before returning to normalcy, though Sony is hoping to completely resolve the issue by the end of the month. The company certainly seems eager to put this saga to bed, and for understandable reasons. The incident has already cost Sony an estimated $171 million in revenue -- not to mention the untold numbers of suddenly wary consumers.

BIGGEST THREAT TO TV ADERTISING IS SMARTPHONES, NOT DVR

TV viewers are a famously fickle bunch, which tends to drive TV advertisers crazy. The prevalent theory remains that skipping past ads using a pesky DVR is the biggest enemy of marketers, but new research has once again contradicted that received wisdom.

The IPG Media Lab in Los Angeles pulled together a representative group of 48 TV and online video viewers and asked them to sit through some programming while equipped with the usual "devices or distractions" that accompany their viewing habits. Central to the study was the measurement of time each person spent facing the screen and how engaged they were with the content.

The first thing noted was that 94 percent of TV viewers and 73 percent of online video consumers used some other form of media to augment their visual entertainment. Smartphones were the most common, with 60 percent of test subjects resorting to their handset while gawking at the TV. That's resulted in a mediocre 52 percent attention level during actual programs and 37 percent during ads. In other words, two thirds of the time, commercials are being ignored and smartphones are helping people with that heinous behavior.

Ironically, fast-forwarding adverts using a DVR garnered attention levels that were 12 percent higher, mostly because people were trying to make sure they didn't skip too far ahead.

AMAZON LAUNCHES MAC DOWNLOAD STORE

Amazon on Thursday announced yet another online application store, this time for Mac OS X users. The Amazon Mac Download Store will compete directly with Apple’s own Mac App Store, and there will be no love lost between these two giants.

There are currently 201 software titles and 51 different games available, including full blown apps like Microsoft Office and Intuit QuickBooks, and hit games such as Dragon Age: Origins. Customers can quickly purchase and download applications using their Amazon accounts, and purchases are automatically backed-up in case you need to reinstall the apps at a later date.

GOOGLE SUED BY PAYPAL FOR STEALING TRADE SECRETS

On the same day Google unveiled its new mobile payments system, Google Wallet, eBay and its online payment arm PayPal filed a lawsuit against Google and two of its executives for stealing trade secrets relating to mobile payments.

Osama Bedier and Stephanie Tilenius, both of whom were heavily involved in the development of the Google Wallet service, were named in the suit. Beider and Tilenius were formerly PayPal employees who left the company to join Google and help build Google Wallet. Both executives were with PayPal for the better part of a decade, and Bedier was most recently vice president of platform, mobile and new ventures.

The suit accuses Bedier of having “misappropriated PayPal trade secrets by disclosing them within Google and to major retailers,” and it alleges that Tilenius broke a contractual agreement with eBay by recruiting Bedier once moving to Google.

NASA GIVES UP ON MARS ROVER SPIRIT

Back in March NASA raised concerns over the health of Spirit, one of the Mars rovers that landed on the red planet back in 2004. Spirit‘s problems began back in January of last year when NASA reported that the rover’s mission was concluded as a result of it getting stuck in the Martian sand. At that point, Spirit began operations as a stationary research platform until it went into hibernation in March 2010.

Since then Spirit has been silent. NASA had originally hoped that Spirit might finally wake up when the rover reached its peak solar energy production on March 10th of this year, but alas there was no response. It is believed that a “stressful” Martian winter without much sunlight may have contributed to Spirit’s demise since it likely experienced colder internal temperatures than its previous six years on the planet. Some of the rover’s components are believed to have been damaged by the cold since there was inadequate solar energy to power Spirit’s survival heaters.

As a result, NASA has ceased all attempts to contact the rover using its Deep Space Network of antennas on Earth in addition to its two Mars orbiters. Due to the low probability that Spirit will once again establish communications these communication assets are now being transitioned to NASA’s Mars Science Laboratory (MSL). The MSL is NASA’s next generation Mars rover that is expected to launch on November 25th of this year. NASA did state that its Deep Space Network may listen for signals from Spirit when “the schedule permits.”

Opportunity, an identical rover that landed on Mars three weeks after Spirit, is in much better shape and continues to explore the planet’s surface. Opportunity’s current odometry as of May 18, 2011 is over 18 miles.

GOOGLE LAUNCHES GOOGLE WALLET

Putting to bed months of rumors, Google on Thursday announced an "open" NFC-based mobile payments ecosystem that lets users pay for items by tapping their phone against a payment reader.

"Your phone will be your wallet. Just tap, pay, and save," said Stephanie Tilenius, Google's VP of Commerce, announcing the platform at the Google Partner event in New York.
'Google Wallet' is a free Android app that securely stores multiple credit cards, or a Google prepaid card linked to your credit card (one that Google provides). When opened on an NFC-enabled smartphone, you can tap your phone against a supported payment reader and the item you want to purchase is instantly charged to your credit card.

Field tests are already in place in New York and San Francisco, but when it launches commercially this summer Google Wallet will work on Sprint's Nexus S 4G, MasterCard credit cards issued by Citi, and at retailers equipped with Mastercard's PayPass terminals. The transactions will be processed by First Data, an Atlanta-based company.

Retailers who've signed up include Walgreens, Subway, Toys "R" Us, American Eagle Outfitters, and Macy's.

At the event Osama Bedier, a former PayPal exec and currently Google's VP of Payments, demonstrated the end-to-end consumer experience with a skit about buying denim shorts for his daughter.

First, Bedier opened the Google Wallet app on his Nexus S and agreed to the Terms and Conditions. He then attached his Google Wallet to a Google account, entered a PIN number to open the wallet, and filled out a form to link his Citi credit card account to the app.
Then Bedier stepped into American Eagle Outfitters store (use your imagination), where Beth McCormick, senior director of customer systems at AEO, joined the stage and handed him a pair of American Eagle's MIDI shorts. Bedier brought the shorts to a PayPass terminal, tapped his smartphone against it, signed his name, and "left" the store.

Bedier called this "Single Tap" but in reality, it's more of a tap-sign transaction.

US SENATOR FRANKEN ASKS APPLE AND GOOGLE TO REQUIRE PRIVACY POLICIES FOR APPS

Senator Al Franken (D-Minn.) pinged Apple and Google Wednesday with a letter requesting that the two companies require apps distributed via their online marketplaces have "a clear, understandable privacy policy."

In the letter addressed to Apple CEO Steve Jobs and Google CEO Larry Page, Franken writes that such a requirement "would not resolve most of the privacy concerns in the mobile market.
"But it would be a simple first step that would provide users, privacy advocates, and federal consumer protection authorities a minimum of information about what information an app will access and how that app will share the information with third parties.

Noting that Apple's App Store and Google's Android Marketplace are by far the two largest online app distribution outlets in the world, Franken contended that the two companies were "in a unique position to influence the market for apps and protect users' privacy within the market."

At a minimum, Franken asked that Apple and Google require privacy policies for apps that use location tracking, technology that came under fire from privacy advocates when researchers publicized the existence of an unencrypted file storing location data on Apple's iPhones.
"Although I believe there is a greater need for transparency and disclosure for the collection and sharing of all personal information, at a minimum, I ask that you require all location-aware applications in your app stores to provide privacy policies that clearly specify what kind of location information is gathered from users, how that information is used, and how it is shared with third parties," the first-term Senator wrote.

DROID X GETTING GINGERBREAD TOMORROW, FRIDAY MAY 27

On Wednesday Verizon Wireless announced that Droid X users would start receiving the update on Friday, May 27. According to Verizon, enhancements that come with the update include a new user interface with new colors, a download manager for your apps and attachments, faster access to the numeric keyboard mode, and autosuggestions to group your contacts faster.

Update instructions are posted here. You can either download it manually, which is useful when you're roaming, or wait for the over-the-air update.

This means that a Motorola employee wasn't fibbing on Monday when he told a forum of disgruntled Droid users, all still running Android 2.2 Froyo, that their Gingerbread updates were on the way. He specified that Droid X was scheduled to receive the update by "the end of the second quarter of the year," (i.e. June), barring Verizon's approval. Other Droid phones are scheduled to receive the update by the end of the third quarter, he said.

LEAK: FACEBOOK AND SPOTIFY TEAM UP FOR MUSIC SERVICE

Facebook has partnered with Spotify on a music-streaming service that could be launched in as little as two weeks, sources close to the deal have told Forbes.

The integrated service is currently going through testing, but when launched, Facebook users will see a Spotify icon appear on the left side of their newsfeed, along with the usual icons for photos and events.

Clicking on the Spotify icon will install the service on their desktop in the background, and also allow users play from Spotify’s library of millions of songs through Facebook. The service will include a function that lets Facebook users listen to music simultaneously with their friends over the social network, one of the sources said.

The partnership is another indication of how Facebook is moving towards becoming a hub for media like movies and music. Last March for instance, Warner Bros. announced it would make movies available to stream and rent through Facebook using Facebook credits.

It has yet to be decided if the new service will be called “Facebook Music” or “Spotify on Facebook,” but it will only be available for Facebook users in countries where Spotify has a presence, excluding the all-important United States.

RUMOR: iOS 5 TO ONLY RUN ON iPHONE 4 OR HIGHER

Eldar Murtazin is a Russian mobile phone guru with an uncanny knack for getting his hands on unreleased phones. While most of Murtazin’s information and scoops have involved non-Apple products, Murtazin recently tweeted that the next major iOS update, iOS 5, will only run on the iPhone 4 and the next-gen iPhone. In other words, iPhone 3GS users are out of luck.
“Just one comment. Apple iPhone 3Gs wont be upgradable to iOS 5.x. iPhone 4 will”, the tweet reads.

While Apple has typically made new iOS updates extremely backwards compatible, arguably to a fault, an iOS update that excludes iPhone 3GS owners would mark a departure from Apple’s efforts to keep previous owners with the most up to date mobile OS. Note that iOS 4, released last June, was backwards compatible going back two generations to the iPhone 3GS and the iPhone 3G.
While Murtazin’s tweet should be taken with a grain of salt, he does have a good track record and it is worth nothing that iOS 5 is largely believed to be a major and significant iOS update. That said, it stands to reason that Apple would only want its upcoming OS update to run on hardware powerful enough to deliver the high level of performance and user experience iPhone users have grown accustomed to.

Apple will take the final wraps off of iOS 5 in the coming weeks at WWDC scheduled to kick off on June 6. While specific features remain murky, iOS 5 is rumored to be heavily focused on location and cloud-based services along with significant voice recognition integration.

MICROSOFT TO LAUNCH WINDOWS PHONE 7 MARKETPLACE ON WEB

We're not quite sure why Microsoft didn't make mention of it during its big event yesterday, but the company has now confirmed that its forthcoming "Mango" update will also bring with it another significant addition to the Windows Phone scene: a web-based Marketplace. That will of course let you browse and buy apps right from your favorite web browser, and then have them installed on your phone over-the-air. You'll also be able to take advantage of various social networking tie-ins to share apps with your friends, and the Marketplace will hang onto your download history so you can easily reinstall all of your apps if you switch phones -- and, yes, you can count on plenty of Bing integration as well.

BALLMER'S WINDOWS 8 RELEASE DATE INCORRECT SAYS MICROSOFT

During a press event in Japan recently, Microsoft CEO Steve Ballmer said that Windows 8 would would launch sometime next year. His firm says otherwise. “It appears there was a misstatement,” a Microsoft spokesperson recently said in a statement. “We are eagerly awaiting the next generation of Windows 7 hardware that will be available in the coming fiscal year. To date, we have yet to formally announce any timing or naming for the next version of Windows.”

Despite Microsoft’s statement, we could still hear more about Windows 8 much sooner — even if it doesn’t actually launch in the coming fiscal year. “As we progress through the year, you ought to expect to hear a lot about Windows 8,” Ballmer said in his speech. “Windows 8 slates, tablets, PCs, a variety of different form factors.’ According to ZDNet, we could see an early build of the operating system as soon as the D9 conference, which begins on June 31st.

SONY'S HACKING NIGHTMARE CONTINUES

Sony continues to be targeted in a series of cyberattacks that have resulted in the theft of personal information belonging to over 100 million Sony customers. Following breaches of the company’s PlayStation Network, Sony Online Entertainment, So-net Entertainment and most recently, the Sony’s Greek website, hackers have breached a database associated with Sony Ericsson’s Canadian online shop.

Personal data including names, email addresses and passwords belonging to more than 2,000 customers was compromised, but Sony said no credit card numbers were stolen. A Lebanese hacking group called Idahca claimed responsibility for the attack, and it said the information obtained has been leaked on Facebook and Twitter.

It is unclear if this latest attack is tied in any way to previous attacks on Sony’s various digital properties.

APPLE FINALLY ADMITS MALWARE ISSUE; POSTS REMOVAL INSTRUCTIONS FOR 'MAC DEFENDER'

Mac users have recently been targeted by a phishing scam that falsely claimed their computers were infected with a virus. Upon being redirected to an illegitimate website, users were instructed to install “Mac Defender,” which was malware masquerading as an antivirus application.

Until recently, Apple had reportedly instructed its AppleCare support reps to deny any existence of the problem and said reps should “not remove or uninstall any malware” found on a computer. On Tuesday, however, Apple finally acknowledged the issue and posted instructions on its support forums that cover how to avoid and remove the Mac Defender malware.

REMOVAL INSTRUCTIONS:

• Move or close the Scan Window
• Go to the Utilities folder in the Applications folder and launch Activity Monitor
• Choose All Processes from the pop up menu in the upper right corner of the window
• Under the Process Name column, look for the name of the app and click to select it; common app names include: MacDefender, MacSecurity or MacProtector
• Click the Quit Process button in the upper left corner of the window and select Quit
• Quit Activity Monitor application
• Open the Applications folder
• Locate the app ex. MacDefender, MacSecurity, MacProtector or other name
• Drag to Trash, and empty Trash

DUKE NUKEM FOREVER GOES GOLD, RELEASING IN JUNE

Back in January, Gearbox Software released a Duke Nukem Forever trailer, and our inner 13 year-old -- only a lascivious gleam in his father's eye when the game was first announced! -- thrilled to its potty humor, gratuitous violence, and mosaic-obscured lady parts. We were skeptical about the promised May release date, since DNF has long been gaming's answer to Chinese Democracy, and sure enough that got bumped to June 10 (international) and 14 (North America). But now the game has gone gold, meaning real-life physical copies, rather than just one of gaming's longest running vaporware jokes.

BARNES & NOBLE ANNOUNCES NEW NOOK eREADER

Barnes & Noble on Tuesday unveiled its all new NOOK eBook reader, and to say it’s an improvement over the previous-generation model is an understatement. This new version replaces the older greyscale model, not the still-young NOOK color, and it features a major improvement we probably all saw coming… a touchscreen.

The eReader sports an on-screen keyboard and it also allows readers to look up words or take notes with simple taps on the beautiful E Ink display. The new NOOK features just one button compared to the Kindle’s 38, which obviously simplifies the user experience significantly. More importantly, the new NOOK can last up to two months on a single charge, double the battery life of Amazon’s Kindle.

Other nifty features include a new proprietary dissolve transition that takes readers from one page to the next, and social media integration that allows users to share recommendations via Twitter, Facebook and more. Of course the new eReader also features Wi-Fi connectivity and owners can enjoy free hotspot access at all Barnes & Noble stores as well as every AT&T hotspot across the country. The new NOOK will retail for $139.99 when it becomes available on June 10th from Barnes & Noble, Best Buy and more.

WINDOWS PHONE 7.1, 'MANGO', COMING THIS FALL

Microsoft on Tuesday unveiled its forthcoming major update to its Windows Phone platform — Windows Phone 7.1 “Mango.” We gave you live coverage of the event as well a hands-on look at the update, and now that the dust has cleared we can finally sit down and collect ourselves. In short, Mango looks awesome. We’ve seen plenty of promise in the Windows Phone platform right from the start, but we also thought Microsoft rushed the OS to market — understandably — and a lot of key features and functionality were missing as a result. Mango goes a very, very long way in bringing the emerging platform up to date, and Microsoft has named HTC, LG, Samsung, Dell, Acer, Fujitsu Limited, ZTE Corporation and of course Nokia as partners moving forward. Windows Phone 7.1 will be the launch platform for upcoming Windows Phones from Nokia, by the way, and Microsoft confirmed that Nokia has already built devices running Windows Phone 7.1 that are currently being tested in its labs. Mango will add more robust multitasking support, messaging threads, deeper social integration, a unified email inbox, voice-to-text and text-to-voice support, and about 500 other enhancements to the Windows Phone platform when it launches this fall.

COURT ORDERS SAMSUNG TO GIVE APPLE ACCESS TO UNRELEASED PRODUCTS

Samsung has been ordered by a federal judge to grant Apple access to a number of unreleased tablets and smartphones as part of an ongoing patent dispute. Apple filed a lawsuit against Samsung last month, accusing the Korean consumer electronics giant of infringing on a variety of Apple patents and trademarks. “Rather than innovate and develop its own technology and a unique Samsung style for its smart phone products and computer tablets, Samsung chose to copy Apple’s technology, user interface and innovative style in these infringing products,” Apple said in a court filing.

Last week, a judge gave Samsung 30 days to deliver five of its forthcoming devices, the Galaxy S II, Galaxy Tab 8.9, Galaxy Tab 10.1, Infuse 4G, and DROID Charge, to Apple so the Cupertino-based company can determine whether or not it wishes to request an early injunction. “Apple has demonstrated good cause for some, limited expedited discovery,” said San Jose federal judge Lucy Koh. “While Apple has not yet filed a motion for preliminary injunction, courts have found that expedited discovery may be justified to allow a plaintiff to determine whether to seek an early injunction.”

Samsung argued that the devices have not yet been released so granting Apple access to them would be inappropriate, but Koh dismissed the arguments, citing the fact that Samsung is already advertising the devices and giving samples to members of the press.

LEAK: GOOGLE TO UNVEIL MOBILE PAYMENT SERVICE ON MAY 26TH

Sources speaking with Bloomberg claim Google is finally ready to take the wraps off its mobile payment service. According to a new report, Google will host an event on Thursday, May 26th to introduce its new service, which will initially be available only to Sprint subscribers in New York, San Francisco, Los Angeles, Chicago and Washington, D.C. who own the company’s Nexus S 4G smartphone. The system will be NFC-based, and Bloomberg did not specify which retail partners would support Google’s initial offering.

Google has made a series of moves leading up to the imminent announcement this week, such as its recent acquisition of stealth Toronto-based start up Zetawire, which had filed a patent for “a payment system, an advertising system, and an identity management system” combined into a single product. While Google’s preliminary offering might not include unique technology such as Zetawire’s, it’s safe to say the Internet giant has a lot in store for us as it enters this emerging space.

HURT LOCKER STUDIO TO SUE OVER 24,500 BIT TORRENT USERS

The production studio behind the movie Hurt Locker, Voltage Pictures, is attempting to go after a record 24,583 illegal BitTorrent users. The studio has already filed lawsuits against 5,000 BitTorrent users who illegally downloaded Hurt Locker and, in an effort to make up losses due to piracy, it’s now going after more with the help of law firm Dunlap, Grubb and Weaver. According to TorrentFreak, the lion’s share of subscribers — provided on a list to the U.S. District Court of Columbia — are Comcast customers (10,532). 5,239 are Verizon subscribers, 2,699 are Charter customers, and 1,750 are Time Warner users. The lawsuits will likely be tried over the next several years, however, as Verizon and Charter only offer up 100 and 150 customer IP-addresses per month. TorrentFreak suggested that Voltage Pictures would prefer to reach cash settlements with customers as opposed to taking each case to court individually.

APPLE'S APP STORE HITS 500,000 APPS

According to new data from Chop, 148apps, and Chillingo, Apple’s iTunes App Store has approved more than 500,00 applications. In an infographic posted on Facebook, the group notes that Apple has worked with 85,569 different developers and that the average price of a paid application is $3.64. Similarly, 37% of all applications are free. The most popular iTunes categories (ranked by downloads), are games (15%), books (14%), entertainment (11%), education (8%), lifestyle (7%), and utilities (6%). If it seems like Angry Birds has been a hit for nearly a year, that’s because it spent 275 days in the No. 1 spot. Apple has yet to confirm these figures and App Shopper, another third-party that monitors the App Store, currently says there are about 499,200 live applications in the store.

MOTOROLA CONFIRMS GINGERBREAD UPDATE FOR MOST DROID SMARTPHONES

If you own a Droid X, Droid 2 (or Droid 2 Global,) or Droid Pro, Motorola has good news for you. Android 2.3 “Gingerbread” will make its way to your device, and according to Motorola support, you should get it before the end of the summer. Additionally, the Gingerbread update will include updated support for Microsoft Exchange ActiveSync, something that corporate Droid owners have been waiting for.

The Droid X will go first, according to Motorola, and should get an over-the-air update before the end of June. The Droid Pro, Droid 2, and Droid 2 Global will all get their updates before the end of the Q3 2011, meaning before the end of September, as long as Verizon approves and pushes the update to users. Granted, users who have rooted their devices likely already have Gingerbread ROMs. The Droid X, however, has been notoriously difficult to root, so the upgrade is good news for Droid X owners.

RIM BEING INVESTIGATED FOR SECURITY LAW VIOLATIONS

Atlanta, Georgia based law firm Holzer Holzer & Fistel, LLC announced on Monday that it has launched an investigation into possible federal securities law violations made by cell phone maker Research In Motion. The firm claims that its investigation will focus on whether a series of statements made between December 2010 and April 2011 were intentionally false and misleading. The statements in question dealt with problems associated with RIM’s aging product line that were negatively impacting the company’s business, the firm said in a press release. In March of this year, Holzer Holzer & Fistel, LLC launched a similar investigation into Palm surrounding statements the company made before it was acquired by HP.

RUMOR: APPLE TO BID ON 15,000 SQUARE FEET IN GRAND CENTRAL STATION FOR STORE

According to The Wall Street Journal Apple is interested in two balconies that are located on the north and east sides of Grand Central Terminal — a total of 15,230 square feet. BGR has also independently confirmed that Apple has indeed been scoping out the space during the past few weeks. A restaurant currently occupies one of the areas up for rent, but it’s expected to close its doors on July 1st, which would presumably allow Apple to start construction later this summer. According to some experts speaking to The Wall Street Journal, the store could have the potential to be Apple’s most popular retail location to date. The MTA is expected to issue a request for proposals on Monday.

APPLE DEFENDS DEVELOPERS AGAINST LODSYS

Earlier this month a company called Lodsys began sending letters to iOS app developers using Apple’s in-app billing system, asking each to license its technology separately. In a blog post on May 15th, Lodsys explained on its website that “the scope of [Apple's] current licenses does NOT enable [Apple] to provide ’pixie dust’ to bless another (third party) business applications.”

On Monday Apple issued a response to Lodsys explaining that iOS developers are safe under its licensing program. “Apple is undisputedly licensed to these patents and the App Makers are protected by that license,” Bruce Sewell, Apple’s senior vice president and general counsel, said. “The technology that is targeted in your notice letters is technology that Apple is expressly licensed under the Lodsys patents to offer to Apple’s App Makers.”

It sounds like developers that have received the notification letters can breathe easy knowing that Apple appears to be offering some support.

SQUARE'S NEW iPAD PAYMENT SYSTEM MIGHT REPLACE CASH REGISTERS

Mobile payments startup Square is announcing big numbers today—500,000 Square card readers shipped, 1 million Square transactions in May, and the startup is now processing $3 million in mobile payments per day. Clearly the company is on a roll in terms of traction and usage. And CEO Jack Dorsey is also revealing the next generation of Square. And Square is about to get a whole lot more disruptive.

Today, Dorsey is revealing Square Register, a high-powered point of sale replacement for cash registers and point of sale terminals. And the company is taking it one step further for consumers by launching the Square Card Case, a way for purchasers to access a local merchants’ goods, prices, location, loyalty card and more.

For background, Square offers an iPhone, Android and iPad app which allows merchants to process and manage credit card transactions with a handy little credit card swiping device that plugs into the headset/microphone jack. The device and service is the brainchild of Twitter co-founder and recently appointed product lead Jack Dorsey and Jim McKelvey. And Square recently raised $27.5 million in new funding, and announced a strategic investment from credit card company Visa. In Q1, Square did $66 million in payment volume (the company expected $40 million) and is now in track to process $1 billion in payment volume within a year.

Square’s COO Keith Rabois tells us that as the startup has created a payments product for small businesses, they’ve learned that many businesses have more needs than simply having a credit card processor. One of these needs is being able to not only accept cards, but also communicate with customers more efficiently. So today, Square is launching this brand new version of its iPad app, Square Register.

Rabois says the iPad app makes these expensive and cumbersome terminals obsolete for merchants. Not only is the reader and app free (and beautifully designed), but the register is designed to help create and maintain meaningful relationships with customers. Historically, Square’s readers always stored every purchaser’s receipt for merchants and allowed merchant’s to send a copy of the receipt to the purchaser via SMS and email. It was fairly simple.

Now, with the upgrade, merchants can send customers a link to download an app on their mobile phone called a Square Card Case. And this gives merchants a whole new level of engagement with their customers. And data is another big component of Square’s announcement—Dorsey says merchants will have Google Analytics style data that merchants can access, such as how many muffins were sold, and to which types of customers, and more.

BALLMER OUTS WINDOWS 8, SAYS COMING NEXT YEAR

During remarks at a developers conference in Japan on May 23, Microsoft CEO Steve Ballmer referred to the next version of Windows as “Windows 8.” He also said the next generation of Windows systems will be out next year.

According to Microsoft's transcripts of the conference:

“We’re obviously hard at work on the next version of Windows. Windows 7 PCs will sell over 350 million units this year. We’ve done a lot in Windows 7 to improve customer satisfaction. We have a brand new user interface. We’ve added touch, and ink, and speech. And yet, as we look forward to the next generation of Windows systems, which will come out next year, there’s a whole lot more coming. As we progress through the year, you ought to expect to hear a lot about Windows 8. Windows 8 slates, tablets, PCs, a variety of different form factors.”

To those not following Microsoft’s Windows saga closely, this may seem like a “so what” moment. But Microsoft execs have been studiously avoiding any references to the timing or naming of the next version of Windows to try to keep the specifics of the product as quiet as possible. Microsoft’s top brass has been avoiding calling the next version of Windows “Windows 8″ publicly, preferring instead to call it “Windows Next.” (Internally, a number of Microsoft job postings and leaked slides have referenced “Windows 8,” however.”

SONY BMG GREECE HACKED

It's the security nightmare that just won't end, and right now there's got to be plenty of Sony executives beginning to wish someone would pinch them already. After taking quite a PR and financial beating over the PSN breach, now the Greek site of Sony BMG has been hacked and the account info of thousands of users has been posted online.

According to the Sophos blog Naked Security, the attack does not appear to have been particularly sophisticated and was carried out using an automated SQL injection tool that demands more patience than skill. While the data dump reveals the usernames, real names, and email addresses of registered SonyMusic.gr customers, other fields (including passwords and telephone numbers) are either empty or contain fake data, suggesting the hack was not entirely successful.

VERIZON LIGHTS UP LTE IN 21 MORE MARKETS ON JUNE 16TH

Verizon today announced the addition of 21 new markets to its LTE coverage, starting June 16th. The list includes some biggish spots, like Boise, ID, Milwaukee / Madison, WI, Salt Lake City, UT, and Hartford, CT -- Northern California will be getting a major coverage boost, as well, with the existing Bay Area coverage being expanded to Marin and Solano counties. The network launched with 38 markets back in December and those, plus these new additions and a handful announced earlier this month, are bringing the company ever closer to its proposed 175 markets by the end of the year. That's a whole lot of green stars.

RUMOR: iPHONE 4S TO HAVE CURVED GLASS SCREEN

DigiTimes has been canvassing its manufacturing industry sources again, and today it's managed to extract some intel regarding Apple's typically secretive supply chain. Steve Jobs' team are said to have purchased between 200 and 300 glass-cutting machines, specifically in order to use them to slice up curved glass display covers for the iPhone 4S. This move has apparently been in an effort to accelerate production, with glass makers reportedly showing a reluctance to buy the machinery themselves due to its prohibitive cost.

Lest you think this sense of urgency might accelerate the iPhone 4S from its earlier-rumored September launch, DigiTimes also reports that yields of curved glass are not yet good enough to start using said fancy machines. So the iPhone may be headed for the same curvacious look as we've already seen on Dell's Venue and HTC's Sensation, but as it is Apple's wont, it looks like that will be done with a tailor-made, custom solution. At least those Cupertino designers have a couple of generations of curved iPod nano screens under their belt, giving them a good idea of how to handle the atypical glass frontage.

BALLMER SAYS OVER 500 NEW FEATURES IN WP7 'MANGO' UPDATE

Steve Ballmer revealed the Windows Phone 7 'Mango' update will have "over 500 new features" in a speech over in Japan today, where he also said that additional information about "who's going to be building Windows Phones" will be forthcoming at tomorrow's preview event as well. Combine that with an otherwise unsubstantiated rumor about Microsoft showing nine new Windows Phone handsets tomorrow, and it does seem like there'll be fresh hardware to go with the ripening software.

Neither the Mango release nor any devices on show will be coming to market any time soon, mind you, but it's nice to think we'll get to see what the future of Windows Phone will look like in physical as well as digital form.

SONY ESTIMATES PSN BREACH TO COST $171 MILLION; EXPECTING $3.2 BILLION LOSS FOR YEAR

It has not been a good year for Sony, which was affected both by the massive earthquake in March and the PSN outage that spanned from April into May. There couldn't be any doubt that those things would have a drastic impact on the company's bottom-line, and it's now taking the time to give investors an idea of just how big an impact that could be -- even though the financial issues lie largely elsewhere. Sony is set to announce its full financial report for its fiscal year this Thursday and, to soften the blow, estimates have been revised steeply downward. Previously Sony predicted a ¥70 billion ($855 million) profit, but now thinks a ¥260 billion ($3.14 billion) loss is rather more accurate -- a ¥360 billion non-cash charge taking the wind out of ¥200 billion in operating income.

The earthquake was directly blamed for a loss of ¥22 billion, but that figure could certainly grow as this estimate is only through the end of March. Additionally, Sony has provided a early guess of a ¥14 billion (about $172 million) total cost for the PSN breach. That's less than two bucks per exposed account, but again we wouldn't be surprised if it's a figure that increases through the year.

APPLE'S REVAMPED STORES UNVEILED

We all knew something was up, and over the weekend Apple took the wraps off what is being called “Apple Store 2.0,” a revamp that includes various new niceties. The changes, which coincided with Apple’s 10th retail anniversary, involve both consumer facing changes and behind-the-scenes tweaks that will combine to improve an already unique retail experience. Most notably, perhaps, are the thousands of iPad 2 units that have replaced paper signs and info cards next to Apple’s demo devices spread throughout the stores. Each iPad is interactive and features info about the product it accompanies, and there is also a “Specialist” button that will allow perusers to call a sales rep over for help or to make a purchase. These new iPad 2 displays won’t perform any other function — at least, not that the typical shopper can access — and they’re encased in acrylic enclosures to prevent people from walking off with them.

RIAA GOING AFTER BOX.NET USERS

In a somewhat unusual case, the Recording Industry Association of America (RIAA) is seeking legal action against Box.net. The RIAA normally goes after peer-to-peer file sharing sites, like Limewire, which it just won a $105 million settlement from. So it’s a bit unusual that its going after a site like Box.net, which is primarily used to share files within small to medium-sized businesses.

Box.net is a cloud-based service that lets you store content online. Though it is aimed towards businesses, anyone can use Box.net, and a free account starts you off with 5GB of storage. Your content can be private, or parts of it can be shared with the public. It seems that the RIAA has found evidence of a number of Box.net users sharing copyrighted files on their accounts, some of which are music files that have yet to be publicly released.

Because of this, the company filed a declaration in California federal court this week requesting that it can subpoena Box.net. An RIAA spokesperson told Ars Technica that with a subpoena, it could obtain the identities of the users. The spokesperson said these individuals are reproducing and distributing its members’ copyrighted material without their permission.

The RIAA made sure to clarify that it’s not a lawsuit exactly, but just part of a routine pre-release investigation. The spokesperson said it’s too soon to tell what the company might do with the information when it obtains it.

The spokesperson also said that the fact Box.net is a cloud service has nothing to do with the investigation. Although we’d like to say that other cloud services can rest assured the RIAA won’t be coming after them next, it seems like they are looking and finding new venues in which to take legal action and make some money.