Apple Patents a System for Second-Hand iTunes Sales

Although the general understanding with digital goods is that you can’t resell them, Apple and other tech firms don’t necessarily agree.

On Thursday, Apple patented a system for buying and selling digital movies, music, books and software. The system would prevent the original owner from accessing the content after selling it, and could allow the original creator or publisher to receive a cut of the resale price.

As PaidContent points out, Apple isn’t the first company to patent this kind of system. Just last month, Amazon won its own patent on an “electronic marketplace,” where users could buy and sell digital goods. Again, the system would remove access for the original owner once the sale goes through, and it could even prevent additional resales after a certain number of transfers.

You may be wondering why Apple and Amazon–two companies in the business of selling music, movies and books–would be interested in creating second-hand marketplaces. The main reason, I’m guessing, is lock-in. The ability to resell content could help attract and retain more users, which in turn could encourage more sales of tablets or other devices that support their digital stores. Users might also be more willing to buy movies, music and books if they know they can resell that content later.

Of course, this assumes that rights holders are willing to play ball. All signs suggest that they aren’t.

ReDigi, a company that already offers a pre-owned marketplace for digital music, is currently being sued by the music industry for copyright infringement. ReDigi argues that it’s within its legal rights because it doesn’t technically copy the original music file. Instead, it transfers the file to an online locker, and monitors users’ computers for unauthorized copies.

I’m sure Apple and Amazon are watching that case closely. But even if ReDigi prevails, it doesn’t guarantee that other companies will move forward. After all, Amazon and Apple rely on the entertainment industry for their existing digital stores, and for Internet-based services like iTunes Match and Amazon Cloud Player. Offering a second-hand market could very well jeopardize negotiations for other services.

As with so many other Apple patents, it’s best to think of this one as a possible direction for the company, not an absolute certainty. A second-hand market for digital content would be nice, but there are still a lot of obstacles in the way of major tech companies getting involved.

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iPod nano bursts into flames, costing Apple $7,400

In a rare court loss, Apple is found responsible for severe burns to a Japanese woman's hands

The iPod nano is a hot product, and not in a good way: Apple has been ordered by a Japanese court to pay restitution to a couple whose first-generation iPod nano burst into flames. According to court documents, the device caught fire during charging, severely burning the wife's hands. Apple will pay the equivalent of $7,400 to the couple to make things right.

It has been known for some time that first-generation iPod nanos are prone to overheating. The older the iPod nano gets, the more likely the battery is to malfunction. It's certainly not common for iPod nanos to catch on fire — Apple calls the event "rare." Still, the idea that they can catch on fire in the first place should give you pause about using yours.

What should you do if you have a first-generation iPod nano? Well, for starters, stop using it. Apple has a replacement program in place where you can get a new iPod nano free of charge if you own one of the defective units manufactured and sold between September 2005 and December 2006. Simply visit Apple's iPod nano replacement page and enter the serial number from the back of the device. After giving Apple some basic information (your name; address), you'll be mailed a new, safer iPod nano. The process takes approximately six weeks.

Nikkei via The Verge

This article was written by Fox Van Allen and originally appeared on Tecca

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Apple Proves Again Just How Smart It Is (The Motley Fool)

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Can Research In Motion Withstand the Apple Onslaught? (The Motley Fool)

BlackBerry maker Research In Motion (Nasdaq: RIMM - News) has priced its sleek new PlayBook in the same general range as the now-ubiquitous Apple (Nasdaq: AAPL - News) iPad. Though opening-day sales of the Playbook surpassed some initial estimates, analysts still wonder about the future of this impressive yet potentially forsaken device -- a mobile-computing David, up against Apple's Goliath.

Better than expected
The Playbook puts up a good fight technologically, but few legitimately expect the device or the company to topple Apple in the tablet game. Given the rising popularity of competing Apple and Android offerings in the smartphone market as well, is this a reason to worry if you have your money on RIM?

I don't think so. RIM has a lot of competition, but it can level the playing field in the long run. Here's how.

What the competition looks like
RIM faces cutthroat competition in the Tablet PC market. In a recent study by comScore, Apple iOS's market share ranked ahead of that of Google (Nasdaq: GOOG - News) Android by 59%, counting its presence on both smartphones and tablets. The outcome is bad news for those players of the tablet PC market, like RIM, who want a share of the Apple pie in this highly lucrative market.

In my mind, the disadvantage for the PlayBook device itself is its small size. On its itsy-bitsy 7-inch screen, all its first-rate apps, security, HDMI capability, and desktop-like Internet accessibility appear belittled. Worse yet, in the race for good-looking gadgets, RIM must compete with more than just Apple.

A few of the notable names fighting for market space in this industry include the Motorola Mobility (NYSE: MMI - News) Xoom, the Dell (Nasdaq: DELL - News) Streak 7, the Hewlett-Packard (NYSE: HPQ - News) TouchPad, the Samsung Galaxy Tab, and the HTC Flyer. With such stiff competition, it won't be easy for RIM or any other player to vie for public acceptance.

The way forward for RIM
In order to keep the revenue coming in, the best alternative I can imagine for RIM is not to go head-to-head with Apple in the same consumer market segment. The PlayBook, although packed with some excellent multitasking capabilities, falls short of the iPad's elusive "cool" factor. Rather than trying to market the PlayBook to tech-savvy hipsters, RIM should focus instead on the business world, which already loves its BlackBerry.

Getting corporate users to buy the PlayBook could be comparatively easy, given the features that allow users to integrate it with BlackBerry smartphones. The PlayBook was planned for corporate users, and I think that's where RIM should concentrate

The highly polished QNX operating system could be another trump card for RIM in its effort to out-Apple the market, giving RIM a number of impressive selling points for which to command a relatively premium price.

You can win
A host of new players will enter the Tablet game in 2011, and the market will heat up for sure. If RIM can successfully curb Apple's competition by appealing to business users, it's definitely on its way to significant profits -- unless, of course, all of those consumers buying iPads start taking them to work as well.

Arunava De does not own shares of any of the companies mentioned. Google is a Motley Fool Inside Value pick. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor selection. Motley Fool Options has recommended a bull call spread position on Apple. The Fool owns shares of Apple, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Apple Releases iOS 4.3 Two Days Early (PC Magazine)

Two days before the release of the iPad 2, Apple unveiled its next-generation mobile operating system, iOS 4.3

"The world's most advanced mobile operating system keeps getting better. Download the free iOS 4.3 Software Update and get new features that let you do even more with your iPhone, iPad, and iPod touch. The software update is free. It's easy. And you can download it right now," Apple said on its iOS Web site.

At its iPad 2 press event last week, Apple said iOS 4.3 would drop on March 11. Though there were rumors that the OS would launch on Tuesday afternoon, Apple instead released it earlier today. It is supported on all iPads, the third- and fourth-generation iPod touch, and recent iPhones.

At that event, Apple provided a sneak peek at what's included in iOS 4.3, including enhanced Safari performance, iTunes home sharing, AirPlay improvements, slider switch rotation, and a personal hotspot for the iPhone 4.

The Safari improvements include the Nitro JavaScript engine, meaning iOS will run Java twice as fast, Apple's Scott Forstall said last week. With iTunes home sharing, meanwhile, users can wirelessly stream content over a home Wi-Fi network from the PC to the iPad.

Apple also added updates to AirPlay. If you're sharing photos, for example, you can now use slideshow transitions on the iPad to your Apple TV and vice versa. The slider switch on the side of the tablet, meanwhile, can now be used as a rotation lock or a mute button.

With iOS 4.3, a personal hotspot will let people share their iPhone 4 Internet connection with the iPad. The Verizon iPhone already has a hotpost option, and AT&T confirmed recently that users can purchase a bundled 4GB data and hotspot iPhone 4 package for $45 per month.

At the iPad launch, Apple chief Steve Jobs also said that iMovie for iPad and GarageBand for iPad will be available in the App Store on March 11 for $4.99 each.

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