WSJ : Polaroid Maker Sues GoPro Over Tiny, Cubical Camera

Polaroid Maker Sues GoPro Over Tiny, Cubical Camera

C&A Marketing says GoPro’s Hero4 Session violates its patent for the Polaroid Cube camera

The maker of Polaroid cameras is suing action-camera maker GoPro Inc. for allegedly infringing on its patent for cube-shaped cameras, a dispute between old and new in the industry that poses another problem for GoPro’s latest product.

C&A Marketing Inc., the exclusive maker of Polaroid-branded cameras, filed a patent lawsuit against GoPro on Tuesday in U.S. District Court in Newark N.J. C&A says GoPro’s Hero4 Session camera illegally copies the design of C&A’s Polaroid Cube camera, for which C&A obtained a U.S. design patent in May. C&A asked the court to halt sales of the Session and award it an unspecified amount of money, including all of GoPro’s profits from the Session.

In response, GoPro sent the Wall Street Journal its European Union design patents for the Session that were issued in March and said it is still awaiting a U.S. patent it applied for last year. The company declined further comment.

The year-old Polaroid Cube and the four-month-old GoPro Session are both effectively cubes with rounded corners. Both have a camera lens on the front side and large control button on the top. The Session is slightly larger than the 1.4-cubic-inch Cube.

A federal jury might now have to decide whether those similarities mean GoPro infringed on C&A’s vague design patent. The patent has just a 12-word claim—“The ornamental design for a cubic action camera, as shown and described”—and seven illustrations of the Cube. C&A, based in Ridgefield, N.J., applied for the 14-year patent in January 2014 and received it in May this year. The patent doesn’t mention the size of the camera.

If a jury decides the Session infringes on the patent, does that mean C&A owns the rights to any cube-shaped camera? Fuhu Inc. in El Segundo, Calif., and Chinese camera maker SJCam sell similar cube-shaped action cameras, while Canon Inc. is expected to launch a high-end, box-shaped camera in December for $30,000.

The lawsuit is the latest Session-related headache for GoPro. The San Mateo, Calif. company unveiled the camera, a smaller version of its popular Hero cameras, as its top new product of 2015. But sales have lagged behind expectations, and last month GoPro slashed the price from $400 to $300. Weak Session sales dragged down GoPro’s third-quarter results and fourth-quarter guidance, sending shares plummeting nearly 60% over the past three months.

GoPro Chief Executive Nick Woodman has defended the Session, attributing weak demand to a poorly timed launch, strong competition from other GoPro cameras and an initial price that was too expensive. “If we were to start all over again, what type of a GoPro would we develop? [The] Session. And I stand by it. It’s my favorite GoPro,” he said on the third-quarter earnings call last week.

The Session has higher resolution and frame rates than the $150 Polaroid Cube and has generally received better reviews, though some reviewers have noted its similarity to the Cube.

GoPro applied for a patent for the protective case for the Session on Jan. 6, 2014, one day after C&A applied for its Cube design patent, and received the patent in March this year.

C&A’s design patent lists the inventor as Gregoire Vandenbussche, a senior industrial designer at San Francisco-based Ammunition LLC, which C&A hired to design the Cube. Mr. Vandenbussche is listed as the co-inventor on design patents for several headphones and speakers made by Apple Inc.’s Beats unit.

C&A has held exclusive rights to make Polaroid-branded cameras since 2009, a year after Polaroid ceased production in bankruptcy. A parent company called PLR IP Holdings LLC now licenses the Polaroid brand to other businesses.

(Wansquare) Telecom Italia : Xavier Niel entendu par la Consob

Le gendarme de la Bourse italienne a entendu le patron de Free afin d'en savoir plus sur ses intentions vis­à­vis de l'opérateur télécoms italien. Une communication officielle devrait bientôt être publiée. Quelle que soit l'issue
de cette confrontation entre Xavier Niel et Vincent Bolloré, ce dernier est déjà sûr de réaliser une très belle plus­value en cas de cession de ses titres.

En attendant d’avoir le détail des intentions de Xavier Niel après son entrée surprise à hauteur de 15,14% au sein du capital de Telecom Italia, comme le stipule aussi le règlement italien, l’homme d’affaire français a rendu des comptes de visu à la Consob. Le fondateur de Free a ainsi été entendu ce matin à Rome. Il est resté un peu plus d'une heure dans les locaux de l’autorité, avant de s'engouffrer dans une camionnette noire sans faire aucune déclaration, comme a pu le constater l’AFP sur place.

Ce déplacement devrait être le préalable à une communication officielle de la part de la Consob (notamment sur une éventuelle action de concert entre les deux Français) qui suit de très près cette incursion après celle, à hauteur de 20,03%, de Vincent Bolloré. Elle intervient également après que le patron de Telecom Italia, Giuseppe Recchi se soit entretenu avec Xavier Niel, samedi, à Paris. Entretien manifestement fructueux et cordial
puisque depuis, le responsable italien ne cesse d’indiquer à qui veut l’entendre que les intentions du patron de Free sont « amicales ». Et d’ajouter que tout investisseur est le bienvenu au capital de son groupe et « plus encore s'il peut apporter compétences et suggestions ».

Mais Xavier Niel veut­il aller plus loin ? Financièrement déjà, le morceau serait un peu « lourd » à avaler puisque l’opérateur transalpin vaut actuellement 17 milliards d’euros en Bourse. Il a déjà dépensé (ou sur le point de) environ 2,5 milliards d’euros et devrait ajouter 1,7 milliard d’euros pour aller jusqu’à 24,9%, seuil au­delà duquel il serait contraint de lancer une OPA. Il n’a donc pas beaucoup de marge de manœuvre, d’autant que même avec 24,9% de Telecom Italia cela ne lui donnerait pas beaucoup plus de pouvoir que maintenant, surtout avec un autre actionnaire du même poids en face. Car Vincent Bolloré peut, lui aussi, accroître jusqu’à 24,9% sa présente au capital du groupe sachant que le patron breton a amassé sa participation depuis près d’un an et que son prix de revient lui laisse déjà l’assurance de réaliser une belle plus­value, quelle que soit l’issue de cette bataille boursière. Car n’oublions pas qu’il a obtenu 8,24% du capital de l’italien dans le cadre de la vente de ses parts dans GVT à l’Espagnol Telefonica qui possédait ces titres. Du coup, son bloc de 20,03% de Telecom Italia valorisé aujourd’hui un peu plus de 3 milliards d’euros a été acquis sur une base moyenne bien inférieure

Le gouvernement italien de son côté, suit avec attention l'évolution de la situation comme l’a indiqué vendredi soir le sous­secrétaire à la présidence du Conseil, Claudio De Vincenti : « L'intérêt du pays est que tout changement dans la composition de l'actionnariat réponde à des critères de renforcement industriel d'une société, comme Telecom Italia, stratégique pour le développement du système de télécommunications italien ».

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SALE +18.9%, LMNX +11.2%, NLS +11.1%, SANM +10.2%, GEL +8.9%, RNG +8.7%, PERI +7.9%, NPTN +7.2%, TZOO +5.9%, ZTS +5.1%, RTEC +4.9%, AUDC +4.5%, FN +4.2%, INCY +4%, SUP +3.7%, LB +3.4%, MBLY +3.4%, AFSI +3.3%, DISCA +3.1%, TXRH +3%, ONDK +2.7%, UNT +2%, CDE +1.9%, GNC +1.9%, CFMS +1.8%,CFMS +1.8%, SSNC +1.7%, PXD +1.7%, NRZ +1.6%, ALL +1.1%, MOS +1.1%, MCEP +1%

M&A news: KING +15.1% (to be acquired by Activision Blizzard (ATVI) for $18 per share ), NGLS +9.9% (to be acquired by Targa Resources (TRGP) in an all-stock transaction at a ratio of 0.62 TRGP shares per NGLS share), AEO +7.5% (acquires Tailgate Clothing Company for ~$11 mln; raises Q3 EPS guidance to ~$0.34), EMC +0.5% (Dell might sell $10 bln in assets to secure EMC deal, according to Reuters)

Other news: BKD +15.3% (concluded executive search process; hired Labeed Diab as COO and Lucinda Baier as CFO), ZSAN +10.2% (reported positive results from the Phase 1 clinical trial of ZP-Triptan patch for migraine), ZNGA +5.9% (KING peer), CVM +5.7% (Park West Asset Management disclosed 5.7% passive stake in 13G filing), GLUU +5.2% (KING peer),RGLS +5.2% (Regulus Therapeutics and GlaxoSmithKline (GSK) announce a Phase II study to evaluate the combination of RG-101 and GSK2878175), VRX +4.5% (Philidor to wind-down principal operations), SBBP +4% (reports COR-004 results at the Society for Endocrinology BES 2015 conference; trial met its key efficacy endpoint of IGF-1 level reduction), INCY +4% (reports findings from its Phase 1/2 study of epacadostat), GNC +1.9% (announces it has resumed market share repurchases and will repurchase an additional $200 mln before the end of 2015), MWW +1.4% (CEO disclosed purchase of 25000 shares, worth total of $155.5K; transaction date 10/30), VSR +1.2% (announces the award of two new task orders; combined value is $17.1 mln), P +1.1% (Eminence Capital discloses 5.6% passive stake in 13G filing), ISIS +1% (reports an update on ISIS-TTR Rx, including positive data from multiple clinical studies)

Analyst comments: N/
A

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: VSH -13.1%, AMAG -11.3%, QLYS -11%, NMM -10.4%, AQXP -10.3%, TNET -9.3%, S -8.5%, CGNX -8.4%, CAR -7.7%, EXLP -7.4%, DWRE -7.3%, ADM -7.3%, FIT -7.2%, TASR -6.5%, CGEN -6.2%, UBS -6.1%, AEIS -5.3%, ANIP -5.1%, UNXL -5%, OLN -4.8%, UNVR -4.8%, ODP -4.4%, GGP -3.9%, DBVT -3.6%, ARIA -3.6%,AXLL -3.5%, K -3.3%, AIG -2.9%, AXON -2.8%, NCLH -2.8%, VGR -2.7%, FTR -2.5%, DNOW -2.2%, MDCO -2.2%, ZIOP -2%, AMC -1.8%, OHI -1.5%, EMR -1.4%, KMT -1.3%, KONA -1.2%, TDOC -1%

M&A news: EJ -6.1% (receives revised non-binding 'going private' proposal for $6.64/share)


Other news: ASC -12% ( announces a 4 mln share secondary offering by selling stockholder, GA Holdings), AQXP -10.3% (reports results from Phase 2 KINSHIP trial with AQX-1125; trial did not meet primary endpoint), AREX -5.4% (to be removed from the S&P SmallCap 600), SUI -3.7% (prices offering of 3,250,000 shares of common stock at $65.00 per share), HTZ-3.3% (following CAR results), FCAU -1.8% (reported October 2015 US sales), GSK -1.4% (Pfizer (PFE) spoke to GSK about M&A deal before talks with Allergan (AGN), according to FT), AEG -0.8% (receives designation as 'systemically important' by the Financial Stability Board)

Analyst comments: CNX -3.2% (downgraded to Sell from Hold at Deutsche Bank), MDLY -2.4% (downgraded to Mkt Perform at FBR Capital), NVDA -0.7% (downgraded to Hold at Needham)
.

>>> Martin Marietta misses by $0.15, misses on revs (155.45)

Martin Marietta misses by $0.15, misses on revs

  • Reports Q3 (Sep) earnings of $2.04 per share, $0.15 worse than the Capital IQ Consensus of $2.19; revenues rose 7.8% year/year to $1.08 bln vs the $1.15 bln Capital IQ Consensus.
  • Aggregates product line volume increase of 5.4%; aggregates product line price increase of 5.4%.
  • Cash provided by operating activities for the first nine months of 2015 was $319.6 million compared with $201.6 million in the comparable 2014 period.
  • During the quarter, the company repurchased 917,000 shares of its common stock for $158 million.
  • FY15 Outlook: Sees Net sales for the Cement segment to be between $375-$400 million, generating $105-$110 million of gross profit. Sees net sales for the Magnesia Specialties segment to be between $235-$240 million, generating $80-$85 million of gross profit... Sees Aggregates-related downstream product lines to generate between $875-$925 million of net sales and $80-$85 million of gross profit... Consolidated EBITDA to range from $800-$820 million, exclusive of the loss on the California cement sale and related expenses and absent the early onset of winter weather in the company's markets.
  • 2016 Outlook: Infrastructure market to increase slightly ... Nonresidential market to increase slightly ... Residential market to experience a double-digit increase... ChemRock/Rail market to remain relatively flat.

>>> GlaxoSmithKline highlights from R&D Day; aiming to file for 20 new drugs by

GlaxoSmithKline highlights from R&D Day; aiming to file for 20 new drugs by 2020

At a presentation to investors in New York today, GSK described a portfolio of innovation, focussed across six core areas of scientific research and development: HIV & Infectious diseases, Oncology, Immuno-Inflammation, Vaccines, Respiratory and Rare Diseases. Around 40 new potential medicines and vaccines were profiled, supporting the Group's outlook for growth in the period 2016-2020 and the significant opportunity the Group has to create value beyond 2020.
  • The portfolio represents some of the latest scientific achievements from GSK's R&D organisation and its more than 1,500 company and academic collaborations. The company believes approximately 80% of the medicines and vaccines presented have the potential to be "first-in-class" with novel mechanisms of action. As a result, many of these potential medicines and vaccines may offer benefits beyond current standards of care and, in some cases, could radically transform how patients are treated.
  • In total GSK has the potential to file up to 20 assets with regulators before 2020. Seven of these assets are in advanced late-stage development (with the potential to launch before 2020) with the remainder, being in earlier development, notably in the areas of oncology, immuno-inflammation and respiratory disease. In 2016/2017 GSK has the potential to start phase II development of ~30 new molecular entities and product line extensions and to start phase III development of ~20 NMEs and PLEs.
  • GSK expects core EPS to grow at a CAGR of mid-to-high single digits on a CER basis over the five year period 2016-2020.

>>> Freddie Mac posts first loss in four years due to accounting associated with

Freddie Mac posts first loss in four years due to accounting associated with use of derivatives; Does not need a Treasury draw down

  • $475 Million Net Loss and $501 Million Comprehensive Loss; No Draw Needed From U.S. Treasury
  • $4.2 Billion Year-to-Date Net Income and Comprehensive Income
  • $96.5 Billion Returned to Taxpayers To Date.
  • $1.5 billion (after-tax), approximately, was driven by the fair value losses on derivatives used to hedge the company's interest rate risk. However, significant GAAP earnings volatility can occur as the derivative instruments are measured at fair value each period while certain hedged assets and liabilities are not.
  • $0.6 billion (after-tax), approximately, of the comprehensive loss was the result of credit spread changes on various assets and liabilities measured at fair value.
  • In the second quarter of 2015, the comparable result was an estimated $0.7 billion (after-tax) gain.
  • Net Worth of $1.3 Billion; No Draw Request or Dividend Obligation Under the Purchase Agreement
  • The company has returned $96.5 billion to taxpayers and drawn $71.3 billion from the Treasury.
  • The amount of available funding remaining under the Purchase Agreement is unchanged at $140.5 billion.
  • "For the first time in four years, Freddie Mac had a net loss in the most recent quarter. This $0.5 billion loss was caused mainly by the accounting associated with our use of derivatives, whereby the derivatives are marked-to-market but many of the assets and liabilities being hedged are not. The resulting difference between GAAP reporting and the actual underlying economics, which has created significant GAAP income volatility in our quarterly financial statements, reduced the after tax earnings in the quarter by an estimated $1.5 billion as interest rates declined significantly" said Donald H. Layton, chief executive officer. "In the prior quarter, we had the opposite result with a $1.5 billion positive contribution to earnings as rates rose significantly.".
  • "Finally, as this loss was just a fraction of the $1.8 billion net worth reserve we have under the Preferred Stock Purchase Agreement, no U.S. Treasury draw was needed, so total dividends paid remains unchanged at $96.5 billion, $25 billion more than we have received."

FT : The eurozone’s fiscally lax nations are at it again

The eurozone’s fiscally lax nations are at it again

France, Italy and Spain are slipping the EU’s budget leash, writes Tony Barber

It is Groundhog Day in the eurozone. Some governments are displaying the same artful disregard for budget rules that marked their behaviour in the euro’s first 10 years. The question is whether this fiscal mischief is dangerous. Does it make the eurozone vulnerable to another near-death experience?
Seen from Germany, fiscal recklessness was the original sin of eurozone governments and the root cause of Europe’s post-2008 debt crisis. It follows that budgetary rectitude is the remedy. Hence the EU’s 2012 fiscal compact, with its stipulation that budgets should be, except under specific circumstances, balanced or in surplus.

If the eurozone crisis had a multitude of causes, of which fiscal irresponsibility was not the most important (except in Greece), it will seem less worrying that some governments are reverting to old habits. However, even if a new round of rule-bending will not kill the eurozone, it should not be dismissed as irrelevant.
Governments that observe common rules will never trust those that evade them. The real danger, then, is that an enduring mistrust over rule-bending will prevent the eurozone from achieving the closer banking, fiscal and economic union required to survive another serious crisis.
Consider the draft 2016 budgets that eurozone governments have just sent to the European Commission. The plans of France, Italy and Spain, which account for almost half the eurozone’s economic output, make it difficult to avoid the conclusion that all three governments pretend to observe the rules while skipping round them in practice. So, once again, Germany and its northern European allies grumble about fiscal laxity and a cavalier approach to rules in southern Europe. Southern Europeans raise their eyebrows in despair at the stubborn inflexibility of the northerners. Groundhog Day, indeed.
What does the commission think? In January it published “Making the Best Use of the Flexibility Within the Existing Rules of the Stability and Growth Pact”. This pointed out that the EU’s fiscal rules are not so strict as to suppress all budgetary flexibility — but that rules are rules and governments ought to adhere to them. After the crisis, the commission wrote, “the existence and respect of the rules have been essential to restore trust and confidence”.

If respect for the rules is “essential”, the eurozone is back in trouble — because France, Italy and Spain are making their disdain for the rules obvious. France aims to cut its structural budget deficit in 2016 by 0.3 percentage points of gross domestic product less than it promised seven months ago. This might seem trivial, were it not that France has a long record of slipping its fiscal leash. In March, Paris secured a reprieve from EU finance ministers and won two more years to bring its budget deficit under the EU ceiling of 3 per cent of GDP. Italy wants to go further and loosen its budget strings. Instead of reducing its structural deficit by 0.5 percentage points, it wants to raise it by 0.4 percentage points. Spain’s 2016 budget foresees a higher structural deficit, not a smaller one as outlined under EU rules.
What do all three governments have in common? Spain will hold legislative elections in December, France holds presidential and parliamentary elections in 2017 and Italy will probably also elect a new legislature in 2017.
Naturally, the incumbents — Mariano Rajoy in Spain, François Hollande and Manuel Valls in France and Matteo Renzi in Italy — want to boost their chances of re-election. But let us be honest — it is doubtful they believed in the new fiscal rules in the first place. If, however, they imagine this is the way to make Germany sacrifice more sovereignty for the sake of an integrated eurozone, they could not be more wrong.