Apple Inc. v. Amazon.Com, Inc.

Filing 40

EXHIBITS re 39 Declaration in Support, Continuation of Exhibits filed byAmazon Digital Services, Inc., Amazon.Com, Inc.. (Attachments: # 1 Exhibit 13a, # 2 Exhibit 13b, # 3 Exhibit 13c, # 4 Exhibit 13d, # 5 Exhibit 13e, # 6 Exhibit 14, # 7 Exhibit 15, # 8 Exhibit 16, # 9 Exhibit 17)(Related document(s) 39 ) (Givan, Sarah) (Filed on 6/1/2011)

EXHIBIT 13

App stores shift power balance in mobile market I Wireless - CNET News

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App stores shift power balance in mobile
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App stores shift power balance in mobile market I Wireless - CNET News

Page 2 of 5

New mobile app stores launched by Apple, Google, and Research In Motion could shift the
balance of power in the mobile market away from wireless operators and toward device and
platform developers.
Until recently, wireless operators served as the gatekeepers of what content and applications made
it onto mobile phones. Now mobile platform developers such as Apple, Google, and Research In
Motion are providing marketplaces where consumers can get access to thousands of new
applications tailored specifically for each of these device platforms.
On Tuesday, Research In Motion, the maker of the BlackBerry smartphone, became the latest
device maker to announce it will offer an application storefront branded specifically for its own
operating system.
Earlier this summer, Apple made headlines with the launch of the App Store, an online
marketplace of games and other software designed to run on the iPhone and iPod Touch devices.
More than 3,000 applications are currently available, and Apple has
said that users downloaded more than 100 million applications
between the site's launch on July 11 and the beginning of September.
Google followed with its own application store for phones that use
its Android operating system. The first phone, called the Gl, will go
on sale Wednesday on T-Mobile's network in the U.S. And the ondevice application marketplace will also go live with it.
For developers, these new storefronts should make it easier to develop and distribute applications.
For consumers, it means more choice in applications. But for operators, it means ceding some
control over what applications make it onto their phones to other companies.
"The big picture trend is that mobile carriers are playing less of a central role in the marketing and
distribution of individual applications," said Charles Golvin, a principal analyst with Forrester
Research. "It's analogous to what happened on the Web. People initially accepted the walled
garden of AOL, but as they became more skilled users they found that to be too restrictive."
To a certain extent, wireless operators appear to have accepted the trend. Verizon Wireless, which
has developed a new open network initiative to speed up certification of devices and applications
running on its network, claims that it is happy to allow new applications and services on its
network, since ultimately it will drive network usage.
"We want users to bring any device or application to the network that they want," Eric Reed, vice
president, Market Issues and Policy for Verizon, said during a panel discussion at the Consumer
Electronics Association Industry Forum in Las Vegas on Tuesday. "That is what our open
development initiative is all about."

Page 65

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3/27/2011

App stores shift power balance in mobile market I Wireless - CNET News

Page 3 of 5

But it's clear that carriers don't want to give free reign to application developers to put anything
on their network. Wireless operators still insist there needs to be certification.
"We also have a responsibility to make sure that these applications and devices don't crash the
network or hurt the user experience," Reed added.
That said, Forrester's Golvin believes that wireless carriers see the writing on the wall, and they
realize they must be more open to new applications if they hope to drive usage on their networks.
"It's true that the role of the carrier as the key distributor of applications is dissipating," he said.
"But the upside is that these same operators still stand to make money on their data plans."
The danger for wireless operators is that by ceding application distribution to handset makers or
platform developers, they are essentially making themselves into dumb pipe providers. This is a
wireless operator's worst fear and one they have already begun to see play out in the broadband
market.
But Reed of Verizon said he still expects wireless consumers to come to Verizon for applications,
too.
"There is not a one size fits all solution here," he said. "There will be multiple business models."
RIM has also acknowledged that there will be multiple ways for consumers to get applications.
And it will continue to work with its carrier partners to provide on-device application centers that
are created by the carriers to help promote application downloads. These centers will allow each
carrier to offer a catalog on the device so that customers can discover and download applications.

Marguerite Reardon
Like 408
rrroi de E-mail Marguerite Reardon
,

„

Marguerite Reardon has been a CNET News reporter since 2004, covering cell phone services,
broadband, citywide Wi-Fi, the Net neutrality debate, as well as the ongoing consolidation of the
phone companies.

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tato //snaevolobloesoot.corn/

TechRadar did a App store shootout about a month ago. With All the
ta,aggiurrrttrMri g to keep their clients coming back. and
staying, do wonders to the stores. But according to the author, the

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race is a two horse race.
iPhone (Apple App Store) and Android (Google Android Market) easily
being ahead of the other two major stores, Nokia (Nokia Download)
and Blackberry (blackberry Application Center).

Google

The Apple app store seem to be doing well and that is where we spend
most of the time. (We just got the iPhone 2.2.1 update and seem do
do good to the phone, iPhone 36). Few days ago, I visited Android
Market with a Google Phone (Android Developer Device) and seem to

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be pretty busy with a lot of very good free mobile applications.
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read. So go find out how the other app stores doing!

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3/27/2011

Giz Explains: All The Smartphone Mobile App Stores

72,810 views, Apr

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7

Giz Explains: All The Smartphone Mobile App Stores

Switch to the blog view by clicking Ea

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It's been less than a year since Apple launched
the iPhone App Store, but now virtually every
mobile OS Is showcasing its own take on the
mobile application storefront. How do they all
stack up?
The first thing you'll notice about these
efforts—coming from such traditionally
competitive companies as Palm, BlackBerty,
Nokia and Microsoft—is just how similar they
all sound. App World? App Catalog? App
Market? Mobile Marketplace? This outward
likeness actually runs pretty deep—these
stores are advertising uncannily similar
feature sets, for both users and developers:
Feature

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Although it might not evident in the feature-by-feature breakdown above, there are two
distinct kinds of app store: The primary store, which is the first and only source of an OS's
apps (see Apple), and the secondary store, which is built around an existing stock of thirdparty apps, and with preexisting developers in mind (see BlackBerry, Microsoft, and Nokia).
It's a combination of these different lineages and divergent policy choices that make the
smartphone app store experience so varied.
Apple's iPhone App Store

At least for now, the App Store is the standard by which all others are judged. Beyond that,
it's given us a rough guide for what works. With a $99 dollar developer's fee and a novicefriendly SDK, the barriers of entry for an iPhone developer are fairly low. Distribution,
payments and to a large extent marketing are managed by iTunes, which iPhone owners are
necessarily familiar and comfortable with.
And, of course, there's the iPhone: This store may only serve one handset (and its very similar
nonphone brother), but it's a wildly popular one. This makes the app store uniquely attractive
to developers, because it provides access to the largest uniform app-buying market in the
world. Microsoft can argue that Windows Mobile 6.5 will connect developers to x gajillion
different customers through y zillion different handsets, but this variety is a curse: Handsets
have different resolutions, processors, 3D hardware, input types and basic feature sets. A
motion-sensing 3D game with a GPS social networking feature won't work on a lot of WinMo
; handsets, but a 2D, keypad-controlled Asteroids clone won't make a developer rich.
Page 69

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3/27/2011

Giz Explains: All The Smartphone Mobile App Stores

Page 2 of 5

But the App Store is far from perfect. Apple, like all
,

App Store owners, has the final say in what gets listed, •
(5 s 3n,o
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delisted or banned, and they aren't afraid to remind
us of this. Along with the typical
risque/racist/infringing content prohibitions, Apple
enforces strict and often limiting rules against apps
that compete with the iPhone's native set—iTunes,
Mail.app, Safari to nanie a few—and apps that their
partnered carriers aren't too fond of, i.e video
streaming and tethering apps. Now, all these rules are
showing signs of loosening with OS 3.0, but as long as
the App Store is the sole source of iPhone apps, any
rules will seem like too many rules—especially if
you're accustomed to a totally unregulated system like
Windows Mobile 6.1's. Hence, the gray market.

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-

But the App Market is a different breed than the App Store. Most importantly, it's not the
only place you can get apps. Google has been much more lenient about what they allow in
their store since the beginning but in the rare case that they don't approve of an app, as in the
case of tethering apps earlier this month, you can hist go download an .APK file and sideload
it onto your Gi anyway. This Ls a healthy middle ground for everyone involved; Google
doesn't alienate users by destroying entire categories of apps, but isn't forced to come into
conflict with carriers because of overly liberal policies. Google has aLso made their Market
more friendly to consumers, with a no-questions 24-hour return policy.
Great! Then why is the App Market so underwhelming? Well, the Gi wasn't exactly a runaway
hit, and the store got off to a slow start. Paid apps weren't made available for months after
launch, and when they arrived they didn't benefit from the convenience and familiarity of a
storefront like iTunes. Moreover, there's no guarantee that things will change that much in
the coming months—more handsets from more manufacturers will boost Android's user
numbers, but will lead to, the WinMo-style toxic fragmentation that Apple so adamantly
avoids.
BlackBerry App World

Matt took a dive into the newest mobile4autal, and found it agreeable, but not
spectacular. RIM's is the beginning of this "secondary" app store concept, and it shows: You'll
be hard-pressed to find anything here that wasn't previously available elsewhere. It is simply
an aggregator for existing applications.

Page 70

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3/27/2011

Giz Explains: All The Smartphone Mobile App Stores
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This was a given, as developers have been cranking
out BlackBerry apps for years now. But App World
was a great opportunity for RIM to give the lethargic
dev community a shot in the arm. Instead of doing
that, they've made the store almost hostile to wouldbe app writers.

Free
****

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Listing your wares in App World costs a hefty $200,
which gives you the right to upload io apps, but
doesn't come with any new SDKs or development
tools. The payment system is PayPal, which is clumsy to use and a pain to set up. A minimum
non-free price tier of $2.99, probably intended to filter out spammy apps and cover PayPal's
transaction fees, discourages developers from even trying to make simple, useful apps,
eliminating the $.99-to-$1.99 sweet spot that has been central to Apple's success. App World
feels like an afterthought, and a reluctant one. UPDATE: It should be noted that the
70% dev revenue share figure in the chart is incorrect, and has been update to
8096—a marked advantage over the other stores.
Windows Mobile Marketplace

With Windows Mobile 6.5, Microsoft will introduce
the Windows Mobile Marketplace. So far, their
announcements have shown an awareness of the
pitfalls of both Apple's and RIM's approaches: They're
emphasizing non-exclusivity and app approval
transparency, a 24-hour return policy and wide device
support, but also making sure to get big-name app
and game developers on board to ensure that users
actually have something new to look forward to at
launch.

Like

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t Today's Texting Teenagers Are
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Trailer Could Vely Well Become
Real Some Day
3 Android May Be the Greatest Legal

On the developer side, it's a mixed bag. As in every
other store, the dev take-home is 70% of each sale, but
the listing fees aren't great. $99 gets you five apps a
year, but anything beyond that will cost an additional
$99. I'm sure this will help vaccinate the Marketplace
against the fart app epidemic that Apple has proven so prone to, but it'll do so at the expense
of potentially useful free and $0.99 apps—again, a crucial price range. One important factor
that's still TBD is the payment system. Microsoft says they'll support both credit card
payments and carrier charges, bu:t hasn't yet said how that'll look In both cases the process
will need to be as seamless as possible.
Nokia Ovi Store

You probably haven't heard much about this store, set to debut within a month, but it's kind
of a big deal for the 4om+ Symbian S4o and S6o users that it'll serve apps to. It's planned to
shoehorn into Nokia's new Ovi app suite, which we were introduced to with the XpressMusic
5800, and provide a go-to source for not just apps, but ringtones, wallpapers, and basically
everything else that you might have found in a 2001 vintage carrier WAP store.
There has been a decided lack of fanfare surrounding this launch, probably because there just
aren't that many Nokia smartphones in the US. But its success or failure will be informative:
It will be the most open of all the,app stores. For the time being, there is no developer fee, and
app listings are free and unlimited. You can easily publish tons of different kinds of contentFlash Lite apps, Java apps, Native S6o apps, multimedia uploads and others—which will be
subject to a vetting process that Nokia has assured will be minimal. As Nokia-averse
Americans, we can view the Ovi Store as an experiment in laissez-faire app-mongering—a
I multi-handset, mixed-media, unfiltered feed of Symbian content.
Palm App Catalog

And finally, we have Palm's App catalog. This is the store we know the least about, but that is
already set for a different course than all the others. At launch, the only handset it'll serve will
be the Pre—though Palm has indicated that other WebOS handsets are inevitable. It'll be the

Page 71

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3/27/2011

Giz Explains: All The Smartphone Mobile App Stores
first—and
likely
exclusivesource of
WebOS apps,
and
developers will
be furnished
with a solid,
though
fundamentally
limited, SDK.

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Paul

Bloomberg

Palm's stillvague plan for
Application
the App
AccuWeather.ro
Catalog will no
Application
doubt be
Rough Guide
CiLsbt
central to the
success or failure of the Pre, but we can make an
educated guess at what to expect, assuming that Palm
doesn't get taken over by idiots in the next couple months: Palm will vet the apps thoroughly,
provide an in-house payment system, and make development simple and cheap (previewed
Mojo SDK apps have shown great promise). The end result will probably look something like
the iPhone App Store, but with one huge difference: there will be no local natively running
apps—the Mojo SDK doesn't provide for that, just for what amount to turbocharged, locallystored web apps. Granted, these web apps will have privileged access to some of WebOS's
core functions, but it's doubtful that high-end gaming, as we've seen on the iPhone, will even
be possible on the platform. These limitations (along with WebOS's multitasking advantages)
will affect the nature and quality of the apps that are listed in the store much more than the
Catalog's policies, though exactly how, we'll have to wait and see.

111 Facebook social plot,*

a Today's Texting Teenagers Are
Ridiculous
2

Spoof Angry Birds: The Movie
Trailer Could Very Well Become
Real Some Day

3 Android May Be the Greatest Legal

Still something you still wanna know? Send any questions about app stores, SDKs or the
finest in fart-app technology to [e-mail] , with "Giz Explains" in the subject line.
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3/27/2011

Comparison of Smartphone App Stores - ABA Site-tation

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4/9/2009

Comparison of Smartphone App Stores,
Last month we pointed to a series of articles and blog posts
comparing the various Smartphones currently on the market. Unlike
traditional cell phone/Smartphone comparisons, these looked not at
the devices themselves but rather at the operating systems and

Links

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software the devices were running. As the underlying technology
has become more uniform, the differences in software have become
more significant.
Building on the Smartphone operating system comparison, Gizmodo

has now published a comparison of the "app" stores offered for
•••••s••••s•••
each of the major Smartphones..tagegatare the means by which
Smartphone users browse, preview, and purchase software to add
functionality to their Smartphones. The comparison looks al nagg
stores for the iPhone, Android, BlackBerry, Windows Mobile, Palm,
won..
and Nokia (Symbian), and weighs factors like the availability of a
mobile client, billing systems, minimum pricing, and restrictions.
Check it out: Giz Explains: All The Smartphone Mobile App Stores
Previously:
• Follow Up on iPhone vs. Android
• Smartphone Comparisons: iPhone 3.0 Versus Android
• iPhone v. BlackBerry Take Two: ABA Journal
• iPhone or BlackBerry?
Posted at 11:17 AM by Poje, Joshua 1 Category:
Mobile Lawyers 1 Email this Post 1 Permalink

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3/27/2011

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3/27/2011

Samsung App Store to Arrive Soon? « Specs, Reviews, News and Price Info - MobileWh... Page 1 of 9

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Everybody who's anybody is developing an App Store of
their own. Besides Apple we have RIM, Nokia, T-Mobile,
Microsoft, Verizon and Google are or will be ready to offer
you a large selection of downloadable content from various
application stores.
So what is Samsung doing? Well it looks like Samsung is too
very interested in having an 4EL ...stare of its own. The
manufacturer is trying out a store in the UK. In the said store
you'll find full length movies and an Application Seller Site
portal. The portal will allow Symbian and Windows Mobile developers to sell their apps to Samsung
customers. The portal will be open in the following weeks as Samsung will launch the Samsung
Application Store in Europe this September. Other markets should also get access to the store but
that's also to be announced.

Page 75

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3/27/2011

Samsung App Store to Arrive Soon? « Specs, Reviews, News and Price Info - MobileWh... Page 2 of 9

In case you're a developer then you should sign up for the new site portal for just $1. After that you'll
be able to start selling apps soon. Now that Samsung has entered this app store frenzy we can't but
wonder who's next. Any hints?
via rethink-wireless
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This entry was posted by Chris on Wednesday, August 5th, 2009 at 6:19 pm and is filed under Apple, Google, Nokia,
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2 Responses to "Samsung App Store to Arrive Soon?"
1. Samsung App Store Opens September 14 - Specs, reviews and prices. on August 31st, 2009 at
11:41 am
[...] and it is only fitting to know that they will be topping all of these releases with their very
own App Store. Samsung will be opening its own on-device application store for all its
Samsung smartphones this [...]
2. 24mobile Handy Blog fur Handys und Handyvertrage on September 5th, 2009 at 5:34 am

Endlich: Samsung Appstore startet am 14. September...

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3/27/2011

Samsung Joins the App Store Party I Gadget Lab I Wired.com

Page 1 of 4

Gadget Lab
Hardware News and Reviews

Previous post
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Samsung Joins the App Store Party
By Priya Ganapati August 31, 2009 I 1:26 pm I Categories: Phones

Samsung will be the latest handset maker to get an app
stsu of its own. The company announced plans to introduce a marketplace for games and other
applications from developers that will launch Sept. 14.
The app store will initially be available in Europe. And only select models of Samsung phones,
including the Omnia and 18910 HD devices can access the app store, says the company.
Samsung is late to the game. Since Apple introduced the iPhone App Store as a centralized clearing
house for mobile applications in 2008,22Ls.tores have become an important part of the business
strategy for most handset makers. BlackBerry manufacturer Research In Motion, Palm and Nokia
have all launched app stores this year. Even cellphone carrier Verizon has been courting developers to
create programs firm-arm
The lack of Samsung'sapzstoz:s availability in the U.S. is likely to dampen developer interest in its
announcement. Earlier this month, the company announced the availability of a mobile widget
software developer kit (SDK). The SDK would allow programmers to create widgets for different
Samsung phones that use different operating systems, including the company's own version. The
company also plans to hold a widget developer camp in San Francisco from September 11-13.
For Samsung, that may not be enough to woo developers away from Apple, Palm and Android.
See Also:
•
•
•
•

Verizon Promises Simpler, More Lucrative App Store for Developers ...
Want to Fool Apple's App Store? Plant an Easter Eg.,g
Palm Pre App Store to Get Paid Apps in September
Nokia Ovi App Store Faces Turbulent Start
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3/27/2011

Samsung Joins the App Store Party I Gadget Lab I Wired.com

Page 2 of 4

• Happy Birthday App Store. It's Been a Good Year
• Coder's Half-Million-Dollar Baby Proves iPhone Gold Rush Is Still ..
• Report: Sony Readies PSP 'App Store'
Photo: (Aquila/Flickr)

Tags: apps, Samsung, store
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Showing 1 comment
lsweetgirl

Seems as though app's are the way to go in '09! Even smaller websites have started some sort
of API for app developers, its a little ridiculous if you ask me, but hey, each to their own.
Maybe I should start an .aps22Le for my barney party supplies website, any Barney app
developers out there? lol
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