Nokia Files Lawsuit Complaint Against 11 LCD Manufacturers In San Francisco Court. Alleges Price Fixing

Posted on December 1, 2009 by admin

Nokia Corp. is suing 11 companies and a number of their units in the U.S., alleging they colluded to fix prices on liquid crystal displays.

Nokia’s suit comes as the LCD industry begins to emerge from a long downturn that had led to weak panel prices. LCDs are used in screens for mobile phones, personal computers and televisions.

The Finnish mobile handset giant alleges in the complaint—filed Nov. 25 with the U.S. District Court for the Northern District of California in San Francisco—that the companies raised “the price of LCDs above the price that would have prevailed in a competitive market” from at least Jan. 1, 1996 through Dec. 11, 2006.

Nokia said it purchased LCDs from the companies and then incorporated them into its mobile wireless handsets.

Three of the LCD makers accused in the suit said Tuesday they hadn’t received any documents from the U.S. court, three others said they were looking into the matter, two declined to comment and the rest couldn’t be reached for comment.

Nokia spokesman Mark Durrant said his company also filed related complaints in the U.K., against makers of LCDs and cathode ray tubes, which are used in older televisions.

Nokia believes it has a strong position in the case because there is no doubt that price fixing has been going on, Mr. Durrant said, though he declined to say how much money could be involved.

Mr. Durrant said it could take a few years to reach a settlement in court, but added that his company is interested in discussing compensation outside of the court system.

Analysts said legal battles take a while to settle so the suit won’t likely have an immediate impact on the LCD makers, though they said the companies may need to set aside provisions from their earnings in the longer term.

The complaint against the group of companies—which includes AU Optronics Corp., Chunghwa Picture Tubes Ltd., Samsung Electronics Co., Sharp Corp. and LG Display Co.—is the latest in a string of accusations of price fixing in the LCD industry.

AT&T Corp. alleged in a suit filed in October in U.S. District Court in San Francisco that AU Optronics, LG Display, Samsung Electronics and other LCD makers were involved in a “long-running conspiracy” from January 1996 to December 2006 to fix prices of LCD panels.

That complaint, filed by AT&T and its BellSouth and Pacific Bell units, Southwestern Bell Telephone Co. and others, alleged the LCD makers formed an international cartel to illegally restrict competition in the U.S. for LCD panels.

Nokia’s complaint also comes about a year after the U.S. Justice Department fined several LCD makers for price fixing.

Sharp, Chunghwa and LG Display agreed in November 2008 to plead guilty to the U.S. charges of price fixing in the LCD market from as early as April 2001 to December 2006. The companies paid $585 million in criminal fines.

Samsung Electronics, the world’s largest LCD maker, wasn’t cited in the Justice Department’s decision but it cooperated with U.S. investigators in the probe, people close to the case said. The probe into the LCD industry became public in 2006.

The European Commission in May 2009 sent formal charges to a number of companies supplying LCDs on suspicion that they have operated a cartel. The commission didn’t name the companies at the time but in July, Philips Electronics N.V. confirmed it received cartel charges from the European Commission alleging price fixing.

Other companies named in Nokia’s suit include Philips Electronics, Tatung Co., Seiko EpsonCorp., Samsung SDI Co., Hitachi Displays Ltd. and Toshiba Corp.

Hitachi Displays agreed in March to plead guilty to the U.S. Justice Department’s price-fixing charges and paid a $31 million fine. Hitachi isn’t a defendant in the AT&T case.

“Nokia suffered damages as a result…and is entitled to treble damages and injunctive relief to remedy these injuries,” Nokia said in its complaint.

Chunghwa Picture Tubes deputy spokesman Wilbur Chien said Tuesday his company hasn’t received any court documents and declined to comment further on the Nokia case. Freda Lee, a spokeswoman for AU Optronics, also said the company hasn’t received any court documents from the U.S.

A Tatung investor relations official also said the company hasn’t received any official documents from the court.

Toshiba spokesman Keisuke Ohmori declined to comment. Samsung Electronics also declined to comment.

Officials at Seiko Epson, Samsung SDI and LG Display said they were looking into the matter, while officials at Sharp, Hitachi, and Philips, weren’t immediately available for comment.

Huge Marketing Budget Drives Motorola Droid Sales. Expects to Sell 1 Million Units In 2009.

Posted on December 1, 2009 by admin

Motorola’s and Verizon Wireless’ $100 million marketing campaign for the Motorola Droid seems to be paying off with strong sales that will likely result in more than 1 million devices being sold by the end of the year.

The Droid, the only smartphone currently on the market that uses Google Android‘s 2.0 operating system, is Motorola’s second Android device and it’s available only on Verizon Wireless’s network. The device is turning out to be the hit phone of the season, thanks in large part to an expensive and extensive advertising campaign.

Motorola Droid

(Credit: Motorola)

Neither company is reporting sales figures. But analysts say sales look good. The companies have likely sold between 700,000 and 800,000 Droids since the device was launched in early November, according to equity analyst Mark Sue of RBC Capital Markets.

“Verizon’s big marketing push for the Droid is strengthening as we close in on the holidays, and following our round of checks, we believe about 700,000 to 800,000 Droids have been sold, making our hurdle of 1 [million] Motorola Droids achievable for 4Q09 [ending December 31],” Sue said in his research note. “Motorola, for its part, has done a good job on the production side, and our survey of over 100 stores indicates strong demand, limited stock outs, and very few returns.”

John Stratton, executive vice president and chief marketing officer for Verizon Wireless, said when the device was launched in late October that Verizon would be pouring in more money to market this device than any other phone it has ever sold. And now it looks like the money has been well spent. From advertisements that specificallyhighlight the Droid to ones that focus on Verizon’s extensive and reliable 3G wireless network, it’s clear that the company has AT&T and the Apple iPhone in its crosshairs.

AT&T has actually sued Verizon over the advertisements about its 3G wireless network coverage.

Some Verizon Wireless stores, especially in major cities, are selling between 100 and 200 Droids per week since the launch in early November, Sue added.

The success of the Droid is good news both for Motorola and for Verizon Wireless.

Motorola comeback
For Motorola, the Droid represents a chance to make a comeback in the cell phone market. The iconic American company that practically invented the cell phone market has struggled for the past several years now. After the runaway success of the ultra-thin Motorola Razr in 2004, the company has been unable to come up with a hit phone. And it has steadily lost market share to other competitors, such as Nokia, Samsung, and LG Electronics. It’s also ceded market share in the fastest growing segment of the market, smartphones, to newcomers like Apple and Research In Motion.

Motorola’s mobile devices CEO Sanjay Jha took a bold gamble more than a year ago when he decided to dedicate the company’s resources to building phones using the Google Android operating system. The Droid and theMotorola Cliq, which is exclusively sold on T-Mobile USA’s network, are the first two Motorola Android phones to hit the market.

But Jha said the Google Android operating system will not only be used in high-end devices like the Droid, but it will also be used to power less expensive phones, creating a new tier of smartphones that will eventually replace the basic feature phone category. Jha said the company will launch at least 20 more Android devices in 2010.

The success of the Droid is an important first step in getting Motorola back on track. But equity analyst Ittai Kidron of Oppenheimer said in a research note Monday that sales of the Motorola Cliq are falling short of expectations. Motorola is expected to sell 1.5 million smartphones in the fourth quarter. And two-thirds of them are expected to be Droids.

Kidron said the Cliq is not selling well mostly because of issues with battery life. Motorola is supposedly preparing a software patch to fix the problem. But he also noted that T-Mobile appears to be losing interest in the device and is not marketing it heavily.

But T-Mobile says that the Cliq is doing just fine. And the carrier said that it’s committed to marketing the phone through the holiday season.

“The Motorola Cliq is very popular among our highly connected customers and is the only device with Motorola’s innovative Motoblur solution,” a company spokesman said. “T-Mobile is excited about the Motorola Cliq for the holidays and continues to showcase it prominently in T-Mobile retail stores and with recent holiday deals.”

Verizon’s iPhone alternative
The Droid’s success is also important to Verizon Wireless, the nation’s largest wireless operator in the country. It is the first device that offers a true challenge to Apple’s iPhone, which runs exclusively in the U.S. on AT&T’s network. While Verizon has a strong reputation for its network, consumers often complain about its lack of cool phones. Up to this point, Verizon has mainly competed against AT&T and the iPhone with RIM’s BlackBerry devices. But RIM’s touch-screen BlackBerry Storm, which was first introduced a year ago, was largely a disappointment.

The Droid offers Verizon customers an alternative to the iPhone on the Verizon network. This fact could help Verizon retain some consumers who were thinking of leaving for the iPhone. But it might also attract new customers who are either disappointed with AT&T’s service or have heard bad things about the network.

Verizon Wireless representatives say the Droid is certainly an important part of the company’s device line-up.

“We are pleased with sales over the holiday weekend,” Brenda Raney, a spokeswoman for the carrier said in an e-mail. “This phone clearly fits the needs of a number of customers who are excited about its availability on the Verizon Wireless network.”

But if analyst data is to be trusted, it is clear that the huge marketing budget for the Droid is at least part of the reason why the device has been so successful. The HTC Droid Eris, another Android device sold exclusively on Verizon’s network, is not selling as well as the Droid, Sue said in his note. The HTC Droid Eris went on sale the same day the Droid was launched, but with much less fanfare.

Part of the problem is the fact that there are many Android devices coming to market. And the number will only increase next year. The lesson from the success of the Motorola Droid is clear. If device makers and carriers hope for break-out success, then they will have to spend big on marketing.

Sheila Davis (Executive Director, Silicon Valley Toxics Coalition SVTC) Addresses The International Electronics Recycling Conference & Expo IERCE 09′

Posted on November 27, 2009 by admin

Sheila Davis is the Executive Director of Silicon Valley Toxics Coalition (SVTC) based in Northern California. Silicon Valley Toxics Coalition is a diverse organization engaged in research, advocacy and grassroots organizing to promote human health and environmental justice in response to the rapid growth of the high-tech industry. In this Webinar, Sheila shares her organizations discoveries after visiting Taiwan, India, Germany and a host of other countries. VIDEO COMING SOON! Click Sheila’s picture for the audio.

California Representative Mike Thompson Calls On Congress To Lead By Example In Handling Its Own E-Waste. Introduces A New Resolution (H.Res.938)

Posted on November 20, 2009 by admin

SAN FRANCISCO – November 20 – Representative Mike Thompson yesterday introduced a resolution that calls on Congress to craft a plan to deal with its own e-waste, only using recyclers certified to the new e-Stewards Standard – the highest in the industry.

“In choosing to work only with certified e-Stewards, Congress is saying they want to be sure their old computers and other electronic products don’t end up being exported to developing nations, or sent to prison recycling shops,” said Barbara Kyle, National Coordinator of the Electronics TakeBack Coalition. “We are very pleased to see Congress lead by example in solving the problem of global e-waste dumping.”

The resolution (H.Res. 938) calls for Congress to establish and implement “a coordinated program for the reuse, recycling, and appropriate disposal of obsolete computers and other electronic equipment used by offices of the legislative branch using only those companies independently certified as meeting the e-Stewards Standard for Responsible Recycling and Reuse of Electronic Equipment, which forbids the export of e-waste to developing countries and use of prison labor.”

“As consumers of electronic equipment, we are all faced with the real choice of becoming part of the e-waste problem or being part of the solution,” said Jim Puckett, Executive Director of the Basel Action Network (BAN), a global watchdog on toxic waste trade. “Congress, informed by the horrific pictures of Chinese and African children wandering through heaps of toxic e-waste from the U.S., has recognized this choice as a principled and practical one. This bipartisan resolution to use only e-Steward Recyclers, shows Congress wants to be part of the solution.”

The e-Stewards program includes both the rigorous new ‘gold standard’ for electronics recyclers and asset managers, as well as verification system, where only accredited, third-party auditors can certify whether recyclers are meeting the standard. The standard is currently held by the Basel Action Network, but was developed in collaboration with leaders in the recycling, auditing, occupational health, data security, and manufacturing industries as well as from the accredited third party certification industry.

There is little federal regulation of the recycling industry and most e-waste exports from the U.S. do not violate any U.S. laws. Therefore, responsible companies in this industry who wish to distinguish themselves can now become certified to the new standard which require them to handle electronic and hazardous waste responsibly in a manner that protects the environment and the social and health and safety concerns of the workforce, throughout the recycling chain around the world. This is the only e-waste recycling standard that prohibits the export of e-waste from developed to developing nations.

E-waste is the fastest growing part of the waste stream in the U.S. But of the e-waste that is collected by recyclers, 50 to 80 percent of that is not actually recycled, but is exported to developing nations where it is handled in very crude and dangerous ways that expose workers and communities to toxic materials.

For more information:

Link to the resolution: http://www.thomas.gov/cgi-bin/query/z?c111:H.RES.938:
Link to e-Stewards page: http://www.e-stewards.org/
Electronics TakeBack Coalition: http://www.electronicstakeback.com/

New Research Shows The Average Consumer Has 2.8 Pieces Of Unused, Broken, Or Obsolete Electronics Equipment In Their Home Or Storage Area.

Posted on November 18, 2009 by admin

November 19, 2009

The volume of obsolete electronics equipment entering the world’s landfills continues to rise and is expected to reach 73 million metric tons by 2010, placing a significant burden on solid waste management systems. According to a recent survey of more than 1,000 Americans published by Pike Research, consumer awareness of the e-waste threat is increasing, and 76% of respondents stated that recycling is the most appropriate way to handle unused, broken, or obsolete electronics equipment at the end of its useful life.

“The consumer is an integral link in the chain for electronics recycling and e-waste management,” says managing director Clint Wheelock. “In order for the industry to achieve its goals, consumer values, attitudes, and behavior will need to support responsible handling of end-of-life electronics equipment. Popular sentiment is also essential to support the political will of governments as they strive to mitigate e-waste issues through legislation and regulation.”

Key findings of Pike Research’s survey include the following consumer insights:

37% of consumers felt that electronics recycling should be free, and an additional 35% stated that electronics should be collected and processed as part of a curbside recycling program.
Only 14% felt that the cost of electronics recycling should be borne by consumers at the points of purchase or recycling. 10% supported the concept of “producer responsibility” where the manufacturer pays, an approach increasingly being adopted by many OEMs.
The average consumer has 2.8 pieces of unused, broken, or obsolete electronics equipment in their home or storage area.
The average consumer surveyed estimated that the cost of collecting, hauling, demanufacturing, and recycling a single piece of used electronics equipment is $12, however Pike Research’s analysis indicates that the true cost is more than $20.

Pike Research’s study, “Electronics Recycling and E-Waste Issues”, provides a comprehensive analysis of the global e-waste landscape. The report includes SWOT analysis for key sectors, analysis of consumer survey results, and forecasts for e-waste generation and processing volumes through 2025. The consumer survey referenced above was a structured, web-based questionnaire conducted among a nationally representative and demographically balanced sample of U.S. consumers. An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Clean Transportation, Clean Industry, Corporate Sustainability, and Building Efficiency sectors. For more information, visitwww.pikeresearch.com or call +1.303.997.7609.

1st International Electronics Recycling Conference & Expo (IERCE 2009)

Posted on November 16, 2009 by admin

The first International Electronics Recycling Conference and Expo was recently held in Los Angeles, California. With over 40 speakers, several hundred attendees and 50 exhibitors, the event was a huge success. Most participants are already looking forward to next year’s event. Participants included exhibitors and representatives from over 300 electronics manufacturers, electronics resellers and electronic waste management companies representing over 20 nations.

In addition to 20 educative sessions, discussions and presentations from speakers including Jim Puckett, Executive Director of the Basel Action Network, the 2 day event also included a trade-show with exhibitors ranging from electronics resellers, recyclers, certification consultants, environmental groups and more. ” We made a lot of potentially lucrative deals and the sessions were highly informative , I’ve learned a lot and made a lot of contacts in 2 days” states Sharmaine Robinson who is Vice President of Sales and Marketing at IT renew, an electronics recycling and asset recovery corporation based in Newark , California.

Electronic Recyclers International (ERI), the nation’s leading recycler of electronic waste, received the prestigious “Electronic Recycler of the Year” award at this year’s International Electronics Recycling Conference & Expo. Other award winners included the Seattle based environmental watchdog group, Basel Action Network, Canadian based recycler G.E.E.P & Dexter, Michigan based wireless handset recycler, Recellular.

“We believe our honorees are great examples and true leaders in the responsible yet environmentally-friendly management of end of life, defective and surplus electronic assets” states Ismail Oyekan, Program Director of the International Electronics Recycling Expo. “Electronic waste from surplus and end of life assets represent the fastest growing waste streams globally and our event is designed to bring together leading experts in an ideal platform to learn new market trends and exchange best practice ideas”.

“It’s truly a humbling honor to be recognized as the leader in our industry,” said John S. Shegerian, ERI’s Chairman and CEO. “That we received the recognition at this terrific, forward thinking event, the International Electronics Recycling Conference & Expo, makes it even more special because we know those monitoring our industry the closest are the ones who have decided to single us out. We congratulate the organizers of this event for bringing together the planet’s top electronic recyclers for an exchange of ideas. At ERI, we work every day to make sure we are setting an example of sustainability and environmental responsibility that we hope all electronic recyclers follow. This kind of recognition helps inspire our entire team to continue with that cause.”

For more information including future dates, registration and exhibitor info visit www.electronicsrecyclingexpo.com