Friday, August 31, 2012

Apple Worked A Broken Patent System - InformationWeek

Samsung too closely copied some elements of the Apple iPhone, and for that it should be hung up in the public square. But Samsung should be hung by its thumbs, at worst, not its neck.

Copying in some measure is all around us. It is continuously present in many parts of a free enterprise system and in some ways is a yardstick to the health of that system. I often see small, muscular-looking cars with lines similar to the BMW 300 series, but they have Swedish or Japanese nameplates on them. Watching what sells is a basic premise of anyone engaged in a competitive race. Matching a competitor under your own brand is a time-honored practice.


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What a patent and legal system should aim to prevent is theft by copying, such as stealing the technology of a competitor's product, or creating such a conscious, copycat duplication that one product can be confused with another, thus letting the profits of an originator be taken by an imitator. Samsung did not do this.

Samsung's icon layout on its application screen looks similar to Apple's home screen, but beyond that, the jury's verdict in the Apple vs. Samsung case is a muddle, a confusion of design patents put in the same category as utility patents, and the verdict for infringing design looks as punitive as one for stealing technology.

[ Take a look at Samsung's newest smartphones. See Samsung Galaxy Note 2, Windows 8 Smartphones: First Impressions. ]

That shouldn't have been the case. Utility patents are protection for a unique invention, a kind of monopoly granted for 20 years after an examiner determines that no such inventions existed previously or can be found in what's known as prior art.

Design patents are generally agreed to be more subjective. They're good for 14 years, and spring from an 1891 court case that found one silverware manufacturer had copied the pattern of another.

If the "ordinary observer" can detect "substantial similarity" in one silverware pattern versus another, the original's design has been infringed, ruled the Supreme Court. And that's still the standard used in a design patent case involving two sophisticated, multi-layered electronic devices today.

Designs are established through the black and white drawings of exterior ornamentation submitted with the patent claim. In this trial, four Apple design patents were the central issue. Jurors' comments to the press after the trial indicate they were crucial in determining the outcome.

Until now, design patents have tended to play a much smaller role in computing and consumer electronics. For example, of the 6,242 patent examiners in the U.S. Patent Office, 99 of them are design examiners. The rest are utility patent examiners.

Yet, as computers shrink to handheld size, the role of design patents gets magnified. In smartphone design the evolving functional elements, such as the size of the touchscreen, are closely tied into the overall design. Apple didn't invent the capacitive resistance touchscreen, where the electrical field of a human finger makes a connection on the conducting surface of a piece of glass. But its core design patent on the iPhone covers a large, rectangular screen on a handheld device with rounded corners, much as you would now expect a touchscreen to be implemented. There are other elements, but the screen-centric design figures heavily into the iPhone's and iPad's respective design patents.

Apple has used a dysfunctional U.S. patent system--too many patents granted without enough understanding of the state of the art--to prosecute this case.

One of Apple's utility or technology patents covered snapback, a user interface feature that has been taught in computer graphics courses for 10 years, according to testimony at the trial. Either the examiner who approved the patent was not aware of that, or he judged Apple's application of snapback on a phone screen to be a first-ever invention. Whichever way it went, the existence of prior art should have prevented this patent from being issued.

When it comes to the smartphone, Apple's design patents come too close for comfort to giving Apple control of underlying technologies it did not invent, simply because it has asserted ownership of the design. The iPhone and iPad were brilliant design packages, and Apple deserves all the profits it has gained from them.

But the emergence of capacitive resistance screens would sooner or later have allowed many companies to eliminate keypads and produce devices with screen-centric designs. In many cases, they would have been following Apple's lead--let's say copying a good idea in their own way. And the result would be a vigorous, competitive economy and consumer choice.

A more demanding patent system with fewer patents issued would still have left Apple with the leadership position in the market and the respect of consumers who like its products. But it would have been obligated to continue to innovate instead of using patent law to slow or stifle competitors.

Should I Buy Verizon? 3 Pros, 3 Cons - Investorplace.com

The telecom world is like the Old West: People keep riding into town to tell the local sheriff that they plan on taking it over.

The growth of wireless phones has been astonishing, from Apple‘s (NASDAQ:AAPL) iPhone lineup to Google‘s (NASDAQ:GOOG) Android model. And with primarily three players all vying for a piece of the pie, it’s hard to figure out which phone and service to use, not to mention which stock to buy as an investor.

AT&T (NYSE:T), Sprint (NYSE:S) and Verizon (NYSE:VZ) are the primary sheriffs in their own little towns, and they’re battling it out to see who’s left standing when the smoke clears down the road. While it’s highly unlikely, of course, that any of these three will go away, one is bound to come out on top of the others.

The question is, which one? Let’s take a look at three pros and three cons for Verizon:

Pros

4G LTE Network. This might be Verizon’s biggest asset. The popular network is available in nearly 265 more markets than AT&T’s 4G offering and should be available with the highly-anticipated iPhone 5, which is set to be released in September. Throw in the fact that Verizon has been gaining on the iPhone-sales leader for the past three quarters even when its iPhone 4 was only offered with one less G, and things look pretty good for the provider.

High-Speed Internet Access. But Verizon isn’t just phones â€" it’s also Internet. Several years ago I jumped ship from rival-provider Comcast (NASDAQ:CMCSA) primarily due to poor service and I’m glad I did. I’m also clearly not alone. Verizon continued to increase sales penetration, adding 134,000 Fios Internet and 120,000 new Fios TV subscribers in Q2. FiOS generated 65% of the company’s revenue and around 70% of FiOS consumer customers have purchased a “triple play” of phone, Internet and TV services. Solid.

Dividend Growth: Telecom stocks are know for solid dividend and Verizon is no exception. It payouts have increased from 46 cents per share per quarter in 2009 to 50 cents per share â€" a very nice 8% growth â€" making for a yield of 4.7%. That’s a nice reward for investors, and VZ has nearly $11 billion in cash on hand, so the dividend growth should continue.

Cons

Competition. Like I said, other carriers sure won’t be going away. AT&T, once again, is the other big name in the business, but it doesn’t end there. Verizon switched to the “Share Everything” plan, catering to customers with smartphones and multiple devices, and many customers were up-in-arms about the change. Sprint, on the other hand, never stopped offering unlimited data, while T-Mobile recently re-instated its full-speed unlimited option in response to consumer demand. And if that’s really what customers want, they won’t find it at this provider.

Market Saturation. There were roughly 5 billion mobile subscribers in the U.S. last year, representing about 9 out of every 10 people. That means, though, that subscription growth will have to slow â€" and already has started to. The market is not only finite, but could be close to being saturated. When it finally is, price pressure is likely to occur, and”stealing” market share will mean cutting prices and thus cutting profits.

Valuation. Verizon is a slow-growth company, yet is currently trading at a P/E of 43. And while it has pulled back from its year-highs, it still seems overbought. AT&T’s ratio is even slightly higher, but looking discounted compared to your also-overbought competitor is hardly a ringing endorsement.

The Bottom Line

Verizon’s has a lot going for it, offering up solid services and a sweet dividend. And while dividend growth is a plus, there is one red flag: Verizon pays out more in dividends than it makes in net income.The company made $2.4 billion in 2011 and generated $2.6 billion in free cashflow, but paid out $5.5 billion in dividends.

Still, that $11 billion in cash that I mentioned earlier is a nice cushion, and the company also has good growth prospects and a solid reputation for service and reliability.

All-in-all, the pros outweigh the cons for this stock, making Verizon a solid long-term stock for any investor’s portfolio.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long VZ.

Nokia, Microsoft head for "Last Chance Saloon" - Reuters

NEW YORK/SEATTLE | Fri Aug 31, 2012 10:11am EDT

(Reuters) - Microsoft Corp and Nokia Oyj are loading up for their best -- and possibly last -- shot at denting a smartphone market dominated by Apple Inc's iPhone and Google Inc's Android mobile software.

If the new Lumia phones do not appeal to consumers when they are unveiled next Wednesday, it could mean the end for Nokia, and a serious blow to Microsoft's attempts to regain its footing in the mobile market, analysts and investors said.

"This is very high stakes," said Canaccord Genuity analyst Michael Walkley. "Nokia bet everything on Windows, and if this doesn't succeed the next step might be having to do what's best for shareholders, and that might include selling off key assets or selling the whole company."

The Finnish handset maker has logged more than 3 billion euros in operating losses in the last 18 months, forcing it to cut 10,000 jobs and pursue asset sales.

Its share of the global smartphone market has plunged to less than 10 percent from 50 percent during its heyday before the iPhone was launched in 2007.

For Microsoft, a successful Lumia launch would convince more handset makers and carriers to support its latest phone software, which is based on the same code as the upcoming Windows 8 computing system, and promises faster performance and a customizable start screen.

Windows phones have only captured 3.7 percent of the global smartphone market, according to Strategy Analytics. Android phones have 68 percent, while Apple has 17 percent.

The new Lumia phones will hit the market just as the world of Android reels from a potentially crushing legal blow, and as Research In Motion Ltd's BlackBerry continues its decline.

A California jury decided last week that some of Samsung Electronics Co Ltd's hot-selling Android smartphones copied features of the iPhone, which may result in import bans and drive handset makers to put more resources into making Windows-based phones.

The judgment opens a window for Microsoft to exploit -- but it first needs to find favor with consumers.

"Windows Phone really is going to have to stand or fall on its own, it's going to have to appeal to consumers," said Jack Gold, an independent mobile analyst who runs consultancy J. Gold Associates.

GOOD TIMING?

Nokia is expected to launch two new Lumia phones on September 5, on the same day that phone maker Motorola, now owned by Google, also unveils a new product.

It kicks off a busy fortnight for mobile devices, with Amazon.com Inc expected to introduce new Kindle tablets on September 6. Apple is seen unveiling the newest iPhone on September 12.

The costlier of the two Lumias will go up against the iPhone, and is expected to feature a larger, brighter screen; a powerful camera on both sides; Qualcomm Inc dual-core chips; Skype calling; voice recognition; short-range radio technology for wireless payments and built-in maps for navigation.

But Lumia will need something completely different to beat the iPhone and Android, such as a bold new shape, exceptional camera quality or a mini-projector, said Tero Kuittinen, an analyst at mobile diagnostics company Alekstra.

Part of the problem is that Windows Phones have only 100,000 or so apps, compared with about 500,000 for Android or iPhones.

"Developers want to see more devices, and people want to buy only when they see more apps," said Sid Parakh, an analyst at fund firm McAdams Wright Ragen. "I'd say it will take years, they are so far behind."

Nokia may not have years. Finland's most famous company, relegated to second place in the global cellphone market by Samsung after more than a decade at the top, has bet its smartphone future on Microsoft.

Samsung stole some of Nokia's limelight by being the first to unveil a phone based on Windows Phone 8 software on Wednesday, a week before Nokia's event. Canaccord's Walkley expects Samsung to offer steep price discounts for Windows phones in markets where Nokia is also launching its phones.

While Samsung, HTC Corp and Huawei Technologies Co are also making phones based on the new Windows software, only Nokia is focused entirely on Windows Phone 8. This means that Nokia should be able to deliver more sophisticated Windows phones.

SUPPORT FROM CARRIERS

The job of saving Nokia, and getting the new Windows Phone 8 software off to a strong start, falls to Nokia Chief Executive Stephen Elop, the former Microsoft star who forged the agreement between the two companies.

One thing Elop has in his ammunition bag is support from big U.S. mobile service providers who want see Windows become a third strong smartphone platform to counterbalance the market heft of Android and Apple, which charges a heavy price premium.

Top U.S. wireless providers Verizon Wireless, Sprint Nextel Corp and Deutsche Telekom's T-Mobile USA have all said they will support Windows Phone 8, and AT&T Inc said it will sell Nokia phones based on the Microsoft software.

"Everybody's liking what they see coming from Microsoft with the Windows 8 (mobile) platform from the user experience perspective and the integration perspective," said Bill Versen, a Verizon Wireless executive who works with business customers on their smartphone strategies.

"Enterprises have Windows-based platforms they're using for their businesses. They've been waiting for Microsoft to mobilize that in a user-accepted way," he added.

Because Microsoft's new phone software is similar to the upcoming Windows 8 desktop and tablet software - to be released on October 26 - developers can more easily write apps for both, which should help the platform's popularity and may even lead developers to eventually build apps for Windows before Android, Current Analysis analyst Avi Greengart said.

Microsoft actually makes more money from royalties on Android products than it does on sales of its own phone software, but "can't afford not to have a significant position in the global smartphone market," said CCS Insight analyst John Jackson.

Microsoft needs to get at least a 10 percent share of the smartphone market by the end of 2013 to be a contender, Canaccord's Walkley added.

(Additional reporting by Tarmo Virki; Editing by Jeffrey Benkoe)

How to use Cydia - Geek

How to use Cydia

The term “jailbreak” has an inherently negative feel to it. You aren’t supposed to break out of jail, so it makes sense to feel a little uncomfortable about the idea of jailbreaking your iDevice and installing apps that weren’t expressly approved by Apple. There’s nothing illegal about it, and in many cases users find many new ways they can use their “freed” devices. With this in mind, we’ve assembled this guide explaining how to use Cydia, the jailbroken App Store.

Cydia is an app store for everything that Apple doesn’t want in their ecosystem. The apps, themes, wallpapers, ringtones, and more that you find in the Cydia store are put together by developers and creative people who want to share the things they have done to improve their own experience with their Apple product.

All you need to do in order to get Cydia on your device is jailbreak it. The Absinthe 2.0 jailbreak tool, put together by the greenpois0n team, will work on just about every existing iOS product â€" just install Absinthe 2.0 to your computer, connect your device, and run the application. When your device reboots, Cydia will be installed on and you will be ready to go.

How to use Cydia

Setting up an account

Cydia offers some really great features to regular users, but taking advantage of those features means having an account. Instead of a lengthy form to fill out, Cydia just authenticates with an already existing Facebook or Google account in order to create your profile. Tap either the Google or Facebook login options, and sign in to an account you will remember. Once your credentials are verified and stored with Cydia, you will be able to login using them on any jailbroken device.

Any time you purchase an app, make sure you are logged in to Cydia. As long as the developer is still supporting that app, Cydia will keep a record of your purchase so you can download the app without having to pay for it a second time. If you wipe your iDevice, or pick up the next model when it comes out, you will be able to re-install the apps you purchased, just like you can on the App Store.

How to use CydiaHow to add Cydia repositories

Everything that you have access to in Cydia is hosted in places called repositories (or repos). Cydia includes a handful of repos that are maintained by developers that work with them, and the apps contained within them are thoroughly inspected and tested. There are other many other repos out there, and if you add them to your Cydia you gain access to all the content that is stored within. This is an “at your own risk” thing to do mind you, but it is very easy to do.

The process to add repos is simple. From the home screen, select “more package sources” from the menu on the left hand side. This will take you to a long list of repos that Cydia has collected. If you select one of them you will be shown a brief description of what kind of content is available, and then you will be offered a chance to install it to your Cydia. This looks like you are installing just another app, and once it has finished the new content will be added for you to browse.

If you are ready to install a repo that is not in that list, that feature is also available to you as well. Some developers keep their content in private repos for various reason. To add one of these repos, tap the Sources icon on the bottom of the Cydia menu. Here you will see a list of all the repos you are currently using. Tap the Edit button in the top right, followed by the add function that appears after. Enter in the repo URL that was provided to you, and the source will be added to your Cydia.

How to use CydiaPurchasing content in Cydia

Cydia is home to great modifications, features, themes, and way more. Surprisingly little of the content is available for free, but in return you get some high quality software and practically zero chance of damaging your iDevice. It’s also incredibly easy to purchase any of that content, especially if you are already using Amazon or Paypal.

When you reach the checkout process, Cydia will prompt you to sign in using the Facebook or Google credentialls you used to create your account. Once you are logged in, you will be able to pay with Paypal, Amazon, or use payment information that you have stored in your account. When you make a purchase with Amazon, Cydia will ask you if you are interested in creating a purchase limit. You can set a dollar amount that the store will not allow you to exceed, in the event that you accidentally go micro-transaction happy.

Once the transaction is complete, you will be prompted to install your content. Curiously, the content you just purchased will not install automatically, you do need to tap the Install button to move forward. The app will install as though you has purchased it from the App Store, and you will be able to use it immediately. Any time there are updates available for your content, you will use the same system to install the updates. Everything is controlled through Cydia.

Cydia: The other app store

Cydia is an impressively maintained system. The well-oiled machine makes you feel like Cydia was really meant to be on your device the whole time, just as a sort of “expert” mode for users interested in getting a little customization happy with their devices. The service feels safe to use, although Cydia repeatedly warns that they are not responsible should anything happen to your device. If you are interested in tinkering, Cydia is well worth exploring, especially now that you know how to use it.

More reading: The best Cydia apps

Samsung Intros Slate, Smartphone, Note II and AiO PCs - eWeek

Samsung ATIV S Smartphone

The Samsung ATIV S smartphone features a 4.8-inch HD Super AMOLED display, a 1.5GHz processor and HSPA+42 4G connectivity. It's 8.7mm thin, has a 1.9-megapixel front-facing camera and an 8-megapixel camera on the back.

Running Windows 8

The smartphone runs Microsoft's Windows Phone 8 and according to Samsung is highly responsive, offering a great user experience whether for browsing or playing games. It also houses a 2,300mAh battery, which should keep users going all day.

Coming to the U.S.?

Whether or when this phone will make it to U.S. shores is unclear. The device wasn't included on the American press release from the IFA show in Berlin. Microsoft acknowledged it on its U.S. blog, though, calling it "equal parts powerhouse and head turner."

Samsung Slate PC

Samsung's new Slate is available in Series 5 and 7 models. Both feature 11.6-inch displays and measure 11.6 by 7.2 by 0.5 inches. The former weighs 1.65 pounds, while the latter is 1.90 pounds.

S Pen Stylus

Both Slates come with an S Pen—Samsung's grown-up stylus. The Series 5 features an Intel Atom processor, 2GB of system memory and a 64GB solid-disk drive. The Series 7 runs an Intel Core i5 processor, has 4GB of system memory and a 128GB solid-state drive (SSD). The former will sell for $649 without the keyboard dock and $749 with it, while the Series 7 is priced at $1,199.

Keyboard Dock

The keyboard dock attaches via what Samsung calls a "mechanical hinge." The two were designed as one device, and so "fit seamlessly when connected," says the company.

Series 5 Ultra

This more traditional laptop features a 13.3-inch touch-screen display and a choice of Intel Core i5 or i3 processors. It weighs 3.83 pounds, runs Windows 8, like the Slates, and starts at $799.

Galaxy Note II

As rumored, Samsung introduced a follow-up to the Note tablet it showed off at last year's show. The Note II features a 5.5-inch display—slightly larger than last year's 5.3-inch model, but a different story than the Note 10.1 Samsung introduced in New York this month.

Ergonomically Designed

The newest Note of course features an S Pen, and is "longer, thicker and ergonomically designed for the perfect grip," Samsung said in an Aug. 29 announcement, marking perhaps the first time any company has boasted about fattening up a product. Though actually, it measures 80.5 by 151.1 by 9.4mm, while the original Note measures 83 by 147 by 9.65mm.

Series 5 All-in-One PC

Samsung's new Series 5 AiO features "space-agey" legs that leave room for the keyboard to be pushed beneath the monitor—a nice space-saving feature on kitchen countertops. Like the new Series 7 model, it can also respond to five hand gestures from up to 3 feet away—handy for flour-fingered home chefs trying to follow a recipe.

Series 7 All-in-One PC

The Series 7 AiO sits on a more solid metal base, but like the Series 5 features a thin bezel around its touch-screen. It's powered by a third-generation Intel Core processor and can support up to 8GB of RAM, dedicated HD graphics and up to a 1TB HDD and a 64GB SSD.

All-in-One Pricing

Pricing for the Series 7 ranges from $1,099 to $1,699, while the Series 5 is priced at $749. Both PCs feature considerable viewing angles—178 degrees on the Series 7—and ship with an exclusive Jamie Oliver's Recipes app.

Windows 8 makes manufacturers touchy at IFA 2012 - SlashGear

This week in Berlin at IFA 2012 we’re seeing a large amount of manufacturers bringing on touchscreens and convertible, transformable, or otherwise completely strange Windows 8 computers. There’s everything from a flipping screen to a flat horizontal interface, and so many tablets that we don’t know where to begin. One thing they’ve all got in common: they’re attempting to make use of Windows 8′s ability to work with interactive touchscreens and gestures galore.

Have a peek first at the Sony VAIO Duo 11 in our hands-on experience. There you’ll find what’s called a “hybrid sliding PC” that’s not entirely unlike the ASUS solution for a similar situation in the Eee Pad Slider â€" but here it’s working with Windows 8 instead of Android. And it’s a bit more chunky (as seen above). Next have a look at Lenovo’s ThinkPad Tablet 2 as seen below. It’s a tablet if you’d like as well, this time you pull it out and set it up in a keyboard dock rather than sliding.

The Dell XPS Duo 12 is a strange beast indeed â€" working with a flip screen on hinges â€" like a framed painting whose center can be turned around. There’s a keyboard in there somewhere as well. Have a peek at that below this paragraph as well â€" and note that we’ve only gotten “eyes-on” with this device so far, so there’s no telling how fabulous it’ll be in the near future.

The folks at HP have brought along several units to the show including a hybrid PC that runs Windows 8 and has the power of a full PC â€" rather than a tablet with “mobile power”. Here you’re working with what’s otherwise known as a tablet with a keyboard dock, but it’s described the other way around. Then there’s Samsung â€" they’ve brought out the guns with the ATIV Smart PC Pro sporting a very similar setup to the HP solution also in this paragraph. Here Samsung has brought on a lovely looking combo that’s not without it’s Ivy Bridge â€" another bit of hardware we’ve seen a lot of this year. There’s also an ATIV Smart PC that we got hands-on with as well.

Check out the rest of this awesome pageant of touch-friendly (and sometimes not so touch friendly) devices as they appear in Berlin in our IFA 2012 portal. And keep up with the Windows 8 tag as well through the future â€" some strange devices are afoot!

Tokyo court: Samsung didn't infringe Apple patent - USA TODAY

TOKYO â€" A Tokyo court on Friday dismissed Apple Inc.'s claim that Samsung had infringed on its patent â€" the latest ruling in the global legal battle between the two technology titans over smartphones.

The Japanese court case addressed only the synchronizing technology that allows media players to share data with personal computers and was not comparable in scope to the much larger victory that Apple won in the U.S. last week.

Samsung Electronics Co. of South Korea, the world's largest maker of phones, welcomed the Tokyo District Court ruling that its technology that allows media players and personal computers to share music files and other content did not infringe on Apple patents as confirming "our long-held position."

"We will continue to offer highly innovative products to consumers, and continue our contributions toward the mobile industry's development," the company said in a statement.

The Apple lawyer present at the courthouse declined comment, and the company said later it had no comment, including whether it intended to appeal. In the past, Apple has accused Samsung of copying Apple products.

In a session lasting just a few minutes, Judge Tamotsu Shoji said he did not think Samsung products fell into the realm of Apple technology and dismissed the lawsuit, filed by Apple in August last year.

Apple, the Cupertino, California-based maker of the hit iPhone and iPad, is embroiled in similar legal tussles around the world over whether Samsung smartphones, which rely on Google Inc.'s Android technology, illegally used Apple designs, ideas or technology.

In one such case, a jury in California ruled last week that Samsung products illegally used such Apple creations as the "bounce-back" feature when a user scrolls to an end image, and the ability to zoom text with a tap of a finger.

The jury awarded Apple $1 billion in damages, and a judge is now evaluating Apple's request to have eight Samsung products pulled from shelves and banned from the U.S. market, including popular Galaxy model smartphones. Samsung's latest hit, Galaxy S3, was not part of the U.S. ruling.

Friday's ruling was the first held in Japan in the Samsung-Apple global court battle, but other technology is being contested by the two companies in separate legal cases in Japan.

Seo Won-seok, an analyst at Seoul-based Korea Investment & Securities, said the Tokyo verdict showed that the lawsuits around the world are largely isolated and may not be affected by Apple's major victory in California.

"The favorable ruling for Samsung convinces me that lawsuits in other countries may play out differently from the one in the U.S.," he said.

Apple products are extremely popular among Japanese consumers, but major Japanese carriers such as NTT DoCoMo sell Samsung smartphones as well. Japanese electronics maker Sony Corp. also makes smartphones and tablet devices similar to Samsung's, using Android technology.

Samsung has sold more than 50 million Galaxy S and Galaxy S2 smartphones around the world. The legal battle also involves Samsung's Tab device, which Apple claims infringes on patents related to the iPad tablet.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.