U.S. agency backs Apple in essential patent battle












WASHINGTON (Reuters) – Google unit Motorola Mobility is not entitled to ask a court to stop the sale of Apple iPhones and iPads that it says infringe on a patent that is essential to wireless technology, the U.S. Federal Trade Commission said on Wednesday.


In June, Judge Richard Posner in Chicago threw out cases that Motorola, now owned by Google, and Apple had filed against each other claiming patent infringement. Both companies appealed.












In rejecting the Google case, Posner barred the company from seeking to stop iPhone sales because the patent in question was a standard essential patent.


This means that Motorola Mobility had pledged to license it on fair and reasonable terms to other companies in exchange for having the technology adopted as a wireless industry standard.


Standard essential patents, or SEPs, are treated differently because they are critical to ensuring that devices made by different companies work together.


Google appealed to the U.S. Court of Appeals for the Federal Circuit. The FTC said in its court filing that Posner had ruled correctly.


The commission, which has previously argued against courts banning products because they infringe essential patents, reiterated that position on Wednesday.


“Patent hold-up risks harming competition, innovation, and consumers because it allows a patentee to be rewarded not based on the competitive value of its technology, but based on the infringer’s costs to switch to a non-infringing alternative when an injunction is issued,” the commission wrote in its brief.


The case is Apple Inc. and NeXT Software Inc. V. Motorola Inc. and Motorola Mobility Inc., in the U.S. Court of Appeals for the Federal Circuit, no. 2012-1548, 2012-1549.


(Reporting By Diane Bartz)


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Brazilian architect Oscar Niemeyer dies, aged 104












RIO DE JANEIRO (Reuters) – Oscar Niemeyer, a towering patriarch of modern architecture who shaped the look of modern Brazil and whose inventive, curved designs left their mark on cities worldwide, died late on Wednesday. He was 104.


Niemeyer had been battling kidney ailments and pneumonia for nearly a month in a Rio de Janeiro hospital. His death was confirmed by a hospital spokesperson.












Starting in the 1930s, Niemeyer’s career spanned nine decades. His distinctive glass and white-concrete buildings include such landmarks as the United Nations Secretariat in New York, the Communist Party headquarters in Paris and the Roman Catholic Cathedral in Brasilia.


He won the 1988 Pritzker Architecture Prize, considered the “Nobel Prize of Architecture” for the Brasilia cathedral. Its “Crown of Thorns” cupola fills the church with light and a sense of soaring grandeur despite the fact that most of the building is underground.


It was one of dozens of public structures he designed for Brazil’s made-to-order capital, a city that helped define “space-age” style.


After flying over Niemeyer’s pod-like Congress, futuristic presidential palace and modular ministries in 1961, Yuri Gagarin, the Russian cosmonaut and first man in space, said “the impression was like arriving on another planet.”


In his home city of Rio de Janeiro, Niemeyer’s many projects include the “Sambadrome” stadium for Carnival parades. Perched across the bay from Rio is the “flying saucer” he designed for the Niteroi Museum of Contemporary Art.


The collection of government buildings in Brasilia, though, remain his most monumental and enduring achievement. Built from scratch in a wild and nearly uninhabited part of Brazil’s remote central plateau in just four years, it opened in 1960.


While the airplane-shaped city was planned and laid out by Niemeyer’s friend Lucio Costa, Niemeyer designed nearly every important government building in the city.


BECAME NATIONAL ICON


An ardent communist who continued working from his Copacabana beach penthouse apartment in Rio until days before his death, Niemeyer became a national icon ranking alongside Bossa Nova pioneer Tom Jobim and soccer legend Pelé.


His architecture, though, regularly trumped his politics.


Georges Pompidou, a right-wing Gaullist former French president, said Niemeyer’s design for the Communist Party of France headquarters in Paris “was the only good thing those commies ever did,” according to Niemeyer’s memoirs.


Prada, the fashion company known for providing expensive bags and wallets, thought the Communist Party building in Paris so cool it rented it for a fashion show.


Even the 1964-1985 Brazilian military government that forced Niemeyer into exile in the 1960s eventually found his buildings congenial to their dreams of making Brazil “the country of the future.”


His work is celebrated for innovative use of light and space, experimentation with reinforced concrete for aesthetic value and his self-described “architectural invention” style that produced buildings resembling abstract sculpture.


Initially influenced by the angular modernism of French-Swiss architect Le Cobusier, who worked with Niemeyer and Costa on a visit to Brazil in the 1930s, his style evolved toward rounded buildings that he said were inspired by the curves of Rio’s sunbathing women as well as beaches and verdant hills.


“That is the architecture I do, looking for new, different forms. Surprise is key in all art,” Niemeyer told Reuters in an interview in 2006. “The artistic capability of reinforced concrete is so fantastic – that is the way to go.”


Responding to criticism that his work was impractical and overly artistic, Niemeyer dismissed the idea that buildings’ design should reflect their function as a “ridiculous and irritating” architectural dogma.


“Whatever you think of his buildings, Niemeyer has stamped on the world a Brazilian style of architecture,” Dennis Sharp, a British architect and author of The Illustrated Encyclopedia of Architects and Architecture, once said of Niemeyer.


LIFELONG COMMUNIST


Niemeyer’s legacy is heavily associated with his communist views. He was a close friend of Cuba’s revolutionary leader Fidel Castro and an enemy of Brazil’s 21-year military dictatorship.


“There are only two communists left in the world, Niemeyer and myself,” Castro once joked.


Niemeyer remained politically active after returning to Brazil, taking up the cause of a militant and sometimes violent movement of landless peasants. He said in 2010 that he was a great admirer of Luiz Inacio Lula da Silva, the former labor leader who was Brazil’s president from 2003 to 2010.


Niemeyer once built a house in a Rio slum for his former driver and gave apartments and offices as presents to others.


Despite his egalitarian views, Niemeyer had no illusions that his buildings were helping to improve social justice.


Far from the model city Niemeyer had envisioned, Brasilia today is in many ways the epitome of inequality. Planned for 500,000 people, the city is now home to more than 2.5 million and VIPs keep to themselves in fenced-in villas while the poor live in distant satellite towns.


“It seemed like a new era was coming, but Brazil is the same crap – a country of the very poor and the very rich,” he said in another Reuters interview in 2001.


In a 2010 interview in his office, he was quick to blame Costa for things many dislike about Brasilia, such as its rigid ordering into homogenous “hotel,” “government,” “residential” and even “mansion” and “media” districts that can make finding a newspaper or groceries a chore.


“I just did the buildings,” he said. “All that other stuff was Costa.”


Despite Niemeyer’s atheism, one of his first significant early works was a church built in homage to St. Francis, part of a complex of modern buildings in Belo Horizonte, Brazil.


That work won the confidence of the city’s mayor Juscelino Kubitschek. When he became president, he tapped Niemeyer to help realize the dream of opening up Brazil’s interior by moving the capital from coastal Rio to the empty plains of central Brazil.


Despite years of bohemian living, Niemeyer remained married for 76 years to Annita Baldo, his first wife. He married his second wife, long-time aide Vera Lucia Cabreira, in 2006 at the age of 99. She survives him, as do four grandchildren.


Niemeyer’s only daughter, an architect, designer and gallery owner, Anna Maria, died on June 6 at the age of 82.


(Additional reporting by Brian Ellsworth; Editing by Todd Benson and Kieran Murray)


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Obama, Boehner talk; Geithner prepared to go off “cliff”












WASHINGTON (Reuters) – Republicans in Congress and President Barack Obama consumed much of Wednesday talking up their positions on the “fiscal cliff” and though Obama and Republican House Speaker John Boehner spoke by phone, neither side offered any new compromises in public.


Nor was the phone call, a rarity, followed by any immediate announcement of a face-to-face meeting that has been widely anticipated all week and was explicitly requested early in the day by House of Representatives Republican leader Eric Cantor.












Asked in an interview with CNBC if the administration was ready to go over the so-called fiscal cliff if Republicans don’t come around on taxes, Obama‘s chief negotiator, Treasury Secretary Timothy Geithner, responded: “Oh, absolutely.”


Facing spending cuts and tax increases that start to take effect in January unless Congress acts, Republicans on Capitol Hill were privately acknowledging that they were taking a public relations thrashing at the hands of the White House, which has marshaled a campaign-style offensive that involves some of the very “job-creators” Republicans say they are protecting.


Obama met with another such corporate group on Wednesday, The Business Roundtable, renewing his call to include tax hikes on the wealthiest 2 percent of Americans as part of the final resolution and for including an increase in the nation’s borrowing limit.


U.S. stocks rose on Wednesday after Obama also said a deal to avert the fiscal cliff was possible within a week, though he expressed it as a hope not a prediction.


The confrontation has become an endless loop of familiar talking points and well-worn positions. Republican leaders have balked at raising any tax rates, and Democrats have resisted Republican calls for cuts in entitlements like the Medicare and Medicaid healthcare programs.


Obama said there could be a quick deal if Republican leaders dropped their opposition to raising tax rates for those making more than $ 250,000 a year in exchange for spending cuts and entitlement reforms.


“If we can get the leadership on the Republican side to take that framework, to acknowledge that reality, then the numbers actually aren’t that far apart,” Obama told The Business Roundtable.


“Another way of putting this is we can probably solve this in about a week. It’s not that tough, but we need that conceptual breakthrough,” he said.


Geithner reiterated that there would be no deal without higher tax rates on the wealthy and without a change in congressional rules making it harder to block an increase in the U.S. debt ceiling.


“There is no prospect (for) an agreement that doesn’t involve rates going up on the top 2 percent of the wealthiest Americans,” he told CNBC.


The two sides have submitted proposals to cut deficits by more than $ 4 trillion over the next 10 years, but differ on how to get there. Republicans propose $ 1 trillion more in spending cuts than Obama, while the president wants $ 800 billion more in tax increases and $ 200 billion to boost the sluggish economy.


Republicans have shown cracks in their solidarity on taxes, however, with some saying they would be willing to let rates rise on the wealthiest 2 percent in exchange for extending low rates for the other 98 percent of taxpayers.


‘WE HAVE TO RAISE REVENUE’


Republican Senator Tom Coburn of Oklahoma said he could accept some higher tax rates as part of a long-term solution to the threat posed by spiraling U.S. debt. He said the path to prosperity would require at least a $ 9 trillion package of spending cuts and tax increases over 10 years, rather than the $ 4 trillion being discussed now.


“Personally I know we have to raise revenue. I don’t really care which way we do it. Actually, I would rather see the rates go up than do it the other way because it gives us a greater chance to reform the tax code and broaden the base in the future,” Coburn said on MSNBC.


With no resolution in sight and the fiscal cliff looming, the White House budget office has told all federal agencies to begin planning for possible automatic spending cuts that will start taking effect in January without a deal, the White House said.


White House spokesman Jay Carney said the Office of Management and Budget needed to take certain steps to be ready if an agreement is not reached and asked federal agencies for information so it could complete calculations on the required cuts.


Economists have predicted that failure to reach an accord could trigger another recession, and business executives and investors in the financial markets have watched the back and forth anxiously.


Jim McNerney, chairman of the Business Roundtable and chairman and chief executive officer of Boeing Co., called for non-stop negotiations to break the stalemate.


“We encourage both sides to work around the clock, if necessary, to avoid the severe repercussions that inaction would have on U.S. economic growth and job creation,” McNerney said in a statement after Obama’s appearance before the executives.


Obama’s call for including an increase in the debt ceiling in a final package seemed likely to complicate the negotiations.


In his speech to executives, Obama said it was a “bad strategy” for Republicans to believe they would have more leverage next year to extract concessions from the White House by threatening to let the United States default.


A debt ceiling standoff between the White House and House Republicans in 2011 brought the country perilously close to default and resulted in an embarrassing debt rating downgrade.


“I want to send a very clear message to people here: We are not going to play that game next year,” Obama told the executives.


The focus on the debt ceiling is already raising concerns among market watchers.


“The more the Republicans talk about raising or not raising the debt limit, that really makes the market nervous, and makes the White House more nervous than Congress,” said John Brady, managing director at R.J. O’Brien & Associates in Chicago. “The cliff can be punted into the future, but the debt ceiling can’t be.”


(Additional reporting by Kim Dixon, Alina Selyukh, David Alexander, Richard Cowan, Steve Holland and Rodrigo Campos; Writing by John Whitesides; Editing by Eric Beech)


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WestJet embraces tech to woo business travelers












TORONTO (Reuters) – WestJet Airlines Ltd will use technological innovation, including a new Internet ticket booking system, to help it transform from a no-frills carrier to a lower-cost full-service airline courting lucrative corporate travelers, its chief executive said on Monday.


Canada’s second-biggest airline plans to launch a series of technology systems, most notably the new online booking engine, which will sell three tiers of tickets, in the next two months.












“Companies evolve or they die,” Chief Executive Gregg Saretsky told Reuters in a phone interview from the company’s Calgary head office.


“We’re 16 and going on 17 years old and we can’t stay just as we were 17 years ago. The world has changed. And we are changing to be more relevant for a broader segment of guests.”


The new Internet booking system, which WestJet hopes to launch in late January, will sell economy, mid-tier and premium tickets. That is a major shift from its current system, which sells only the lowest-priced ticket available.


Economy tickets under the new system will continue to sell the lowest available fare, but the cancellation fee for them will jump to C$ 75 ($ 75.48) from C$ 50. Mid-tier tickets will have a C$ 50 cancellation fee.


Premium tickets, unavailable until late March when WestJet finishes reconfiguring its 100 Boeing 737 planes to allow more leg room, will include priority screening and boarding, free cancellations and flexibility on ticket changes.


Pricing for those tickets, which may include free meals and drinks and an extra baggage allowance, has not yet been determined. Fares will be well below half the price for business class at WestJet’s bigger competitor, Air Canada, Saretsky said.


“It’s time for us to be more serious with respect to going after business travelers because frankly, they’re the ones who are booking last-minute and are happy to pay for the conveniences,” Saretsky said.


WestJet will launch its premium economy service with 24 seats per plane, but will consider expansion if it proves “wildly successful,” he added.


POISED FOR CHANGE


WestJet, which has spent about C$ 40 million over the past two years on technology projects, is poised for major changes in 2013 as it readies to launch a new regional airline, Encore.


Saretsky hopes that WestJet’s switch in coming weeks to a new Internet phone system will allow ticket reservation agents to work from home and help make room for Encore staff.


Some 750 reservation agents work at WestJet’s Calgary offices, which house about 2,400 staff. Space will be needed for Encore employees over the next 18 months while their office, hangars and maintenance stores are constructed at the WestJet campus.


Encore will be launch in the second half of 2013, “probably closer to July than December,” Saretsky said, with seven Bombardier Q400 planes.


While WestJet won’t announce Encore’s schedule until Jan 21, the carrier will initially serve only “a handful” of new cities, with ticket prices up to 50 percent below Air Canada’s, he added.


Over the next two months, WestJet will also roll out a guest notification system that alerts travelers via email about their flights, allowing them to check in remotely.


Such self-service technology will be critical as WestJet faces increasing labor costs, Saretsky said.


Wage and benefit costs, which represent about a third of operating costs, have climbed 50 percent since WestJet was founded in 1996.


“You can see that creates a little bit of drag on earnings,” Saretsky said. “We’ve got to find ways of reducing our component costs.”


If WestJet can increase self service options for travelers, that could limit the need for new employees, Saretsky said. Management also wants to improve attendance management, so that fewer employees book off sick around long weekends, and more quickly clean and process planes between flights, he said.


(Reporting By Susan Taylor; Editing by Peter Galloway)


(This story was corrected to show that WestJet is replacing its Internet booking engine, not entire reservation system, in the first and second paragraphs)


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100,000 protest at presidential palace


CAIRO (AP) — More than 100,000 Egyptians protested outside the presidential palace in Cairo on Tuesday, fueling tensions over Islamist leader Mohammed Morsi's seizure of nearly unrestricted powers and the adoption by his allies of a controversial draft constitution.


The outpouring of anger across the Egyptian capital, the Mediterranean port of Alexandria and a string of other cities pointed to a prolonged standoff between the president and a newly united opposition.


Morsi's opponents, long fractured by bickering and competing egos, have been re-energized since he announced decrees last month that place him above oversight of any kind, including by the courts, and provide immunity to two key bodies dominated by his allies: The 100-member panel drafting the constitution and parliament's upper chamber.


The decrees have led to charges that Morsi's powers turned him into a "new pharaoh."


The large turnout in Tuesday's protests — dubbed "The Last Warning" by organizers — signaled sustained momentum for the opposition, which brought out at least 200,000 protesters to Cairo's Tahrir Square a week ago and a comparable number on Friday to demand that Morsi rescind the decrees.


The huge scale of the protests have dealt a blow to the legitimacy of the new constitution, which Morsi's opponents contend allows religious authorities too much influence over legislation, threatens to restrict freedom of expression and opens the door to Islamist control over day-to-day life.


What the revived opposition has yet to make clear is what it will do next: campaign for a "no" vote on the draft constitution in a nationwide referendum set for Dec. 15, or call on Egyptians to boycott the vote.


Already, the country's powerful judges have said they will not take on their customary role of overseeing the vote, thus robbing it of much of its legitimacy.


Morsi was in the presidential palace conducting business as usual as the protesters gathered outside. He left for home through a back door as the crowds continued to swell, according to a presidential official who spoke on condition of anonymity because he was not authorized to speak to the media.


The official said Morsi left on the advice of security officials to head off "possible dangers" and to calm the protesters. Morsi's spokesman, however, said the president left the palace at the end of his normal work day, through the door he routinely uses.


The protest was peaceful except for a brief outburst when police used tear gas to prevent demonstrators from removing a barricade topped with barbed wire and converging on the palace.


Soon after, with the president gone, the police abandoned their lines and the protesters surged ahead to reach the palace walls. But there were no attempts to storm the palace, guarded inside by the army's Republican Guard.


Protesters also commandeered two police vans, climbing atop the armored vehicles to jubilantly wave Egypt's red, white and black flag and chant against Morsi. The protesters later mingled freely with the black-clad riot police, as more and more people flocked to the area to join the demonstration.


The protesters covered most of the palace walls with anti-Morsi graffiti and waved giant banners carrying images of revolutionaries killed in earlier protests. "Down with the regime" and "No to Morsi," they wrote on the walls.


"He isn't the president of all Egyptians, only of the Muslim Brotherhood," said protester Mariam Metwally, a postgraduate student of international law. "We don't feel like he is our president."


A giant poster emblazoned with an image of Morsi wearing a Pharaonic crown was hoisted between two street light posts outside the presidential palace. "Down with the president. No to the constitution," it declared.


"The scene at Itihadiya palace is a stab at the president's legitimacy and his constitutional declaration," opposition leader Hamdeen Sabahi told a private TV network. "The scene sends a message to the president that he is running out of time."


The massive gathering was reminiscent of the one outside the palace on Feb. 11, 2011 — the day authoritarian president Hosni Mubarak stepped down in the face of an 18-day uprising that ended his 29-year regime.


Shouts of "Erhal! Erhal!" — Arabic for "Leave! Leave!" — and "The people want to topple the regime!" rose up from the crowd, the same chants used against Mubarak. This time, though, they were directed at his successor, Egypt's first democratically elected president.


"The same way we brought down Mubarak in 18 days, we can bring down Morsi in less," Ziad Oleimi, a prominent rights activist, told the crowds using a loudspeaker.


In Alexandria, some 10,000 opponents of Morsi gathered in the center of the country's second-largest metropolis, chanting slogans against the leader and his Islamic fundamentalist group, the Muslim Brotherhood.


The protests fueled Egypt's worst political crisis since Mubarak's ouster, with the country clearly divided into two camps: Morsi, his Muslim Brotherhood and their ultraconservative Islamist allies, versus an opposition made up of youth groups, liberal parties and large sectors of the public.


Tens of thousands also gathered in Cairo's downtown Tahrir Square, miles away from the palace, to join several hundred who have been camping out there for nearly two weeks. There were other large protests around the city.


Smaller protests by Morsi opponents were staged in the Islamist stronghold of Assiut, as well as in Suez, Luxor, Aswan, Damanhour and the industrial city of Mahallah, north of Cairo.


"Freedom or we die," chanted a crowd of several hundred outside a mosque in Cairo's Abbasiyah district. "Mohammed Morsi, illegitimate! Brotherhood, illegitimate!" they yelled.


Earlier Tuesday, several hundred protesters also gathered outside Morsi's residence in an upscale suburb. "Down with the sons of dogs. We are the power and we are the people," they chanted.


Morsi, who narrowly won the presidency in a June election, appeared to be in no mood for compromise.


A statement by his office said he met Tuesday with his deputy, his prime minister and several top Cabinet members to discuss preparations for the referendum. The statement suggested business as usual at the palace, despite the mass rally outside its doors.


Asked why Morsi did not address the crowds, Muslim Brotherhood spokesman Mahmoud Ghozlan said the protesters were "rude" and included "thugs and drug addicts."


The Islamists responded to the mass opposition protests last week by sending hundreds of thousands of supporters into Cairo's twin city of Giza on Saturday and across much of the country. Thousands also besieged Egypt's highest court, the Supreme Constitutional Court.


The court had been widely expected to declare the constitutional assembly that passed the draft charter illegitimate and to disband parliament's upper house, the Shura Council. Instead, the judges went on strike after they found their building under siege by protesters.


Morsi's Nov. 22 decrees were followed last week by the constitutional panel rushing through the draft constitution in a marathon, all-night session without the participation of liberal and Christian members. Only four women, all Islamists, attended the session.


The charter has been criticized for not protecting the rights of women and minority groups, and many journalists see it as restricting freedom of expression. Critics also say it empowers Islamic religious clerics by giving them a say over legislation, while some articles were seen as tailored to get rid of the Islamists' enemies.


___


Associated Press writer Maggie Michael contributed to this report.


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iOS users generate double the Web traffic of Android users












According to the latest numbers from Chitika Insights, iOS users generate more than twice the amount of Web traffic as Android users. The six-month study found that while the two operating systems were nearly tied when it came to smartphone Web traffic, Apple (AAPL) has a substantial lead with its iPad tablet. Despite Android’s commanding share of the overall mobile market, the Cupertino-based company’s platform totaled 67% of Web traffic measured in the past six months, compared to Android’s 35% share.


“Despite all the new Android and Apple devices that have been released over the past six months, little has changed in the overall Web traffic distribution between iOS and Android,” the research firm wrote. “iOS’s share has hovered around 65%, while Android largely has stayed around 35%, the OS hit a peak of 40% in late August thanks partially to strong Samsung Galaxy S III sales. Apple then regained some share with the release of the iPhone 5 in the September timeframe.”












To qualify for the study Chitika Insights analysed billions of ad impressions coming from iOS or Android devices from May 27th to November 27th.


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Huston’s “Infrared” wins Bad Sex fiction prize












LONDON (AP) — It’s the prize no author wants to win.


Award-winning novelist Nancy Huston won Britain’s Bad Sex in Fiction award Tuesday for her novel “Infrared,” whose tale of a photographer who takes pictures of her lovers during sex proved too revealing for the judges.












The choice was announced by “Downton Abbey” actress Samantha Bond during a ceremony at the Naval & Military Club in London.


Judges of the tongue-in-cheek prize — which is run by the Literary Review magazine — said they were struck by a description of “flesh, that archaic kingdom that brings forth tears and terrors, nightmares, babies and bedazzlements,” and by a long passage that builds to a climax of “undulating space.”


Huston, who lives in Paris, was not on hand to collect her prize. In a statement read by her publicist, the 59-year-old author said she hoped her victory would “incite thousands of British women to take close-up photos of their lovers’ bodies in all states of array and disarray.”


The Canada-born Huston, who writes in both French and English, is the author of more than a dozen novels, including “Plainsong” and “Fault Lines.” She has previously won France’s Prix Goncourt prize and was a finalist for Britain’s Orange Prize for fiction by women.


She is only the third woman to win the annual Bad Sex prize, founded in 1993 to name and shame authors of “crude, tasteless and … redundant passages of sexual description in contemporary novels.”


Some critics, however, have praised the sexual passages in “Infrared.” Shirley Whiteside in the Independent on Sunday newspaper said there were “none of the lazy cliches of pornography or the purple prose of modern romantic fiction” — though she conceded the book’s sex scenes were “more perfunctory than erotic.”


Huston beat finalists including previous winner Tom Wolfe — for his passage in “Back to Blood” describing “his big generative jockey” — and Booker Prize-nominated Nicola Barker, whose novel “The Yips” compares a woman to “a plump Bakewell pudding.”


Previous recipients of the dubious honor, usually accepted with good grace, include Sebastian Faulks, the late Norman Mailer and the late John Updike, who was awarded a Bad Sex lifetime achievement award in 2008.


___


Online: http://www.literaryreview.co.uk


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Fast-growing fish may never wind up on your plate












WASHINGTON (AP) — Salmon that’s been genetically modified to grow twice as fast as normal could soon show up on your dinner plate. That is, if the company that makes the fish can stay afloat.


After weathering concerns about everything from the safety of humans eating the salmon to their impact on the environment, Aquabounty was poised to become the world’s first company to sell fish whose DNA has been altered to speed up growth.












The Food and Drug Administration in 2010 concluded that Aquabounty’s salmon was as safe to eat as the traditional variety. The agency also said that there’s little chance that the salmon could escape and breed with wild fish, which could disrupt the fragile relationships between plants and animals in nature. But more than two years later the FDA has not approved the fish, and Aquabounty is running out of money.


“It’s threatening our very survival,” says CEO Ron Stotish, chief executive of the Maynard, Mass.-based company. “We only have enough money to survive until January 2013, so we have to raise more. But the unexplained delay has made raising money very difficult.”


The FDA says it’s still working on the final piece of its review, a report on the potential environmental impact of the salmon that must be published for comment before an approval can be issued. That means a final decision could be months, even years away. While the delay could mean that the faster-growing salmon will never wind up on American dinner tables, there’s more at stake than seafood.


Aquabounty is the only U.S. company publicly seeking approval for a genetically modified animal that’s raised to be eaten by humans. And scientists worry that its experience with the FDA’s lengthy review process could discourage other U.S. companies from investing in animal biotechnology, or the science of manipulating animal DNA to produce a desirable trait. That would put the U.S. at a disadvantage at a time when China, India and other foreign governments are pouring millions of dollars each year into the potentially lucrative field that could help reduce food costs and improve food safety.


Already, biotech scientists are changing their plans to avoid getting stuck in FDA-related regulatory limbo. Researchers at the University of California, Davis have transferred an experimental herd of genetically engineered goats that produce protein-enriched milk to Brazil, due to concerns about delays at the FDA. And after investors raised concerns about the slow pace of the FDA’s Aquabounty review, Canadian researchers in April pulled their FDA application for a biotech pig that would produce environmentally friendly waste.


“The story of Aquabounty is disappointing because everyone was hoping the company would be a clear signal that genetic modification in animals is now acceptable in the U.S.,” said Professor Helen Sang, a geneticist at the University of Edinburgh in Scotland who is working to develop genetically modified chickens that are resistant to bird flu. “Because it’s gotten so bogged down — and presumably cost AquaBounty a huge amount of money — I think people will be put off.”


AGAINST THE CURRENT


The science behind genetic modification is not new. Biotech scientists say that genetic manipulation is a proven way to reduce disease and enrich plants and animals, raising productivity and increasing the global food supply. Genetically modified corn, cotton and soybeans account for more than four-fifths of those crops grown in the U.S., according to the National Academies of Sciences.


But there have always been critics who are wary of tinkering with the genes of living animals. They say the risk is too great that modified organisms can escape into the wild and breed with native species. Not that we don’t already eat genetically altered animals. Researchers say the centuries-old practice of selective breeding is its own form of genetic engineering, producing the plumper cows, pigs and poultry we eat today.


“You drive a hybrid car because you want the most efficient vehicle you can have. So why wouldn’t you want the most efficient agriculture you can have?” asks Alison Van Eenennaam, a professor of animal science at University of California, Davis.


Aquabounty executives say their aim is to make the U.S. fish farming industry, or aquaculture, more efficient, environmentally friendly and profitable. After all, the U.S. imports about 86 percent of its seafood, in part, because it has a relatively small aquaculture industry. Aquaculture has faced pushback in the U.S. because of concerns about pollution from large fish pens in the ocean, which generate fish waste and leftover food.


Aquabounty executives figure that the U.S. aquaculture industry can be transformed by speeding up the growth of seafood. The company picked Atlantic salmon because they are the most widely consumed salmon in the U.S. and are farmed throughout the world: In 2010, the U.S. imported more than 200,000 tons of Atlantic salmon, worth over $ 1.5 billion, from countries like Norway, Canada and Chile.


Using gene-manipulating technology, Aquabounty adds a growth hormone to the Atlantic salmon from another type of salmon called the Chinook. The process, company executives say, causes its salmon to reach maturity in about two years, compared with three to four years for a conventional salmon.


Aquabounty executives say if their fish are approved for commercial sale, there are several safeguards designed to prevent the fish from escaping and breeding with wild salmon. The salmon are bred as sterile females. They also are confined to pools where the potential for escape would be low: The inland pens are isolated from natural bodies of water.


And the company says that these pens would be affordable thanks to the fast-growing nature of Aquabounty’s fish, which allows farmers to raise more salmon in less time. Overall, the company estimates that it would cost 30 percent less to grow its fish than traditional salmon.


TOUGH SALE


But getting the fish to market hasn’t been easy.


The company began discussions with the FDA in 1993. But the agency did not yet have a formal system for reviewing genetically modified food animals.


So Aquabounty spent the next decade conducting more than two dozen studies on everything from the molecular structure of the salmon’s DNA to the potential allergic reactions in humans who would eat it. By the time the FDA completed its roadmap for reviewing genetically modified animals in 2009, Aquabounty was the first company to submit its data.


After reviewing the company’s data, the FDA said in a public hearing in September of 2010 that Aquabounty’s salmon is “as safe as food from conventional Atlantic salmon.” The FDA also said the fish “are not expected to have a significant impact” on the environment.


But as the company has inched toward FDA approval it has faced increasing pushback from natural food advocates, environmentalists and politicians from salmon-producing states. In fact, following the FDA’s positive review of the fish, the House of Representatives passed a budget that included language barring the FDA from spending funds to approve a genetically engineered salmon.


“Frankenfish is uncertain and unnecessary,” said Rep. Don Young of Alaska, who authored the language. The Senate did not adopt the measure.


Despite such opposition, environmental groups such as the Food and Water Watch say that FDA approval seems inevitable. “We think there is a clear bias toward approving genetically modified animals within the FDA,” said Patty Lovera, assistant director of Food & Water Watch, a nonprofit that promotes environmentally friendly fishing and farming practices. “This thing is trapped in a regulatory process that is predisposed toward approving it.”


But the delay could cause Aquabounty to go bankrupt before its salmon reaches supermarkets.


Aquabounty, which started in 1991 focusing on proteins used to preserve human cells, changed direction after acquiring the rights to gene-manipulation technology from researchers at the University of Toronto and Memorial University of Newfoundland. Initial financing came from Boston-area investors and biotech-focused venture capital funds, but the company has burned through more than $ 67 million since it started.


According to its mid-year financial report, Aquabounty had less than $ 1.5 million in cash and stock. And it has no other products besides genetically modified salmon in development.


In February, the cash-strapped company agreed to sell its research and development arm to its largest single shareholder, Kakha Bendukidze, a former Republic of Georgia finance minister turned investor, in return for his help raising $ 2 million in cash to stay afloat. Aquabounty’s CEO Stotish fretted that Bendukidze, who controlled nearly 48 percent of Aquabounty’s public stock, would move the company overseas. But in October Bendukidze’s investment fund sold its shares to Intrexon, a biotech firm headquartered in Germantown, Md.


Stotish views the sale as a positive development, but he still worries that the U.S. government is unwilling to approve the technology at the heart of his company’s work.


“This is about more than Aquabounty and more than salmon,” Stotish says. “And shame on us if we allow this to slip away because of partisan bickering and people who oppose new technology.”


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Official: Syria moving chemical weapons components












WASHINGTON (AP) — U.S. and allied intelligence have detected Syrian movement of chemical weapons components in recent days, a senior U.S. defense official said Monday, as the Obama administration strongly warned the Assad regime against using them.


A senior defense official said intelligence officials have detected activity around more than one of Syria‘s chemical weapons sites in the last week. The defense official spoke on condition of anonymity because he was not authorized to speak publicly about intelligence matters.












Secretary of State Hillary Rodham Clinton, in Prague for meetings with Czech officials, reiterated President Barack Obama‘s declaration that Syrian action on chemical weapons was a “red line” for the United States that would prompt action.


“We have made our views very clear: This is a red line for the United States,” Clinton told reporters. “I’m not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say, we are certainly planning to take action if that eventuality were to occur.”


Syria said Monday it would not use chemical weapons against its own people. The Ministry of Foreign Affairs said Syria “would not use chemical weapons — if there are any — against its own people under any circumstances.”


Syria has been careful never to confirm that it has any chemical weapons.


The use of chemical weapons would be a major escalation in Assad’s crackdown on his foes and would draw international condemnation. In addition to causing mass deaths and horrific injuries to survivors, the regime’s willingness to use them would alarm much of the region, particularly neighboring states, including Israel.


At the White House, press secretary Jay Carney said, “We are concerned that in an increasingly beleaguered regime, having found its escalation of violence through conventional means inadequate, might be considering the use of chemical weapons against the Syrian people. And as the president has said, any use or proliferation of chemical weapons by the Syrian regime would cross a red line for the United States. “


Administration officials would not detail what that response might be.


Although Syria is one of only seven nations that have not signed the Chemical Weapons Treaty, it is a party to the 1925 Geneva Protocol that bans the use of chemical weapons in war. That treaty was signed in the aftermath of World War I, when the effects of the use of mustard gas and other chemical agents outraged much of the world.


Clinton didn’t address the issue of the fresh activity at Syrian chemical weapons depots, but insisted that Washington would address any threat that arises.


An administration official said the trigger for U.S. action of some kind is the use of chemical weapons or movement with the intent to use or provide them to a terrorist group like Hezbollah. The U.S. is trying to determine whether the recent movement detected in Syria falls into any of those categories, the official said. The administration official was speaking on condition of anonymity this person was not authorized to speak publicly about the issue.


The senior defense official said the U.S. does not believe that any Syrian action beyond the movement of components is imminent.


An Israeli official said if there is real movement on chemical weapons, it would require a response. He didn’t say what that might be and spoke on condition of anonymity pending a formal government response to the reports of the latest activities.


Israeli officials have repeatedly expressed concerns that Syrian chemical weapons could slip into the hands of Hezbollah or other anti-Israel groups, or even be fired toward Israel in an act of desperation by Syria.


Syria is believed to have several hundred ballistic surface-to-surface missiles capable of carrying chemical warheads.


Its arsenal is a particular threat to the American allies, Turkey and Israel, and Obama singled out the threat posed by the unconventional weapons earlier this year as a potential cause for deeper U.S. involvement in Syria’s civil war. Up to now, the United States has opposed military intervention or providing arms support to Syria’s rebels for fear of further militarizing a conflict that activists say has killed more than 40,000 people since March 2011.


Clinton said that while the actions of President Bashar Assad‘s government have been deplorable, chemical weapons would bring them to a new level.


“We once again issue a very strong warning to the Assad regime that their behavior is reprehensible, their actions against their own people have been tragic,” she said. “But there is no doubt that there’s a line between even the horrors that they’ve already inflicted on the Syrian people and moving to what would be an internationally condemned step of utilizing their chemical weapons.”


Activity has been detected before at Syrian weapons sites, believed to number several dozen.


Defense Secretary Leon Panetta said in late September the intelligence suggested the Syrian government had moved some of its chemical weapons in order to protect them. He said the U.S. believed that the main sites remained secure.


Asked Monday if they were still considered secure, Pentagon press secretary George Little declined to comment about any intelligence related to the weapons.


Senior lawmakers were notified last week that U.S. intelligence agencies had detected activity related to Syria’s chemical and biological weapons, said a U.S. intelligence official, speaking on condition of anonymity to discuss the closed-door meetings. All congressional committees with an interest in Syria, from the intelligence to the armed services committees, are now being kept informed.


“I can’t comment on these reports but I have been very concerned for some time now about Syria’s stockpiles of chemical weapons and its stocks of advanced conventional weapons like shoulder-launched anti-aircraft missiles,” said House intelligence committee Chairman Mike Rogers, R-Mich. “We are not doing enough to prepare for the collapse of the Assad regime, and the dangerous vacuum it will create. Use of chemical weapons by the Assad regime would be an extremely serious escalation that would demand decisive action from the rest of the world,” he added.


Syria is believed to have one of the world’s largest chemical weapons programs, and the Assad regime has said it might use the weapons against external threats, though not against Syrians. The U.S. and Jordan share the same concern about Syria’s chemical and biological weapons — that they could fall into the wrong hands should the regime in Syria collapse and lose control of them.


___


Klapper reported from Prague. Associated Press writers Josef Federman in Jerusalem, Albert Aji in Damascus and Matthew Lee, Kimberly Dozier, and Julie Pace in Washington contributed to this report.


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Marine awarded Navy's highest honor in rare public ceremony

CAMP PENDLETON, Calif. (AP) — Navy Secretary Ray Mabus on Monday honored four members of a Marine special operations team in a rare public ceremony for the covert forces.


In a ceremony at Camp Pendleton, Calif., Mabus awarded Marine Sgt. William Soutra Jr. the Navy Cross, the Navy's highest honor and the military's second highest honor, for tending to the wounded while guiding the platoon to safety during an attack in Afghanistan's Helmand Province in July 2010 that spanned over two days.


Three others on his team, including a Navy corpsman, were given Silver Stars.


Often the heroic actions of special operators are only known to each other and the leadership because of their covert work on classified missions.


"This is a chance to recognize people who don't get recognized much," Mabus said, adding that their actions show "just how incredibly capable" Marine special operators are.


Soutra was a canine handler with a Marine special operations team when they were ambushed. After the team's assistant leader was fatally wounded by an enemy explosive during the ambush, Soutra jumped into action, repeatedly running into the line of fire as he helped direct troops to defend themselves and fight off the enemy, Mabus said.


At one point, the 27-year-old Marine from Worchester, Mass., placed a tourniquet on a wounded commando, before dragging him to a ditch for cover. He worked tirelessly for more than an hour after the initial blast and helped carry casualties through the sporadic gunfire, officials said.


His military dog stayed attached to his side during the ordeal. The dog had to be put down more than a year ago because it had cancer.


Maj. James Rose, Staff Sgt. Frankie Shinost Jr. and Navy Corpsman Patrick Quill were given Silver Stars for their actions that day.


The four men called it a horrible day because they lost their element leader, Staff Sgt. Chris Antonik.


"Every day I think about Chris," said Soutra, calling him a close friend and great warrior.


Soutra vowed to try to carry on as the kind of warrior that would make Antonik proud.

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