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Hot Off the Wire – Google phone now runs on AT&T network; Microsoft told to pay $106M in patent dispute; Bing gains market share

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A roundup of the latest high-tech news from The Associated Press:

• Google phone now works on iPhone's wireless system

SAN FRANCISCO — Google Inc. has upgraded its Nexus One phone so it works on the same high-speed wireless network as Apple Inc.'s iPhone, putting the increasingly antagonistic rivals on an even more direct collision course in the mobile market.

The latest version of the Nexus One unveiled Tuesday could make the device a more serious challenger to the iPhone, which uses AT&T Inc.'s 3G network as its main communications channel in the United States.

The Nexus One had been running on AT&T's slower networks since Google began selling the handset in early January. The switch to AT&T's faster system represents another step in Google's attempt to siphon sales from Apple's iPhone with its own version of a sleek mobile phone that relies on touch-screen technology.

Analysts don't believe the Nexus One has made a big dent yet, despite Google's efforts to promote the Nexus One as a "super" phone that's a cut above the iPhone.

Nevertheless, Apple is aggressively protecting its turf as it tries thwart the Nexus One and several other mobile phone models that rely on Android, a software system designed by Google.

In a lawsuit filed earlier this month, Apple alleged HTC Corp. — the maker of the Nexus One and other Android-powered phones — has infringed on its touch-screen patent.

Google hasn't said how many Nexus Ones have been sold so far. BroadPoint.Amtech analyst Benjamin Schachter estimates Google will sell about 125,000 of the phones during the Nexus One's first three months on the market. Apple has sold about 40 million iPhones since the device's 2007 debut, including 8.7 million in last year's final quarter.

Nexus One's upfront cost can be substantially higher than the iPhone because Google is selling some models without subsidies from wireless carriers to make it easier for consumers move to other networks.

The unsubsidized version of the Nexus One sells for $529. The iPhone sells for as little as $99 with a two-year commitment to subscribe to AT&T.

• Jury awards VirnetX $106M in Microsoft dispute

SAN FRANCISCO — A jury has awarded communications company VirnetX Holding nearly $106 million after determining Microsoft violated two of its patents.

The verdict came Tuesday after a weeklong trial in U.S. District Court for the Eastern District of Texas.

Lawyers for VirnetX, which is based in Scotts Valley, say the $105.75 million verdict was $71.75 million for infringing one patent, and $34 million for infringing another.

The patents cover ways to establish virtual private network, or VPN, connections, which are used to protect Internet and other data traffic from snoops. The traffic is generally encrypted, or scrambled so outsiders can't decipher it.

Microsoft says it is disappointed by the jury's verdict and that it believes it didn't infringe the patents. It says it will appeal.

• Bing search engine market share improves

SEATTLE — Microsoft Corp.'s Bing search engine gained market share in the U.S. in February, according to research groups.

Microsoft has worked for years to improve its search technology and narrow the gap with Google Inc. After launching its redesigned search site last June, the company waged a major marketing campaign to position Bing as better than Google or No. 2 Yahoo for shopping, booking travel and searching for medical information.

Microsoft remains in the No. 3 spot, but Bing's share of U.S. searches has crept up a few percentage points since its June 2009 launch, primarily at Yahoo's expense, according to research groups.

Now there's a sign — albeit a small one — that Bing may also be tempting some Googlers.

The Nielsen Co., one of the research groups that tracks the space, said Tuesday that Bing's share of U.S. searches crept up to 12.5 percent from 10.9 percent in January. Yahoo's share slipped to 14.1 percent from 14.5 percent, and Google's decreased to 65.2 from 66.3, Nielsen said.

But tracking Web searches is an imprecise business, and methods and estimates vary among research groups. Last week, comScore Inc. published its own February search rankings, which showed Google gaining a tenth of a percent to 65.5 percent.

Microsoft's share edged up to 11.5 percent from 11.3 percent by comScore's count, while Yahoo's slice of U.S. Web searches slipped to 16.8 percent from 17 percent.

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