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BlipSnips iPhone App Makes Sharing Mobile Video Social
Mobile video sharing company BlipSnips introduced the latest version of its iPhone app Tuesday, adding a whole slate of new features. The BlipSnips iPhone app introduces many new elements to sharing mobile videos on social networks, including geolocation support and the ability to tag your friends within the timeline of a video, and link comments to action while it is happening.

Mobile video sharing is fast becoming a crowded market, with apps like Justin.tv’s Socialcam and Viddy competing to become the “Instagram of video.” But where other apps let users share and tag friends in photos that are posted to social networks and other sites, BlipSnips seeks to differentiate itself with advanced tagging capabilities that are linked to specific moments in a video.

The BlipSnips application provides all the same functionality that we’ve come to expect from most social sharing apps, including the ability to post to Facebook and Twitter, and comment on video. But it goes a step further by allowing users to tag friends and locations within videos, all of which is linked to the movie’s timeline. So if you tag a friend, when the video plays back you can fast forward directly to where he’s located in the clip. Same goes for comments, which are made within the timeline of the video so that you know what specifically users are reacting to when they post.

Videos can then be viewed in-app, on Facebook or on the BlipSnips website. All locations share the same look and feel in the “video theater,” and all of which include the same content and tags.

The latest version of the app, while adding Twitter integration and geolocation tagging, has also provided more advanced controls over social sharing. That includes more advanced content privacy settings that allow users to determine exactly where their videos will be published, and new friend/follower feature to enable users to connect directly with others that use the app.

BlipSnips is a Boulder-based graduate of the TechStars incubator that launched the first version of its app earlier this year. That app has now been downloaded more than 100,000 times since launch, but the addition of features to the new version could accelerate the pace of its adoption.

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The Heist App Does Deals Differently
How do you make waves in a crowded space that filled with mobile deals? One way is to make bargains a game, and not just by incentivizing group buying, but by actually making a playable game that allows you to unlock a deal. That’s what The Heist, a new iPhone app released Tuesday, aims to do.

The Heist is a joint effort by MacHeist, which provides periodic great deals on bundles of Mac OS X software for your Apple computer, and tap tap tap, the development studio behind iOS App Store hits like Camera+. The result is a beautifully designed iPhone puzzle game, featuring a variety of different gameplay, that costs $0.99 and apparently delivers a tangible reward upon completion.

Neither MacHeist nor tap tap tap are giving away the secret of what lies with the “vault” at the end of The Heist, but the app’s promotional site does promise that “our cake is no lie,” and that “it’s worth much more than the price of entry.” An image on the site depicts what appears to be a Mac and PC-compatible software box, and TouchArcade has already discovered what the reward is, but if, like me, you’d rather savor the mystery, don’t check out their site.

Whatever the prize, the game has 60 levels, ranging from very easy to quite vexing, so it will already have been worth the dollar I paid for the app, because the gaming part of the experience isn’t just thrown in as an afterthought. Instead, this is an iOS puzzler that ranks with the best of them, by combining great graphics with simple yet challenging gameplay.

The concept of The Heist is great: charge users a reasonable amount for a gameplay experience that is rewarding in itself, and also leads to some incentivized conclusion. It may lose some of its shine when the mystery is taken away, but thanks to tap tap tap, the game itself is worth the price of admission. Nice to see that instead of just launching Groupon clones, some people are thinking about different ways to shake up digital deals.

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iOS Encrypted Backups Are Now Crackable
It’s possible to encrypt an iOS backup using iTunes. However, a piece of software has just been released which allows the encryption to be cracked, therefore giving someone full access to the data stored in your backup.

I suggested some reasons why to encrypt your iOS backups before, the main one being that your data is then protected. But this new software, called Phone Password Breaker Tool, is available to anyone wishing to pay a small fee for it. It’s being marketed as a tool to ‘recover’ password-protected devices, but it could also be used as a way for hackers to get access to your phone backups.

Able to get past the encryption on backups of both Apple’s iOS devices and BlackBerry devices, Phone Password Breaker will not only reveal the password set on the backup, but also extract passwords for mail accounts, websites and third-party applications — data that could be of great interest to malicious characters.

Luckily, the software requires the device to be physically connected to the computer in order to crack the encryption. That’s good news, since a hacker will need access to both the device and your computer — and if you’re sensible with your hardware, that isn’t likely to happen.

However, as Cult of Mac notes, it’s perfectly possible that a partner or other family member could grab your phone and take a sneaky look through your recent call history. If you have anything to hide (that call to the jewellers to arrange to pick up the engagement ring you bought, of course), make sure you keep an eye on where your phone is. To be really safe, remember not to store anything on the device that you wouldn’t potentially want a stranger reading.

Like I said, as long as you have your phone with you, there’s no need to worry, since physical access is required to use the tool.

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Will Publishers Choose the Open Web Over Apple's Walled Garden?

More and more magazine publishers are signing up with Apple to offer subscriptions through their iPad apps, including Conde Nast — which rolled out in-app subscriptions for Wired and GQ today — and Hearst. The appeal of that method is obvious: Apple handles the details, and publishers get to keep (most of) the money. But there also seems to be a growing wave of interest in doing an end-run around Apple and using HTML5 and the open web to offer a magazine experience. As other tablets emerge in the market, will more publishers decide to keep their options open and go with the web instead of Apple’s walled garden?

We’ve already seen some magazines experiment with web-based apps instead of the Apple version: Playboy was the most recent example — but its choice was likely dictated as much by the adult-rated content in the publication as it was by any commitment to the open web vs. the closed app economy. Fortune magazine has also announced an HTML5 web version of some of its content, although it is only a specifically targeted feature and not an entire magazine.

There have been other experiments as well, including a “Chrome” version of the New York Times’ web app, which effectively duplicates the user interface of the full app but inside a browser, and a beta feature The Huffington Post launched called NewsGlide that offers something similar for that site. And some publishers are also apparently interested in working with OnSwipe, a startup we profiled recently that offers an easy HTML5 platform incorporating touch interface elements and other features. Founder Jason Baptiste’s motto is that “Apps are bull****” when it comes to content.

Meanwhile, Jeff Sonderman at Poynter reports that a German design team has come up with a full HTML5-based magazine prototype called Aside, which offers an app-like experience in almost every way, but inside a user’s browser:

The Aside “app” has all the elements you would expect from a magazine app, including videos that play inside the content, fly-out menus, page-flipping animations, swipe effects and so on. Unlike many apps, the images can be zoomed as well — and the magazine doesn’t require a gigantic download that takes hours to complete, the way some apps such as Wired’s do. There is some lag in the Aside demo, but it is only a prototype after all, and it is almost indistinguishable from an iPad app in look and feel.

Whether any of these solutions will appeal to mainstream publishers remains to be seen, however. There’s no question that getting into bed with Apple has some fairly substantial benefits for content owners — for one thing, apps are a potential revenue generator, something many publishers are desperate for (although actual subscription numbers have proven to be fairly lackluster for most). And subscribers have also proven to be surprisingly willing to divulge useful marketing information about themselves via these apps, something that was a bone of contention when Apple first launched subscriptions.

All that said, however, a partnership with Apple can be a Faustian bargain for content owners. Not only does Apple get to keep 30 percent of the subscription revenue, which for some smaller publishers can mean the difference between life and death, but it also gets the ultimate say over what content can appear in an app and what can’t. The creators of the Aside prototype mention this specifically as a selling point of using the open web to publish: no one can tell you that your content is not suitable.

For now, the benefits of an Apple relationship arguably outweigh the downsides. But with Android and other platforms becoming a bigger proportion of the tablet and mobile market, I wouldn’t be surprised to see more publishers dipping their toes in the open web as a publishing platform, if only to hedge their bets.

Post and thumbnail photos courtesy of Flickr user Wesley Fryer

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Mac Malware and the App Store Coming of Age
A partial screen from Mac Defender: Not something you want to see on your Mac.

Although there has been scattered mac malware in the past, most malware to date have been proofs of concept or have piggybacked on illegal downloads. New malware program Mac Defender is a brilliant piece of social engineering that plays on fear of viruses and convinces the owner to pay money for removal of non-existent problems. Although Microsoft and PC manufacturers will help owners with malware problems (sometimes for an additional charge), AppleCare techs and Geniuses are currently refusing to assist or even acknowledge the problem according to reports. There's actually a very logical justification for this.

It's not about denying that Mac malware exists altogether. Apple has never actually denied that Macs get malware, but it hasn’t ever really sounded the alarm bell, either. Apple did include a copy of the anti-virus app Virex with .Mac subscriptions up until June of 2005, however. Apple in the past has also suggested anti-malware software, but now touts the Mac’s immunity to PC-based malware thanks to Snow Leopard's robust security, stating only that "antivirus software may offer additional protection.” They do include some protection each time an OS update comes out, by patching any exploits previous malware took advantage of.

Mac Defender’s (a.k.a. MacProtector, but not to be confused with MacKeeper, which is a legitimate program) attack vector is unique on the Mac platform. While Windows users are familiar with fake programs that claim your computer is infected and then offer to remove said infection, Mac Defender's reach will grow exponentially because Mac users aren’t as used to that strategy. While Apple can build in protection against this in the next software update, the success of MacDefender will serve as an example for the next slew of threats on the Mac.

Yes, the technically savvy are unlikely to fall for such threats. However, a large number of Mac users aren't always technically savvy enough to read blogs and support forums. These are the customers more likely to call AppleCare and Apple Geniuses when they have technical problems rather than solve it themselves. Since Mac Defender is extremely easy to remove, reps are spending more time explaining why they can't help users with malware rather than just explaining how to remove it.

Apple’s blind eye in this case is less about resource allocation in the short-term, and more about promoting the App Store as a safe software distribution channel so as to avoid a compounding of the time cost problem in the future. There’s some evidence that in a few cases, the Mac App Store can actually make Macs more vulnerable to attack, but so far that only applies with Opera, which is a web browser, and therefore susceptible to unique vectors of attack.

If consumers fear the threat of rogue software infecting their Macs, they can either buy the line of anti-virus makers and install protection that they then have to manage and invest in themselves, or they can take refuge behind the protective walls of Apple’s Mac App Store. Independent developers who’d rather deal directly with customers than go through Apple’s marketplace may not like the idea, but customers who to take Mac security for granted will increasingly use the App Store to avoid headaches like those provided by Mac Defender.

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Sleepless? Then Stop Taking Your iPhone To Bed.
Mobile workers just don’t put the phone down, according a new report from iPass, which provides Wi-Fi and 3G network access to enterprise clients for use by their employees. The company surveyed more than 3,500 people from 1,100 large corporations worldwide and asked them about their mobile device work habits. The results may not be all that surprising, if you’re a mobile worker, but they are somewhat terrifying (or maybe just really depressing).

iPass found that mobile workers have a hard time being physically separated from their smartphones, even when it’s ostensibly time to sleep. More than half at 61 percent of those surveyed keep the phone in the bedroom, and 41 percent have it within arm’s reach of where they sleep. Those figures jump to 77 and 60 percent respectively when you’re talking about the younger crowd (respondents between the ages of 22 and 34). Just over a third at 35 percent of mobile workers check their email before doing anything else when they wake up in the morning, and another 38 percent admit to checking their email at various times during the night.

Mobile workers also tend to own a surprising amount of tablets, given how relatively fresh on the scene those devices are. iPass found that 41 percent of those surveyed have one currently, and 34 percent are planning to get get one within the next six months. Tablet use in the mobile workforce is heavily dependent on what workers bring to the job themselves, as the report reveals that 73 percent own their own tablets, while only 27 percent of those who use one receive a device from their employer.

Employers will be interested to learn that mobile workers work, on average, 240 hours more per year than the workforce in general. That lends credence to the belief that employees who aren’t tied to the office put in more time on the job than their traditional counterparts.

Check out the infographic below for even more interesting (and depressing) data points from the iPass Global Mobile Workforce Report.

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Soonr Brings Cloud-Based MS Office Document Editing to the iPad
The iPad can be a handy remote working tool, but only to a point. So far, tablet computers seem to have been more useful as “data consuming” tools than genuine work devices. One stumbling block I’ve found is the inability to easily edit documents that you’ve stored in the cloud. Until now, that is.

Soonr is the first cloud file storage service to offer integrated editing for Microsoft Office documents on the iPad. Unlike cobbling together of file storage apps such as Dropbox and SugarSync with editing apps such as QuickOffice and Documents-To-Go, Soonr brings it all together so you can directly edit any files stored in the cloud using a single app. No configuration, no hassle, no cross-app interdependency. It also works offline when you don’t have a Wi-Fi connection and will sync back up when you do. And you can store, share, access, search, edit and sync your files from any tablet securely through Soonr.

Available both on iTunes and the Android Market, Soonr offers a 30-day free trail. A Premium account costs $7.95 per month for three users with 10 GB of storage, while Soonr Pro is $19.95 per month for five users and 40 GB of storage. Soonr supports Mac and PC, and mobile devices including Android, iPhone and BlackBerry; and iPad and Android (Honeycomb) tablets. The Soonr editing feature currently supports Microsoft Office 2003 (Excel, PowerPoint, Word) and Microsoft Office 2010 (Word only) files.

Here’s a short video demo of Soonr’s editing function:

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Brightcove Moves Mobile App Creation Into the Cloud
Brightcove has made a name for itself as one of the largest platforms for video distribution online. But now it is stepping beyond just the managing and distribution of online video with a new SaaS-based product for easily creating, maintaining and distributing iOS, Android and mobile web apps. The company’s new product, called Brightcove App Cloud, is designed to take much of the pain out of making content available through native apps on the most popular mobile platforms.

With limited resources for mobile development, many publishers are forced to choose between building native apps for smartphone platforms that provide advanced user interface options and a better user experience, or to build HTML5 websites that are optimized for most mobile browsers but don’t provide as much functionality. For publishers with multiple distinct media properties, the process is multiplied each time they wish to build a new app for each show, channel or website.

With Brightcove App Cloud, the company says publishers will be able to build both native apps and mobile-friendly websites in less time and by using fewer development resources. In an interview, Brightcove CEO Jeremy Allaire said the platform aims to “turn app development into web development.” By doing so, he says Brightcove can lower the total cost of ownership for building mobile applications.

The Brightcove App Cloud is an HTML5-based cloud platform that provides development, compilation, automated distribution, analytics and advertising tools all in one place. By combining these features, Brightcove enables publishers to significantly reduce the time and resources needed to build apps for multiple devices; it also makes it easier for publishers to troubleshoot and update apps once they have been published.

With a customizable and skinnable interface, Brightcove App Cloud lets publishers build consistent application environments for native apps across platforms, as well as for HTML5-compliant mobile browsers. Using just HTML5, CSS3, JavaScript and the App Cloud SDK, developers can create rich mobile apps without having to know native app development languages like Objective-C (although it helps) and without needing expensive design software. Developers can therefore build the user interface once and have the same look and feel translated on iOS, Android and mobile web applications. At the same time, the platform provides tools for creating platform-specific experiences when available.

By moving the entire process into the cloud, Brightcove also has improved the development workflow for app creation, by making it transparent and reducing the need for developers to send wireframed or partially finished apps to one another. Templates can be easily uploaded, updated and manipulated in the platform’s web interface before being compiled and published. The Brightcove App Cloud also includes administrative tools for managing templates, apps and content connections in a single place.

Making the process cloud-based also has the benefit of improving the testing and troubleshooting of apps before they are submitted to the Apple App Store or Android Marketplace. Brightcove has even introduced a free app called Workshop that enables developers to download and test out mobile apps on the desired device before submitting them to mobile app stores. And once finished, the platform can automatically compile the apps into their native languages and even submit them to app stores for review or publishing.

While the launch is focused on native mobile apps and web capabilities, Allaire said he expects the product will be extended to support more platforms in the future. That could include support for various connected TV platforms, as well as the ability to build applications on social platforms like Facebook.

The introduction of the Brightcove App Cloud adds a whole new cloud-based product for Brightcove to offer to digital media publishers. The offering also hooks in with its video distribution product — now called Brightcove Video Cloud — to let customers easily distribute videos directly into mobile apps. But while the App Cloud introduces a whole new line of business for Brightcove, Allaire said he doesn’t expect the company to scale up incredibly due to the new product. Instead, it will leverage the same sales and support team it has already scaled up to back its Video Cloud product.

For now, the Brightcove App Cloud is in private beta with a number of test clients, including Lifetime and the U.S. State Department, with plans to launch commercially in the second half of the year. Once launched, it will be targeted at mid-market and enterprise customers who have a need to build and maintain multiple applications across devices. It will be free to developers who just want to test out mobile apps, but they will need a license to compile those apps and publish them. That will include subscription pricing based on the number of apps that they build with the platform.

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GQ and Wired Jump On the iPad Subscription Train
Condé Nast continues its rollout of iPad magazine subscriptions with two marquee titles today, Wired and GQ. Both are now available monthly for $1.99 or yearly for $19.99, and existing print subscribers will be able to access the iPad editions for free.

Wired and GQ are the two latest iPad magazines from the publisher to make use of Apple’s in-app subscription service for App Store titles: the company has already introduced subscription-ready versions of Allure, Glamour, Golf Digest, Vanity Fair and The New Yorker.

Apple has support from most major magazine publishers for its in-app subscription system at this point, with the exception of Time, Inc., which has yet to sign on. Time, Inc. is among the dwindling minority who don’t seem eager to show support for Apple’s subscription terms ahead of June 30, when any magazine app not using the system will be turfed out of the App Store.

Wired was one of the most successful attempts at bringing traditional magazines to the iPad. The first few iPad additions did very well, thanks to its ability to move into the space early and with a solid product, with the help of Adobe. The first issue of Wired for the iPad sold 24,000 issues in 24 hours, and hit more than 100,000 downloads during its first month in June 2010. After that early success, however, purchases dropped steeply. Wired averaged only 31,000 downloads per month between July and September, and that dropped to around 23,000 in the following two months.

While the problem may yet lie mostly with the product, it’s obviously a factor that during that time, there was no way to subscribe to the magazine or pay less than the $4.99 per issue cover price. Thanks to Apple’s in-app subscription, the cost to consumers drops considerably, which should help bring those monthly download numbers up.

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Updated: WWDC 2011 Keynote Still Not Announced

Edit Note: We mistakenly referenced an old press release and thus, the following story has been changed to reflect the information for 2011. We regret the error.

Consider the hype machine up and running for WWDC 2011. ~~thanks to an official announcement highlighting Steve Jobs as the keynote speaker on June 7 at 10:00 AM PDT.~~ WWDC 2011 will cover five key technology tracks: Application Frameworks, Internet & Web, Graphics & Media, Developer Tools, and Core OS. ~~However, it’s Steve’s appearance that is the real news.~~

Jobs, who has been on medical leave since January but remains involved in strategic decisions at Apple, last made a public appearance at the iPad 2 launch event in March. That makes for an interesting comparison of event importance, especially considering that Jobs has skipped WWDC in the past. Last year, Jobs gave the keynote and launched the iPhone 4, as well as the iOS platform, which was previously named iPhone iOS. However, in 2009 Apple’s Phil Schiller did the keynote, introducing the iPhone 3GS, iPhone OS 3, demoing OS X 10.7, and showing off new MacBooks. Considering that this year’s WWDC will reportedly not have new hardware as the next generation iPhone is widely expected in the fall, what non-hardware announcement could be so important as to bring Steve Jobs to the keynote?

Conventional rumor wisdom suggests the event will feature a relaunch of MobileMe (possibly named iCloud) and that service may be free, or at least include free services. A paid service for online storage and streaming of music is also expected. Of course, OS X Lion will be shown, and almost certainly at least a preview of iOS 5. While these are all important products, do they warrant the presence of Steve Jobs? I’d argue that they don’t, and that could mean some other mysterious product will be announced, or perhaps Jobs is returning to Apple full-time. No matter the outcome, TAB will be reporting the event as it happens.

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France Telecom CEO: Carriers Oppose Apple's Integrated SIM
The mobile space is all about a tug-of-war of control between network operators, device manufacturers and software developers. But rarely do the players involved make that so obvious as France Telecom CEO Stephane Richard did during a recent interview with AllThingsD’s Ina Fried. Richard specifically referenced the quiet battle for control being waged between carriers like Orange, which is owned by France Telecom, and Apple, whose iPhone leads the pack in smartphone hardware.

Richard articulated anxieties regarding two areas where Apple either already has or could potentially wrest more control away from carriers. The first is with the Apple App Store, which now offers a library 500,000 apps. Apple has exclusive control over what software is allowed on Apple devices, independent of carriers. Richard framed this as a net neutrality issue, since it means Apple has the exclusive power to censor content it finds disagreeable.

It’s already a weak argument, because there’s plenty of choice available to customers who don’t want to deal with Apple’s closed ecosystem, but it’s worth remembering that carriers like Orange once operated as the exclusive channel through which additional software could be added to any phone, and the loss of that relationship with the customer is a costly one. In fact, Richard suggested the main problem carriers have with the App Store is that Apple is well within its rights to reject carrier software from the marketplace. Being cut out of the software loop altogether isn’t an attractive prospect to network operators, since it leads to Apple grabbing control of subscriber billing info and the relationship with those customers, as well loss of revenue stemming from software sales.

Apple apparently wanted to hold even more control over the customer using a software-only virtual SIM, according to Richard. Dubbed the “e-SIM project,” Richard said Apple had been working on a way to allow phones to work without hardware SIM cards, which would clear up a significant amount of internal space, and likely make it easier for customers to switch carriers. Network operators advised Apple that this was “a bad idea because the SIM card is a critical piece of the security and authentication process,” said Richard, arguing that “it would be very difficult for a telco or carrier to manage the customer relationship” if an e-SIM was implemented.

Which, of course, is a roundabout way of saying carriers didn’t want to be left behind while Apple took a more direct role in managing cellular customers. As a compromise, Richard says Orange and others are working with Apple to standardize a new, smaller SIM card design. Richard doesn’t go so far as to claim that the e-SIM project is off the table completely, but it seems apparent that it’s not something major network operators want to see in production iPhones anytime soon.

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Infographic: Apple App Store's March to 500,000 Apps
The number of apps approved for Apple’s iOS platform has exceeded 500,000 apps according to data collected by app discovery service 148apps, mobile gaming company, Chillingo and San Francisco-based app discovery company, Chomp. Currently, the Apple App Store has 400,000 apps available for download. Nearly 36 percent of all apps are free. Average paid app costs $3.64 per app. It would cost $891,982.24 to download all apps.

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Apple Retail 2.0 First Impressions and Video
After reading Darrell's excellent appraisal of Apple's new retail model, I had to run out and see it for myself. After all, 10 years ago Apple's minimalist approach was unusual and out of step. Is Apple Retail 2.0 a step forward, or a step back?

Upon walking in, I was struck with how open the store felt. In the past, the tables seemed cluttered with signage and retail display holders. Now there is more of a flow into the back of the store. Gone is all paper, including the gift cards that typically cluttered the tables. Putting the smaller items such as the iPods, iPhones, and laptops in the front opens up the store quite a bit.

Apple's strategy of having a table for each product is still in place, but tasteful clear plastic signage rises from the center or each, with the product name in black framed by a frosted white background.

Of course, there’s also the new iPad interactive displays. For desktop products, they seemed superfluous. With the focus on the product, the iPad is easily ignored or overlooked. In fact, after observing visitors to the store for close to an hour, I didn't notice anyone using the iPad retail interface for either the iMac or the MacBook product line.

I did see multiple people using the iPad to review options and rate plans at the iPhone 4 table. The iPad's representation of the confusing array of iPhone 4 options clearly benefited the consumer by distilling the information into easily understood tabs. Here’s a short video of the new terminals in action (both the iPhone and the Mac ones) so you can see for yourself what else they provide:

Watch this video for free on GigaOM

I do see a few flaws with this Retail 2.0 strategy that I suspect will be fixed soon. Apple stores have wonderful bright open storefronts and those iPads flush mounted against a table will get some glare. Some iPads were hard to read and it was a rather cloudy day. Also, because the iPad is not adjustable, you had to hunch over to use it; not the most comfortable position. Finally, though it seems obvious, you have to be familiar with the iOS interface in order to use the product. Although iOS is easy to learn and is quite intuitive, it's not for everyone. I saw a gentleman with crutches who clearly was having some trouble with the iPad, though Apple Specialists immediately realized this and helped him.

Apple Retail 2.0 is a great use of iPads to present product information, but its implementation does have some flaws, and I don't really expect it to scale to other retail environments given the relative high cost of outfitting each workstation with an accompanying iPad.

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Square Hopes to Kill Cash Register With Square Register
Not two years after introducing the world to its little mobile credit card reader, Square is looking to write the obituary for the modern cash register–along with every location-based, daily deal and mobile payment app in existence.

From his open-plan, industrial office space within the San Francisco Chronicle building Monday morning, Square CEO and Twitter co-founder Jack Dorsey unveiled his newest creations– the Square Register for merchant and the Square Card Holder for consumers.

Availble for the iPad, the Square Register is a software platform designed to work with the Square Reader to manage payments and take the place of those “expensive, complicated, and impersonal commercial transaction system,” –also know as the cash register. Working in tandem with the card reader, the platform gives merchants access to “Google-style analytics” to manage items, check daily transactions, update pricing, automate checkout, generate digital receipts and maintain virtual storefronts. With one swipe of an iPad, your local coffee shop can now easily answer how many cappuccinos sold today or how rain impacts the sale of biscotti’s, Dorsey said.

The register is currently being used by 50 merchants in New York City, Los Angeles, St. Louis, Mo., Washington D.C. and San Francisco. The company did not give a timeline for expansion, other than saying it plans to grow at a measured pace.

Consumers (at least those in the five cities where it has launched) can search for participating businesses by type or location on the new Card Holder application. The location-based service lets users browse menus, find daily specials and manage loyalty cards digitally and offers one-click payment “just like iTunes and Amazon.”

Then, when a customer opens his card reader and is ready to check out, he gives the cashier his name. His face and account will pop up on the merchant’s iPad screen. He tells the cashier to charge it to his account. He will then receive a digital receipt for the purchase. The digital wallet app also allows consumers to see all past purchases online.

“You just pay with your name. It’s really easy, it’s really magical,” Dorsey said.

And don’t forget all the paper you’re saving.

“All that clutter, all that mess. Get rid of takeout menus, get rid of loyaty cards. reciepts. Replace it with one digital card,” he said.

Since its first little plastic reader went off the production line, Square says it has shipped out 500,000 readers. It says Square users have made one million purchases (that’s an average of just two per reader) that account for more than $1 billion in gross payment.

With the reader, register and card holder, Square thinks it has hit the trifecta of mobile payments. It not only wants to eliminate the register, it wants to eliminate every startup offering daily deals or loyalty card solutions. Dorsey says:

What we think is that there alot of people working are also working in this space are concerned with the parts of transactions … payments, coupons, receipts. Waving around your phone in the air next to a terminal hoping that you hear a beep. We don't think that's the right way to go. We think In order to do this right you have to have one system. You have to build for the buyer, the seller and everything in between."

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Apple: We Have the Rights to Lodsys Patents, Devs Can Use Them
Apple Monday sent a letter to Lodsys and to developers, saying it has the licensing rights to in-app purchases and that developers are fully able to use them, according to Macworld. Devs on Twitter had begun discussing the letter received by Apple just a few hours ago.

The full text of the letter, which has been obtained by Macworld, is addressed to Lodsys CEO Mark Small, and is signed Bruce Sewell, Apple’s Senior Vice President & General Counsel. In the letter, Sewell acknowledges Small’s recent patent infringement claims against App Store developers, and states right up front that “Apple is undisputedly licensed to these patent and the Apple App Makers are protected by that license.” Apple states that Lodsys’ allegations have “no basis,” and articulates its intent to “defend Apple’s license rights.”

The letter from Apple goes on to assert that Small’s threats are likely the basis of “misapprehension regarding Apple’s license and the way Apple’s products work,” and assumes that the outstanding threats will be revoked as a result of the clarification Apple is making today. Apple acknowledges that it does indeed hold licenses for all four of the patents in Lodsys’ portfolio, and that the licenses it holds entitle Apple to “offer these licensed products and services to its customers and business partners, who, in turn, have the right to use them.”

The letter then goes into more detail about the specifics of U.S. patent law, and articulates exactly why the claims made by Lodsys are in error, according to the way in which the App Store and Apple Developer Agreement works.

Apple was clearly taking its time to make sure it had a comprehensive grasp of Lodsys’ position before firing a return shot, but the Mac-maker’s response could hardly be more assertive. The message is clear: Stand down or gear up for a full-scale legal battle with Apple, which is clearly not what Lodsys was bargaining for as it chose to pursue small developers with very limited resources. Unlike devs, Apple doesn’t have to consider backing down as the only way to keep the business afloat.

This is a welcome development in this in-app purchases licensing debacle, but it isn’t necessarily the end of the story. We’ve contacted Small for a response, but don’t expect him to issue a reaction before considering how best to formulate an answer from a legal perspective.

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