Weak offense costs Lovie Smith his job as Bears coach









It is not often NFL teams fire head coaches after 10-win seasons, but it is even rarer for coaches to retain their jobs after failing to reach the playoffs five times in six years.

So it was not surprising Monday morning when the Bears fired Lovie Smith less than 24 hours after his team defeated the Lions to finish 10-6 but still missed the postseason, becoming just the second team since the 12-team playoff format was established in 1990 to miss the playoffs after a 7-1 start.

The epitaph for Smith's tenure as coach of the Bears could read, "He couldn't fix the offense."

Smith spoke to his team in a brief but emotional meeting, and many players, fiercely loyal to Smith, were hurt. Some were angry. Smith was 81-63 in the regular season with three NFC North titles, four 10-win seasons, a 3-3 playoff record and one Super Bowl trip. Only George Halas and Mike Ditka won more games as coach for the NFL cornerstone franchise.

"It's a tough situation to be in to see a great man and a great coach have to stand in front of the room and do that," center Roberto Garza said. "But this is the NFL. It happens. Unfortunately, we forced that situation."

Smith has one year remaining on his contract at $5 million. His staff remains under contract through 2013 and multiple assistants said they have not been released from their deals, although all or nearly all or expected to depart.

General manager Phil Emery will speak publicly about the move at 10 a.m. Tuesday, and NFL sources confirmed the team has scheduled interviews with Broncos offensive coordinator Mike McCoy and Falcons special teams coordinator Keith Armstrong, who held the same role for the Bears from 1997-2000.


Armstrong, who is expected to interview Tuesday, is African-American and the Bears must interview at least one minority candidate to satisfy the league's Rooney Rule. He also has interviews scheduled with the Eagles and Chiefs.


Buccaneers offensive coordinator Mike Sullivan is expected to interview with the Bears on Wednesday.


Surely, Emery's vision includes a dramatically reshaped offense. For all the good things Smith did in his nine years in Chicago, his undoing was his inability to take care of the side of the ball in which he had no background.

Since Smith took over in 2004, the Bears have ranked higher than 23rd in offense only once. They have ranked 28th or lower four times and finished 28th in 2012.

Smith tried four offensive coordinators during his Bears career. Smith's first thought was to run a similar offense to the one he was familiar with when he was defensive coordinator of the Rams, so he hired Terry Shea, despite not having worked with him. It was an unmitigated disaster. The Bears finished last in the league in offense behind quarterbacks Chad Hutchinson, Craig Krenzel, Jonathan Quinn and Rex Grossman, and Shea was dismissed after one season.

Smith then turned to Ron Turner for his second stint as Bears offensive coordinator, although some insist that the Smith-Turner pairing was an arranged marriage. Turner lasted five years in what was the heyday for the Bears offense under Smith.

Those days Smith talked frequently about how the Bears "get off the bus running," and the team achieved its offensive identity by pounding the ball with Thomas Jones, then Cedric Benson and finally Matt Forte.

But after the Bears traded two first-round draft picks and a third-rounder for Jay Cutler in 2009 and still finished 23rd in offense and missed the playoffs, Turner was made the scapegoat and fired.

An extensive job search led the Bears back to Smith's old friend Mike Martz, for whom he had worked in St. Louis. Going from the conservative Turner to the aggressive Martz was quite a philosophical shift for Smith.

Martz's offense sputtered in 2010 even as the team reached the NFC championship game but started to flourish the next season. Then Cutler broke his thumb in the 10th game and the team unraveled. The Bears lost five straight, and Martz was fired along with general manager Jerry Angelo, the man who brought Smith to Chicago.

Team President Ted Phillips mandated that Emery work with Smith for at least 2012, lauding the coach for his consistency. Speculation is the Bears chose not to fire Smith because he had two years remaining on his contract.

Smith's next move was to go conservative again, this time by promoting offensive line coach Mike Tice. A first-time play caller, Tice made great use of new acquisition Brandon Marshall but struggled to find other reliable targets or to overcome protection issues.

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Ban on demanding Facebook passwords among new 2013 state laws


CHICAGO (Reuters) - Employers in California and Illinois will be prohibited from demanding access to workers' password-protected social networking accounts and teachers in Oregon will be required to report suspected student bullies thanks to new laws taking effect in 2013.


In all, more than 400 measures were enacted at the state level during 2012 and will become law in the new year, according to the National Conference of State Legislatures (NCSL).


Some of the statutes, which deal with everything from consumer protection to gun control and healthcare, take effect at the stroke of midnight. Others will not kick in until later in the year.


The raft of measures includes a new abortion restriction in New Hampshire, public-employee pension reform in California and Alabama, same-sex marriage in Maryland, and a requirement that private insurers in Alaska cover autism in kids and young adults, NCSL said.


In New Hampshire, a rarely used form of late-term abortion will become illegal except to save the life of the mother - and even then only if two doctors from separate hospitals certify the procedure is medically necessary.


John Lynch, the state's outgoing Democratic governor, had vetoed the measure, saying it would threaten the lives of women in rural areas. But the state's Republican-controlled legislature later overrode him.


In California and Illinois, laws that take effect at 12:01 a.m. local time will make it illegal for bosses to request social networking passwords or non-public online account information from their employees or job applicants.


Michigan's Republican Governor Rick Snyder signed a similar measure into law earlier this month that took effect immediately. The Michigan law also penalizes educational institutions for dismissing or failing to admit a student who does not provide passwords and other account information used to access private internet and email accounts, including social networks like Facebook and Twitter.


But workers and job seekers in all three states will still need to be careful what they post online: Employers may continue to use publicly available social networking information. So inappropriate pictures, tweets and other social media indiscretions can still come back to haunt them.


Gun violence - in places where it's all too common, such as Chicago, and in places where it's unexpected, such as Sandy Hook Elementary School in Newtown, Connecticut - was big news in 2012. But only a handful of new state firearms laws are set to take effect in 2013.


In Michigan, the definition of a "pistol" under the law will now include any firearm less than 26 inches in length. The new definition encompasses some rifles with folding stocks and will make the weapons subject to the same restrictions as pistols.


In Illinois, certain guns currently regulated by state law, including paintball guns, will be excluded from the definition of a firearm and participants in military re-enactments will be exempt from some weapons laws.


Another big story in 2012 was the effort by lawmakers in a number of cash-strapped states to put their public employee pension funds on a sounder financial footing.


In California and Alabama, reforms designed to begin to address the unfunded liabilities of those retirement systems will take effect in 2013.


Among the other new laws on the books in 2013:


* In California, prison workers and peace officers will now be prohibited from having sex with inmates and prisoners in transport.


* In Illinois, sex offenders will be prohibited from distributing candy on Halloween, or playing Santa or the Easter Bunny.


* In Oregon, employers won't be allowed to advertise a job vacancy if they won't consider applicants who are currently out of work.


* In Kentucky, residents will be prohibited from releasing feral or wild hogs back into the wild and Illinois will ban the possession and sale of shark fins.


* And in Florida, the term "motor vehicle" will no longer apply to the specialized all-terrain vehicles with over-sized tires known as "swamp buggies" that are popular in some parts of the state.


(Reporting by James B. Kelleher; Editing by Greg McCune and Nick Zieminski)



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Redskins win NFC East, Broncos get top seed in AFC


RG3 and the Washington Redskins are heading to the playoffs as NFC East champions.


By winning their seventh straight game, the Redskins rolled to their first division title in 13 years with a 28-18 victory over the Dallas Cowboys on Sunday night. Next up for Robert Griffin III & Co.: a home playoff matchup next Sunday with the Seahawks — the third straight postseason game for Washington against Seattle.


"It's just a mindset change," the rookie quarterback said. "When you have all these guys coming to work every day, putting it on the line, we knew we couldn't afford to lose one game, we made sure we didn't"


Thanks to Houston's late-season slump, Denver and New England will have byes when the AFC playoffs begin next week.


The Texans fell from first to third in the conference Sunday when they lost 28-16 at Indianapolis, which welcomed back coach Chuck Pagano after nearly three months of treatments for leukemia.


AFC West champion Denver won its 11th straight game, 38-3 over Kansas City to secure the top seed. New England blanked Miami 28-0 for the second spot.


Minnesota edged Green Bay 37-34 to grab the final NFC wild card, sinking the Packers to the third seed. Those teams will meet again next Saturday night at Lambeau Field.


The other NFC matchup will have Seattle (11-5), which beat St. Louis 20-13, at Washington on Sunday at 4:30 p.m. ET.


Cincinnati (10-6) will be at Houston on Saturday at 4:30 p.m. ET, and Indianapolis (11-5) goes to at Baltimore (10-6) on Sunday at 1 p.m. in the AFC wild-card rounds.


The divisional round games will be hosted by Denver on Saturday, Jan. 12, followed by San Francisco (11-4-1) at night. On Sunday, Jan. 13, Atlanta (13-3) will host the early game, followed by New England (12-4).


Peyton Manning threw for three touchdowns as Denver (13-3) routed the Chiefs. New England got the second seed despite having the same record as Houston because it beat the Texans, who lost three of their final four games.


Adrian Peterson had 199 yards against the Packers, finishing with 2,097 — Dickerson's single-season rushing mark in 2,105. But it was rookie kicker Blair Walsh who won it with a 29-yard field goal as time expired.


"Ultimately we got the 'W,'" Peterson said. "I told myself to come into this game focused on one thing, and that's winning."


Green Bay would have been seeded second in the NFC by beating Minnesota.


"The road got a little tougher having to play on opening weekend, but we've got a home game and that's why you win the division," Aaron Rodgers said. "We get to go back home, and the game will be different. They won't have home-crowd advantage, and hopefully that will make a difference."


Baltimore Pro Bowl safety Ed Reed is looking forward to a reunion with Pagano. He wishes it would come a little later in the postseason.


"Chuck's like a dad to me," Reed said "He means a lot to me. I would have much rather seen them in the AFC championship game than the first game."


But Reed will see him next week at Baltimore.


The Ravens had a chance to move up to the AFC's third seed with a win and a New England loss. But Baltimore lost at Cincinnati as both teams played backups for much of the game.


Pagano coached the Ravens' secondary for three seasons and was promoted to coordinator last year. Players and coaches in Baltimore have kept in touch, offering encouragement as he fought through the cancer treatments.


"Going back to Baltimore, obviously there's some familiarity there," Pagano said. "We had four great years there as a family. It's a top-notch organization, you know, really good football club. It's a great challenge and they have a great team and they have great players all over the place."


The Colts were 2-14 last season and chose quarterback Andrew Luck with the top selection in the draft. Luck and offensive coordinator Bruce Arians, who stepped in as interim coach with Pagano sidelined, led the turnaround.


Next week, Pagano goes up against former boss John Harbaugh.


"I love his family, and he's one of my closest personal friends in coaching," Harbaugh said. "What he's been through is phenomenal, but we're all competitors so that gets set aside."


Houston beat Cincinnati in the opening round of last year's playoffs.


"I think it will be good," said Bengals QB Andy Dalton, who grew up in suburban Houston. "We played there last year and know the atmosphere and what it's going to be like. The experience last year will definitely help us."


The defending Super Bowl champion Giants are out of contention. When Chicago beat Detroit 26-24, the Giants (9-7) were eliminated, even though they routed Philadelphia 42-7.


"It hurts," said Eli Manning. "Each year you want to make the playoffs to give yourself an opportunity to win a championship; 9-7 last year was good enough. It wasn't good enough this year and we knew it wouldn't be."


Minnesota's win eliminated Chicago.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Is Tom Cruise still a go-to action hero? Hollywood, “Jack Reacher” say yes






LOS ANGELES (TheWrap.com) – Given his age and the tough year he’s had in the tabloids, is Tom Cruise still a go-to guy when Hollywood is looking for an action hero?


The answer is yes, based on the performance of his current movie, Paramount‘s “Jack Reacher.” It’s taken in $ 45 million in the 10 days since opening with $ 15.6 million in a very crowded and competitive holiday market. Its second week was a solid $ 14 million, and it’s added $ 22 million from overseas.






Holiday movies tend to have legs and “Reacher” has yet to roll out in the majority of major foreign territories, so both of those numbers, particularly the international, will be growing. All signs point to it surpassing $ 200 million at the worldwide box office. That’s not a blockbuster figure, and Paramount is staying mum on a sequel, but with a $ 60 million budget, “Jack Reacher” will make money for Paramount.


There were questions coming in. With his divorce from Katie Holmes and subsequent custody battle, Cruise is carrying plenty of public relations baggage. His foray earlier this year into musicals with “Rock of Ages” was critically applauded but proved a box-office dud. That’s on top of his well-known support for Scientology.


He’s 50 now, which might be the new 40 in the real world, but is starting to get on in years in the realm of action heroes. Daniel Craig is 44. Jeremy Renner is 41. We are a long way from “Top Gun” – that was 1986 – so it probably won’t be too, too long until “The Expendables” franchise comes calling for Cruise.


But in the meantime, “Reacher” is going to be profitable for Paramount and Cruise’s portrayal of the tough, ex-military drifter has drawn critical kudos, so there’s a bit of momentum now. And it’s clear from his upcoming schedule that Hollywood is still convinced he can carry an action film.


Next for Cruise will be two sci-fi movies: Universal’s “Oblivion” is due in April and “All You Need is Kill” is set for March 2014 from Warner Bros. After that, there’s a potential “Van Helsing” remake at Universal and “Mission: Impossible 5″ is on Paramount‘s 2015 slate.


His recent track record at the box office, particularly when you look at his performance in the action genre, suggests the studios are making a pretty good bet.


“Rock of Ages” may have crumpled, but “Mission: Impossible – Ghost Protocol” was a huge hit for Paramount, taking in nearly $ 700 million worldwide in 2011. “Knight & Day,” from Fox in 2010, and “Valkyrie,” from United Artists in 2008, both made over $ 200 million worldwide.


Supporting roles in “Tropic Thunder” and “Lions for Lambs” preceded those, but those came on the heels of two Paramount movies: “Mission Impossible 3,” which made nearly $ 400 million worldwide in 2006, and “War of the Worlds,” which did $ 592 million in the previous year.


The bottom line: Hollywood is still convinced you can still take Tom Cruise, movie action hero, to the bank.


Movies News Headlines – Yahoo! News





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Clinton's blood clot an uncommon complication


The kind of blood clot in the skull that doctors say Hillary Rodham Clinton has is relatively uncommon but can occur after an injury like the fall and concussion the secretary of state was diagnosed with earlier this month.


Doctors said Monday that an MRI scan revealed a clot in a vein in the space between the brain and the skull behind Clinton's right ear.


The clot did not lead to a stroke or neurological damage and is being treated with blood thinners, and she will be released once the proper dose is worked out, her doctors said in a statement.


Clinton has been at New York-Presbyterian Hospital since Sunday, when the clot was diagnosed during what the doctors called a routine follow-up exam. At the time, her spokesman would not say where the clot was located, leading to speculation it was another leg clot like the one she suffered behind her right knee in 1998.


Clinton had been diagnosed with a concussion Dec. 13 after a fall in her home that was blamed on a stomach virus that left her weak and dehydrated.


The type of clot she developed, a sinus venous thrombosis, "certainly isn't the most common thing to happen after a concussion" and is one of the few types of blood clots in the skull or head that are treated with blood thinners, said neurologist Dr. Larry Goldstein. He is director of Duke University's stroke center and has no role in Clinton's care or personal knowledge of it.


The area where Clinton's clot developed is "a drainage channel, the equivalent of a big vein inside the skull — it's how the blood gets back to the heart," Goldstein explained.


It should have no long-term consequences if her doctors are saying she has suffered no neurological damage from it, he said.


Dr. Joseph Broderick, chairman of neurology at the University of Cincinnati College of Medicine, also called Clinton's problem "relatively uncommon" after a concussion.


He and Goldstein said the problem often is overdiagnosed. They said scans often show these large "draining pipes" on either side of the head are different sizes, which can mean blood has pooled or can be merely an anatomical difference.


"I'm sure she's got the best doctors in the world looking at her," and if they are saying she has no neurological damage, "I would think it would be a pretty optimistic long-term outcome," Broderick said.


A review article in the New England Journal of Medicine in 2005 describes the condition, which more often occurs in newborns or young people but can occur after a head injury. With modern treatment, more than 80 percent have a good neurologic outcome, the report says.


In the statement, Clinton's doctors said she "is making excellent progress and we are confident she will make a full recovery. She is in good spirits, engaging with her doctors, her family, and her staff."


___


Online:


Medical journal: http://dura.stanford.edu/Articles/Stam_NEJM05.pdf


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Armstrong better, Green Day to resume tour in 2013


LOS ANGELES (AP) — Green Day is going back on the road.


The Grammy-winning punk band announced new tour dates Monday.


The band canceled the rest of its 2012 club schedule and postponed the start of a 2013 arena tour after singer-guitarist Billie Joe Armstrong's substance abuse problems emerged publicly in September when he had a profane meltdown on the stage of the iHeartRadio Music Festival in Las Vegas. The band's rep announced later that Armstrong was headed to treatment for substance abuse.


"I just want to thank you all for the love and support you've shown for the past few months," Armstrong told fans in a statement Monday. "Believe me, it hasn't gone unnoticed and I'm eternally grateful to have such an amazing set of friends and family. I'm getting better every day. So now, without further ado, the show must go on."


The tour is scheduled to begin March 28 at the Allstate Arena in the Chicago area. Tickets for postponed shows will be honored on the new dates, and refunds will be available for canceled shows.


"We want to thank everyone for hanging in with us for the last few months," the band said. "We are very excited to hit the road and see all of you again, though we regret having to cancel more shows."


The band released their most recent album, "Tre," on Dec. 11, more than a month ahead of schedule.


___


Online:


http://www.greenday.com/


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Tribune Co. emerges from bankruptcy









The last day of 2012 is the first of a new era for Tribune Co.

After spending more than four years embroiled in a contentious Chapter 11 bankruptcy case, the reorganized Chicago-based media company emerged Monday under new owners and a newly appointed board, freed from its massive debt and facing an uncertain future.

Senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. are set to take control of Tribune Co.’s storied portfolio of publishing and broadcasting assets, including the Chicago Tribune, officials said.

It was an almost anticlimactic end to a long and painful chapter in Tribune Co.'s 165-year history. Late Sunday, the new Tribune Co. named its board of directors, filed notification with the Delaware bankruptcy court where the bulk of legal wrangling took place and declared its existence.

"It took a long time to get here," said Ken Liang, a managing director at Oaktree and a new member of the board. "It was a tough restructuring. We're pretty excited about the exit."

The new board also will include Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, a well-known entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Ceasars Entertainment; Bruce Karsh, Oaktree president; and Peter Liguori, a former top television executive at Fox and Discovery.

Liguori is expected to be named chief executive of Tribune Co. going forward.

Hartenstein, who is publisher of the Los Angeles Times, has been CEO of Tribune Co. since May 2011. He will remain in the role until the board convenes its first meeting in the next several weeks, where it will name the company’s executive officers, according to a company statement.

“Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” Hartenstein said in the statement.

Tribune Co. owns 23 television stations, including WGN-Ch. 9, WGN America, eight daily newspapers and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing. Eventually, all the assets are expected to be sold, according to the new owners.

They take the reins of a company that saw its worth essentially cut in half since 2007, when Chicago billionaire Sam Zell took it private in an $8.2 billion leveraged buyout. The rapid decline was mostly due to falling newspaper valuations in the face of digital competition. The anticipated hiring of Liguori suggests that broadcasting will be the operational focus going forward, according to several media analysts.

Los Angeles-based Oaktree, the largest shareholder, with about 23 percent of the equity, appointed two of seven board members. Both Angelo Gordon and JPMorgan have roughly a 9 percent stake and appointed one seat each. The three jointly appointed two more board members, with the final seat occupied by the chief executive.

Among the outgoing board members is Zell, whose deal was seen at the time as an alternative to the squabbles within Tribune Co. that threatened to break apart the then-publicly traded company. But the Great Recession and plummeting advertising revenues across all media, especially the struggling newspaper industry, made the company’s resulting $13 billion debt load untenable.

Tribune Co. filed for Chapter 11 bankruptcy protection in December 2008. Zell blamed a “perfect storm” of industry and economic forces. But the bankruptcy case turned on charges leveled by junior creditors that saddling the company with such a debt burden left it insolvent from the outset.

Led by an aggressive distressed debt fund called Aurelius Capital Management, the junior creditors pressed litigation that stretched out the case for three and a half years in a Delaware court before U.S. Bankruptcy Judge Kevin Carey confirmed the reorganization plan in July. An emergency appeal to stay that decision was dismissed by the 3rd U.S. Circuit Court of Appeals in September. In November, the Federal Communications Commission signed off on waivers needed to transfer Tribune Co.’s broadcast properties to the new ownership, clearing the last hurdle to its emergence from Chapter 11.

“Usually, bankruptcy cases like this take much less time and cost less money,” said Douglas Baird, a bankruptcy expert and law professor at the University of Chicago.

Baird said legal fees for most large corporate bankruptcies run 3 to 4 percent of the company’s total worth. The Tribune Co. case, which will likely cost the company more than $500 million in legal and other professional fees, was more than twice that percentage, due to both the extended litigation and the company’s declining valuation.

Before cash distributions and new financing, a 2012 analysis by financial adviser Lazard valued the broadcasting assets, including the TV stations, WGN-AM 720, CLTV and national cable channel WGN America, at $2.85 billion. Other strategic assets, such as online job site CareerBuilder and cable channel Food Network, are worth $2.26 billion.

Tribune Co.’s newspaper holdings, including the Tribune, Los Angeles Times and six other daily publications, have withered to $623 million in total value, according to Lazard. In 2006, entertainment mogul David Geffen made a $2 billion cash offer for the Los Angeles Times.

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Senate adjourns for day with no deal on 'fiscal cliff'










WASHINGTON (Reuters) - Lawmakers pushed the country to the edge of the "fiscal cliff" on Sunday as they struggled to reach a last-minute deal that could protect the world's largest economy from a politically induced recession.

Democratic and Republican leaders in the Senate had hoped to clear the way for swift action that would avert sweeping tax increases and spending cuts due to kick in on Tuesday.






But with the two sides still at loggerheads in talks, Senate Democratic leader Harry Reid postponed any possible votes and the Senate adjourned until Monday, leaving mere hours to pass any deal that may emerge through both chambers of a bitterly divided Congress.

"There are still significant differences between the two sides," Reid said on the Senate floor.

Behind closed doors, the parties kept seeking a way to bridge deep divides over taxes and spending. But even if a deal emerges in the coming hours, under Senate rules any one of the 100 senators could prevent the chamber from acting quickly.

Prospects are also uncertain in the House of Representatives, where dozens of conservative Republicans could oppose any deal that includes a tax increase on the nation's wealthiest households.

As the hours ticked away, it appeared increasingly likely that Washington's failure to act would deliver a $600 billion hammer blow to the fragile U.S. economic recovery.

"Something has gone terribly wrong when the biggest threat to the American economy is the American Congress," said Democratic Senator Joe Manchin of West Virginia.

Americans could see a bigger bite taken out of their paychecks starting on Tuesday as payroll and income tax cuts expire, while 2 million unemployed Americans could see their jobless benefits run out. Government contractors might be forced to lay off employees as $109 billion in automatic spending cuts kick in, and businesses could lose tax breaks for everything from wind power to research and development.

The uncertainty has weighed on financial markets and forced businesses to slow hiring and investment. Market participants braced for more turbulence on Monday.

"I believe investors will show their displeasure tomorrow by selling stocks if there is no deal," said Mohannad Aama, managing director at Beam Capital Management in New York.

Though corporate chieftains have lobbied lawmakers to show flexibility, Congress also faces pressure from an array of interest groups urging them not to compromise core principles.

Conservative groups have warned Republicans that a vote to increase any taxes could be held against them, while liberal and labor groups have pressed Democrats to resist any benefit cuts to popular retirement and health programs.

Lawmakers may find it easier to act once the country goes over the "fiscal cliff" on January 1, as any new legislation can then be portrayed as a tax cut rather than a tax increase.

POINTS OF DISAGREEMENT

Republicans floated a proposal on Sunday to slow the growth of Social Security retirement benefits by changing the way they are measured against inflation, but they backed away after Democrats said they would not consider it.

Still, there were disagreements over all the major aspects of the negotiation.

Buoyed by his re-election in November, Obama has insisted that any deal must include a tax increase on the wealthiest Americans, who have seen their earnings rise steadily over the past decade at a time when income for the less affluent has stalled.

Many conservative Republicans in the House of Representatives oppose a tax hike on anyone, no matter how wealthy.

Obama has proposed raising income taxes on households that earn more than $250,000, but Republicans pushed to set the threshold between $400,000 and $500,000. Republicans also were resisting a Democratic proposal to raise inheritance taxes on the wealthiest estates.

Republicans were looking for new reductions to replace the looming spending cuts, which would fall equally on military and domestic social programs. Democrats say the increased taxes on the wealthy would generate enough revenue to offset those cuts.

Senate Republican leader Mitch McConnell talked several times to Vice President Joe Biden by phone in the hope of breaking the stalemate.

"I'm willing to get this done, but I need a dance partner," McConnell said.

In a rare appearance on NBC's "Meet the Press," Obama accused Republicans of rejecting significant compromises several times already. He said he would try to reverse the tax hikes for most Americans if Congress fails to act.

"If people start seeing that on January 1st this problem still hasn't been solved ... then obviously that's going to have an adverse reaction in the markets," he said.

House Speaker John Boehner rejected Obama's accusations that his fellow Republicans were not being amenable to compromise.

"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," he said in a statement.

(Additional reporting by David Gaffen, Thomas Ferraro, Rachelle Younglai, Jeff Mason and Emily Stephenson; Writing by Andy Sullivan; Editing by Alistair Bell and Christopher Wilson)

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Exclusive: Huawei partner offered embargoed HP gear to Iran


(Reuters) - A major Iranian partner of Huawei Technologies offered to sell at least 1.3 million euros worth of embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator in late 2010, documents show.


China's Huawei, the world's second largest telecommunications equipment maker, says neither it nor its partner, a private company registered in Hong Kong, ultimately provided the HP products to the telecom, Mobile Telecommunication Co of Iran, known as MCI. Nevertheless, the incident provides new evidence of how Chinese companies have been willing to help Iran evade trade sanctions.


The proposed deal also raises new questions about Shenzhen-based Huawei, which recently was criticized by the U.S. House Intelligence Committee for failing to "provide evidence to support its claims that it complies with all international sanctions or U.S. export laws."


At least 13 pages of the proposal to MCI, which involved expanding its subscriber billing system, were marked "Huawei confidential" and carried the company's logo, according to documents seen by Reuters. In a statement to Reuters, Huawei called it a "bidding document" and said one of its "major local partners," Skycom Tech Co Ltd, had submitted it to MCI.


The statement went on to say, "Huawei's business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations."


In October, Reuters reported that another Iranian partner of Huawei last year tried to sell embargoed American antenna equipment to Iran's second largest mobile operator, MTN Irancell, in a deal the buyer ultimately rejected. The U.S. antenna manufacturer, CommScope Inc, has an agreement with Huawei in which the Chinese firm can use its products in Huawei systems, according to a CommScope spokesman. He added that his company strives to comply fully with all U.S. laws and sanctions.


Huawei has a similar partnership with HP. In a statement, the Palo Alto, Calif., company said, "HP has an extensive control system in place to ensure our partners and resellers comply with all legal and regulatory requirements involving system security, global trade and customer privacy and the company's relationship with Huawei is no different."


The statement added, "HP's distribution contract terms prohibit the sale of HP products into Iran and require compliance with U.S. and other applicable export laws."


Washington has banned the export of computer equipment to Iran for years. The sanctions are designed to deter Iran from developing nuclear weapons; Iran says its nuclear program is aimed purely at producing domestic energy.


CLOSE LINKS


Huawei and its Iranian partner, Skycom, appear to have very close ties.


An Iranian job recruitment site called Irantalent.com describes Skycom as "a leading telecom solution provider" and goes on to list details that are identical to the way Huawei describes itself on its U.S. website: employee-owned, selling "solutions" used by "45 of the world's top 50 telecom operators" and serving "one-third of the world's population."


On LinkedIn.com, several telecom workers list having worked at "Huawei-skycom" on their resumes. A former Skycom employee said the two companies shared the same headquarters in China. And an Iranian telecom manager who has visited Skycom's office in Tehran said, "Everybody carries Huawei badges."


A Hong Kong accountant whose firm is listed in Skycom registration records as its corporate secretary said Friday he would check with the company to see if anyone would answer questions. Reuters did not hear back.


The proposal to MCI, dated October 2010, would have doubled the capacity of MCI's billing system for prepaid customers. The proposal noted that MCI was "growing fast" and that its current system, provided by Huawei, had "exceeded the system capacity" to handle 20 million prepaid subscribers.


"In order to keep serving (MCI) with high quality, we provide this expansion proposal to support 40M subscribers," the proposal states on a page marked "HUAWEI Confidential."


The proposal makes clear that HP computer servers were an integral part of the "Hardware Installation Design" of the expansion project. Tables listing equipment for MCI facilities at a new site in Tehran and in the city of Shiraz repeatedly reference HP servers under the heading, "Minicomputer Model."


The documents seen by Reuters also include a portion of an equipment price list that carries Huawei's logo and are stamped "SKYCOM IRAN OFFICE." The pages list prices for HP servers, disk arrays and switches, including those that already are "existing" and others that need to be added. The total proposed project price came to 19.9 million euros, including a "one time special discount."


The proposed new HP equipment, which totaled 1.3 million euros, included one server, 20 disk arrays, 22 switches and software. The existing HP equipment included 22 servers, 8 disk arrays and 13 switches, with accompanying prices.


Asked who had provided the existing HP equipment to MCI, Vic Guyang, a Huawei spokesman, said it wasn't Huawei. "We would like to add that the existing hardware equipment belongs to the customer. Huawei does not have information on, or the authority to check the source of the customer's equipment."


Officials with MCI did not respond to requests for comment.


In a series of stories this year, Reuters has documented how China has become a backdoor for Iran to obtain embargoed U.S. computer equipment. In March and April, Reuters reported that China's ZTE Corp, a Huawei competitor, had sold or agreed to sell millions of dollars worth of U.S. computer gear, including HP equipment, to Telecommunication Co of Iran, the country's largest telecommunications firm, and a unit of the consortium that controls TCI.


The articles sparked investigations by the U.S. Commerce Department, the Justice Department and some of the U.S. tech companies. ZTE says it is cooperating with the federal probes.


TCI is the parent company of MCI.


(Additional reporting by Grace Li and Chyen Yee Lee in Hong Kong and Marcus George in Dubai; Edited by Simon Robinson)



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Peterson, Vikings top Pack 37-34 to make playoffs


MINNEAPOLIS (AP) — Adrian Peterson picked up the Minnesota Vikings and gave them a ride to the playoffs, where the first stop on this improbable journey is, yes, Green Bay.


Peterson came up 9 yards shy of breaking Eric Dickerson's single-season record, but he still powered the Vikings past the Packers 37-34 Sunday with 199 yards to set up a rematch next weekend in a first-round playoff game.


Peterson sliced through the line for a 27-yard gain in the closing seconds, his career-high 34th carry. That set up Blair Walsh's 29-yard field goal as time expired and put the Vikings (10-6) in the postseason after consecutive last-place finishes.


The division champion Packers (11-5) dropped to the NFC's No. 3 seed.


Aaron Rodgers completed 28 of 40 passes for 365 yards and four touchdowns and no turnovers, connecting with Jordy Nelson from 2 yards to tie the game with 2:54 remaining. But Christian Ponder threw for three scores, including one to Peterson, providing the necessary balance.


Ponder didn't turn over the ball, either, and went 16 for 28 for 234 yards, including a 65-yard zinger in stride to Jarius Wright midway through the fourth quarter that set up Ponder's third touchdown toss.


Peterson finished with 2,097 yards, becoming the seventh player in NFL history to reach the 2,000 mark. He had to work for it, pulling out all the cutbacks, stutter-steps and spins he could find in his exceptional skill set. His longest run was only 28 yards against a defense geared to slow him down, and the first contact often came at, near or behind the line of scrimmage.


The Packers cut the lead to 27-24 late in the third quarter on a touchdown reception by James Jones. The on-field ruling was a fumble at the goal line, triggering an automatic review. Because the Packers threw the challenge flag after the replay process began, however, they were only penalized for unsportsmanlike conduct, not prevented from benefiting from the overturned call.


That's what happened to Detroit infamously on Thanksgiving, when a disputed score by Houston was prevented from review.


Vikings executives hollered at the officials' supervisor in the press box, and mild-mannered coach Leslie Frazier was screaming at referee Mike Carey in search of an explanation.


After posting a 9-23 record over the last two years, the Vikings made so many strides in 2012 that the season was already a success. But no NFL team would ever be satisfied by finishing in defeat against a division rival, and the emotion and energy behind the quest was palpable all afternoon.


The NFC North was sewn up by the Packers two weeks earlier. Even though the bye remained in the balance the top seed didn't do the Packers any good last season. They went 15-1 and lost their opener at home to the eventual champion Giants, the year after winning three straight games on the road to reach and win the Super Bowl.


Rodgers played without injured leading receiver Randall Cobb, so Greg Jennings was the main guy instead, grabbing eight passes for 120 yards and two touchdowns. But the Vikings sacked Rodgers five times, recovering a fumble on one of them. And the defense did just barely enough to keep up with Peterson and end a five-game losing streak to the Packers.


Rodgers has 24 touchdowns, only four interceptions and a 70 percent completion rate over 10 career starts against the Vikings. His poise, arm strength and savvy came through clear against them as much as any other team. Plus, cornerback Antoine Winfield's aggravated hand injury kept him on the sideline for most of the game, a big loss for the Minnesota secondary.


Just as Ponder capably complemented Peterson to give the Vikings a chance, DuJuan Harris came out of nowhere to provide Rodgers some help for the Packers. Green Bay has been proving lately it's not as one-sided an offense as previously believed. Harris rushed 14 times for 70 yards.


With the catch-and-run game they orchestrate so well, finding the soft spots in coverage, the Packers zoomed 80 yards in six plays to pull within 20-17 early in the third quarter. Jennings had a 45-yard gain and the 5-yard grab for a score. He was wide open on both.


But Peterson churned closer to Dickerson on the next drive. Second-and-27? He surged off right tackle and bounced outside for 28 yards. To cap that march, he caught a 2-yard toss from Ponder to push the lead back to 10 points. The "MVP" chants from the crowd rang out in earnest after that.


___


Follow Dave Campbell on Twitter: http://www.twitter.com/DaveCampbellAP


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Comedian Katt Williams arrested in LA






LOS ANGELES (AP) — Katt Williams, the comedian who has repeatedly found himself on the wrong side of the law, is out on bail after being arrested in Los Angeles on suspicion of child endangerment and possession of a stolen gun.


Police Officer Norma Eisenman says Williams was taken into custody Friday after the LA County Department of Children and Family Services did a welfare check at his home. Authorities found more than one firearm, one of which had been reported stolen.






Eisenman says the DCFS did not specify how many children lived at the home or whether they were removed.


The 41-year-old was arrested this month on a felony warrant related to a police chase. In November, he was accused of hitting a man on the head with a bottle during a fight.


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'The Hobbit' stays atop box office for third week


LOS ANGELES (AP) — "The Hobbit: An Unexpected Journey" continues to rule them all at the box office, staying on top for a third-straight week and capping a record-setting $10.8 billion year in moviegoing.


The Warner Bros. fantasy epic from director Peter Jackson, based on the beloved J.R.R. Tolkien novel, made nearly $33 million this weekend, according to Sunday studio estimates, despite serious competition from some much-anticipated newcomers. It's now made a whopping $686.7 million worldwide and $222.7 million domestically alone.


Two big holiday movies — and potential Academy Awards contenders — also had strong openings. Quentin Tarantino's spaghetti Western-blaxploitation mash-up "Django Unchained" came in second place for the weekend with $30.7 million. The Weinstein Co. revenge comedy, starring Jamie Foxx as a slave in the Civil War South and Christoph Waltz as the bounty hunter who frees him and then makes him his partner, has earned $64 million since its Christmas Day opening.


And in third place with $28 million was the sweeping, all-singing "Les Miserables," based on the international musical sensation and the Victor Hugo novel of strife and uprising in 19th century France. The Universal Pictures film, with a cast of A-list actors singing live on camera led by Hugh Jackman, Anne Hathaway and Russell Crowe has made $67.5 million domestically and $116.2 worldwide since debuting on Christmas.


Additionally, the smash-hit James Bond adventure "Skyfall" has now made $1 billion internationally to become the most successful film yet in the 50-year franchise, Sony Pictures announced Sunday. The film stars Daniel Craig for the third time as the iconic British superspy.


"This is a great final weekend of the year," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "How perfect to end this year on such a strong note with the top five films performing incredibly well."


The week's other new wide release, the Billy Crystal-Bette Midler comedy "Parental Guidance" from 20th Century Fox, made $14.8 million over the weekend for fourth place and $29.6 million total since opening on Christmas.


Dergarabedian described the holding power of "The Hobbit" in its third week as "just amazing." Jackson shot the film, the first of three prequels to his massively successful "Lord of the Rings" series, in 48 frames per second — double the normal frame rate — for a crisper, more detailed image. It's also available in the usual 24 frames per second and both 2-D and 3-D projections.


"I think people are catching up with the movie. Maybe they're seeing it in multiple formats," he said. "I think it's just a big epic that feels like a great way to end the moviegoing year. There's momentum there with this movie."


"Django Unchained" is just as much of an epic in its own stylishly violent way that's quintessentially Tarantino. Erik Lomis, The Weinstein Co.'s president of theatrical distribution, said the opening exceeded the studio's expectations.


"We're thrilled with it, clearly. We knew it was extremely competitive at Christmas, particularly when you look at the start 'Les Miz' got. We were sort of resigned to being behind them. The fact that we were able to overtake them over the weekend was just great," Lomis said. "Taking nothing away from their number, it's a tribute to the playability of 'Django.'"


"Les Miserables" went into its opening weekend with nearly $40 million in North American grosses, including $18.2 on Christmas Day. That's the second-best opening ever on the holiday following "Sherlock Holmes," which made $24.9 million on Christmas 2009. Tom Hooper, in a follow-up to his Oscar-winner "The King's Speech," directs an enormous, ambitious take on the beloved musical which has earned a CinemaScore of "A'' from audiences and "A-plus" from women.


Nikki Rocco, Universal's head of distribution, said the debut for "Les Miserables" also beat the studio's expectations.


"That $18.2 million Christmas Day opening — people were shocked ... This is a musical!" she said. "Once people see it, they talk about how fabulous it is."


It all adds up to a record-setting year at the movies, beating the previous annual record of $10.6 billion set in 2009. Dergarabedian pointed out that the hits came scattered throughout the year, not just during the summer blockbuster season or prestige-picture time at the end. "Contraband," ''Safe House" and "The Vow" all performed well early on, but then when the big movies came, they were huge. "The Avengers" had the biggest opening ever with $207.4 million in May. The raunchy comedy "Ted" and comic-book behemoth "The Dark Knight Rises" both found enormous audiences. And Paul Thomas Anderson's challenging drama "The Master" shattered records in September when it opened on five screens in New York and Los Angeles with $736,311, for a staggering per-screen average of $147,262.


"We were able to get this record without scratching and clawing to a record," he said.


Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.


1. "The Hobbit: An Unexpected Journey," $32.9 million ($106.5 million international).


2."Django Unchained," $30.7 million.


3."Les Miserables," $28 million ($38.3 million international).


4."Parental Guidance," $14.8 million ($7 million international).


5."Jack Reacher," $14 million ($18.1 million).


6."This Is 40," $13.2 million.


7."Lincoln," $7.5 million.


8."The Guilt Trip," $6.7 million.


9."Monsters, Inc. 3-D," $6.4 million.


10."Rise of the Guardians," $4.9 million ($11.6 million).


___


Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:


1."The Hobbit: An Unexpected Journey," $106.5 million.


2."Life of Pi," $39.2 million.


3."Les Miserables," $38.3 million.


4."Wreck-It Ralph," $20.4 million.


5."Jack Reacher," $18.1 million.


6."Rise of the Guardians," $11.6 million.


7."Parental Guidance," $7 million.


8."The Tower," $6.6 million.


9."Pitch Perfect," $6.2 million.


10."De L'autre Cote Du Periph," $4 million.


___


Online:


http://www.hollywood.com


http://www.rentrak.com


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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Airlines' plans for 2013 up in the air









Airfares will be on the rise in 2013, and those niggling airline fees will metamorphose into optional bundles of services.


Meanwhile, onboard amenities, such as Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers, but tight seating in coach probably won't improve.


And 2013 might be the year you'll finally be able to keep your smartphone, iPad or Kindle turned on during takeoffs and landings.





Those are some of the predictions airline industry experts foresee in the new year. Here's the lowdown on fares, fees and flight experience for 2013.


Higher fares forecast


Airlines pushed through six fare increases in 2012. Expect a similar number in the new year, said Rick Seaney, co-founder of FareCompare.com.


"I wouldn't be surprised to see airfares rise like they did this year, between 3 and 6 percent domestically," Seaney said. That's because airlines will succeed in properly balancing supply and demand by trimming the number of seats they offer to match "decent, but bordering on tepid, demand."


Fares are typically driven by four main factors: competition, most of all, then supply, demand and oil prices. "If you look at those drivers, they are, for the most part, on the airlines' side, which gives them pricing power," Seaney said.


That doesn't mean there won't be good airfare deals on some flights on some routes. And consumers will still see lower prices during off-peak days, such as Tuesday, Wednesday and Saturday departures and off-peak seasons, such as late January and early February. Like this year, summertime fares probably will stay relatively high, he said.


Airline mergers can also affect fares, and a huge one could take place early in 2013. American Airlines and US Airways are in talks about combining.


The general consensus among consumer advocates is that airline mergers aren't good for passengers.


"Any time you have two big airlines merging, that means consumers have less choice and competition is reduced, which only translates to higher prices," said Charlie Leocha, director of the Consumer Travel Alliance.


However, a bit of new evidence bucks that conventional wisdom. Despite four mega-mergers in the U.S. airline industry during the past seven years, fares have not increased significantly, just 1.8 percent per year, according to a December report from professional services firm PwC. In fact, average domestic fares decreased 1 percent from 2004 to 2011 when inflation is factored in, the report found.


Fliers know full well, however, that the fare isn't all that counts nowadays. There are those fees.


Fees get a makeover


The most noticeable trend in recent years with airline fees is that there are more of them: fees for checked bags, aisle seats, onboard meals, among many others. 


"What we hear is that people pay their fare and get to the airport and feel they're constantly being nickeled-and-dimed to death for things that used to be included," said Kate Hanni, founder of FlyersRights.org. 


The top five U.S. carriers alone generated more than $12 billion in fees in 2011, with even more expected through 2012, according to the PwC report.


What consumers call fees, airlines call "unbundling" — making a la carte choices from services that used to be included in the fare.


A likely trend for 2013 might be called "rebundling," airlines packaging a few now-optional services and charging for a tier of service.





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Senate leaders to make last-ditch 'fiscal cliff' effort










WASHINGTON (Reuters) - President Barack Obama and U.S. congressional leaders agreed on Friday to make a final effort to prevent the United States from going over the "fiscal cliff," setting off intense bargaining over Americans' tax rates as a New Year's Eve deadline looms.

With only days left to avoid steep tax hikes and spending cuts that could cause a recession, two Senate veterans will try to forge a deal that has eluded the White House and Congress for months.

Obama said he was "modestly optimistic" an agreement could be found. But neither side appeared to give much ground at a White House meeting of congressional leaders on Friday.

What they did agree on was to task Harry Reid, the Democratic Senate majority leader, and Mitch McConnell, who heads the chamber's Republican minority, with reaching a budget agreement by Sunday at the latest.

"The hour for immediate action is here. It is now. We're now at the point where in just four days, every American's tax rates are scheduled to go up by law. Every American's paycheck will get considerably smaller. And that would be the wrong thing to do," Obama told reporters.

A total of $600 billion in tax hikes and automatic cuts to government spending will start kicking in on Tuesday - New Year's Day - if politicians cannot reach a deal. Economists fear the measures will push the U.S. economy into a recession.

Pessimism about the fiscal cliff helped push U.S. stocks down on Friday for a fifth straight day. The Dow Jones industrial average dropped 158.20 points, or 1.21 percent. Retailers are blaming worries about the "fiscal cliff" for lackluster Christmas season shopping.

Under the plan hashed out on Friday, any agreement between McConnell and Reid would be backed by the Senate and then approved in the Republican-controlled House of Representatives before the end of the year.

But the House could well be the graveyard of any accord.

A core of fiscal conservatives there strongly opposes Obama's efforts to raise taxes for the wealthiest as part of a plan to close America's budget deficit. House Republicans also want to see Obama commit to major spending cuts.

Talks between Obama and Republican House Speaker John Boehner collapsed last week when several dozen Republicans defied their leader and rejected a plan to raise rates for those earning $1 million and above.

A Democratic aide said Boehner stuck mainly to "talking points" in Friday's White House meeting, with the message that the House had acted on the budget and it was now time for the Senate to move.

TALKS ON 'BIG NUMBERS'

The two Senate leaders and their aides will plunge into talks on Saturday that will focus mainly on the threshold for raising income taxes on households with upper-level earnings, a Democratic aide said. Analysts say both sides could agree on raising taxes for households earning more than $400,000 or $500,000 a year.

The pair will also discuss whether the estate tax should be kept at current low levels or allowed to rise, the aide said.

Democrat Reid warned of tough talks.

"It's not easy, we're dealing with big numbers, and some of that stuff we do is somewhat complicated," he said.

McConnell described Friday's White House summit, also attended by Democratic House Minority Leader Nancy Pelosi, as "a good meeting."

"So we'll be working hard to try to see if we can get there in the next 24 hours. So I'm hopeful and optimistic," he said.

If things cannot be worked out between the Senate leaders, Obama said he wanted both chambers in Congress to vote on a backup plan that would increase taxes only for households with more than $250,000 of annual income.

The plan would also extend unemployment insurance for about 2 million Americans and set up a framework for a larger deficit reduction deal next year.

There are signs in the options market that investor fear is taking hold. The CBOE Volatility Index, or the VIX, the market's favored anxiety indicator, has remained at relatively low levels throughout this process, but it moved on Friday above 22, the highest level since June.

But some in the market were resigned to Washington going beyond the New Year's Day deadline, as long as a serious agreement on deficit reduction comes out of the talks in early January.

"Regardless of whether the government resolves the issues now, any deal can easily be retroactive. We're not as concerned with January 1 as the market seems to be," said Richard Weiss, a senior money manager at American Century Investments.

Another component of the "fiscal cliff" - $109 billion in automatic spending cuts to military and domestic programs - is set to kick in on Wednesday.

S&P rating agency said on Friday the fiscal cliff impasse did not affect the U.S. sovereign rating.

That lifted the immediate threat of a downgrade from the agency, which cut the United States' triple-A rating in August, 2011 in an unprecedented move after a similar partisan budget fight.

(Additional reporting by David Lawder, Thomas Ferraro, Rachelle Younglai and Mark Felsenthal; Writing by Alistair Bell; Editing by Peter Cooney)

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Apple loses another copyright lawsuit in China: Xinhua


SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.


Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.


Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.


"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.


Apple said in a statement that it takes copyright infringement complaints "very seriously".


"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.


China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.


Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.


($1 = 6.2360 Chinese yuan)


(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)



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NHL makes new offer; lockout enters critical stage


NEW YORK (AP) — The NHL made a new offer to the players' association, hoping to spark talks toward ending the long lockout and saving the hockey season.


Deputy commissioner Bill Daly said Friday the league presented its proposal Thursday and was waiting for a response. The sides haven't met in person since a second round of talks with a federal mediator broke down Dec. 13.


The lockout has reached its 104th day, and the NHL said it doesn't want a season of less than 48 games. That means a deal would need to be reached mid-January.


"We delivered to the union a new, comprehensive proposal for a successor CBA," Daly said in a statement Friday. "We are not prepared to discuss the details of our proposal at this time. We are hopeful that once the union's staff and negotiating committee have had an opportunity to thoroughly review and consider our new proposal, they will share it with the players. We want to be back on the ice as soon as possible."


A person familiar with key points of the offer told The Associated Press that the league proposed raising the limit of individual free-agent contracts to six years from five — seven years if a team re-signs its own player; raising the salary variance from one year to another to 10 percent, up from 5 percent; and one compliance buyout for the 2013-14 season that wouldn't count toward a team's salary cap but would be included in the overall players' share of income.


The person spoke on condition of anonymity because details of the new offer were not being discussed publicly.


The NHL maintained the deferred payment amount of $300 million it offered in its previous proposal, an increase from an earlier offer of $211 million. The initial $300 million offer was pulled off the table after negotiations broke off earlier this month.


The latest proposal is for 10 years, running through the 2021-22 season, with both sides having the right to opt out after eight years.


A conference call with the players' association's negotiating committee and its executive board was scheduled for Friday afternoon and was expected to last several hours.


The lockout has reached a critical stage, threatening to shut down a season for the second time in eight years. All games through Jan. 14, plus the Winter Classic and the All-Star game already have been called off. The next round of cuts could claim the entire schedule.


The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.


It is still possible this dispute could eventually be settled in the courts if the sides can't reach a deal on their own.


The NHL filed a class-action suit this month in U.S. District Court in New York in an effort to show its lockout is legal. In a separate move, the league filed an unfair labor practice charge with the National Labor Relations Board, contending bad-faith bargaining by the union.


Those moves were made because the players' association took steps toward potentially filing a "disclaimer of interest," which would dissolve the union and make it a trade association. That would allow players to file antitrust lawsuits against the NHL.


Union members voted overwhelmingly to give their board the power to file the disclaimer by Jan. 2. If that deadline passes, another authorization vote could be held to approve a later filing.


Negotiations between the NHL and the union have been at a standstill since talks ended Dec. 6. One week later, the sides convened again with federal mediators in New Jersey, but still couldn't make progress.


The sides have been unable to reach agreement on the length of the new deal, the length of individual player contracts, and the variance in salary from year to year. The NHL is looking for an even split of revenues with players.


The NHL pulled all previous offers off the table after the union didn't agree to terms on its last proposal without negotiation.


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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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FBI removes many redactions in Marilyn Monroe file


LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning friends who drew concern from government officials and her own entourage.


But the records, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the files show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.


Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.


The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.


A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.


"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.


Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.


"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."


Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.


The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.


For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.


A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."


That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."


"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."


Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.


The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.


For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.


"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.


___


Anthony McCartney can be reached at http://twitter.com/mccartneyAP


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Wall Street ends sour week with 5th straight decline










NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.

President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.

"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."

In a sign of investor anxiety, the CBOE Volatility Index , known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.

The Dow Jones industrial average dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index fell 25.59 points, or 0.86 percent, to end at 2,960.31.

For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.

Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.

All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.

An S&P energy sector index slid 1.8 percent, with Exxon Mobil down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index fell 1.3 percent, with U.S. Steel Corp down 2.6 percent at $23.03.

Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.

"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.

With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.

"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."

Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.

Positive economic data failed to alter the market's mood.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."

Barnes & Noble Inc rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Ryan Vlastelica; Editing by Jan Paschal)

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Defibrillators on Metra in January









Metra is nearing completion of an initiative to equip all commuter trains with potentially lifesaving defibrillators, officials with the rail line said Thursday.

About 300 automatic external defibrillators, or AEDs, will be installed on Metra trains by the end of January. Additional defibrillators will be put in place at Metra work facilities and in its police vehicles, according to the agency.






The defibrillators monitor a person's heartbeat for irregularities and deliver an electrical current to those stricken with sudden cardiac arrest. The hand-held machines issue audio instructions, so even those without training should be able to use one, officials said.

"Even third-graders can use these devices," said Dr. Amer Aldeen of Northwestern University's Feinberg School of Medicine, which is partnering with Metra on the initiative. "They don't shock people who are sleeping. They don't shock people who are drunk."

About 300,000 Americans a year suffer cardiac arrest outside of a hospital setting, and 92 percent of them die of it, according to the Centers for Disease Control and Prevention. A defibrillator can triple the survival rate, Aldeen said.

Metra doesn't keep track of how many people suffer from cardiac arrest while on board a train, but estimates trains are forced to make unscheduled stops 10 to 20 times a month for emergency medical situations, said Metra spokeswoman Meg Reile.

Every Metra train will have at least one defibrillator on it, with the aim being to have the devices on every other car. About 1,000 Metra employees, mostly those who work on the trains, will be trained in how to use the equipment, according to Metra.

In September, the Metra board agreed to pay $664,606 for a contract with Cardiac Science Corp. to provide the AEDs and maintenance services for two years, according to the agency.

The Federal Aviation Administration has required defibrillators on passenger airplanes since 2001. But most transit agencies have been slow to add the devices to commuter trains. Metra announced it was adding defibrillators in August 2011.

In 2009, 64-year-old Michael Crowe was riding to work on a Metra train when he collapsed with heart attack symptoms. Two nurses on the train attempted to resuscitate him, but Crowe later died.

Crowe's family applauded the addition of defibrillators on Metra trains.

"I wish they had gotten it sooner," said his daughter, Michelle Crowe, who is trained in AED use. "They can save people's lives."

nnix@tribune.com

Twitter @nsnix87



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Apple CEO's pay takes big hit vs. record 2011 package


NEW YORK (Reuters) - Apple Inc CEO Tim Cook's 2012 compensation package of $4.17 million is a huge cut on paper for the top executive of the most valuable U.S. corporation, after a 2011 package fattened by more than $376 million in long-term stock awards.


Cook received the largest single pay package awarded to a company CEO in about a decade when he replaced Apple co-founder Steve Jobs in August last year, shortly before the Silicon Valley legend's death in October 2011.


The maker of the iPhone and iPad made the 2012 compensation disclosures in a regulatory filing on Thursday. Cook, 52, has been with Apple since 1998.


Virtually all of Cook's $376 million stock bonus in 2011 was in awards that vest in two chunks - one in 2016 and the other in 2021. This structure was intended to keep Jobs' longtime lieutenant at the helm for many years, as the value of the stock will depend on how well the company is doing in 2016 and 2021.


Cook, who is credited with masterminding a sprawling but efficient Asian supply chain, has generally received high marks for his first year for shepherding several successful gadget launches, including the iPhone 5.


But he was forced to make a public apology in September after the company launched a mapping service application riddled with glaring geographical errors. The Maps app fiasco contributed to the departure of fellow Apple veteran and software chief Scott Forstall.


In addition, some analysts questioned whether Cook, whose only major new product since taking the helm was a smaller version of the iPad that Jobs propelled into the mainstream in 2010, has the vision to produce the next big product category and sustain historically stellar growth for Apple as global mobile competition intensifies.


"The jury is still out in terms of the job he is doing," said fund manager Tim Ghriskey, whose Solaris Group counts Apple stock as the biggest holding among the approximately $2 billion it manages.


But he added that the company's long-term prospects look strong, particularly if it rolls out oft-rumored television products in the next few years.


As of Thursday's close, Apple shares were almost 37 percent higher than when Cook became CEO 16 months ago. However, since a record-high close of $702.10 on September 19, the stock has fallen almost 27 percent.


Ghriskey said Wall Street remained nervous about the growing popularity of Google Inc's Android phone software, used by global smartphone leader Samsung Electronics Co Ltd, and potential margin pressure from that intensifying competition.


BY THE NUMBERS


In terms of base salary, Cook actually received a 50 percent increase to $1.4 million for 2012, and the same 200 percent non-equity bonus other top Apple executives like CFO Peter Oppenheimer earned, Apple said in the Thursday filing ahead of a February 27 shareholders' meeting.


Cook's 2012 package includes a nonequity bonus of $2.8 million.


Despite the increase, Apple said Cook's target annual cash compensation is "significantly below the median annual cash compensation level for CEOs at peer companies." It also said that Cook will not receive any stock awards for 2012.


Cook's latest compensation package also pales in comparison to his package in 2010, when he was chief operating officer. That package was 14 times higher.


A company spokesman would not comment beyond the filing.


Jobs famously received $1 a year in salary in the three years before he stepped down, though in 2000 he too received a stock option that analysts say was valued at almost $600 million at the time.


Looking beyond Apple, Yahoo Inc's CEO, Marissa Mayer, a former Google Inc high-flyer hired this year to try to turn around the struggling Internet icon, won a pay package worth more than $70 million. [ID:nL1E8LJJB5] Despite her lack of a track record as CEO and Yahoo's tiny size in comparison, her basic pay is comparable to Cook's, with about $1 million in annual salary and up to $2 million in an annual bonus.


Oracle Corp's Larry Ellison, one of the most highly paid U.S. chief executives - and also the world's sixth-richest man, according to Forbes - received total compensation for the year ended May 31, 2012, of $96.2 million - almost all of it in stock options. That compared with $77.6 million in 2011.


According to a study of the Fortune 500 conducted by Forbes this year, CEOs were paid a base salary of $1.1 million in 2011 on average, with the mean annual bonus at $2.4 million and average total compensation - including stock awards - at around $17 million.


Apple shares closed up 0.4 percent at $515.06 on the Nasdaq on Thursday.


(Reporting by Sinead Carew and Liana Baker in New York, Jim Finkle and Tim McLaughlin in Boston and Edwin Chan in San Francisco; editing by Kenneth Barry and Matthew Lewis)



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