Jury orders Samsung to pay Apple another $290 million

Samsung's smartphones (right) were found to have infringed on Apple's patents for the iPhone in a ruling last August.

NEW YORK (CNNMoney)

Thursday's ruling is the latest judgment in a serpentine case that has been ongoing for more than two years. In August 2012, the Korean smartphone maker was found to have violated several of Apple's patents, and a jury ruled that Samsung owed Apple more than $1 billion in damages. U.S. District Court Judge Lucy Koh later said the jury had miscalculated the award, and about $450 million worth of those damages were reconsidered in a new trial.

After Thursday's ruling, Samsung now owes Apple another $290 million in damages on top of the $640 million in damages that Judge Koh upheld in the original damages trial.

Apple (AAPL, Fortune 500) argued it deserved another $379 million, while Samsung said it owed only about $52 million.

The damages total is now $935 million -- close to the original $1.05 billion figure.

But to further complicate the issue, both companies have appealed the original August 2012 ruling ... so Thursday's decision could mean little or nothing.

Apple and Samsung are embroiled in dozens of patent disputes in courts around the world, but Thursday's ruling involves the biggest case. Apple accused Samsung of "slavishly" copying both the iPhone and iPad for its own devices, including the hardware design as well as software features like double-tap zooming. Samsung countersued, accusing Apple of infringing on its own software patents.

It could take years for the lawsuits to be resolved. And so it goes in the litigious world of smartphone patents.

First Published: November 21, 2013: 5:24 PM ET

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California: 10K a day applying for Obamacare

More people are signing up for Obamacare coverage in California.

NEW YORK (CNNMoney)

The Covered California board also voted Thursday not to allow residents to extend individual policies that don't comply with Obamacare. Seeking to quell an uproar over insurers canceling plans, President Obama last week allowed state regulators and insurers to extend these policies for another year.

More than 360,000 people have created accounts on the Covered California website, through Nov. 19, according to health exchange officials. Some 39% of them are eligible for Medi-Cal. The rest can pick a private insurance policy on the exchange, with about half of them eligible for federal subsidies to defer premiums or out-of-pocket expenses.

Nearly 80,000 residents have signed up for a policy, the final step on the exchange before working out payment with the insurance company. That's up from 59,000 in mid-November.

"What we're seeing is people signing up," said Peter Lee, Covered California's executive director.

Younger Californians age 18 to 34 account for about 22.5% of the sign ups in October, just about the share they represent in the state population. Luring in younger and healthier consumers, who use fewer medical services and would offset older, costlier policyholders, are vital to the health of the state exchange. If young people don't enroll, then rates could soar for 2015.

"Not only are we seeing strong enrollment numbers overall, but enrollment in key demographics like the so-called young invincibles is very encouraging," said Lee.

Share your story: Are you signing up for Obamacare?

Those ages 55 to 64 account for about one-third of the 30,830 people in October who signed up for a plan.

Anthem Blue Cross, Kaiser Permanente and Blue Shield of California are capturing the majority of those picking plans, with each securing just over a quarter, according to exchange data.

One area where the exchange needs improvement is outreach to non-English speaking Californians, advocates at the exchange's board meeting said. Some 85.5% of those signing up are English-speakers, though only 56.1% of the state population is.

Coverage begins on Jan. 1, while open enrollment runs through March 31. Those who don't enroll face a penalty of $95 or 1% of family income, whichever is greater.

Also, although roughly 450,000 residents who are losing their current individual policies face higher premium prices on the exchange, the board opted not to take Obama up on his "fix." Extending the policies risks destabilizing the exchange because it is likely to attract sicker people seeking more comprehensive coverage, while allowing healthier policy holders to retain their bare bones plans. That could cause rates to rise in 2015. Also, it will cause much confusion among Californians. An insurance trade group representative urged board members not to allow extensions.

California joins at least eight other states rejecting the extensions. Some 200,000 residents will be allowed to extend their plans into early next year because their carriers -- Blue Shield of California and Anthem Blue Cross -- did not give them sufficient notice.

First Published: November 21, 2013: 5:42 PM ET

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Banks warned on high-interest loans

NEW YORK (CNNMoney)

Deposit advance loans are short-term loans offered by firms including U.S. Bank (USB, Fortune 500), Wells Fargo (WFC, Fortune 500) and Regions (RF, Fortune 500), typically in increments of a few hundred dollars or less.

Like payday loans, they often carry stiff fees and interest rates that can stretch well into the triple digits on an annualized basis. But unlike payday loans, they are limited to a bank's account holders, with the lender automatically deducting repayment from the customer's direct deposit.

While advertised as a convenient source for emergency cash, these loans can quickly become a recurring expense for borrowers.

"[T]hese products can trap customers in a cycle of high-cost debt that they are unable to repay," Thomas Curry, head of the Office of the Comptroller of the Currency, said in a statement.

The OCC and the Federal Deposit Insurance Corporation said deposit advance loans could potentially violate the Truth in Lending Act and other consumer-protection laws.

The FDIC said it recognized "the demand for responsible small-dollar credit products," but called for such loans to be affordable and underwritten with attention to the borrower's ability to repay. Bank examiners will assess deposit advance programs with an eye to protecting consumers, the OCC said, flagging those with poor underwriting standards and excessive fees.

Related: Top 10 consumer complaints

Regulators have previously issued similar guidance on payday and subprime loans.

Consumer advocates have long criticized deposit advance loans, and called for the country's other major banking regulator, the Federal Reserve, to address them as well.

"At long last, two key financial watchdogs have taken decisive action against the predatory loan practices of national banks and federal savings associations," Americans for Financial Reform said.

U.S. Bank, Wells Fargo and Regions said they were reviewing the guidance to see how it would affect their lending programs. The Consumer Bankers Association, an industry group, warned that the regulators could end up driving consumers to pawnshops and unregulated lenders.

A survey on payday loans released earlier this year by the Pew Charitable Trusts found that 72% of borrowers believed more regulation of the industry was needed, though 48% said they thought payday loans help borrowers more than they hurt them.

"Payday borrowers' experiences -- receiving credit to cover expenses but then ending up spending far more than suggested by the loan's two-week price tag -- lead to complicated and conflicted feelings," the report said.

First Published: November 21, 2013: 6:42 PM ET

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CBO: Real debt ceiling deadline could hit in March

Treasury Secretary Jack Lew this week again noted that political brinksmanship over raising the debt ceiling benefits no one. And he urged lawmakers to raise the limit soon to create certainty for the economy.

NEW YORK (CNNMoney)

But soon enough, they will have to turn their attention to raising the debt ceiling.

If they don't they will risk a potential default on U.S. debt as early as March, according to a report released Wednesday by the Congressional Budget Office.

The deal lawmakers brokered in October to end the government shutdown let the Treasury Department continue borrowing new money through February 7 without regard to the debt limit. Then, on February 8, the debt limit will automatically reset to a higher level that reflects how much Treasury borrowed during the nearly 4-month debt ceiling suspension period.

At that point, however, Treasury will still be able to use "extraordinary measures," the special accounting maneuvers that let it keep paying the country's bills without going over the debt limit.

But the measures won't last very long.

"CBO projects that those measures would probably be exhausted in March. However, the timing and magnitude of tax refunds and receipts in February, March, and April could shift that date of exhaustion into May or June," the agency said.

Related: Budget czar to Congress: Just do it

Given how uneven the government's cash flow is from day to day and month to month, it's impossible to say with more precision when an actual default could occur.

CBO notes that the Treasury typically issues a large amount of tax refunds in February and March, which can lead to big monthly deficits. By contrast, April tends to create a large surplus because everyone is sending in their federal tax returns along with checks for any additional taxes they owe for the previous year.

Treasury Secretary Jack Lew has noted many times that political brinksmanship over raising the debt ceiling benefits no one. And he suggested as much again this week at the Wall Street Journal CEO Forum, where he urged lawmakers to raise the limit without drama.

"I hope ... they just do the debt limit in a business-like way and give some certainty to the U.S. and global economy. That would be the right thing to do."

First Published: November 20, 2013: 5:39 PM ET

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Google launches prepaid card

Google's new prepaid card will be funded by Google Wallet accounts.

NEW YORK (CNNMoney)

The tech giant announced the launch of a physical prepaid card on Wednesday. The new Google Wallet Card will be tied to a customer's Google Wallet account and can be used to make purchases and withdraw money from ATMs.

Google Wallet, which has been around since 2011, is a virtual wallet that is funded by transfers from other Google Wallet users or money transferred from other bank and credit card accounts. You can then use that balance to pay with a mobile phone at certain retailers.

The venture hasn't really taken off, however -- iPhones haven't adopted the technology necessary to use the in-store payment feature, and many retailers don't have the appropriate point-of-sale equipment to process the transactions.

Related: Occupy Wall Street's prepaid card for the 99%

But with the launch of this new prepaid card, a phone is no longer necessary to pay in stores -- customers can simply swipe their card the old-fashioned way instead.

The Google Wallet Card can be used at all locations where MasterCard is accepted, and it doesn't come with any fees. It doesn't even charge you to withdraw cash at the ATM (though some ATMs will charge you a separate fee).

The card can be requested through the Google Wallet Android app or online.

Google (GOOG, Fortune 500) is just the latest in a long line of companies, organizations and celebrities to jump on the prepaid card bandwagon. Last month, Occupy Wall Street debuted the Occupy Card. Walgreens, Justin Bieber and Suze Orman are among the many other newcomers to the business.

First Published: November 20, 2013: 6:49 PM ET

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Minor stumble for China's factories

HONG KONG (CNNMoney)

HSBC said on Thursday that its "flash" measure of sentiment among manufacturing purchasing managers fell to 50.4 in November, the first decline in four months and a bigger drop than economists had anticipated.

The index is an early gauge of the health of the sector, which is seen as a bellwether for China's export-heavy economy. Any number above 50 indicates an expansion in manufacturing activity.

HSBC's China economist Hongbin Qu said that the results indicate "growth momentum softened a little" due to weakness in new export orders and slower restocking activities.

Still, he said, the reading is the second-highest measurement in the past seven months. A final reading for the month will be released in December.

Beijing is likely to closely monitor the manufacturing sector for any continued signs of weakness, which could complicate reform efforts.

Party leaders wrapped up a four-day meeting in Beijing last week by announcing an agenda for reform that is aims to deliver results by 2020.

Related story: China cuts ribbon on free trade zone

Beijing's plan calls for opening its financial markets and promoting greater foreign investment. The leadership also hinted at changes in how companies file for stock market listings, the introduction of a bank deposit insurance scheme and an acceleration of interest rate liberalization. The roadmap seeks to roll back government control of state-owned enterprises and allow for greater competition with private firms.

Still, some questions remain. Although the plan was more detailed than analysts expected, it was silent on other looming issues including a rise in local government debt.

Related story: Asia stumble a major risk for global economy

Putting the plan into action could also prove to be rather difficult. The country's consensus-driven approach to policymaking could make for slow progress in translating the principles adopted at last week's meeting into real change for private companies, consumers and foreign investors.

And while the one-party system might avoid Washington-style gridlock, reformers still need to get regional and local governments on their side and convince party conservatives that change is for the better.

First Published: November 20, 2013: 10:32 PM ET

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Bernanke: Recent jobs reports are 'disappointing'

NEW YORK (CNNMoney)

The latest data show the economy added an average of 200,000 jobs each of the last three months -- marking a sudden breakout for the labor market after months of weaker reports.

Immediately after the October report was released, Fed watchers started speculating that it may just be the good news the Fed has been waiting for: Would the Fed start winding down its stimulus program at its next meeting in December?

Now, it doesn't sound like it.

In a speech Tuesday evening, Bernanke characterized that data as "somewhat disappointing."

The Fed stands by its stimulus program, he said, repeating comments that Vice Chair Janet Yellen delivered to the Senate Banking Committee last week.

"The FOMC remains committed to maintaining highly accommodative policies for as long as they are needed," Bernanke said in prepared remarks.

The Fed is currently engaged in its third bond-buying spree in the last five years, purchasing $85 billion in Treasuries and mortgage-backed securities each month. It's a controversial policy with unknown risks, but the aim is to stimulate the economy by keeping long-term interest rates low.

The central bank is looking for substantial improvement in the job market before it starts gradually reducing that bond-buying program.

Bernanke repeated Tuesday that the bond purchases are "not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's economic outlook."

Related: Smooth sailing for Yellen in front of Senate

Yellen is currently under consideration to succeed Bernanke as Fed Chair, when his second term ends in January. Like Bernanke, she has recently spoken out in favor of continued stimulus.

"I consider it imperative that we do what we can to promote a very strong recovery," she told lawmakers last week.

First Published: November 19, 2013: 7:04 PM ET

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