E-Book Antitrust Trial of Apple to Begin

But the evidence in the case will not just determine whether Apple has violated antitrust laws. It will also tell a broader story of how the introduction of e-books created upheaval in the publishing industry — with guest appearances by major players like Amazon and Barnes & Noble and e-mails from the late Steven P. Jobs, Apple’s former chief executive.

In the case, brought a year ago, the Justice Department accused Apple and five book publishers of conspiring to raise e-book prices. The idea, the government said, was to allow publishers to set their own prices rather than letting retailers do so.

Their motivation, according to the Justice Department, was to defend themselves against Amazon, which was setting the price of most new e-books at $9.99 and becoming increasingly dominant in the market. Simon & Schuster, HarperCollins and the Hachette Book Group settled the day that charges were filed; Penguin and Macmillan settled months later.

Complaints by Amazon, which now controls at least 60 percent of the e-book market, are widely believed to have incited the investigation. Amazon declined to comment.

After the lawsuit was filed, the expectation was that e-book prices would drop sharply; the publishers that settled agreed to allow retailers to discount their e-books for two years. But the price drop has still not happened.

A government victory against Apple, which would not involve monetary damages, might also not affect e-book prices.

“Are consumers going to be better off as a result of any government win here?” said Charles E. Elder, an antitrust lawyer at Irell & Manella, which is not involved in the case. “That’s going to have to be seen depending on what happens to book publishing generally. It’s in trouble, and e-books are either the savior or they’re going to hasten the demise of book publishers.”

Apple declined to comment, but has said it has done nothing wrong.

“The e-book case to me is bizarre,” Timothy D. Cook, Apple’s chief executive, said during an onstage interview at a business conference last week in Southern California. “We’ve done nothing wrong there, and so we’re taking a very principled position of this. We were asked to sign something that says we did do something, and we’re not going to sign something that says we did something we didn’t do. And so we’re going to fight.”

Apple certainly has the money to fight, and a brand to protect, at a time when its stock is sagging and its tax practices and manufacturing processes are under scrutiny. Yet it is bigger than ever — with hundreds of millions of its iPhones and iPads in the hands of customers all over the globe.

The trial, before Judge Denise L. Cote of United States District Court, is expected to feature testimony from chief executives from the five publishers, who will offer a window into their world of fierce price negotiations. But the star witness may well be Mr. Jobs, even though he died in October 2011.

In the case, the government cast Apple as the “ringmaster” of the conspiracy. It said that when the company entered the e-book industry in 2010 with the introduction of the iPad, it wanted to pressure Amazon to raise its prices above its uniform $9.99 for new e-books.

At the time, publishers’ agreements to sell e-books were made under the so-called wholesale model of print books; publishers charged retailers about half the cover price for a book, and the retailers then set their own prices. The government said Mr. Jobs had persuaded publishers to agree to agency pricing, which allowed publishers to set their own prices for e-books, giving Apple a 30 percent commission for books sold in its online store.

The publishers’ contracts with Apple included a “most favored nation” clause, requiring that no other retailer sell e-books for a lower price; if they did, the publisher would have to match the price of the e-book in Apple’s store. That, the Justice Department said, resulted in higher prices that harmed consumers.

Settlement Talks Begin in Duck-Boat Accident Trial

Testimony stopped in order to hold a settlement discussion on the second day of the civil trial related to the double fatality on a duck-boat tour two years ago.

Media Decoder Blog: Online Piracy Alert System to Begin This Week

The Copyright Alert System, a program of escalating warnings and prods against people suspected of online copyright infringement, is finally going into effect this week, more than a year and a half after the plan was announced as part of an agreement between the entertainment industry and five major Internet service providers.

The Center for Copyright Information, the organization created to administer the system, announced on Monday that the Internet providers would begin putting it in place “over the course of the next several days,” though it gave no specifics. The Internet companies are AT&T, Cablevision, Comcast, Verizon and Time Warner Cable.

In the alert system, media companies monitor online traffic through a third party and can complain to Internet providers if a file is downloaded illegally. The suspected violator is then given the first of six warnings, some of which carry “educational” messages and must be acknowledged. After the fifth and sixth warnings, the customer’s Internet speed can be slowed to a crawl.

The Center for Copyright Information says it will not ask for repeat offenders’ Internet access to be blocked, but most service providers have the right to do that if a customer violates its terms of service. The findings can be contested for a $35 fee, to be refunded if an appeal is successful.

The introduction of the alert system has been notably slow. Nearly a year passed before the group had a leader in place, and its own prediction failed when it said in October that the system would be coming in two months. Part of the reason for that might be the relationships between media companies and Internet service providers, which in the past have often been adversarial over issues of piracy and control.

So-called graduated response programs like the Copyright Alert System have been tried in other countries, with mixed results. France’s Hadopi law, passed in 2009, set up a system of three “strikes,” culminating in a fine. More than a million warnings have been issued through that plan, but a recent government report said that its effects were “hard to evaluate precisely.”

Wall Street Closes Lower as Earnings Reports Begin

Stocks trading on Wall Street ticked lower on Tuesday as an earnings season that is expected to show sluggish corporate growth got under way.

The Standard & Poor’s 500-stock index closed 0.3 percent lower, the Dow Jones industrial average lost 0.4 percent and the Nasdaq composite index fell 0.2 percent.

Over the next couple of weeks, reports on fourth-quarter profits are expected to come in above the previous quarter’s lackluster results, but analysts’ current estimates are down sharply from where they were in October. Quarterly earnings are expected to grow by 2.8 percent, according to Thomson Reuters data.

German data showed industrial orders fell more than forecast in November because of a sharp drop in demand from abroad, reinforcing concerns that Europe’s largest economy may have contracted in the fourth quarter of 2012.

“I’m surprised futures are holding up, given the relative disappointment that German data showed, but I think all eyes are on the beginning of earnings season,” said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

European shares ended mixed after the German report, with the DAX index in Frankfurt down 0.5 percent and the CAC 40 in Paris up slightly.

Monsanto shares rose 2 percent after the world’s largest seed company raised its earnings outlook for fiscal 2013 and posted strong first-quarter results.

Shares of the restaurant-chain operator Yum Brands fell 4.2 percent. On Monday, the company, which owns KFC, warned that sales in China, its largest market, shrank more than expected in the fourth quarter.

Vodafone shares rose 2 percent in London after its American partner in the joint venture Verizon Wireless said it would be “feasible” to buy out the British group.

Sears Holdings shares were 6.4 percent lower a day after the company said its chief executive would step down for family health reasons.

GameStop shares fell 6.3 percent after it reported sales for the holiday season and cut its guidance.

Settlement Talks Begin in Duck-Boat Accident Trial

Testimony stopped in order to hold a settlement discussion on the second day of the civil trial related to the double fatality on a duck-boat tour two years ago.

Settlement Talks Begin in Duck-Boat Accident Trial

Testimony stopped in order to hold a settlement discussion on the second day of the civil trial related to the double fatality on a duck-boat tour two years ago.

In Silicon Valley, Perks Now Begin at Home

Today, Evernote’s 250 employees — every full-time worker, from receptionist to top executive — have their homes cleaned twice a month, free.

It is the latest innovation from Silicon Valley: the employee perk is moving from the office to the home. Facebook gives new parents $4,000 in spending money. Stanford School of Medicine is piloting a project to provide doctors with housecleaning and in-home dinner delivery. Genentech offers take-home dinners and helps employees find last-minute baby sitters when a child is too sick to go to school.

These kinds of benefits are a departure from the upscale cafeteria meals, massages and other services intended to keep employees happy and productive while at work. And the goal is not just to reduce stress for employees, but for their families, too. If the companies succeed, the thinking goes, they will minimize distractions and sources of tension that can inhibit focus and creativity.

Now that technology has allowed work to bleed into home life, it seems that companies are trying to address the impact of home life on work.

There is, of course, the possibility that relieving people of chores at home will simply free them up to work more. But David Lewin, a compensation expert and management professor at the University of California, Los Angeles, said he viewed the perks as part of a growing effort by American business to reward people with time and peace of mind instead of more traditional financial tools, like stock options and bonuses.

“They’re trying to get at people’s larger lives and sanity,” Mr. Lewin said. “You might call it the bang for the nonbuck.”

At Deloitte, the consulting firm, employees can get a backup care worker if an aging parent or grandparent needs help. The company subsidizes personal trainers and nutritionists, and offers round-the-clock counseling service for help with issues like marital strife and infertility. Deloitte executives, and other experts, said they believe that such benefits were likely to spread.

“The workplace was built on the assumption that there was somebody at home dealing with the home front,” said Anne Weisberg, a longtime human resources executive who helped write a book about new kinds of workplace policies.

Not only is that no longer the case, she said, but the work-life pressures seem to be building. “There’s a greater awareness that we’re pushing things to the limit and something’s got to give,” she said.

Hannah Valantine, a cardiologist, professor and associate dean at the Stanford School of Medicine, said the university’s experiment with helping out at home was part of a broader effort to support doctors, given their hyperkinetic pace of life.

“If you’re coming home at the end of the day exhausted and you have a pile of cleaning to do, it’s the kind of things that leads rapidly to burnout, and burned-out physicians don’t give the best care,” Dr. Valantine said. “We’re trying to send a very strong message that the institution cares about you and about your life.”

Some compensation experts argue these types of perks ultimately do little to attract employees and might obscure more fundamental problems at companies that have trouble retaining talent.

That is a challenge Stanford owns up to, given the brain drain suffered by academic hospitals, where relentless demands include treating patients, writing grants, doing research and traveling to conferences.

So 18 months ago, Stanford hired a consulting firm called Jump Associates to better understand why so many academic doctors feel burned out. The company videotaped them from the time they woke up, through the workday and until they and their families went to sleep.

In one video, a kidney specialist told a story that shocked the researchers: while she was on maternity leave, she bought a minivan to ferry the children of friends and neighbors to school and sports practices.

That way, the doctor explained, she would be able to ask for favors when she returned to work — and that, in theory, would enable her to juggle the dual demands of work and family.

Settlement Talks Begin in Duck-Boat Accident Trial

Testimony stopped in order to hold a settlement discussion on the second day of the civil trial related to the double fatality on a duck-boat tour two years ago.