RIM shares climb as investors bet on new BlackBerry

TORONTO (Reuters) – Shares of Research In Motion rallied on Friday as investors positioned themselves ahead of the launch of its new make-or-break BlackBerry 10 smartphones at the end of the month.

Morningstar analyst Brian Colello did not see any one news story driving the stock, which climbed steadily through much of the day. The new phones are to be formally unveiled on January 30.

“The stock has been extremely volatile, based on BlackBerry 10 rumors and the potential for success in the market,” said Colello.

Several blog posts published on Friday showed purportedly leaked photos of what could be the new phones, and a number of tech sites confirmed that Sprint Nextel Corp would carry BlackBerry 10.

“Sprint plans to bring BlackBerry 10 to our customers later this year. We will share more details soon,” Mark Elliot, a spokesman for the U.S. carrier, said in an email.

Earlier this week, executives at Verizon Communications, AT&T Inc and T-Mobile USA all confirmed they would carry the smartphones, and said they are looking forward to the new devices.

“There are, I think, good indications that they’re going to get a seat at all the tables that matter,” said IDC analyst John Jackson, who called carrier support “necessary, but not sufficient” to ensure the success of BlackBerry 10.

Throughout the autumn of 2012, RIM’s stock rose as investors grew more optimistic about BlackBerry 10. Morningstar’s Colello said the market went from pricing in no chance of success, to betting on at least some chance of success for the new products.

But the rally broke off after RIM reported earnings in December, revealing that it would roll out a new fee structure for its services segment which some fear could put pressure on the high-margin business.

The new line’s success is crucial to the future of RIM, which has lost ground to competitors such as Apple Inc and Samsung Electronics, and in December reported its first-ever decline in total subscribers.

BGC Partners analyst Colin Gillis said the news that all four major U.S. carriers would offer BlackBerry 10 was likely lifting the stock, along with Nokia’s stronger-than-expected quarterly results — a sign that Google Inc’s Android smartphones have not completely taken over its market.

“The smartphone market is one of the most robust, largest markets in the world … it’s also dynamic,” said Gillis. “The winners and losers are going to be shifting. That said, it’s a difficult road the company is facing.”

RIM’s Nasdaq-listed shares were up 13.2 percent at $ 13.49. Shares jumped 12.6 percent to C$ 13.27 on the Toronto Stock Exchange. That more than doubled the price since the low of C$ 6.10 it touched in September. By late afternoon, RIM was the day’s most heavily-traded stock on the Toronto Stock Exchange.

(Additional reporting by Nicola Leske in New York; Editing by Marguerita Choy and Alden Bentley)

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Sony Pictures executive: “Zero Dark Thirty” “does not advocate torture”

LOS ANGELES (Reuters) – Sony Pictures executive Amy Pascal lashed out on Friday at a member of the Academy of Motion Picture Arts and Sciences (AMPAS) who accused Osama bin Laden film “Zero Dark Thirty” of promoting torture and urged fellow Academy members not to vote for it in the Oscars race.

In a strongly worded statement, Pascal said the “attempt to censure one of the great films of our time should be opposed.”

“We are outraged that any responsible member of the Academy would use their voting status in AMPAS as a platform to advance their own political agenda,” said Pascal, who is co-chairman of Sony Pictures Entertainment and chairman of its Columbia TriStar Motion Picture Group.

“This film should be judged free of partisanship,” she said, adding that the film “does not advocate torture.”

Pascal’s comments came in response to Academy member David Clennon’s remarks at a rally against the torture of terror suspects in Los Angeles on Friday.

“I believe that the film clearly promotes a tolerance for torture,” Clennon told local ABC TV news affiliate KABC, adding “I hope that my fellow members of the Academy will consider the morality of each nominee.”

Clennon, an actor who appeared in 1980s TV series “thirtysomething,” also wrote an opinion piece earlier this week criticizing the film.

“At the risk of being expelled for disclosing my intentions, I will not be voting for ‘Zero Dark Thirty’ – in any Academy Awards category,” Clennon wrote on progressive news website Truth-out.org in a January 9 posting.

“‘Zero’ never acknowledges that torture is immoral and criminal. It does portray torture as getting results,” he added.

The 6,000 members of the Academy are urged not to reveal who they cast their votes for. Academy Award winners are revealed at a ceremony in February, the highlight of Hollywood’s award season.

The Academy on Friday declined to comment on Clennon’s remarks.

“Zero Dark Thirty” won five Oscar nominations, including a nod for best picture, despite coming under attack in Washington over its source material and claims by politicians that it depicts torture as helping the United States find and kill the al Qaeda leader in May 2011.

Among the film’s nominees were actress Jessica Chastain and screenwriter Mark Boal, but director Kathyrn Bigelow surprisingly failed to make the Oscar best director shortlist.

Sony Pictures Entertainment is a unit of Sony Corp.

(Reporting By Piya Sinha-Roy; Editing by Jill Serjeant and Eric Walsh)

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City Room: Cuomo Declares Public Health Emergency Over Flu Outbreak

With the nation in the grip of a severe influenza outbreak that has seen deaths reach epidemic levels, New York State declared a public health emergency on Saturday, making access to vaccines more easily available.

There have been nearly 20,000 cases of flu reported across the state so far this season, officials said. Last season, 4,400 positive laboratory tests were reported.

“We are experiencing the worst flu season since at least 2009, and influenza activity in New York State is widespread, with cases reported in all 57 counties and all five boroughs of New York City,” Gov. Andrew M. Cuomo said in a statement.

Under the order, pharmacists will be allowed to administer flu vaccinations to patients between 6 months and 18 years old, temporarily suspending a state law that prohibits pharmacists from administering immunizations to children.

While children and older people tend to be the most likely to become seriously ill from the flu, Mr. Cuomo urged all New Yorkers to get vaccinated.

On Friday, the Centers for Disease Control and Prevention in Atlanta said that deaths from the flu had reached epidemic levels, with at least 20 children having died nationwide. Officials cautioned that deaths from pneumonia and the flu typically reach epidemic levels for a week or two every year. The severity of the outbreak will be determined by how long the death toll remains high or if it climbs higher.

There was some evidence that caseloads may be peaking, federal officials said on Friday.

In New York City, public health officials announced on Thursday that flu-related illnesses had reached epidemic levels, and they joined the chorus of authorities urging people to get vaccinated.

“It’s a bad year,” the city’s health commissioner, Dr. Thomas A. Farley, told reporters on Thursday. “We’ve got lots of flu, it’s mainly type AH3N2, which tends to be a little more severe. So we’re seeing plenty of cases of flu and plenty of people sick with flu. Our message for any people who are listening to this is it’s still not too late to get your flu shot.”

There has been a spike in the number of people going to emergency rooms over the past two weeks with flulike symptoms – including fever, fatigue and coughing – Dr. Farley said.

Mayor Michael R. Bloomberg and Mr. Cuomo made a public display of getting shots this past week.

In a briefing with reporters on Friday, officials from the C.D.C. said that this year’s vaccine was effective in 62 percent of cases.

As officials have stepped up their efforts encouraging vaccinations, there have been scattered reports of shortages. But officials said plenty of the vaccine was available.

According to the C.D.C., makers of the flu vaccine produced about 135 million doses for this year. As of early this month, 128 million doses had been distributed. While that would not be enough for every American, only 37 percent of the population get a flu shot each year.

Federal health officials said they would be happy if that number rose to 50 percent, which would mean that there would be more than enough vaccine for anyone who wanted to be immunized.

Two other diseases – norovirus and whooping cough – are also widespread this winter and are contributing to the number of people getting sick.

The flu can resemble a cold, though the symptoms come on more rapidly and are more severe.

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Treasury Will Not Mint $1 Trillion Coin to Raise Debt Ceiling

WASHINGTON — The Treasury Department said Saturday that it will not mint a trillion-dollar platinum coin to head off an imminent battle with Congress over raising the government’s borrowing limit.

“Neither the Treasury Department nor the Federal Reserve believes that the law can or should be used to facilitate the production of platinum coins for the purpose of avoiding an increase in the debt limit,” Anthony Coley, a Treasury spokesman, said in a written statement.

The Obama administration has indicated that the only way for the country to avoid a cash-management crisis as soon as next month is for Congress to raise the “debt ceiling,” which is the statutory limit on government borrowing. The cap is $16.4 trillion.

“There are only two options to deal with the debt limit: Congress can pay its bills, or it can fail to act and put the nation into default,” Jay Carney, the White House press secretary, said in a statement. “Congress needs to do its job.”

In recent weeks, some Republicans have indicated that they would not agree to raise the debt limit unless Democrats agreed to make cuts to entitlement programs like Social Security.

The White House has said it would not negotiate spending cuts in exchange for Congressional authority to borrow more, and it has insisted that Congress raise the ceiling as a matter of course, to cover expenses already authorized by Congress. In broader fiscal negotiations, it has said it would not agree to spending cuts without commensurate tax increases.

The idea of minting a trillion-dollar coin drew wide if puzzling attention recently after some bloggers and economic commentators had suggested it as an alternative to involving Congress.

By virtue of an obscure law meant to apply to commemorative coins, the Treasury secretary could order the production of a high-denomination platinum coin and deposit it at the Federal Reserve, where it would count as a government asset and give the country more breathing room under its debt ceiling. Once Congress raised the debt ceiling, the Treasury secretary could then order the coin destroyed.

Mr. Carney, the press secretary, fielded questions about the theoretical tactic at a news conference last week. But the idea is now formally off the table.

The White House has also rejected the idea that it could mount a challenge to the debt ceiling itself, on the strength of the Fourteenth Amendment to the Constitution, which holds that the “validity of the public debt” of the United States “shall not be questioned.”

The Washington Post earlier published a report that the Obama administration had rejected the platinum-coin idea.

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DWP will allow customers to sell back excess solar energy

Los Angeles Department of Water and Power customers for the first time will be able to sell back excess solar energy created on rooftops and parking lots under a new program approved Friday by the city utility's board of commissioners.

Described as the largest urban rooftop solar program of its kind in the nation, the so-called feed-in-tariff program would pay customers 17 cents per kilowatt hour for energy produced on their own equipment. The DWP has already accepted more than a dozen applicants and will be taking dozens more as it accepts contracts for up to 100 megawatts of solar power through 2016.

Environmentalists, business supporters and solar vendors were thrilled by the vote. Feed-in-tariff programs help generate jobs and economic activity while decreasing greenhouse gas emissions, they say.

"Today's vote is a major step forward for the economic and environmental sustainability of Los Angeles," said Mary Leslie, President of the Los Angeles Business Council, a group advocating the Clean LA Solar program since 2009.

Fred Pickel, the city's ratepayer advocate, told commissioners that 17 cents per kilowatt hour was above market rates and could force significant rate increases on DWP customers. Higher DWP bills could drive jobs away, Pickel told the board.

But the board unanimously decided to move ahead, and to reassess the program at regular intervals.

In March, the commission will decide whether to add an additional 50 megawatts of energy to the buyback program. The full 150-megawatt program would create enough solar energy to power 34,000 Los Angeles homes, advocates say.

Once qualified, DWP customers with large multi-family dwellings, warehouses, school facilities and parking lots can sell solar energy at 17 cents per kilowatt hour. The DWP is offering a tiered-pricing schedule that drops to 13 cents per kilowatt hour as energy contracts are reserved, DWP officials said.

Single-family homes generally don't produce enough energy to qualify.

Some of the contracts will be set aside for smaller solar producers to give them a better shot at winning slots, officials said. Customers participating in other solar-incentive initiatives, such as net-metering, do not qualify for the buyback contracts, DWP officials said.

Environmental groups have long pushed for a feed-in-tariff, arguing that it would spur more commercial property owners to go solar. Sacramento and San Diego have their own versions, and Florida is experimenting with buybacks.

Evan Gillespie, campaign representative for the Sierra Club's Beyond Coal Campaign, said the vote will allow the DWP to curtail its dependence on out-of-state energy generators. In addition, it promises 4,500 jobs and $500,000 in new economic activity for the city, he said.

"In the 21st century, it is simply unacceptable for 40% of L.A.'s energy to come from aging out-of-state polluting coal-fired power plants,'' Gillespie said.

Following the vote, Toronto-based Solar Provider Group announced that it would expand its operations in Los Angeles by opening an office and hiring 30 people. The company plans to invest up to $50 million by the end of 2016, said president Christian Wentzel.

"This program provides us with the stability we need to enter the U.S. solar market,'' he said.

DWP staffers recommended a 17-cents-per-kilowatt-hour rate as a starting point to reflect the relatively higher cost of buying solar energy compared to other commodities. The cost of getting the program up and running will raise the average residential monthly electric bill by about 4 cents, according to a staff report.

The DWP will hire an administrator and about 30 other people to operate the program, but most of those costs will be reimbursed by program participants, the report said.

Expanding local solar power is a key strategy for the DWP to meet the state-mandated renewable energy level of 33% by 2020.

catherine.saillant@latimes.com

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Evan Rachel Wood expecting first child with actor Jamie Bell

LOS ANGELES (Reuters) – Actress Evan Rachel Wood said on Friday that she and her husband, British actor Jamie Bell, are expecting their first child.

“Thanks for all your warm wishes,” Wood, 25, wrote on her Twitter account. “We are very happy. I’m gonna be a mama!”

Moments earlier, Wood posted a picture of the pregnancy book “What to Expect When You’re Expecting” on the social media site.

It will be the first child for both Wood and Bell, who wed in October.

Wood rose to Hollywood stardom for her roles in 2008′s “The Wrestler” and the 2003 coming-of-age drama “Thirteen.” She was nominated for an Emmy award for the 2011 television mini-series “Mildred Pierce.”

Bell, 26, found fame as the teen star of “Billy Elliot,” about a ballet dancer growing up in a tough coal mining town in northern England. He won a British BAFTA award for the role and has since appeared in adventure movies such as “The Eagle.”

(Reporting by Eric Kelsey; editing by Philip Barbara)

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Makers of Violent Video Games Marshal Support to Fend Off Regulation

WASHINGTON — With the Newtown, Conn., massacre spurring concern over violent video games, makers of popular games like Call of Duty and Mortal Kombat are rallying Congressional support to try to fend off their biggest regulatory threat in two decades.

Alex Wong/Getty Images

Vice President Joseph R. Biden Jr. meeting Friday with video game industry executives, a response to last month's massacre.

The $60 billion industry is facing intense political pressure from an unlikely alliance of critics who say that violent imagery in video games has contributed to a culture of violence. Vice President Joseph R. Biden Jr. met with industry executives on Friday to discuss the concerns, highlighting the issue’s prominence.

No clear link has emerged between the Connecticut rampage and the gunman Adam Lanza’s interest in video games. Even so, the industry’s detractors want to see a federal study on the impact of violent gaming, as well as cigarette-style warning labels and other measures to curb the games’ graphic imagery.

“Connecticut has changed things,” Representative Frank R. Wolf, a Virginia Republican and a frequent critic of what he terms the shocking violence of games, said in an interview. “I don’t know what we’re going to do, but we’re going to do something.”

Gun laws have been the Obama administration’s central focus in considering responses to the shootings. But a violent media culture is being scrutinized, too, alongside mental health laws and policies.

“The stool has three legs, and this is one of them,” Mr. Wolf said of violent video games.

Studies on the impact of gaming violence offer conflicting evidence. But science aside, public rhetoric has clearly shifted since the shootings, with politicians and even the National Rifle Association — normally a fan of shooting games — quick to blame video games and Hollywood movies for inuring children to violence.

“I don’t let games like Call of Duty in my house,” Gov. Chris Christie of New Jersey said this week on MSNBC. “You cannot tell me that a kid sitting in a basement for hours playing Call of Duty and killing people over and over and over again does not desensitize that child to the real-life effects of violence.”

Residents in Southington, Conn., 30 miles northeast of Newtown, went so far as to organize a rally to destroy violent games. (The event was canceled this week.) Mr. Biden, meeting with some of the industry’s biggest manufacturers and retailers, withheld judgment on whether graphic games fuel violence. But he added quickly, “You all know the judgment other people have made.”

Industry executives are steeling for a political battle, and they have strong support from Congress as well as from the courts.

Industry representatives have already spoken with more than a dozen lawmakers’ offices since the shootings, urging them to resist threatened regulations. They say video games are a harmless, legally protected diversion already well regulated by the industry itself through ratings that restricting some games to “mature” audiences.

With game makers on the defensive, they have begun pulling together scientific research, legal opinions and marketing studies to make their case to federal officials.

“This has been litigated all the way to the Supreme Court,” Michael Gallagher, chief executive of the industry’s main lobbying arm, said in an interview, referring to a 2011 ruling that rejected a California ban on selling violent games to minors on First Amendment grounds.

Twenty years ago, with graphic video games still a nascent technology, manufacturers faced similar threats of a crackdown over violent games. Even Captain Kangaroo — Bob Keeshan — lobbied for stricter oversight. The industry, heading off government action, responded at that time by creating the ratings labels, similar to movie ratings, that are ubiquitous on store shelves today.

This time, with a more formidable presence in Washington, the industry is not so willing to discuss voluntary concessions.

Game makers have spent more than $20 million since 2008 on federal lobbying, and millions more on campaign donations.

Mr. Gallagher’s group, the Entertainment Software Association, has five outside lobbying firms to push its interests in Washington. And the industry has enjoyed not only a hands-off approach from Congress, which has rejected past efforts to toughen regulations, but also tax breaks that have spurred sharp growth.

Game makers even have their own bipartisan Congressional caucus, with 39 lawmakers joining to keep the industry competitive.

Michael D. Shear contributed reporting.

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Court Says Pfizer Can Be Sued by Man Who Took Generic

The Alabama Supreme Court ruled on Friday that a patient could sue a brand-name company for failing to warn about a drug’s risks even though he had taken a generic version of the product that the company did not make.

Although the decision applies only to Alabama, it is likely to be closely read by lawyers with similar cases pending around the country whose clients have been barred from suing generic companies because of a recent United States Supreme Court ruling.

“It has national implications,” said Bill Curtis, a Dallas lawyer who has filed hundreds of similar cases in several states. “I suspect that now, like most folks, if a client comes into my office, I’d be suing both the generic they took and the brand who’s responsible for the label.”

In the Alabama case, the plaintiff, Danny Weeks, claimed that he had developed a movement disorder known as tardive dyskinesia after taking generic versions of Reglan to treat his acid reflux. Mr. Weeks sued Actavis and Teva, the generic companies that made the drugs he took, as well as Wyeth, which developed the drug, for failing to adequately warn about Reglan’s risks.

In 2009, the Food and Drug Administration required all manufacturers of metoclopramide, the generic name for Reglan, to place stronger warnings on their labels detailing a link between long-term use of the drug and tardive dyskinesia. Hundreds of lawsuits have been filed by patients who claim that Wyeth failed to properly warn about Reglan’s risks.

The chances of those claims against the generic companies succeeding are unclear after a 2011 Supreme Court decision, Pliva v. Mensing, which ruled that generic drug companies had no control over what their labels said and so could not be sued for failing to alert patients about the risks of taking their drugs. With few exceptions, generic manufacturers are required to use the same labels as the brand names.

The suit was filed in a federal court in Alabama because Mr. Weeks lives in Alabama and the drug companies are based elsewhere. The federal court asked the Alabama Supreme Court whether a branded company could be sued in such a case.

In its decision on Friday, the Alabama Supreme Court ruled that “an omission or defect in the labeling for the brand-name drug would necessarily be repeated in the generic labeling, foreseeably causing harm to a patient who ingested the generic product.”

Kevin Newsom, a lawyer for Pfizer, which acquired Wyeth in 2009, described the decision as an outlier. He said more than 70 court decisions, including four from federal appeals courts, had taken the opposite view. Representatives for brand-name companies have argued that they cannot be held liable for injuries caused by products they did not manufacture. “It comes as something of a surprise because it is contrary to the overwhelming weight of authority on this issue nationwide,” he said. He said two other decisions have held similar views as the Alabama court.

The court ruled that Mr. Weeks could go ahead with his lawsuit based on what Mr. Newsom described as a “unique wrinkle” in Alabama state law: that third parties like Wyeth can be held liable for a person’s injury if that third party provided false or misleading information that led to the injury. Mr. Weeks is arguing that Wyeth misinformed his doctor, not Mr. Weeks himself.

Sheldon Gilbert, a lawyer with the National Chamber Litigation Center, which advocates for the Chamber of Commerce and filed a brief in the case, said plaintiffs’ lawyers were likely to see the Alabama decision as a lucrative opening. “What we’ve seen again and again and again is that the trial lawyers get a decision that they think is good and they all flock to that jurisdiction,” he said.

Chris Hood, a lawyer for Mr. Weeks, said, “When someone’s hurt by a generic tablet and that injury can be laid at the feet of misinformation about the drug, then there’s only one party who can be held responsible,” he said, “the branded company.”

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Irvine City Council overhauls oversight, spending on Great Park

Capping a raucous eight-hour-plus meeting, the Irvine City Council early Wednesday voted to overhaul the oversight and spending on the beleaguered Orange County Great Park while authorizing an audit of the more than $220 million that so far has been spent on the ambitious project.

A newly elected City Council majority voted 3 to 2 to terminate contracts with two firms that had been paid a combined $1.1 million a year for consulting, lobbying, marketing and public relations. One of those firms — Forde & Mollrich public relations — has been paid $12.4 million since county voters approved the Great Park plan in 2002.

"We need to stop talking about building a Great Park and actually start building a Great Park," council member Jeff Lalloway said.

The council, by the same split vote, also changed the composition of the Great Park's board of directors, shedding four non-elected members and handing control to Irvine's five council members.

The actions mark a significant turning point in the decade-long effort to turn the former El Toro Marine base into a 1,447-acre municipal park with man-made canyons, rivers, forests and gardens that planners hoped would rival New York's Central Park.

The city hoped to finish and maintain the park for years to come with $1.4 billion in state redevelopment funds. But that money vanished last year as part of the cutbacks to deal with California's massive budget deficit.

"We've gone through $220 million, but where has it gone?" council member Christina Shea said of the project's initial funding from developers in exchange for the right to build around the site. "The fact of the matter is the money is almost gone. It can't be business as usual."

The council majority said the changes will bring accountability and efficiencies to a project that critics say has been larded with wasteful spending and no-bid contracts. For all that has been spent, only about 200 acres of the park has been developed and half of that is leased to farmers.

But council members Larry Agran and Beth Krom, who have steered the course of the project since its inception, voted against reconfiguring the Great Park's board of directors and canceling the contracts with the two firms.

Krom has called the move a "witch hunt" against her and Agran. Feuding between liberal and conservative factions on the council has long shaped Irvine politics.

"This is a power play," she said. "There's a new sheriff in town."

The council meeting stretched long into the night, with the final vote coming Wednesday at 1:34 a.m. Tensions were high in the packed chambers with cheering, clapping and heckling coming from the crowd.

At one point council member Lalloway lamented that he "couldn't hear himself think."

During public comments, newly elected Orange County Supervisor Todd Spitzer chastised the council for "fighting like schoolchildren." Earlier this week he said that if the Irvine's new council majority can't make progress on the Great Park, he would seek a ballot initiative to have the county take over.

And Spitzer angrily told Agran that his stewardship of the project had been a failure.

"You know what?" he said. "It's their vision now. You're in the minority."

mike.anton@latimes.com

rhea.mahbubani@latimes.com

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Academy Launches Oscar App on Android, Amazon

LOS ANGELES (TheWrap.com) – The Academy launched its official Oscars app on Android and Amazon on Thursday, expanding its initiative to direct fans’ attention from the television to the second screen.

The app, already available on the iPad and iPhone, was made available for free on the Google Play store and the Amazon app store, the Academy said. According to iTunes, the iPad app was updated earlier on Wednesday.

Developed by the Academy and Disney/ABC Television Group’s digital media arm, the app allows users to see behind-the-scenes videos and stories with host Seth MacFarlane and search information about the nominees. It also features a “My Picks” ballot on which users can organize their dream-team of winners.

On Oscar night on February 24, the app will feature “Backstage Pass,” a live telecast from more than a dozen cameras placed on the Red Carpet and throughout the Dolby Theatre – in the press room, the control room, backstage and elsewhere.

And a ticker on the app will notify when a users’ favorite actor and actress arrives on stage.

“We’re always looking for ways to bring fans closer to the show and this app provides a unique and fun way to do that,” Josh Spector, the managing director of digital media and marketing for the Academy, said in a statement. “More fans than ever will be able to enjoy the full Oscar experience now that our app is available to Droid users.”

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