70-year old San Diegan William Gillis has added "civil conspiracy" to the list of allegations in a lawsuit against Apple and AT&T. More 3G devices on a local network means less data bandwidth and possibly disconnections, both problems which have plagued the latest version of the iPhone since launch. The conspiracy charge is on top of false advertising allegations he already filed — the conspiracy being that Apple and AT&T knew that the advertised performance would suffer if sales estimates for the devices were actually met or exceeded, hence the two companies oversold the device. [Wired]

Insurers will pay Apple $14 million in a settlement of a suit brought by shareholders against the company's executives. This brings the scandal over backdated options — where company officials changed the date of option grants so that executives like CEO Steve Jobs would have a lower strike price, without accounting for it in the company's books — pretty much to a close after the SEC settled its case against former corporate counsel Nancy Heinen. The $14 million will neatly cover an estimated $8.9 million in attorney fees and expenses. [AP] (Photo by Getty/AFP)

Click to viewDespite the fact that Apple CEO Steve Jobs announced no new products at the company's glorified press conference yesterday, the crowd's cheers were as blustery as they ever are at Apple events. But Newsweek's Dan Lyons, who must have bored enough by what was being said on stage to be paying so much more attention to the darkened audience, says he knows the reason why: Much of the crowd was clapping so loud because they were paid to.

In an interview after yesterday's iPod refresh announcement, Apple CEO Steve Jobs admitted that he could "stand to gain 10 or 15 pounds," but told CNBC's Jim Goldman "I'm doing fine, really." Jobs said he blamed what Goldman calls "the rampant speculation and rumors on the blogosphere about the issue," on "hedge funds with a big short position in Apple." Jobs is wrong.

• A battered Lehman Brothers plans to spin off the majority of its real estate investments into a new company and sell more than half its interest in its investment management division. The bank also predicted a third-quarter loss of $3.9 billion. [WSJ, Dealbook]

Chalk up a rare victory for NBC Universal CEO Jeff Zucker in doing what few can: He stared down Steve Jobs and won. NBC shows like Heroes and Battlestar Galactica are returning to iTunes, but on NBC's terms. Almost exactly a year ago, NBC packed up its toys and left Apple's iTunes store over a pricing dispute. Apple insisted on sticking with one price for TV shows. But with today's announcements of new iPods, Jobs showed off NBC shows available again — at $0.99 for old shows, $1.99 for new shows, and HD for $2.99. NBC shows represented roughly 40 percent of iTunes video sales before they vanished from the store.

The slide which introduced Apple CEO Steve Jobs at the company's "Let's Rock" announcement. Ah, gallows humor. I, for one, am laughing to keep from crying. (Photo by AP/Paul Sakuma)

Forget all the colorful new iPods on display at Apple's "Let's Rock" event in San Francisco today — Apple investors are more concerned with the guy who's demoing them. Pictures of Apple CEO Steve Jobs, whose health has been much in question lately, show him looking imperiously slim, not dangerously frail. (Photo by Brian Lam/Gizmodo) [Gizmodo Liveblog]

Something we bet Steve Jobs won't be discussing on stage at this morning's iPod event: The third-party developers who create apps for the iPhone and iPod Touch say Apple takes a week or more to approve updates — even bug fixes. Apple also doesn't communicate with the developers to tell them why or how long their updates will be delayed. Fraser Speiers, who developed the Exposure Flickr application for the iPhone, told Macworld:

Forget Kevin Rose's predictions for what Apple may or may not announce at the company's "Let's Rock" softshoe spectacular starring Steve Jobs. The real question is, how is Apple cofounder Jobs holding up? Ever since the appearance at company's World Wide Developers Conference, rumors have swirled about the incredible shrinking CEO's health. One second-hand account I've overheard says it's actually worse than the public knows. However, a Piper Jaffrey analyst figures Jobs wouldn't even take the stage if he didn't look hale and hearty enough for investors made skittish by greatly exaggerated rumors of his demise. Of course, if Jobs appears on stage with tanned complexion and toned physique only a few months after his last gasp-inducing appearance, you know what that means — Apple will have quietly introduced Robot Steve Jobs. (Photo by AP/Paul Sakuma)

British engineer Kane Kramer created a device in 1979 called the IXI which could store and play back three and a half minutes of music. He patented the device and even founded a company to sell it. By 1988, funding ran out and he couldn't afford to renew the patents. Improbably, Apple now calls him an inventor of the iPod. The U.K.'s Daily Mail, which first reported the news, says it's the story of a wronged inventor who has never seen a dime from the 163 million iPods sold worldwide. "I can’t even bring myself to buy an iPod for myself," says Kramer, who has closed a legal loophole for Apple, conveniently and cheaply.

Germany's Federal Office for Information Security says that Google's new browser Chrome "should not be used for surfing the Internet." The problem, according to a translation from Blogoscoped, is that joined with email and search, Chrome gives Google too much data about its users. The government also said Chrome should be avoided because its still in beta. Here's the real deal, though: Germans hate Google because like Microsoft with Windows and Apple with iTunes, its a big American company that's so popular it seems like a monopoly. For those keeping score at home — or trying to use the Web in Germany — that rules out Chrome, Apple's Safari, Internet Explorer and Mozilla's Firefox because it runs on Google money. What's left? The Opera browser, conveniently built in Europe.

In its bid to top the deceptively simple "I"m a Mac/I'm a PC" ad campaign of its rival, Microsoft went big, hiring auteur Michel Gondry to direct a commercial featuring Jerry Seinfeld alongside Bill Gates (update: we've been informed that though Gondry shot at least one commercial for this campaign, this particular ad was crafted by director Bryan Buckley). For his involvement, Seinfeld was handsomely compensated to the tune of $10 million — a big number, but small potatoes compared to the whole ad campaign's rumored $300 million budget. For that kind of cash, you might expect the end result to be an orgy of CGI with all participants covered in a thick sheen of liquid gold. However, Microsoft had something considerably quieter and more head-scratching in mind. Take a look at the lackadaisical proceedings and then try to physically restrain yourself from bolting out the door to buy a PC. That is what's being advertised, isn't it? [Microsoft]

Microsoft's new Seinfeld ad campaign proves you can't predict success. Here are five goofy ads that worked — plus the clip that probably sold Microsoft on Seinfeld. Above: A parody of Jacques Cousteau's undersea documentaries for Sun Microsystems.

Company-review site Glassdoor says that according to employees at both companies, Apple's repair technicians — known as "geniuses," with the attitude to match — make $18.30 per hour and $36,000 per year on average. That's about 56 percent more than Best Buy's Geek Squad "agents," who earn $11.58 per hour and $23,000 per year. The reason for the difference? Apple's "geniuses" are tasked with repairing beautiful objects that restore your sense of childlike wonder, whilst their Best Buy counterparts open tickets on junk in black plastic cases. Right, Steve?

Victor Wang — huh-huh — from Apple emailed the author of the Pull My Finger app, shown above, to explain that the interactive fart-noise program was deemed "of limited utility to the broad user community." I wonder what would happen if they applied a "utility" standard to the music videos sold through the same store? Wang's full email:

We suspect the name "Unbox" only ever made sense to Amazon.com CEO Jeff Bezos. The online retailer has rebranded its video-download store as "Video on Demand." The only other big change: The videos will now play on Macs. They'll continue to be downloadable to viewers' TiVos, Windows Media Centers, and Xbox consoles. Flicks cost $2.99 to $3.99 to rent and $7.99 to $14.99 to buy. Another draw: Unlike Apple's iTunes store, you can get NBC Universal content from Amazon.com. (NBC vanished from Apple's store after a tiff over pricing last year.)

Digg founder Kevin Rose claims this iTunes 8 feature from a reliable source:

Internet video darling Veronica Belmont's

Users at DSLreports.com are sharing stories of lost AT&T EDGE connectivity in the New York metropolitan area this morning. Non-3G iPhones and Nokias are affected, too, so it's not an iPhone-specific problem.