Samsung and Apple are still the only winners in the mobile market

The duopoly of the U.S. mobile market intensified dramatically in 2012. Despite increased efforts from Motorola, LG (066570), HTC (2498), Nokia (NOK) and Microsoft (MSFT) to gain market share, Samsung (005930) and Apple (AAPL) continue to steal customers away from every other company. During a three-month period ending in November, comScore found that Samsung’s lead in the U.S. smartphone market increased 1.2 percentage points for a controlling 26.9% share. Apple’s smartphone market share grew from 17.1% to 18.5%, gaining 1.4 points following the launch of the iPhone 5. Rounding out the top-five were LG, Motorola and HTC, all of which saw their market shares decrease from August. LG fell 0.7 points to 17.5%, Motorola dropped 0.8 points to 10.4% and HTC’s market share decreased from 6.3% to 5.9%.

[More from BGR: Samsung confirms plan to begin inching away from Android]

[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]

The research firm found that 123.3 million people in the U.S. owned smartphones during the period, an increase of 6% since August. A majority of devices, 53.7%, were powered by Google’s (GOOG) Android operating system, which saw growth of 1.1 percentage points. Apple’s iOS market share increased 0.7 percentage points to 35%.

2012 was a transitional year for Research in Motion (RIMM) and Microsoft. Both companies spent most of the year preparing new operating systems. RIM will unveil its BlackBerry 10 operating system later this month and devices powered by Windows Phone 8 launched this past November. As a result, both companies saw lost share toward the end of 2012; RIM’s BlackBerry platform ranked third with a 7.3% share, down from 8.3% in August, and Microsoft’s operating system dropped 0.6 percentage points to a 3% share of the market.

This article was originally published by BGR

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Obama Signs Defense Bill, With Conditions

WASHINGTON — President Obama set aside his veto threat and late Wednesday signed a defense bill that imposes restrictions on transferring detainees out of military prisons in Afghanistan and Guantánamo Bay, Cuba. But Mr. Obama attached a signing statement claiming that he has the constitutional power to override the limits in the law.

His move awakened a dormant issue from Mr. Obama’s first term: his broken promise to close the Guantánamo prison. Lawmakers intervened by imposing statutory restrictions on transfers of prisoners to other countries or into the United States, either for continued detention or for prosecution.

Now, as Mr. Obama prepares to begin his second term, Congress has tried to further restrict his ability to wind down the detention of terrorists worldwide, adding new limits in the National Defense Authorization Act of 2013, which lawmakers approved in late December.

The bill extended and strengthened limits on transfers out of Guantánamo to troubled nations like Yemen, the home country of the bulk of the remaining low-level detainees who have been cleared for repatriation. It also, for the first time, limited the Pentagon’s ability to transfer the roughly 50 non-Afghan citizens being held at the Parwan prison at Bagram Air Base in Afghanistan at a time when the future of American detention operations there is murky.

Despite his objections, Mr. Obama signed the bill, saying its other provisions on military programs were too important to jeopardize. Early Thursday, shortly after midnight, the White House released the signing statement in which the president challenged several of its provisions.

For example, in addressing the new limits on the transfers from Parwan, Mr. Obama wrote that the provision “could interfere with my ability as Commander in Chief to make time-sensitive determinations about the appropriate disposition of detainees in an active area of hostilities.”

He added that if he decided that the statute was operating “in a manner that violates constitutional separation of powers principles, my administration will implement it to avoid the constitutional conflict” – legalistic language that means interpreting the statute as containing an unwritten exception a president may invoke at his discretion.

Saying that he continued to believe that closing the Guantánamo prison was in the country’s fiscal and national security interests, Mr. Obama made a similar challenge to three sections that limit his ability to transfer detainees from Guantánamo, either into the United States for prosecution before a civilian court or for continued detention at another prison, or to the custody of another nation.

It was not clear, however, whether Mr. Obama intended to follow through, or whether he was just saber-rattling as a matter of principle. Mr. Obama had made a similar challenge a year ago to the Guantánamo transfer restrictions in the 2012 version of the National Defense Authorization Act, but – against the backdrop of the presidential election campaign – he did not invoke the authority he had claimed.

Andrea Prasow, senior counterterrorism counsel at Human Rights Watch, which advocates closing Guantánamo, criticized Mr. Obama for not vetoing the legislation despite his threat to do so.

“The administration blames Congress for making it harder to close Guantánamo, yet for a second year President Obama has signed damaging congressional restrictions into law,” she said. “The burden is on Obama to show he is serious about closing the prison.”

Signing statements are official documents issued by a president when he signs bills into law that instruct subordinates in the executive branch about how to implement the new statutes. In recent decades, starting with the Reagan administration, presidents have used the device with far greater frequency than in earlier eras to claim a constitutional right to bypass or override new laws.

The practice peaked under President George W. Bush, who used signing statements to advance sweeping theories of presidential power and challenged nearly 1,200 provisions over eight years – more than twice as many as all previous presidents combined.

The American Bar Association has called upon presidents to stop using signing statements, calling the practice “contrary to the rule of law and our constitutional system of separation of powers.” A year ago, the group sent a letter to Mr. Obama restating its objection to the practice and urging him to instead veto bills if he thinks sections are unconstitutional.

As a presidential candidate, then-Senator Obama sharply criticized Mr. Bush’s use of the device as an overreach. Once in office, however, he said that he would use them only to invoke mainstream and widely accepted theories of the constitutional power of the president.

In his latest signing statement, Mr. Obama also objected to five provisions in which Congress required consultations and set out criteria over matters involving diplomatic negotiations about such matters as a security agreement with Afghanistan, saying that he would interpret the provisions so as not to inhibit “my constitutional authority to conduct the foreign relations of the United States.”

Mr. Obama raised concerns about several whistle-blower provisions that protected people who provide certain executive branch information to Congress — including employees of contractors who uncover waste or fraud, and officials raising concerns about the safety and reliability of nuclear stockpiles.

He also took particular objection to a provision that directs the commander of the military’s nuclear weapons to submit a report to Congress “without change” detailing whether any reduction in nuclear weapons proposed by Mr. Obama would “create a strategic imbalance or degrade deterrence” relative to Russian stockpiles.

The provision, Mr. Obama said, “would require a subordinate to submit materials directly to Congress without change, and thereby obstructs the traditional chain of command.”

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NHL, union briefly resume labor talks

NEW YORK (AP) — After a long night of talks, the NHL and the union returned to the bargaining table, but not for long.

The sides met at the league office Thursday about three hours later than scheduled. The players' association said it had been updating members on negotiations.

Players and union staff began arriving at NHL headquarters a little before 1 p.m. EST, although executive director Donald Fehr wasn't with them. The group left the building about an hour later but expected to return later in the day.

With the lockout in its 110th day, both sides understand the urgency to save a shortened season. They have several key issues to work out — pensions and salary cap limits, among them.

Commissioner Gary Bettman has said a deal needs to be in place by next week so a 48-game season can begin Jan. 19. All games through Jan. 14 along with the All-Star game have been canceled, claiming more than 50 percent of the original schedule.

The sides met in small groups throughout the day Wednesday. They held a full bargaining session with a federal mediator at night that lasted nearly five hours and ended about 1 a.m. Thursday.

The biggest detail to emerge was that Fehr remains executive director of the players' association, which passed on its first chance to declare a disclaimer that would dissolve the union and turn it into a trade association.

Last month, players voted overwhelmingly to give its executive board the right to declare the disclaimer, but that permission expired at midnight Wednesday. The disclaimer would allow individual players to file antitrust lawsuits against the NHL. Fehr wouldn't address the issue, calling it an "internal matter."

"The word disclaimer has yet to be uttered to us by the players' association," Bettman said. "It's not that it gets filed anywhere with a court or the NLRB. When you disclaim interest as a union, you notify the other side. We have not been notified and it's never been discussed, so there has been no disclaimer."

It was believed the union wouldn't take action Wednesday if it saw progress. Neither side would characterize the talks or say if there was any movement toward common ground.

"There's been some progress but we're still apart on a number of issues," Bettman said. "As long as the process continues I am hopeful."

In a related move, the NHLPA filed a motion in federal court in New York on Thursday seeking to dismiss the league's suit to have the lockout declared legal. The NHL sued the union in mid-December, figuring the players were about to submit their own complaint against the league and possibly break up their union to gain an upper hand.

But the union argued that the NHL is using this suit "to force the players to remain in a union. Not only is it virtually unheard of for an employer to insist on the unionization of its employees, it is also directly contradicted by the rights guaranteed to employees under ... the National Labor Relations Act."

A deal can't be done without a resolution on pensions. Bettman called the pension plan a "very complicated issue." A small group meeting on the pension issue was held Wednesday morning before the players' association presented its offer.

"The number of variables and the number of issues that have to be addressed by people who carry the title actuary or pension lawyer are pretty numerous and it's pretty easy to get off track. That is something we understand is important to the players."

The union's proposal Wednesday makes four offers between the sides since the NHL restarted negotiations Thursday with a proposal. The league presented the players with a counteroffer Tuesday night in response to one the union made Monday.

Fehr believed an agreement on a players-funded pension had been reached before talks blew up in early December. That apparently wasn't the case, or the NHL has changed its offer regarding the pension in exchange for agreeing to other things the union wanted.

The salary-cap number for the second year of the deal — the 2013-14 season — hasn't been established, and it is another point of contention. The league is pushing for a $60 million cap, while the union wants it to be $65 million.

In return for the higher cap number players would be willing to forgo a cap on escrow.

"We talk about lots of things and we even had some philosophical discussions about why particular issues were important to each of us," Bettman said. "That is part of the process."

The NHL proposed in its first offer Thursday that pension contributions come out of the players' share of revenues, and $50 million of the league's make-whole payment of $300 million will be allocated and set aside to fund potential underfunding liabilities of the plan at the end of the collective bargaining agreement.

Last month, the NHL agreed to raise its make-whole offer of deferred payments from $211 million to $300 million as part of a proposed package that required the union to agree on three nonnegotiable points. Instead, the union accepted the raise in funds, but then made counterproposals on the issues the league stated had no wiggle room.

"As you might expect, the differences between us relate to the core economic issues which don't involve the share," Fehr said of hockey-related revenue, which likely will be split 50-50.

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.

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Scant Proof Is Found to Back Up Claims by Energy Drinks

Energy drinks are the fastest-growing part of the beverage industry, with sales in the United States reaching more than $10 billion in 2012 — more than Americans spent on iced tea or sports beverages like Gatorade.

Their rising popularity represents a generational shift in what people drink, and reflects a successful campaign to convince consumers, particularly teenagers, that the drinks provide a mental and physical edge.

The drinks are now under scrutiny by the Food and Drug Administration after reports of deaths and serious injuries that may be linked to their high caffeine levels. But however that review ends, one thing is clear, interviews with researchers and a review of scientific studies show: the energy drink industry is based on a brew of ingredients that, apart from caffeine, have little, if any benefit for consumers.

“If you had a cup of coffee you are going to affect metabolism in the same way,” said Dr. Robert W. Pettitt, an associate professor at Minnesota State University in Mankato, who has studied the drinks.

Energy drink companies have promoted their products not as caffeine-fueled concoctions but as specially engineered blends that provide something more. For example, producers claim that “Red Bull gives you wings,” that Rockstar Energy is “scientifically formulated” and Monster Energy is a “killer energy brew.” Representative Edward J. Markey of Massachusetts, a Democrat, has asked the government to investigate the industry’s marketing claims.

Promoting a message beyond caffeine has enabled the beverage makers to charge premium prices. A 16-ounce energy drink that sells for $2.99 a can contains about the same amount of caffeine as a tablet of NoDoz that costs 30 cents. Even Starbucks coffee is cheap by comparison; a 12-ounce cup that costs $1.85 has even more caffeine.

As with earlier elixirs, a dearth of evidence underlies such claims. Only a few human studies of energy drinks or the ingredients in them have been performed and they point to a similar conclusion, researchers say — that the beverages are mainly about caffeine.

Caffeine is called the world’s most widely used drug. A stimulant, it increases alertness, awareness and, if taken at the right time, improves athletic performance, studies show. Energy drink users feel its kick faster because the beverages are typically swallowed quickly or are sold as concentrates.

“These are caffeine delivery systems,” said Dr. Roland Griffiths, a researcher at Johns Hopkins University who has studied energy drinks. “They don’t want to say this is equivalent to a NoDoz because that is not a very sexy sales message.”

A scientist at the University of Wisconsin became puzzled as he researched an ingredient used in energy drinks like Red Bull, 5-Hour Energy and Monster Energy. The researcher, Dr. Craig A. Goodman, could not find any trials in humans of the additive, a substance with the tongue-twisting name of glucuronolactone that is related to glucose, a sugar. But Dr. Goodman, who had studied other energy drink ingredients, eventually found two 40-year-old studies from Japan that had examined it.

In the experiments, scientists injected large doses of the substance into laboratory rats. Afterward, the rats swam better. “I have no idea what it does in energy drinks,” Dr. Goodman said.

Energy drink manufacturers say it is their proprietary formulas, rather than specific ingredients, that provide users with physical and mental benefits. But that has not prevented them from implying otherwise.

Consider the case of taurine, an additive used in most energy products.

On its Web site, the producer of Red Bull, for example, states that “more than 2,500 reports have been published about taurine and its physiological effects,” including acting as a “detoxifying agent.” In addition, that company, Red Bull of Austria, points to a 2009 safety study by a European regulatory group that gave it a clean bill of health.

But Red Bull’s Web site does not mention reports by that same group, the European Food Safety Authority, which concluded that claims about the benefits in energy drinks lacked scientific support. Based on those findings, the European Commission has refused to approve claims that taurine helps maintain mental function and heart health and reduces muscle fatigue.

Taurine, an amino acidlike substance that got its name because it was first found in the bile of bulls, does play a role in bodily functions, and recent research suggests it might help prevent heart attacks in women with high cholesterol. However, most people get more than adequate amounts from foods like meat, experts said. And researchers added that those with heart problems who may need supplements would find far better sources than energy drinks.

Hiroko Tabuchi contributed reporting from Tokyo and Poypiti Amatatham from Bangkok.

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Biogen Gives Up on Drug for Lou Gehrig’s Disease

A closely watched experimental drug to treat Lou Gehrig’s disease failed to work in a late-stage clinical trial, the drug’s developer, Biogen Idec, said Thursday. The company said it would discontinue further work on the drug.

Biogen said that the drug was not effective in either slowing the loss of muscular function or prolonging the lives of people with the disease, formally known as amyotrophic lateral sclerosis, or A.L.S.

There were also no signs that the drug, dexpramipexole, worked in any subgroup of patients, Biogen said.

“As a physician who has treated people with A.L.S., I hoped with all my heart for a different outcome,'’ Dr. Douglas Kerr, director of neurodegeneration clinical research at Biogen, said in a statement.

A.L.S., which attacks the nerves that control muscles, causes gradual paralysis and typically results in death within a few years of diagnosis. There are about 30,000 Americans with the disease.

There is only one drug approved to treat it, Rilutek, made by Sanofi, which doctors say has only modest effectiveness. Many other drugs have failed in clinical trials, in part because scientists do not understand the cause of A.L.S. and therefore do not know how to treat it.

While expectations had not been that high that dexpramipexole would succeed in its phase 3 trial, they were higher than for many previous A.L.S. drugs, given what some doctors viewed as strong results in a smaller, phase 2 trial.

“I’m more excited about this compound than any compound I’ve ever tested in A.L.S.,'’ Dr. Robert Miller, director of A.L.S. research at the California Pacific Medical Center in San Francisco, said in April on a call with investors hosted by Deutsche Bank. Patients getting the highest dose had an almost a 50 percent slower decline in muscular function than those receiving a placebo.

Biogen had licensed dexpramipexole from Knopp Biosciences, a privately held company in Pittsburgh. Biogen’s trial included 943 patients in 11 countries. The main measurement of success was a composite that took into account both deaths from the disease and the decline of functionality. Patients in the trial were allowed to take Rilutek.

Dr. Jeffrey D. Rothstein, director of the Brain Science Institute at Johns Hopkins University School of Medicine, said the results were disappointing but not surprising.

“We really, really need a new drug,'’ Dr. Rothstein, who was not involved in the phase 3 trial, said by e-mail. He said he thought the phase 2 results for dexpramipexole had been only “marginal,'’ so he was not surprised the latest trial did not succeed.

The reaction on Wall Street was somewhat muted because of the modest expectations for the trial to succeed. Biogen’s shares were down about 4 percent.

“We (and most of the Street) had characterized this trial as a high risk trial,'’ Mark Schoenebaum, an analyst at ISI Group, wrote in a research note Thursday.

Other companies are also developing drugs to treat A.L.S. Neuraltus Pharmaceuticals, a privately held company in Palo Alto, Calif., is preparing to enter the final stage of clinical trials for NP001.

The company announced in late October that its phase 2 trial, which involved 136 patients, failed to show a statistically significant benefit compared with a placebo. But the company said that 27 percent of patients getting the high dose of NP001 had no progression of their disease for six months, two and a half times as many as in the placebo group.

Cytokinetics, of South San Francisco, Calif., is in midstage testing of a compound, tirasemtiv, which might make muscles respond more forcefully to nerve signals.

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Ubuntu se mete en los celulares con un sistema operativo propio

Al igual que otras plataformas que buscan una convergencia entre el mundo móvil y la PC, Canonical confirmó el arribo de su sistema operativo Ubuntu a los dispositivos móviles. Disponible en una primera instancia como una instalación no oficial para la línea de smartphones Nexus 3, la versión de Linux utilizada en más de 20 millones busca posicionarse como una alternativa ante un mercado dominado por compañías como Apple y Google, junto a las propuestas de Microsoft con Windows Phone y Research in Motion con sus teléfonos BlackBerry.

La compañía dio un primer paso en febrero de 2012 con Ubuntu for Android , una distribución para “mejorar” el Android convencional.

La versión actual es un sistema operativo que sólo comparte con Android el uso de sus drivers (ambos están basados en Linux), pero no usa una máquina virtual Java, por lo que los 700.000 programas con las que cuenta Android no estarán disponibles directamente. Ubuntu tendrá su propia suite de aplicaciones, y permitirá la suma de nuevas que estén programadas en HTML5 o sean nativas.

Canonical también planea lanzar un teléfono de diseño propio que llegaría al mercado en 2014, pero no brindó mayores detalles sobre el fabricante involucrado. Los recientes cambios en la interfaz de Ubuntu, denominada Unity, marcaron una tendencia en la distribución hacia la interacción en pantallas sensibles al tacto, y este lanzamiento representa un primer paso de la distribución para ingresar en el mundo móvil de los smartphones y las tabletas.

Las prestaciones de una PC, en un dispositivo de bolsillo

Según Mark Shuttleworth, CEO de Canonical, en un principio esta versión de Ubuntu apunta a los entusiastas de la plataforma, pero con una rápida expansión hacia el resto de los usuarios. “Por primera vez en la historia los usuarios de los teléfonos celulares pueden tener las prestaciones completas que tiene en una PC, y tenemos una ventaja en esto”, dijo el ejecutivo.

Así lo explica Mark Shuttleworth en video, mostrando los gestos que permiten controlar Ubuntu móvil:

El concepto se asemeja a la modalidad presentada por Motorola con su teléfono Atrix , que se convertía en una PC al ser conectado en una base que servía de conexión con un monitor. A su vez, el móvil también podía ser utilizado como una notebook mediante un dispositivo denominado lapdock.

Aún no disponible para su descarga, la presentación formal de Ubuntu para teléfonos ante el público será en la feria Consumer Electronic Show de Las Vegas, en donde LA NACION estará presente para la cobertura de los primeros lanzamientos del año que realizará la industria.

En busca del podio móvil

Con los dispositivos basados en iOS y Android, varias compañías disputan ser la alternativa a las plataformas dominantes. Microsoft busca de la mano de Nokia posicionar a Windows Phone junto a fabricantes como HTC y Samsung. La compañía de Redmond también desea aprovechar la integración con Windows 8 para sacar provecho de su dominio en el mundo de las PC, un segmento en lento retroceso frente a los teléfonos inteligentes y tabletas.

En este punto, la integración entre las PC y los dispositivos móviles también forman parte de los objetivos de Apple, que replicó el exitoso modelo App Store en su línea de computadoras con Mac OS X, utilizado en el iPhone y la tableta iPad, mientras que Google mantiene su apuesta en su plataforma basada en la nube con servicios como Gmail y Drive, entre otros.

Por su parte, Research in Motion presentará su nueva plataforma BB10 , un demorado lanzamiento que tendrá lugar a fines de este mes y con el que busca recuperar el terreno perdido en los últimos años con un renovado teléfono móvil tactil basado en el sistema operativo QNX, utilizado en su tableta Playbook.

Dentro de este pelotón de contendientes también se encuentra Firefox OS , un competidor que más se asemeja a la filosofía de la plataforma de Canonical y que ofrece un sistema operativo basado en el navegador web de la fundación Mozilla. Cuenta con el apoyo de las principales operadoras de telecomunicaciones y apunta a contar con un teléfono de costo accesible para mercados emergentes.

Por su parte, un grupo de desarrolladores responsables de Meego, la plataforma utilizada por Nokia para el N9, se reunieron para presentar a Sailfish OS , un sistema operativo basado en Linux que se encuentra en una incipiente etapa de desarrollo y que planea tener también, al igual que Firefox OS y Ubuntu, un teléfono para mediados de este año.

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Dozens of Syrians Killed in Explosions Around Damascus

Andoni Lubaki/Associated Press

Rebel fighters patrol a neighborhood in Aleppo on Wednesday.

BEIRUT, Lebanon — Dozens of Syrians were killed or wounded in an explosion at a gas station east of Damascus, the Syrian capital, on Wednesday, and explosions in another Damascus suburb killed at least six people and wounded many more, including women and children, according to videos and reports from antigovernment activists.

The violence came as the United Nations released a study showing that more than 60,000 people had been killed in Syria’s 22-month-old conflict, a third higher than estimates by antigovernment activist groups.

Also on Wednesday, the family of James Foley, a reporter for the Global Post Web site, announced that Mr. Foley had been kidnapped on Nov. 22 by unidentified gunmen in northwest Syria. Mr. Foley had survived an abduction in Libya while covering the conflict there.

A recent flurry of diplomatic activity by Russia, the United Nations’ special envoy and others aimed at finding a political solution appeared to founder in recent days as neither Bashar al-Assad, the Syrian president, nor his opponents expressed a willingness to make concessions to end the bloody conflict.

The explosion near Damascus, which witnesses blamed on an airstrike, took place in a heavily contested suburban area. It hit a gas station where scores of people had lined up for fuel, which had just become available there after about a month, residents said. Videos posted by antigovernment activists showed charred bodies.

One man, using the nickname Abu Fuad, said in a telephone interview that he had just filled up his gas tank and was driving away when he heard the screech of fighter jets.

He was less than a quarter mile away when he heard the explosions, he said.

“There were many cars waiting their turn,” he said. “Yesterday, we heard that the government sent fuel to the gas station here, so all the people around came to fill up their cars.”

In a sign of the depth of distrust the conflict has spawned, Abu Fuad suggested that restocking the station was a government ruse. “They sent fuel as a trap,” he said.

In northern Syria, rebels used rockets to attack the Taftanaz military airport, a long-contested area in the province of Idlib, activists reported. Rebels have also stepped up attacks on airports in the neighboring province of Aleppo, trying to disrupt the warplanes and helicopters that government forces increasingly rely on for attacks, and even for supply lines, in the north.

The United Nations study suggested that the human toll of the war was even greater than previously estimated. Two days ago, the Syrian Observatory for Human Rights, a rebel group that tracks the war from Britain, reported 45,000 deaths, mostly civilian, since the conflict began in March 2011.

“The number of casualties is much higher than we expected, and is truly shocking,” the United Nations high commissioner for human rights, Navi Pillay, said in a statement after her agency released the study.

“We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends,” she added. To avoid repeating the experience of collapsed states like Afghanistan, Iraq and Somalia, she said, “serious planning needs to get under way immediately, not just to provide humanitarian aid to all those who need it, but to protect all Syrian citizens from extrajudicial reprisals and acts of revenge.”

The study’s surprisingly high death toll reflected only those killings in which victims had been identified by their full name, and the date and location of their death had been recorded, leaving the possibility of many more dead.

Independent researchers compiled reports of more than 147,000 killings in Syria’s conflict from seven sources, including the government. When duplicates were removed, there remained a list of 59,648 people killed between March 2011 and the end of November.

Meanwhile, John Foley, James Foley’s father, stressed that his son was an “objective journalist” and issued a plea to his captors to contact the family so that they can work for his release.

“We want Jim to come safely home, or at least we need to speak with him to know he’s O.K.,” John Foley said. “Jim is an objective journalist and we appeal for the release of Jim unharmed. To the people who have Jim, please contact us so we can work together toward his release.”

Hwaida Saad contributed reporting.

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Pa. governor sues NCAA over Penn State sanctions

STATE COLLEGE, Pa. (AP) — In a bold challenge to the NCAA's powers, Pennsylvania's governor claimed in a lawsuit Wednesday that college sports' governing body overstepped its authority and "piled on" when it penalized Penn State over the Jerry Sandusky child molestation scandal.

Gov. Tom Corbett asked that a federal judge throw out the sanctions, which include an unprecedented $60 million fine and a four-year ban on bowl games, arguing that the measures have harmed students, business owners and others who had nothing to do with Sandusky's crimes.

A small number of top NCAA officials inserted themselves "into an issue they had no authority to police under their own bylaws and one that was clearly being handled by the justice system," Corbett said at a news conference.

The case, filed under federal antitrust law, could define just how far the NCAA's authority extends. Up to now, the federal courts have allowed the organization broad powers to protect the integrity of college athletics.

In a statement, the NCAA said the lawsuit has no merit and called it an "affront" to Sandusky's victims.

Penn State said it had no role in the lawsuit. In fact, it agreed not to sue as part of the deal with the NCAA accepting the sanctions, which were imposed in July after an investigation found that football coach Joe Paterno and other top officials hushed up sexual-abuse allegations against Sandusky, a former member of Paterno's staff, for more than a decade for fear of bad publicity.

The penalties include a cut in the number of football scholarships the university can award and a rewriting of the record books to erase 14 years of victories under Paterno, who was fired when the scandal broke in 2011 and died of lung cancer a short time later.

The lawsuit represents a reversal by the governor. When Penn State's president consented to the sanctions last summer, Corbett, a member of the Board of Trustees, embraced them as part of the university's effort to repair the damage from the scandal.

Corbett said he waited until now to sue over the "harsh penalties" because he wanted to thoroughly research the legal issues and did not want to interfere with the football season.

The deal with the NCAA has been unpopular with many fans, students and alumni. Corbett, who is up for re-election next year, deflected a question about whether his response has helped or hurt him politically.

"We're not going to get into the politics of this," he said.

An alumni group, Penn Staters for Responsible Stewardship, applauded the lawsuit but said Corbett should have asked questions when the NCAA agreement was made.

"If he disapproved of the terms of the NCAA consent decree, or if he thought there was something illegal about them, why didn't he exercise his duty to act long before now?" the group said.

Paterno's family members said in a statement that they were encouraged by the lawsuit. Corbett "now realizes, as do many others, that there was an inexcusable rush to judgment," they said.

Corbett's lawsuit accuses the NCAA of cynically exploiting the Sandusky case, saying its real motives were to "gain leverage in the court of public opinion, boost the reputation and power of the NCAA's president" and "enhance the competitive position of certain NCAA members." It said the NCAA has not cited a rule that Penn State broke.

Corbett charged that the NCAA violated the Sherman Antitrust Act, which prohibits agreements that restrain interstate commerce. Legal experts called it an unusual case whose outcome is difficult to predict.

The NCAA has faced antitrust litigation before, with a mixed record of success. In 1984, the Supreme Court ruled against the NCAA's exclusive control over televised college football games. And in 1998, the Supreme Court let stand a ruling that said the NCAA's salary cap for some assistant coaches was unlawful price-fixing.

But federal courts have consistently rejected antitrust challenges to NCAA rules and enforcement actions designed to preserve competitive balance, academic integrity and amateurism in college athletics.

In this case, the courts might not be as sympathetic to the NCAA, said Matthew Mitten, director of the National Sports Law Institute at Marquette University Law School.

"It's difficult to justify the sanctions as necessary to protect the amateur nature of college sports, preserve competitive balance or maintain academic integrity," he said.

Joseph Bauer, an antitrust expert at the University of Notre Dame law school, said of Corbett's line of reasoning: "I don't think it's an easy claim for them to make, but it's certainly a viable claim."

Sandusky, 68, was convicted in June of sexually abusing 10 boys over a 15-year period, some of them on Penn State's campus. He is a serving a 30- to 60-year prison sentence.

Michael Boni, a lawyer for one of the victims, said he does not consider the lawsuit an affront. But he said he hopes Corbett takes a leading role in pushing for changes to state child-abuse laws.

"I really question who he's concerned about in this state," Boni said.

Michael Desmond, a businessman who appeared with Corbett at the news conference, said business at his five State College eating establishments was down about 10 percent during Penn State home game weekends this year.

"The governor's actions are going to be immensely popular with all Penn State alumni," Desmond said.

Corbett, a Republican, said his office did not coordinate its legal strategy with state Attorney General-elect Kathleen Kane, who is scheduled to be sworn in Jan. 15. Instead, the current attorney general, Linda Kelly, granted the governor authority to pursue the matter.

Kane, a Democrat, ran on a vow to investigate why it took prosecutors nearly three years to charge Sandusky. Corbett was attorney general when his office took over the case in 2009.

Kane had no comment on the lawsuit because she was not consulted about it by Corbett's office.

State and congressional lawmakers have objected to use of the NCAA fine to finance child-abuse prevention efforts in other states. Penn State has already made the first $12 million payment, and an NCAA task force is deciding how it should be spent.

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Associated Press writers Peter Jackson in Harrisburg, Pa., and Michael Rubinkam contributed.

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Employers Must Offer Family Health Care, Affordable or Not, Administration Says

WASHINGTON — In a long-awaited interpretation of the new health care law, the Obama administration said Monday that employers must offer health insurance to employees and their children, but will not be subject to any penalties if family coverage is unaffordable to workers.

The requirement for employers to provide health benefits to employees is a cornerstone of the new law, but the new rules proposed by the Internal Revenue Service said that employers’ obligation was to provide affordable insurance to cover their full-time employees. The rules offer no guarantee of affordable insurance for a worker’s children or spouse. To avoid a possible tax penalty, the government said, employers with 50 or more full-time employees must offer affordable coverage to those employees. But, it said, the meaning of “affordable” depends entirely on the cost of individual coverage for the employee, what the worker would pay for “self-only coverage.”

The new rules, to be published in the Federal Register, create a strong incentive for employers to put money into insurance for their employees rather than dependents. It is unclear whether the spouse and children of an employee will be able to obtain federal subsidies to help them buy coverage — separate from the employee — through insurance exchanges being established in every state. The administration explicitly reserved judgment on that question, which could affect millions of people in families with low and moderate incomes.

Many employers provide family coverage to full-time employees, but many do not. Family coverage is much more expensive, and the employee’s share of the premium is typically much larger.

In 2012, according to an annual survey by the Kaiser Family Foundation, premiums for employer-sponsored health insurance averaged $5,615 a year for single coverage and $15,745 for family coverage. The employee’s share of the premium averaged $951 for individual coverage and more than four times as much, $4,316, for family coverage.

Starting in 2014, most Americans will be required to have health insurance. Low- and middle-income people can get tax credits to help pay their premiums, unless they have access to affordable coverage from an employer.

In its proposal, the Internal Revenue Service said, “Coverage for an employee under an employer-sponsored plan is affordable if the employee’s required contribution for self-only coverage does not exceed 9.5 percent of the employee’s household income.”

The rules, though labeled a proposal, are more significant than most proposed regulations. The Internal Revenue Service said employers could rely on them in making plans for 2014.

In writing the law, members of Congress often conjured up a picture of employees working year-round at full-time jobs. But in drafting the rules, the I.R.S. wrestled with the complex reality of part-time, seasonal and temporary workers.

In addition, the administration expressed concern that some employers might try to evade the new requirements by firing and rehiring employees, manipulating their work hours or using temporary staffing agencies. The rules include several provisions to prevent such abuse.

The law says an employer with 50 or more full-time employees may be subject to a tax penalty if it fails to offer coverage to “its full-time employees (and their dependents).”

Employers asked for guidance, and the Obama administration provided it, saying that a dependent is an employee’s child under the age of 26.

“Dependent does not include the spouse of an employee,” the proposed rules say.

Thus, employers must offer coverage to children of an employee, but do not have to make it affordable. And they do not have to offer coverage at all to the spouse of an employee.

The administration said that the rules — which apply to private businesses, nonprofit organizations and state and local government agencies — would require changes at many work sites.

“A number of employers currently offer coverage only to their employees, and not to dependents,” the I.R.S. said. “For these employers, expanding their health plans to add dependent coverage will require substantial revisions to their plans.”

In view of this challenge, the agency said it would grant a one-time reprieve to employers who fail to offer coverage to dependents of full-time employees, provided they take steps in 2014 to come into compliance. Under the rules, employers must offer coverage to employees in 2014 and must offer coverage to dependents as well, starting in 2015.

The new rules apply to employers that have at least 50 full-time employees or an equivalent combination of full-time and part-time employees. A full-time employee is a person employed on average at least 30 hours a week. And 100 half-time employees are considered equivalent to 50 full-time employees.

Thus, the government said, an employer will be subject to the new requirement if it has 40 full-time employees working 30 hours a week and 20 half-time employees working 15 hours a week.

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It's the Economy: What Will the Economy’s New ‘Normal’ Look Like in 2013?

Illustration by Jasper Rietman

Back in the mid-2000s, the U.S. consumer economy was undergoing a serious change. After decades of favoring low prices (even when they promised low quality), consumers began paying more for all sorts of premium features like single-serve packaging and pretty much anything “green” or “organic.” Then came the financial crisis and the drop in consumer demand.

Deep thoughts this week:

1. Consumption is back.

2. But many buying habits are changing.

3. Regardless, the habits of the U.S. middle class are becoming less important.

It’s the Economy

Adam Davidson translates often confusing and sometimes terrifying economic and financial news.

Despite a worse-than-expected holiday season, the Federal Reserve forecast that G.D.P. growth would approach the historic average of about 3 percent in 2013. The economy may be coming back, but the question for many businesses is what the new “normal” looks like. Will shoppers spend as they did in the credit-bubble years? Or has the Great Recession scared them into prolonged stinginess? Early evidence suggests a mix. What is clear is that the big changes are just beginning.

Waste More, Want More

From the 1970s through the 1990s, the dominant retail trend was toward cheap and big: shoppers drove long distances to buy large boxes of everything they needed in bulk. Starting in the last decade, though, this began to change. And the success of products like Tide Pods (premeasured balls of detergent that made Procter & Gamble an estimated $500 million last year) suggest that the era of premium conveniences isn’t going anywhere.

Somewhat counterintuitively, this trend is directly related to the downturn, says John N. Frank, an analyst at Mintel, a market-research firm. Fearful of losing their jobs, millions of workers coped with the crisis by putting in more time at the office — “doing at least two people’s jobs,” Frank says — even if it meant less time to shop for deals. Dollar General saw tremendous growth as a more convenient alternative to Sam’s Club. Duane Reade, now owned by Walgreen, is proving that no block in Manhattan should be without a drugstore that also carries basic grocery items at an upcharge. Frank says he expects that anxious, overtired workers will drive this trend well into this decade, too.

Housing Is Back

Now that at least one million households are looking to move somewhere better, investors are looking to buy houses on the cheap — not to flip, but to rent. (The Blackstone Group, the private-equity colossus, has spent more than $1 billion this year buying up thousands of single-family homes around the country.) New residential construction starts also came back strong last year, and much of the growth was from multiunit apartment buildings designed, yes, for renting.

Despite the fact that homeownership has been promoted as a universal economic good since the Depression, the trend toward rentals might be a good one. Renters are more able to follow the job market. Renting, as the housing bubble revealed, benefits the overall recovery, because fewer people have their money tied up in one asset.

Not Your Father’s Oldsmobile

In 2012, the average life of a car in the United States reached a historic high of 11.2 years. This was tied to the collapse of new-car sales during the recession, but it was also driven by several long-term shifts. After steady increases for decades, Americans are driving less. Total miles driven in the United States hit 3 trillion for the first time in 2006. It went up even further in 2007 but has generally fallen since.

For the first time in nine decades, according to census data, walkable cities are growing faster than suburbs. And wherever people happen to move, they are buying smaller, more fuel-efficient cars. Large- and some luxury-car segments are falling, says Tom Libby, an automotive research analyst at Polk, and the cheaper subcompact and emerging sub-subcompact classes are growing. All this means that autos — one of the biggest industries in the United States — will not soon regain the explosive growth of the early 2000s.

Debt and Taxes

In 2008, Americans owed a collective $12.7 trillion. Today, thanks in part to mortgage defaults, we are down to $11.3 trillion, which is about 95 percent of our disposable income. That’s progress, but it’s still higher than the 88 percent we owed 10 years ago.

Additional reporting by Jacob Goldstein

Adam Davidson is co-founder of NPR’s “Planet Money,” a podcast and blog.

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