McAfee, EMC team up vs Symantec in online backup

McAfee Inc, the No. 2 computer security company, plans to team up with EMC Corp to offer online PC backup services, and announced the acquisition of a company that protects ATMs against hackers.

The company plans to offer consumers unlimited Web-based backup for personal computers with EMC Corp's Mozy division for $50 to $60 a year, Executive Vice President Todd Gebhart said at a McAfee's analyst meeting on Friday.

Earlier in the day, McAfee said it would pay $33 million to buy Cupertino, California-based SolidCore Systems Inc, adding products that help companies protect ATMs, cash registers and other point-of-sale systems used by retailers, along with multifunction printers and other specialized computer devices.

It would pay another $14 million if SolidCore's business meets certain financial targets.

SolidCore's products are used by more than 100 financial institutions and in more than 15,000 retail stores, McAfee said.

McAfee Chief Executive Dave DeWalt said he would continue to look to make small- and mid-sized acquisitions of products that the company can cross-sell with existing products.

"I think people here would expect three or four more things like SolidCore," said Cowen & Co analyst Walter Pritchard.

McAfee said it expects the acquisition of SolidCore to be slightly dilutive to profit, excluding items, in the current quarter, ending June 30, which is when it expects the deal to close.

The company plans to introduce the PC backup service in the second half of the year, making it a late player into a market dominated by bigger rival Symantec Corp, its partner EMC and privately held Carbonite.

A few years ago McAfee beta tested a backup service that it hoped to launch, but ditched plans to bring that to market.

DeWalt reiterated his comments from a Thursday interview with Reuters, saying that business had improved in May from April. "So far, good pace. We are on a roll here," DeWalt said.

Shares in Santa Clara, California-based McAfee rose 27 cents, or 0.7 percent, to $38.30, while the Nasdaq Composite Index was little changed.

Google Pulls Trademark Restrictions for U.S. Ads

Google is loosening its grip on trademarks included in advertisements through its AdWords service. The search giant said Thursday it will allow companies to place the terms of a trademark in the copy of text advertisements.

"Under this policy change, advertisers will be able to create more specific, less generic ad copy targeted to narrowly tailored landing pages," said Deanna Yick, a Google spokesperson. "Users and consumers shopping online will have more options and relevant choices."

The move will bring Google's policy on the use of trademarks in ad text more in line with the industry standard, according to Dan Friedman, a representative from Google's Inside AdWords team, in an official blog post.

Companies with certain criteria will be able to use trademark terms in ad text in the U.S. even if the company doesn't own the trademark or doesn't have approval from the trademark owner.

"For example, under our old policy, a site that sells several brands of athletic shoes may not have been able to highlight the actual brands that they sell in their ad text," Friedman said. "However, under our new policy, that advertiser can create specific ads for each of the brands that they sell."

In Hot Water

While Google says it's doing companies and users a favor, brand advertisers may think otherwise.

Google's move may land the company in more hot water and put the company on the defense against potential trademark lawsuits similar to one already filed against the company.

On Monday, FPX LLC, also known as Firepond, filed a class-action complaint against Google for using trademarks it owns, including Firepond and Firepond CSQ.

In court documents, Firepond says it has suffered and has been injured in its business and property and the damage it has suffered is both economic and non-economic in nature.

"Google's change in policy is further indication of the company's failure to honor and respect the right of federally registered trademark owners," said Scott Kline of Andrews Kurth LLP, one of the law firms representing Firepond. "Even competitors Yahoo and MSN are willing to take down infringing links upon notification of a federally registered trademark. We are disappointed by the change in policy, but believe it only serves to strengthen our client's claims."

Move Is Pro-Consumer

Others, however, believe the move by Google is pro-consumer. The Computer & Communication Industry Association said Google's change will be good for consumers.

The change aligns Google's policy more closely with current industry standards on sponsored search text, said CCIA counsel Matthew Schruers. "By allowing ad text to make references to others' trademarks -- a practice permitted and encouraged by trademark law -- Google's new policy will improve consumers' ability to find products online and to obtain better information about the products they want to buy," he said.

Paul Levy, counsel for Public Citizen, a Washington, D.C.-based nonprofit public-interest organization, said it's a modest step in the right direction.

"Generally speaking, it seems to me that modifying their procedure so that it is easier for those that have information to communicate to consumers that they have Web sites in which they may be interested, enabling them to communicate more truthful information about what is in those Web sites, is a good thing," Levy said.

"I would also say that I'm particularly glad Google is not in retreating but rather is moving forward with the AdWords program that provides potential for increased competition for comparable goods and services," Levy added. "My regret is that they are not allowing use of keywords for direct-competitor ads."