Apple Magazine 20150522

Q&A: DEEZER CEO SEES
BIG UPSIDE FOR MUSIC

STREAMING
82
APPLE HAILED AS WORLDS GREENEST

BIG TECH COMPANY
56
B.B. KING: 1925-2015
SCIENCE: GREAT WHITE

SHARK CRUISING EAST COAST
BECOMES TWITTER STAR
24
110
LATEST SELF-DRIVING GOOGLE CAR HEADING TO PUBLIC STREETS 06
PRYING PARENTS: PHONE MONITORING APPS FLOURISH IN S. KOREA 16
TRADING IN BITCOIN MADE SIMPLER THROUGH NEW EXCHANGE 48
APPLE UPDATES MACBOOK PRO, CUTS PRICE ON HIGH-END iMAC 54
NOT YOUR MAS BELL: AT&T EVOLVES BEYOND PHONES 74
HEALTH: INSIDE WASHINGTON: HEALTH LAW TAX PASSED ALONG TO STATES 122
LUXURY FASHION BRANDS ACCUSE ALIBABA OF PROFITING FROM FAKES 140
COURT AGREES SAMSUNG COPIED APPLE, BUT REDUCES DAMAGE AWARD 148
88
iTUNES REVIEW 92
TOP 10 SONGS 130
TOP 10 ALBUMS 132
TOP 10 MUSIC VIDEOS 134
TOP 10 TV SHOWS 136
TOP 10 BOOKS 138
TOP 10 APPS
LATEST SELFDRIVING GOOGLE

CAR HEADING TO
PUBLIC STREETS
The latest version of Googles self-driving car - a

pod-like two-seater that needs no gas pedal or
steering wheel - will make its debut on public
roads this summer, a significant step in the
technology giants mission to have driverless cars
available to consumers in the next five years.
This prototype is the first vehicle built from
scratch for the purpose of self-driving, Google
says. It looks like a Smart car with a shiny black
bowler hat to hide its sensors, and it can drive,
brake and recognize road hazards without human

intervention. It has more capabilities than the
prototype Google introduced last May, which was
so rudimentary it had fake headlights.
The new pod isnt designed for a long trip, or a
joyride. It lacks air bags and other federally required
safety features, so it cant go more than 25 miles
per hour. Its electric, and has to be recharged after
80 miles. And the pod can only drive in areas that
have been thoroughly mapped by Google.
At first, it will likely even have a steering wheel
and gas pedal - current California regulations
require them. Those regulations also require a
driver to be able to take back control of the car
at any time. But Google is lobbying for more
flexible regulations.
Google will initially build and test 25 pods,
mostly in neighborhoods surrounding its
Mountain View headquarters. It will eventually
build between 50 and 100, and will broaden
testing to sites that are hillier and rainier.
The ultimate goal, says Google co-founder
Sergey Brin, is computer-controlled cars that
can eliminate human error, which is a factor in
an estimated 90 percent of the 1.2 million road
deaths that occur worldwide each year. Selfdriving cars could also improve traffic congestion
and transport the elderly and disabled.
Google shocked the auto industry in 2010 with
its announcement that it was working on a
driverless car. Brin insists Google doesnt aspire
to be a car company, but wants its technology to
be adopted by automakers.
We want to partner to bring self-driving to all
the vehicles in the world, Brin told a group of
journalists and community members gathered
earlier this week to take rides in the prototype.
For now the traditional automakers are pursuing
their own self-driving technology, but with less
ambitious timeline of 10 to 15 years for a truly
driverless car.
Chris Urmson, who directs Googles self-driving

car project, says the slow-moving, friendly looking
prototype - his young son thinks it looks like a
koala because of the nose-like black laser on the
front - is a good bridge between the companys
current test fleet of 20 specially outfitted Lexus
SUVs and the more advanced, higher-speed
driverless cars of its future, which might not even
look like anything on the road today.
This vehicle is really all about us learning. This
vehicle could go on a freeway, but when we
think about introducing the technology, we want
to do that very thoughtfully and very safely,
Urmson says.
Convincing drivers that driverless technology
is safe is one of the hurdles the company must
overcome. Earlier this week, in response to
questions from The Associated Press, Google
acknowledged 11 minor accidents in the six years
it has been testing autonomous cars. Urmson says
the company is proud of that record, and notes
that Googles vehicles have completed more than
1.7 million miles of testing. He says all but one
of the accidents were caused by drivers in other
cars; in the only incident caused by a Google car, a
staffer was driving in manual mode.
Consumers question whether they can trust selfdriving cars to work all the time, who will be liable
if theres an accident and how self-driving cars will
interact with regular cars, says the consulting firm
J.D. Power and Associates. In a 2013 survey of
U.S. drivers, J.D. Power found only one in five was
interested in a fully autonomous car.
Urmson says Google needs to do a better job of
educating people about self-driving technology
and updating them on Googles progress. Its
building a Web site to teach people about the
technology, and the site will feature a monthly
report that will include details of any accidents
involving Google cars. The site will also have a
section where people can send feedback when
they interact with the cars.
10
11
The prototype cars - assembled in suburban

Detroit by Roush Industries - have the same
array of radars, lasers and cameras as Googles
fleet of Lexus SUVs, which allows them to share
data. If one cars camera spots orange cones and
construction signs, for example, it will alert all
the others to slow down in that area or reroute
around a lane closure.
Dmitri Dolgov, the head of software for the
self-driving car project, says Googles software
has gotten much better over the last year at
classifying objects, like trees and mailboxes, and
predicting behavior of pedestrians and other cars.
For example, Googles cars will slow down if they
sense that a car in the next lane is speeding up
to cut in front of them. And in one recent test, a
Google car paused when a cyclist ran a red light.
Another car, driven by a human, went ahead and
nearly hit the cyclist.
The system isnt perfect. On a test drive, one
of Googles Lexus SUVs seemed momentarily
confused when a mail truck partially blocked
its path. Later, during a demonstration drive in
Googles parking lot, the prototype - without a
wheel or pedal - braked when it spotted a row of
folding chairs. It had to figure out that the chairs
wouldnt move before it proceeded.
Dolgov says its impossible to predict everything
its test cars might see, so theyre programmed
to act in the most conservative way when they
confront something unusual, like the time a
Google SUV stopped and waited while a woman
in a wheelchair chased a duck with a broom.
Google isnt alone in developing self-driving cars.
Mercedes-Benz, Infiniti and other brands already
have advanced driver assistance systems, like lane
keeping and adaptive cruise control, that can pilot
the car on the highway with minimal input from
the driver. Unlike Google, automakers think selfdriving cars will arrive feature-by-feature instead
of all at once, giving people plenty of time to
adapt to autonomous driving.
12
13
14
But Urmson says that approach is

fundamentally wrong.
We believe thats like saying, `If I work really hard
at jumping, one day Ill just be able to fly, he said.
Egil Juliussen, the principal analyst of infotainment
and advanced driver assist systems for the
consulting firm IHS Automotive, says Googles
moon shot strategy is difficult and riskier than
just adding features to existing cars. But he thinks
it could ultimately be successful. Google could
make self-driving urban pods for universities or
urban centers, for example, or sell its technology
to automakers.
Brin says the company is still refining its plans
for self-driving cars, but hes excited about their
potential.
Our goal is to create something safer than human
drivers, he said.
15
16
PRYING PARENTS: PHONE MONITORING

APPS FLOURISH IN S. KOREA
17
Lee Chang-june can be miles from his 12-year-old

son but still know when he plays a smartphone
game. With the press of an app he can see his
sons phone activity, disable apps or totally shut
down the smartphone.
The app, Smart Sheriff, was funded by the South
Korean government primarily to block access to
pornography and other offensive content online.
But its features go well beyond that.
Smart Sheriff and at least 14 other apps allow
parents to monitor how long their kids use their
smartphones, how many times they use apps
and which websites they visit. Some send a childs
location data to parents and issue an alert when
a child searches keywords such as suicide,
pregnancy and bully or receives messages
with those words.
In South Korea, the apps have been downloaded
at least 480,000 times.
The number will likely go up. Last month, South
Koreas Korea Communications Commission,
which has sweeping powers covering the
telecommunications industry, required telecoms
companies and parents to ensure Smart Sheriff
or one of the other monitoring apps is installed
when anyone aged 18 years or under gets a
new smartphone. The measure doesnt apply
to old smartphones but most schools sent out
letters to parents encouraging them to install the
software anyway.
Many countries have safety filtering tools for the
Internet but it is rare to enforce them by law.
Japan enacted a law in 2009 but unlike South
Korea it allows parents to opt out.
South Koreas new system is by no means
impervious. For one, it can only be fully applied
to Android phones not Apple Inc. phones. But
cybersecurity experts and Internet advocacy
groups argue the monitoring infringes too far on
privacy and free speech. Some warn it will produce
a generation inured to intrusive surveillance.
18
19
20
It is the same as installing a surveillance camera

in teenagers smartphones, said Kim Kha Yeun,
a general counsel at Open Net Korea, a nonprofit
organization that is appealing the regulators
ordinance to South Koreas Constitutional
Court. We are going to raise people who are
accustomed to surveillance.
South Korea, one of the Asias richest nations,
is crisscrossed by cheap fast Internet and
smartphone use is ubiquitous. Many Koreans get
their first smartphone when they are young. Eight
out of 10 South Koreans aged 18 and below own
a smartphone, according to government data.
Some 72 percent of elementary school students
owned a smartphone in 2013, a jump from 20
percent in 2011.
How technology is affecting the young has
become a national obsession. The government
and parent groups have pushed numerous
initiatives to limit device and Internet use as
well as prevent excessive gaming. Many parents
welcome the ability to peer inside their childrens
online world.
Lee, who worked in the online game industry
for nearly a decade, said that having a control
over his sons smartphone has been positive and
increased dialogue in the family. His son plays a
mobile game about two hours on weekends. If he
wants to play a mobile game outside those hours,
he comes up to dad and talks about why.
What is important is that parents and children talk
to each other and try to build consensus. He is only
in a sixth grade but he wants to have his privacy, Lee
said. I told him: We are installing this and father will
know which app you use, he said. I see it as positive
in helping nurture his habit of self-control.
Legal experts, however, say South Koreas
telecoms regulator has taken the sweeping step
of legalizing the broad collection of personal,
sensitive data that belongs to teenagers without
any public consultation or consideration of the
possible consequences.
21
South Korea underestimated the chilling effect,

said Kang Jeong-Soo, director at Institute for the
Digital Society.
Cyber security experts also warn that the apps
could be misused and installed on phones without
the owners knowledge.
It could be an official spying app, said Ryu Jongmyeong, CEO of SoTIS, a cyber security company.
To get around the regulations, some students
say they will wait until they turn 19 to get a
new phone.
Id rather not buy a phone, said Paik Hyunsuk,
17. Its violation of students privacy and
oppressing freedom.
Cho Jaehyun, a senior year high school student,
had to install a parental control app when he was
in middle school. But he said he was lucky that
his parents agreed to uninstall the app when he
entered high school.
We dont always use the smartphone for
something bad, said Cho, 17. Because I could use
my phone freely without control, I got interested
in developing iPhone games.
Not all parents are on board either.
Park Choel-hee, father of a 10-year-old daughter,
said South Korea resorts too much to regulation
and makes senseless choices about what
content is offensive.
A few officials arbitrarily determine which
websites are harmful and unilaterally shut them
off. They rob the rights of Internet users. It is no
different from the Great Fire Wall of China.
Park, who gave his daughter his second phone
so she didnt have to release her personal
information to mobile carriers, said he feels
uncomfortable that his child is growing up in a
society of prying eyes.
Children will not have an ability to think for
themselves, he said.
22
23
24
25
THE KING OF THE BLUES NOW

PLAYING IN THE ETERNITY
When it was confirmed that the man born
Riley B. King in 1920s Mississippi had passed
away in Las Vegas after a career that had
taken him into the American Hall of Fame and
the hearts of millions upon millions of music
fans, it wasn't just a great singer, songwriter
and guitarist who had been lost. It was no
one less than one of the all-time trailblazing
guitarists, with a legacy and influence
stretching well beyond his dominant stature in
the blues.
If one wished to have some indication of the
immense regard in which B.B. King was held,
even if they had never heard a recording of
his, they would only need to read some of
the copious tributes that followed the news
of his death from diabetes complications on
May 14th.
Praise came from the very top - namely
President Barrack Obama, who said that there
would be "one killer blues session in heaven
tonight. The blues has lost its king, and
America has lost a legend. No one worked
harder than BB. No one inspired more upand-coming artists."
26
27
OTHER WELL-DESERVED PRAISE

FROM PEERS
Plenty more important public figures and
music legends queued up to pay handsome
tribute to a man who proved more than
deserving of it across his many decades
in the business. Eric Clapton, for instance,
who was among a long line of celebrated
guitarists in their own right to have been
influenced by King, posted a Facebook
video tribute to someone he described as a
"dear friend".
Similar sentiments were expressed by exBeatle Ringo Starr, who tweeted: "God bless
28
BB King peace and love to his family Ringo

and Barbarax." Other responses on the microblogging site included from Bryan Adams,
who said that he was "one of the best blues
guitarists ever, maybe the best", and Lenny
Kravitz, with his comment that "anyone could
play a thousand notes and never say what
you said in one."
But what is it that so attracted the open
admiration of not only such musicians as
Chuck D, Slash, Edwyn Collins and Gene
Simmons, but also the many non-musicians
who spoke in honor of him, such as Samuel L
Jackson and Hugh Laurie?
Image: Valentin Flauraud
29
30
Image: AP Photo/Rogelio V. Solis
31
32
WHAT MADE B.B. KING SO GREAT

On one level, it could simply be said that B.B.
King was an supremely accomplished master
of the arts of the blues, R&B, electric blues
and blues rock. His hard work and aptitude in
his craft over a career spanning the 1940s to
the 2010s earned him a place in the Rock and
Roll Hall of Fame in 1987, while when Rolling
Stone compiled a list of the 100 greatest
guitarists of all time - in 2003 and 2011 - King
ranked in the top six on both occasions.
King was also awarded honors by President
George H.W. Bush and his son, President
George W. Bush - the National Medal of Arts
and the Presidential Medal of Freedom in
1990 and 2006 respectively. Nor could one
understate his astonishing work rate - he was
still performing at an average of more than
200 concerts annually into his 70s, with 1956
being an especially a busy year - when it was
said that he appeared at 342 shows.
But King stood for so much more than
simply racking up the accolades and concert
appearances. This is a man, after all, in the
words of The New York Times writer Tim
Weiner, "whose world-weary voice and
wailing guitar lifted him from the cotton
fields of Mississippi to a global stage and the
apex of American blues".
Image: Scott Wu
33
34
A LEGEND IN MORE WAYS THAN ONE

Weiner added that "Mr. King married country
blues to big-city rhythms and created a sound
instantly recognizable to millions: a stinging
guitar with a shimmering vibrato, notes that
coiled and leapt like an animal, and a voice
that groaned and bent with the weight of lust,
longing and lost love."
Central to King's magic as a performer was
his sophisticated soloing style that combined
fluid string bending with a shimmering vibrato
that caused almost every subsequent electric
blues guitarist to sit up and take note. The
effect was amplified on stage by singing,
hand movements and facial expressions that
signified the full extent of his suffering.
35
36
King knew exactly what he was doing,

commenting in his 1996 autobiography, Blues
All Around Me, that "I wanted to connect
my guitar to human emotions". The music
historian Peter Guralnick once observed that
"the urbanity of his playing, the absorption
of a multiplicity of influences, not simply
from the blues, along with a graciousness
of manner and willingness to adapt to new
audiences" helped to expand the range of
listeners to the blues genre.
37
38
WHERE IT ALL BEGAN...

Riley B. King was born on September 16,
1925, the son of sharecroppers Albert and
Nora Ella King. His first few years of life were
spent on a cotton plantation near Berclair,
close to the Mississippi town of Itta Bena,
although his mother leaving his father for
another man when he was four years old led
to the boy being raised elsewhere in the state
in Kilmichael, with his maternal grandmother.
It was here where the young King sang in
the gospel choir at Elkhorn Baptist Church
and eventually acquired his first guitar,
although there are conflicting claims as to
how this occurred. He soon began teaching
himself the instrument, while being
influenced by the Mississippi Delta blues
on the radio show King Biscuit Time, which
first aired in November 1941. He was still
working at a plantation at this point, but
would listen to it during his break.
By 1943, the time had come for King to
leave Kilmichael, as he found work as a
tractor driver and flaunted his burgeoning
skills as a guitarist with the Famous St.
John's Quartet of the Mississippi town of
Inverness. This gave him exposure at area
churches and on the Greenwood radio
station of WGRM. The following years saw
stays in Memphis in Tennessee - where
he was taken in by Bukka White - and
West Memphis, Arkansas, the latter giving
him the chance to appear on Sonny Boy
Williamson's radio program and begin
developing an audience.
39
40
Image: Larry Busacca
41
RISE TO IMMORTAL STATUS

King later secured a 10 minute spot on
the Memphis radio station WDIA, where
he worked as a singer and disc jockey and
developed the name by which he would be
eventually known by the world. Initially, he
was nicknamed "Beale Street Blues Boy",
this being subsequently shortened to "Blues
Boy" and eventually, just "B.B." Meeting
and hearing T-Bone Walker for the first time
during this period convinced him to acquire
an electric guitar - a decision that would prove
momentous in the history of popular music.
By the end of the 1940s, King had begun to
record songs, initially for RPM Records in
Los Angeles, and with Sam Phillips often on
production duties. He assembled his own
band, led by Millard Lee, and toured across
the United States, taking in both major city
theaters and gigs in the smaller clubs and juke
joints in the south.
He hit number one on the Billboard Rhythm
and Blues charts for the first time with "3
O'Clock Blues" in February 1952, and by the
end of that decade, had become one of the
most important figures in R&B, with such
other hits as "You Know I Love You", "Woke
Up This Morning", "Whole Lotta Love",
"Every Day I Have the Blues" and "Sweet
Little Angel". But he didn't record his bestknown song until 1969, the minor-key blues
number "The Thrill Is Gone" winning him a
Grammy Award.
Throughout the subsequent decades, King
sustained a very visible recording and touring
42
43
career, influencing rock gods like the Rolling

Stones - for whom he was an opening act on
their 1969 American Tour - and Eric Clapton,
who he teamed up with to record the blues
album Riding with the King in 2000. Although
he embarked on what was supposed to
have been a 'farewell' world tour in 2006, he
remained active until ill health finally took him
off stage for the last time in late 2014.
A HERO, NEVER FORGOTTEN

King may be gone, but he will never be
forgotten, survived not only by his many
children and grandchildren but also by a
golden legacy in music. There have been, and
will continue to be many imitators, but no
one will ever replace the man who was justly
hailed "The King of the Blues".
by Benjamin Kerry & Gavin Lenaghan
44
45
46
Image: Valentin Flauraud
47
48
TRADING IN
BITCOIN MADE
SIMPLER THROUGH
NEW EXCHANGE
Investors can for the first time bet on the value of

bitcoins through an established stock exchange
after Nasdaq launched an index based on the
cybercurrency in Stockholm, Sweden.
Mondays launch of a bitcoin-based security on
the Stockholm Stock Exchange allows investors
to speculate on bitcoins value without actually
owning the cybercurrency. It makes it easier to
trade on the currencys value without having to go
through websites and online exchanges that may
or may not be safe.
Here are some questions and answers on the
system.
49
WHAT IS A BITCOIN?
Bitcoins are a virtual currency that can be used
to buy and sell some goods and services without
government-issued money. They also allow
people to conduct transactions anonymously,
making it difficult to regulate and opening up
the possibility of operating unlicensed bitcoin
exchanges. The cybercurrency is created by
computers that are used to resolve complex
algorithmic formulas.
HOW DOES THIS NEW INDEX WORK?

A financial firm called XBT Provider got approval
last month from Swedish regulators to offer shares
for Bitcoin Tracker One, a certificate whose value is
based on the price of bitcoins on world markets.
The value of these shares is based on 0.5 percent
of the global value of a bitcoin as traded on major
online bitcoin exchanges.
The shares price opened Monday at 9.69 kronor
($1.18) and closed at 9.73 kronor, with more than
1.8 million shares traded on the first day.
XBT Provider spokesman Johan Wattenstrom
said the company wants to make it extremely
accessible to invest in bitcoins.
50
51
52
WHY BUY BITCOIN SHARES?

Investors are able to speculate on the value
of bitcoins without actually buying the virtual
currency, providing an easy and secure way
to invest in bitcoins outside the volatile spot
exchanges and shady websites.
It gives an alternative to traditional investors who
believe the value of the bitcoin will increase but
dont want to hold the currency.
XBT Provider CEO Alexander Marsh says
the company hopes to have eliminated the
boundaries that earlier prevented individuals and
companies from being able to actively invest in
what we believe to be the future of money.
WHO CAN BUY BITCOIN SHARES?

The shares can be bought by anyone through
a bank or broker registered with the Nasdaq
Stockholm exchange.
53
APPLE UPDATES MACBOOK PRO,

CUTS PRICE ON HIGH-END iMAC
54
Apple is introducing an updated MacBook Pro and

iMac and lowering the price for its top-end iMac.
The updated 15-inch MacBook Pro laptop has a
new style of trackpad, faster flash storage and a
longer battery life and starts at $1,999.
The new $1,999 iMac desktop computer has
a higher-resolution 27-inch screen and faster
processor.
Apples top-end iMac will now sell for $2,299. It
has been selling for $2,499 at some retail outlets.
The news comes ahead of Apples worldwide
developers conference June 8.
55
56
57
58
RESOUNDINGLY POSITIVE
GREENPEACE REPORT
Those of you with long memories may recall
that Apple has not always been the darling
of the environmental body Greenpeace,
something that you may wish to bear in
mind while reading the raving words about
the Cupertino giant in the pressure group's
extensive report, Clicking Clean: A Guide to
Building the Green Internet. Released this
month, the document has firmly hailed Apple
as the most eco-friendly of its big tech rivals.
That's not something that many people
might have envisaged back in 2007, when the
iPhone maker was firmly rebuked by the same
organization on account of its perceived poor
environmental practices. This time about a
decade ago, watchdogs were slamming Apple
over its product recycling policies and use of
toxic substances in its gadgets. It prompted
the unveiling of an environmental blueprint
for the company, entitled A Greener Apple,
by then-CEO Steve Jobs.
The transformation in relations between
the two organizations since then could
not be starker. Current CEO Tim Cook has
continued good work to turn around Apple's
environmental credentials that was started
under Jobs, a long-term commitment being
made to draw all of the firm's energy from
renewable sources.
59
60
Image: Frank van biemen / EvoSwitch / Greenpeace
WHAT ELSE WE LEARNED FROM THE

DOCUMENT
Apple scored 100% in Greenpeace's Clean
Energy Index, with its closest competitor Yahoo! only able to muster 73%.
No other tech company in the Index encompassing such big names as eBay,
Google, Microsoft and Amazon.com Web
Services - broke the 50% barrier, which
amply demonstrates just how much of a
leader the Californian firm has become from
its previous position of notoriety a mere
eight years ago. Apple was also given an
immaculate AAAA score across the categories
of 'Energy Transparency', 'Renewable
Energy Commitment & Siting Policy', 'Energy
Efficiency & Mitigation' and 'Renewable
Energy Deployment & Advocacy'.
None of this news should be a big shock
to those who have kept abreast of Apple's
ongoing plans to minimize its environmental
impact, including the construction of two
solar-powered data centers in Ireland and
Denmark, alongside the development of two
major solar power projects in the Sichuan
province of China. A further signifier of
the increasing importance of the Chinese
market to Apple is its recent commitment
to the preservation of one million acres of
the global most polluting country's forest for
sustainable harvesting.
But back to that report. Greenpeace did not
commission it simply to heap praise upon
Apple and deal out varying levels of scorn
to its tech rivals. It did so in order to draw
61
attention to the ever-more prevalent role

of the Internet in almost every aspect of
the modern economy, and the associated
challenges in making the web truly green. It
pointed out, for example, how the greater
prominence of the web is creating a growing
demand for data, by more than 20% every year.
It was anticipated that global mobile data alone
would increase by an immense 69% in 2014,
its growth not relenting until at least 2019, as
more and more people use their devices for
such functions as video streaming.
THE PRESSING NEED FOR A GREENER

INTERNET
As vital as the Internet has been and will
continue to be in improving people's lives
and powering sustainable economic growth,
Greenpeace has also identified it as a key
frontier in moves towards a renewable
powered society. The group was heartened to
note that "a growing number of companies
have begun to create a corner of the Internet
that is renewably powered and coal free, with
over a half dozen major Internet companies
now committed to being 100% renewably
powered, including major operators such as
Apple, Facebook and Google."
There were obstacles towards that goal, of
course, not least from utilities. Greenpeace
bemoaned monopoly electric utilities that
sold electricity largely powered by coal
instead of renewable energy, making it
difficult for tech companies to use clean
energy in their data centers. Some regions
62
still have large coal industries, and while the

likes of Duke Energy in North Carolina and
Dominion Resources in Virginia have recently
introduced green electricity tariffs to at least
give their large customers a renewable energy
option, these potential customers are being
deterred by "poor design" and "locked-in"
price premiums.
Source: Greenpeace
63
64
The rest of the report's findings only make

the need for a more environmentally friendly
Internet all the more obvious. For example,
easily the biggest driver of the exponential
increase in online consumer Internet data is
online video, which is expected to account
for more than three quarters of Internet
consumer traffic by 2018. Meanwhile,
Greenpeace also lamented that "Colocation
companies continue to lag far behind
consumer-facing data center operators in
seeking renewable energy to power their
operations". However, it did praise Equinix's
commitment to 100% renewable energy use
and its offering of renewably hosted facilities.
HOW THE BIG PLAYERS ARE

RESPONDING
Of course, despite their poor scores compared
to Apple, it would be wrong to suggest that
only the Cupertino firm has been doing good
work in the general drive towards a 'greener'
Internet, as the Clicking Clean report duly
pointed out. However, there were also certain
barriers to the achievement of such goals and
reasons for caution.
Google, for example, was complimented on
its efforts to match Apple in the deployment
of renewable energy with its expansion in
certain markets. However, the search giant's
reluctance to build and own clean energy
projects of its own is also leaving it at the
mercy of the aforementioned monopoly
utilities for several data centers, including in
North and South Carolina, Georgia, Singapore
and Taiwan. Amazon has also adopted a 100%
65
66
Source: Greenpeace
67
renewable energy goal, but was criticized for

its lack of transparency by Greenpeace, which
added that "unlike similar commitments
from Apple, Facebook or Google, [the goal]
does not yet appear to be guiding Amazon's
investment decisions toward renewable
energy and away from coal."
Microsoft seemed to come in for even greater
censure, however, with the report noting that
while there had been "massive growth" in the
corporation's cloud footprint as it sought to
catch up with Amazon, it had not "kept pace
with Apple and Google in terms of its supply
of renewable electricity."
APPLE TRULY LEADING THE WAY

All of this has left Apple in a lofty position in
Greenpeace's affections that might have been
dismissed as unthinkable just eight years ago.
The report declared that "Apple continues to
lead the charge in powering its corner of the
Internet with renewable energy even as it
continues to rapidly expand."
Not only did the report observe that all three
of the Cupertino firm's data center expansions
announced in the past year were to be
powered with renewable energy, but Apple's
efforts to push major colocation providers
to assist it in its mission to meet its 100%
renewable energy goal also did not escape the
organization's attention.
It might be best to end on the note of one
Tim Cook, the man who has done so much
to both pick up where his predecessor left
off and even more aggressively pursue the
68
69
70
Image: Andreas Messner
71
goal of making Apple a thoroughly green tech

company, and a powerful influence on other
firms that may aspire to achieve the same.
price for the renewable energy, and there's

quite a difference between that price and the
price of the brown energy."
He has commented: "Quite frankly, we are

doing this because it is right to do, but you
may also be interested to know that it's good
financially to do it. We expect to have very
significant savings because we have a fixed
Will - or can - Apple's rivals respond to such an

emphatically thrown-down gauntlet? The next
equivalent Greenpeace report will certainly
make extremely intriguing reading.
by Benjamin Kerry & Gavin Lenaghan
72
73
74
NOT YOUR MAS

BELL: AT&T EVOLVES
BEYOND PHONES
The company whose name has long been

synonymous with telephones is looking for new
ways to reach out and touch someone.
AT&T, which had a popular Reach Out and Touch
Someone slogan in the 1980s, now wants to be
on your TV, car and even trashcan.
AT&T Inc. is spending $48.5 billion to buy satellite
TV provider DirecTV as it looks for new ways
to package access - wireless and wired - with
traditional and online video.
Its also revamping its stores to showcase
other services, including the ability to unlock
your homes front doors through an app to let
in contractors. Its equipping cars with data
connections for diagnostic, roadside assistance
and entertainment systems. Its even putting data
sensors into inanimate objects such as parking
meters and water pipes to build smarter cities.
And last year, the company adopted Mobilizing
Your World as its slogan to reflect a desire to be
part of your entire life, not just on phones.
75
We dont view ourselves as a phone company

anymore, said Ralph de la Vega, the companys
longtime mobile chief who took on greater
responsibilities beyond phones after a company
reorganization.
Driving the transformation is a slowdown in the
U.S. phone business, given that most Americans
already have cellphones. And although people
have been using their cellphones more heavily,
especially to watch video, that hasnt translated
into a corresponding increase in revenue, largely
because of price competition.
All phone companies have been looking beyond
phones for growth, but none of them has been
as aggressive as AT&T, the second-largest U.S.
wireless carrier. No. 1 carrier Verizon announced
a $4.4 billion bid last week to buy AOL for its
advertising and video services, but AT&Ts DirecTV
bid is 11 times that amount. The deal, which AT&T
hopes to complete within weeks, would make
AT&T the leading traditional TV provider in the
U.S., surpassing Comcast, and push AT&T farther
into Latin America, where DirecTV is strong.
As the U.S. industry has gotten more
competitive, theyve made some steps to
diversify, said Jon Atkin, an analyst with RBC
Capital Markets. Verizon has a little bit less
product diversity, and certainly less geographic
diversity - if you want to call it, greater focus.
AT&Ts transition has been years in the making
as wireless supplanted landline phones. But the
move beyond phones - wireless or otherwise
- is accelerating with the impending DirecTV
purchase and a growth in car models with
connectivity built in.
Of course, the phone isnt going away. AT&T
typically gets more monthly revenue for
smartphone service (up to $40) than a tablet,
wristwatch or car connection ($10 each).
These emerging businesses represent ways to get
that same phone customer to pay more:
76
77
78
- With DirecTV, AT&T will be able to package

video in new ways. AT&T already provides
traditional TV services to 6 million households
in 21 states through fixed-wire lines. DirecTV
would add more than 20 million households
nationwide, and the combined 26 million would
exceed Comcasts 22 million for TV.
AT&T wants to add wireless to packages now
made of TV, Internet and wired phone lines. And it
wants to distribute video content to more places,
including phones and the backseats of cars.
We believe that going forward, when people
start making decisions around mobile services,
its going to be around what I can do with those
services. Can I watch video thats important
when Im on the go or wherever I am? said John
Stankey, AT&Ts chief strategy officer.
- Cars, meanwhile, contributed to more than half
of the 1.2 million wireless service connections
that AT&T added in the first quarter. These
are primarily car manufacturers needing
data connections for diagnostic systems and
consumer-facing services such as OnStar
navigation and roadside assistance.
AT&T has partnerships with eight car
manufacturers, including General Motors, Ford
and BMW, and expects to be the data-service
provider for half of the new wireless-connected
passenger vehicles this year.
While AT&T sells data connections to car
manufacturers - in some cases, to resell to
drivers as part of OnStar and the like - AT&T
is also targeting consumers directly with
the promise of backseat entertainment and
other benefits. (It hasnt said how many have
subscribed, though the business appears small
for now.)
- With AT&Ts Digital Life home-automation and
security services, people can unlock doors, turn
off lights and check security cameras remotely
through an app.
79
80
- And AT&T is making a big push for business

and government customers. After selling them
wireless and wired phone connections, its selling
them new ways to use those connections, such as
vehicle tracking and mobile timecards for payroll.
But why stop at employees? AT&T is also selling
new types of wireless connections for water pipes
to warn of leaks and garbage cans to say when
they are full. AT&T might get a cut of any savings
when garbage trucks dont have to drive to nearly
empty cans.
AT&T is also developing systems that analyze
traffic patterns, so traffic can be rerouted before
congestion forms. A car skidding on a patch of ice
might even warn other vehicles behind it, without
any human intervention.
Some of these projects are in research labs, while
others have real customers in trials and smaller
deployments.
Jefferies analyst Mike McCormack said that other
than DirecTV, many of these i nitiatives wont
produce much revenue. Take cars: Its one thing to
include data capabilities; its another to get people
to pay another monthly fee.
Nonetheless, its revenue AT&T didnt have before.
We are going to be touching the customers in
every aspect of their lives, whether it be the car,
the home, the smartphone, said Glenn Lurie,
who heads AT&T Mobility. It really puts us in a
position to grow.
81
82
Q&A: DEEZER
CEO SEES BIG
UPSIDE FOR MUSIC
STREAMING
Hans-Holger Albrecht entered a crowded musicstreaming market when he became CEO of Parisbased Deezer in February. A month after taking
the helm, Jay Z relaunched Tidal in the U.S. and a
month from now, Albrecht faces the prospect of
Apple Inc. relaunching Beats Music.
Not to mention other competitors like Spotify,
Rhapsody, YouTube and Pandora.
But Deezer hasnt been sitting still. In October,
it bought San Francisco podcast aggregator
Stitcher, and in January it scooped up the right
to serve the 2 million Muve Music streaming
customers of AT&Ts pre-paid Cricket cellphone
brand. It also partnered this year with audio
equipment makers Sonos and Bose to deliver
Deezer Elite, a CD-quality streaming service,
through those companies wireless speakers.
Albrechts job is to popularize Deezer globally,
building off a base of 6 million paying and 16
million non-paying customers mainly in Europe,
Latin America and the U.S.
He spoke with AppleMagazine recently about
his plans.
Q: What have you discovered about Deezer?
A: I knew the company before I joined. I was
running one of the bigger telcos in emerging
markets (Millicom International Cellular SA)
and we were one of the first large partners for
Deezer. We used Deezer very aggressively in
some markets like Colombia. All of the sudden
we were hip and modern because we had music.
83
84
Q: Thats very similar to Muve Music, which

Deezer bought at the end of January.
A: That is a very similar model.
Q: Is that the way forward then?
A: We have a kind of three-level approach:
For the emerging market, its telcos. We are
leading this by far. The second level is we have
vertical partnerships with Sonos and Bose,
where you super-serve certain audiences. And
the third element is the traditional businessto-consumer model that Spotify is doing and
we are doing. Were currently focused mainly
in Europe and Brazil.
Q: Which of these have shown the most success?
A: I think theyre all growing very fast. The
telecom business has had longer traction in
our model so far. In most of the 180 countries
were operating in, we operate with a telecom
partnership. The new things we did with Sonos
and Bose are growing very fast. The (businessto-consumer segment) is growing as well. This is
just the beginning, of course.
Q: I can imagine in the U.S. its tough to stand
out from the competition.
A: With 35 million tracks, we have the highest
number of tracks among all the streaming
services. In terms of product, were absolutely
able to take on the competition. This is a huge
market. It is competitive and its going to be a
marathon.
Q: How do you view the push toward higher
fidelity, CD-quality streaming?
A: Theres a demand. We have more than 27
million high-fidelity tracks. You need those tracks
in order to serve the high-end audio market.
Thats the reason were focusing a lot of activity
in the U.S. on the Bose and Sonos partnerships.
There could be a couple of million customers just
in that segment.
85
86
Q: Is that the main selling point in the U.S. market?

A: We have both ends. We have the high-end with
Deezer Elite and the low-end with Cricket. The
pre-paid Cricket model, which we believe is very
attractive, is lower bit rate, lower prices. Its very
targeted in terms of demographic and the content
needs they have in terms of Latino music.
Q: What about the push from the artist
community that theyre not getting paid enough
for streaming?
A: The point the artists and we all have to respect
is were just at the beginning of a huge potential
market. To draw a conclusion, I dont have any
money today, doesnt mean you dont get any
money tomorrow. The worldwide penetration is
2 to 3 percent, in the U.S. I think its 3 percent. If it
would grow to lets say 8 to 9 percent, thats big,
big, big upside potential, for us and the artist and
the labels as well.
Q: How are you going to incorporate Stitcher?
A: This is the first step to find audio products
which are attractive to the consumer beyond
music. The user can listen to his own music, plus
his personalized news, plus his personalized
entertainment features, like talk shows. Its one
key part of adding value.
Q: What is the key roadblock to getting more
customers?
A: They dont understand streaming and when
they get it, we have to engage them very fast.
Thats why Im very positive when Apple comes in
with its big capabilities promoting products and
getting awareness up, it will help all of us out.
Q: Its not that consumers dont want to rebuy
their collection through a subscription?
A: They dont understand the full spectrum
of the product. People dont understand you
can download and go offline. When you talk
to friends, they say, I can get any song in the
world? Or, I can share it with friends and it
becomes social? Its a lot of, I didnt know that,
why didnt you tell me?
87
#01 Facebook Messenger

By Facebook, Inc.
Category: Social Networking
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.
This app is optimized for iPhone 5, iPhone 6, and iPhone 6 Plus.
#02 Facebook
By Facebook, Inc.
#03 Instagram
By Instagram, Inc.
Category: Photo & Video
#04 YouTube
By Google, Inc.
This app is optimized for iPhone 5.
#05 Snapchat
By Snapchat, Inc.
#06 Pandora Radio

By Pandora Media, Inc.
Category: Music
#07 Dubsmash
By Mobile Motion GmbH
Category: Entertainment
#08 WhatsApp Messenger

By WhatsApp Inc.
Requires iOS 6.0 or later. Compatible with iPhone.
#09 Google Maps

By Google, Inc.
Category: Navigation
iOS
88
#10 Spotify Music

By Spotify Ltd.
Category: Music
#01 OS X Yosemite
By Apple
Category: Utilities
Compatibility: OS X 10.6.8 or later
#02 Microsoft OneNote

By Microsoft Corporation
Category: Productivity
Compatibility: OS X 10.9 or later
#03 Slack
By Slack Technologies, Inc.
Category: Business
Compatibility: OS X 10.6 or later, 64-bit processor
#04 Xcode
By Apple
Category: Developer Tools
#05 Kindle
By AMZN Mobile LLC
Category: Reference
#06 Microsoft Remote Desktop

By Microsoft Corporation
Category: Business
#07 App for Instagram

By Joacim Sthl
#08 The Unarchiver

By Dag Agren
Category: Utilities
#09 Fotor Photo Editor

By Chengdu Everimaging Science and Technology Co., Ltd
Category: Photography
#10 Bitdefender Virus Scanner

By Bitdefender SRL
Category: Utilities
Mac OS X
89
#01 Minecraft Pocket Edition

By Mojang
Category: Games / Price: $6.99
Requires iOS 5.1.1 or later. Compatible with iPhone, iPad, and iPod touch.
#02 Heads Up!

By Warner Bros.
#03 Dark Sky

By Jackadam
Category: Weather / Price: $3.99
#04 MacID for iOS

By Kane Cheshire
Category: Utilities / Price: $0.99
#05 Plague Inc.

By Ndemic Creations
#06 HotSchedules
By HotSchedules
Category: Business / Price: $2.99
#07 Lifeline...
By 3 Minute Games, LLC
#08 Facetune
By Lightricks Ltd.
Category: Photo & Video / Price: $3.99
Requires iOS 6.0 or later. Compatible with iPhone 4, iPhone 4S, iPhone 5, iPhone 5c,
iPhone 5s, iPhone 6, iPhone 6 Plus, iPad, and iPod touch. This app is optimized for iPhone 5,
iPhone 6, and iPhone 6 Plus.
#09 NOAA Radar Pro

By Apalon Apps
Category: Weather / Price: $1.99
iOS
90
#10 Afterlight
By Afterlight Collective, Inc
Category: Photo & Video / Price: $0.99
#01 GarageBand
By Apple
Category: Music / Price: $4.99
#02 Noiseless
By Apple
#03 Alternote
By MABee Arts Ltd
Category: Productivity / Price: $4.99
#04 Civilization: Beyond Earth

By Aspyr Media, Inc.
#05 OS X Server
By Apple
#06 AntiVirus Sentinel Pro

By Calin Popescu
#07 Duplicate Photos Fixer Pro

By Systweak Software
Category: Photography / Price: $0.99
#08 Disk Doctor

By FIPLAB Ltd
Compatibility: OS X 10.7.3 or later, 64-bit processor
#09 Logic Pro X

By Apple
Compatibility: OS X 10.8.4 or later, 64-bit processor
#10 FaceTime
By Apple
Category: Social Networking / Price: $0.99
Mac OS X
91
Movies
&
TV Shows
92
Trailer
Focus
Experienced con-man Nicky Spurgeon (Will
Smith) finds himself romantically involved
with a novice in the art, Jess Barrett (Margot
Robbie). She becomes his student, only for
him to break off the relationship. Fast-forward
three years, and they meet again. She is now
an accomplished femme fatale, ready to
throw him off his game.
FIVE FACTS:
1. The romantic comedy-drama film was
written and directed by Glenn Ficarra and
John Requa.
by Glenn Ficarra & John Requa

Genre: Drama
Released: 2015
Price: $19.99
2. Sleight-of-hand artist Apollo Robins served

as a consultant.
3. Principal photography took place in New
Orleans, Buenos Aires and New York City.
4. Other cast members included Rodrigo
Santoro, Gerald McRaney and B. D. Wong.
116 Ratings
5. The movie grossed $153,962,963

worldwide.
Rotten Tomatoes
56
93
Interview with Will Smith and Margot Robbie
94
95
American Sniper
This biographical war drama film, directed
by Clint Eastwood, stars Bradley Cooper as
Chris Kyle, the Navy SEAL who in the war
in Iraq, became the most lethal sniper in
U.S. history. This complex, troubled and
sympathetic portrayal is based on Kyles
own 2012 memoir, and centers on the
toll on his family back home as well as his
pinpoint accuracy in battle.
Trailer
FIVE FACTS:
1. The film is based on the 2012 book
American Sniper: The Autobiography of the
Most Lethal Sniper in U.S. Military History,
which was written by Kyle with Scott McEwen
and Jim DeFelice.
2. Kyle recorded 255 kills from four tours
in the Iraq War, 160 of which were officially
confirmed by the Department of Defense.
3. Sienna Miller plays Kyles wife Taya, with
Luke Grimes, Kyle Gallner, Sam Jaeger, Jake
McDorman and Cory Hardrict making up the
supporting cast.
4. The world premiere took place at the
American Film Institute Festival on November
11, 2014.
5. American Sniper was nominated for six
Academy Awards, winning one award for
Best Sound Editing.
Rotten Tomatoes
73
96
by Clint Eastwood
Genre: Drama
Released: 2014
Price: $19.99
1219 Ratings
97
98
Interview with Bradley Cooper
99
Genre: Soundtrack
Released: May 12, 2015
18 Songs
Price: $9.99
681 Ratings
Music
100
Pitch Perfect 2
(Original Motion
Picture Soundtrack)
Various Artists
What better way could there be of joining in
the sing-along action with the Barden Bellas
than investing in the movies accompanying
soundtrack album? It features Jessie Js
Flashlight and Crazy Youngsters by Ester
Dean, alongside contributions from Snoop
Dogg, Pentatonix and director Elizabeth
Banks, who plays an a capella competition
commentator in the film.
FIVE FACTS:
1. Pitch Perfect 2 is a musical comedy film
and the sequel to 2012s Pitch Perfect.
2. The original movie was loosely adapted
from Mickey Rapkins non-fiction book, Pitch
Perfect: The Quest for Collegiate A Capella
Glory.
3. The film centers on the fictional Barden
University and an all-female a capella singing
group, The Bellas.
4. It features an ensemble cast including
Anna Kendrick, Rebel Wilson, Brittany Snow,
Hana Mae Lee and Alexis Knapp.
5. Mark Mothersbaugh was hired to score
the movie.
Flashlight
101
Crazy Youngsters
102
103
BUSH
Snoop Dogg
This isnt the first time that the longestablished rapper and one-time Snoop Lion
has joined forces with Pharrell Williams - he
worked with the Neptunes on earlier albums
like Paid tha Cost to Be da Boss and Tha Blue
Carpet Treatment - but he has nonetheless
chosen a good moment to do so, not least
with the new singles like Peaches N Cream
having won rave reviews.
1. BUSH is Snoop Doggs 13th studio album.
Genre: Hip-Hop/Rap
Released: May 08, 2015
10 Songs
Price: $9.99
2. It was produced by Williams, with

additional production by Chad Hugo.
740 Ratings
FIVE FACTS:
3. The album also features R&B greats

Charlie Wilson and Stevie Wonder.
4. Snoop Dogg was born Calvin Cordozar
Broadus Jr. on October 20, 1971 in Long
Beach, California.
5. His music career began in 1992, when he
was discovered by Dr. Dre of N.W.A.
Peaches N Cream
104
105
106
Interview with Snoop Dogg
107
110
111
Theyre gonna need a bigger Twitter.

An organization studying great white sharks
is enjoying some welcome attention after
one of the creatures theyve been monitoring
started gaining a loyal social media following.
(at)MaryLeeShark is the fake Twitter handle
for a very real, nearly 3,500-pound great white
whose movements can be tracked online and in
real time.
Shes drawn over 44,000 followers with her
playful updates and witty replies as real life shark
cruises up and down the East Coast.
Oh heyyyyy.... youre right by my house, come
by for a nightcap? invited one recent Twitter
commenter as she popped up off the coast of
Long Island, New York.
I would settle for an ice bag to put on my aching
Twitter fin. -:() Mary Lee replied.
What do you do during Shark Week? another
recent commenter asked. Swim. Eat. Tweet. Etc.
Exhausting. -;(), Mary Lee responded.
The shark, which was tagged off the coast of Cape
Cod, is among hundreds of sharks that OCEARCH,
a Utah-based organization, has tagged and
tracked since 2007.
The fake Twitter handle isnt affiliated with
OCEARCH (pronounced Oh-Search). But OCEARCH
expedition leader Chris Fischer, who named
Mary Lee after his mother, says the organization
appreciates the attention the maritime missives
have generated.
Theyre really clever, they really like sharks and
theyre on mission, so were just kind of rolling
with it, he said from the organizations latest
expedition in Australia.
OCEARCH has even jumped on the bandwagon,
launching official Twitter handles for two other
sharks its monitoring off the East Coast. (at)SharkKatharine and (at)RockStarLydia both have sizable
followings of their own.
112
113
The person behind the (at)MaryLeeShark

account did surface when The Associated Press
sent a Twitter message.
The accounts operator identified themselves
only as a daily newspaper reporter living on the
East Coast and expressed pleasant surprise at the
attention - and OCEARCHs support.
The recent explosion of followers has been
a lot of fun, but also like a second job. I do
everything manually - no robo tweets, the
account owner wrote. The best part is that
((at)MaryLeeShark) plays a role in helping
to replace fear with facts by retweeting and
commenting on (at)OCEARCH tweets. I (try) to
be respectful of the important work OCEARCH
does and have fun at the same time.
OCEARCHs multi-year project uses GPS trackers
affixed to the sharks dorsal fin to post real time
data on dozens of great whites across the globe
- Mary Lee was hanging out near Ocean City,
Maryland on Sunday, for example - with the goal
of better understanding the sharks life cycle and
encouraging conservation of the endangered
ocean predators.
Shark researchers say the work is important
because theres still a lot unknown about the
behavior of mature white sharks. The massive
beasts are extremely difficult to tag with
modern GPS trackers that would help closely
track their movements.
OCEARCH is one of the few outfits with the
technology, skill and resources for the job. The
organization operates largely on corporate
funding and its crew consists of professional
fisherman-turned-ocean explorers.
This gives us a much better understanding
of the movement patterns of these animals
through days, months and years, says Robert
Hueter, director of the Center for Shark Research
at Mote Marine Laboratory and Aquarium in
Sarasota, Florida.
114
115
116
117
Gregory Skomal, a marine biologist who heads the

Massachusetts Shark Research Program, says the
research is of particular interest along the densely
populated East Coast, where great whites are
being spotted with greater frequency.
The sharks are increasingly drawn to places like
Cape Cod and its surrounding islands, whose
seaside communities are forever linked with
Jaws, because seal populations have soared.
Basically the cafe is open and the customers
are arriving, Skomal said. Ten or fifteen years
ago, you might have had three to four sightings
of white sharks off the coast of Massachusetts a
year. Now were getting well over 30 or 40.
The researchers are reluctant to draw quick
conclusions about great white behavior based
on the few East Coast great whites OCEARCH
is tracking.
118
119
120
Some, like Mary Lee, have hued relatively

close to the shore, to the delight and alarm of
Twitter followers. Others have ventured far
into the Atlantic.
Shark fans say theyve found the tongue-incheek tweets fun and informative. Many
hope the attention helps overcome fears
and misconceptions about the powerful but
endangered creatures.
People need to think about them not so much as
a predator and something to be feared, but more
as something that needs to be protected, said
Teri Drake-Floyd, an Athens, Georgia resident who
recently started following (at)MaryLeeShark. The
ocean is their home, not ours, and so its kind of
our responsibility to look out for them.
121
122
123
124
Theres more than a touch of absurdity in the

way an industry fee in President Barack Obamas
health care law is being passed along to
state taxpayers.
As Alice in Wonderland might say, a curious tax
just got curiouser. The burden to states could
mount to $13 billion in less than a decade.
The Health Insurance Providers Fee was aimed at
insurance companies. The thinking went: Because
insurers would gain a windfall of customers, they
ought to help pay for the expansion of coverage.
Insurers say they have raised prices for individuals
and small businesses to cover the new tax.
As it turns out, they are raising their prices to
state Medicaid programs, too.
The federal government issued guidance in
October requiring states to build the tax into
what they pay for-profit Medicaid health plans
that serve low-income people. The first years
tax was due to the IRS in September, and state
governments are now settling up with
insurance companies.
It works like this: State governments pay insurers
for the tax. The insurers then pay the tax to the
federal government. The federal government
then reimburses part of the cost to the states.
It may sound absurd, but its not amusing to state
governments, which wind up losing 54 cents for
every dollar of the insurance tax. State taxpayers
end up the biggest losers, without any added
benefit to their states low-income
Medicaid patients.
Its like a merry-go-round with an extra loop in
the middle, said Rebecca Owen of the Society
of Actuaries.
The extra loop? The health law tax is not
deductible for the insurance companies when
they file their corporate income taxes, and state
governments must kick in extra to cover that
cost, too.
125
126
If theyre following the standard of practice,

theres no wiggle room for states to shift the
burden back onto the companies, Owen said.
Its particularly troubling because more states are
turning to private sector Medicaid managed care
to keep health care costs down. An estimated
70 percent of Medicaid patients are covered by
these types of plans.
Insurers such as Anthem, UnitedHealth and
Centene manage the care of millions of lowincome people in taxpayer-funded programs.
The fee on health insurance companies was one
of several new taxes Congress used to pay for the
health care law.
They had a naive notion we were going to get
something from insurers who were gaining
many new customers from the health law, said
economist Douglas Holtz-Eakin, president of the
American Action Forum, a center-right public
policy institute. It defied any notion of good
tax policy.
Most nonprofit insurers are exempt, but theres
no exemption for profit-making Medicaid
managed care companies that collect payments
from state governments with the promise of
providing better care at lower costs.
The states with the most managed care will
be hurt the most. Florida will pay up to $1.2
billion over 10 years, according to a 2014 report
by the actuarial firm Milliman. The same for
Pennsylvania. Texas will pay up to $1 billion and
Tennessee as much as $884 million. For California,
the decades total will be up to $798 million and
for Georgia, $647 million.
The Milliman report estimates Illinois will pay
$394 million to cover the tax through 2023. Illinois
is starting to make higher payments to cover the
tax, even as Gov. Bruce Rauner has proposed
making $1.5 billion in cuts to Medicaid providers
such as hospitals for the upcoming budget year.
127
While the quirk in the law has been known to

insurers and actuaries, the impact is just starting
for states. A standard-setting board for actuaries
just published a memo that clears up any
remaining doubt that state governments must
pay higher rates to cover the tax.
The health insurance industry wants the tax
repealed, arguing that it increases prices to
consumers. But largely unrecognized is the
surprising effect of the tax on Medicaid and
state governments.
At the end of the day it remains a terrible policy
no matter how its implemented, and everyone
would welcome its repeal. I mean, youre
essentially having one level of government tax
another to do this, said Matt Salo, executive
director of the National Association of
Medicaid Directors.
128
129
130
BAD BLOOD (FEAT. KENDRICK LAMAR)
Taylor SwifT
PLEASE (THE VOICE PERFORMANCE)
Sawyer frederickS
SEE YOU AGAIN (FEAT. CHARLIE PUTH)
wiz khalifa
OLD MAN (THE VOICE PERFORMANCE)
Sawyer frederickS
CHANGE MY MIND
(THE VOICE PERFORMANCE)
Sawyer frederickS
SHUT UP AND DANCE
walk The MooN
GIRL CRUSH
liTTle Big TowN
HEY MAMA (FEAT. NICKI MINAJ & AFROJACK)
david gueTTa
HONEY, IM GOOD.
aNdy graMMer
FIGHT SONG
rachel PlaTTeN
131
132
BLURRYFACE
TweNTy oNe PiloTS
PITCH PERFECT 2
(ORIGINAL MOTION PICTURE SOUNDTRACK)
variouS arTiSTS
1989
Taylor SwifT
TRUE COLORS
zedd
JEKYLL + HYDE
zac BrowN BaNd
FIFTY SHADES OF GREY

(ORIGINAL MOTION PICTURE SOUNDTRACK)
variouS arTiSTS
WILDER MIND (DELUXE VERSION)
MuMford & SoNS
THE STORY SO FAR
The STory So far
JUST AS I AM (PLATINUM EDITION)
BraNTley gilBerT
WILDER MIND
MuMford & SoNS
133
134
PRETTY GIRLS
BriTNey SPearS & iggy azalea
UPTOWN FUNK (FEAT. BRUNO MARS)
Mark roNSoN
GIRL CRUSH
liTTle Big TowN
DEAR FUTURE HUSBAND
MeghaN TraiNor
THINKING OUT LOUD
ed SheeraN
SHAKE IT OFF
Taylor SwifT
STYLE
Taylor SwifT
SHUT UP AND DANCE
walk The MooN
BLANK SPACE
Taylor SwifT
ALL ABOUT THAT BASS
MeghaN TraiNor
135
136
PERSON TO PERSON
Mad MeN, The fiNal SeaSoN
ABOUT BRUCE (PART 1)
keePiNg uP wiTh The kardaShiaNS, SeaSoN 10
OUR WILLS AND FATES

DO SO CONTRARY RUN
The royalS, SeaSoN 1
THE MILK AND HONEY ROUTE
YOU CANT TAKE COMMAND
ScaNdal, SeaSoN 4
LOST HORIZON
YOURE MY HOME
greyS aNaToMy, SeaSoN 11
TOM CONNOLLY (NO. 11)
The BlackliST, SeaSoN 2
TIME & LIFE
SCARRED BY MANY PAST FRUSTRATIONS
orPhaN Black, SeaSoN 3
137
138
THE GIRL ON THE TRAIN
Paula hawkiNS
LUCKIEST GIRL ALIVE
JeSSica kNoll
PAPER TOWNS
JohN greeN
MEMORY MAN
david Baldacci
14TH DEADLY SIN
JaMeS PaTTerSoN & MaxiNe PaeTro
FIFTY SHADES DARKER
e l JaMeS
ALL THE LIGHT WE CANNOT SEE
aNThoNy doerr
FIFTY SHADES FREED
e l JaMeS
THE LIFE-CHANGING MAGIC OF TIDYING UP
Marie koNdo
THE FORGOTTEN ROOM
liNcolN child
139
140
LUXURY FASHION
BRANDS ACCUSE
ALIBABA OF
PROFITING FROM
FAKES
The owner of fashion brands Gucci and Yves Saint

Laurent has accused Alibaba Group in a lawsuit of
profiting from sales of counterfeit goods despite
the Chinese e-commerce giants pledge to combat
the trade in fakes.
The lawsuit by Frances Kering SA and a group
of its brands in a New York court is a setback
for Alibabas effort to assure companies and
regulators it is doing enough to keep counterfeits
off its online sales platforms.
The Alibaba defendants knowingly encourage,
assist, and profit from the sale of counterfeits,
said the lawsuit, filed Friday in U.S. federal court
in Manhattan.
141
142
Alibaba said it believes the complaint has no

basis and said the company will fight it.
We continue to work in partnership with
numerous brands to help them protect their
intellectual property, and we have a strong track
record of doing so, said a company statement.
Unfortunately, Kering Group has chosen the
path of wasteful litigation instead of the path of
constructive cooperation.
Alibaba, the worlds biggest e-commerce
company by sales volume, has launched a series
of initiatives to keep counterfeit goods off its
platforms following complaints by trademark
owners. The company says it has 2,000
employees dedicated to anti-counterfeiting and
consumer protection work and spent 1 billion
($160 million) on that in 2013-14.
China has long been seen as a leading source
of counterfeit goods ranging from unlicensed
copies of designer clothing and Hollywood
movies to fake cancer drugs.
The latest lawsuit accuses Alibaba not just of
failing to stop sales but of permitting merchants
on its platforms even if they openly say they
sell unlicensed copies. The suit accuses Alibaba
of mail fraud and racketeering, including
processing payments for goods it knew were
counterfeit.
The 144-page complaint says Alibabas
computer algorithms were intentionally
designed to offer counterfeits when consumers
search for brand names. It says that when
knockoff, a term for a counterfeit, was used in
a search, Alibabas system added handbag.
The plaintiffs ask the court to order Alibaba to
disclose its revenue from sales of counterfeit
watches, handbags, clothing and other goods so
damages can be assessed.
Other plaintiffs include Kering brands
Balenciaga, Bottega Veneta and Luxury Goods
International.
143
144
145
This lawsuit is part of Kerings ongoing global

effort to maintain its customers trust in its
genuine products and to continue to develop
the creative works and talents in its brands, the
company said in a statement.
The complaint is Kerings second in a year
against Alibaba.
Kering sued the Chinese company in July, also
in New York, but later withdrew the suit, saying
the two sides agreed to work together in good
faith to protect intellectual property ensure a
healthy and vibrant e-commerce ecosystem for
consumers, merchants, and brand-owners alike.
Alibaba, founded in 1999 by Jack Ma, a former
English teacher, is one of Chinas oldest
Internet sites.
Its sales platforms include Taobao, an
online bazaar used by consumers and small
entrepreneurs; Tmall for brands to sell to
consumers; AliExpress, a global retail marketplace,
and Alibaba.com, a wholesale site.
The company raised $25 billion in an initial public
offering last year on Wall Street. It reported a
profit of 2.9 billion yuan ($463 million) for the
three months ended March 31 on revenue of 17.4
billion yuan ($2.8 billion).
146
147
COURT AGREES
SAMSUNG COPIED
APPLE, BUT REDUCES
DAMAGE AWARD
A federal appeals court has agreed that Samsung

illegally copied some of the patented features in
Apples iPhone. But the court sided with Samsung
on one point in a long-running dispute, which
means the South Korean company may end up
paying less than the $930 million in damages
originally awarded in the case.
The appellate court upheld most of the conclusions
reached by a federal jury in California, after a
closely watched trial in 2012. Apple had complained
that Samsung smartphones copied the iPhone and
infringed on Apples technology patents.
But the appeals court, based in Washington, D.C.,
said Monday that Apple cant claim damages for
copying the overall appearance of the iPhone.
That could reduce the damage award by about
$382 million, according to Samsungs court filings.
148
149
MASTHEAD
APPLEMAGAZINE INTERNATIONAL
applemagazine.com
SUBSCRIPTIONS
WRITERS
AppleMagazine Website
Precise English Inc.

Benjamin Kerry (UK)
Gavin Lenaghan (UK)
Elena Lusk (US)
Kyron Timbs (AUSTRALIA)
applemagazine.com
Zinio LLC.
zino.com
Readr Newsstand
readrapp.com
COLUMNS
Magzter Newsstand
iTUNES REVIEW
Benjamin Kerry
magzter.com
Amazon Newsstand
amazon.com
FINANCE NEWS
Associated Press / Bloomberg
Scoop Newsstand (Singapore)
getscoop.com
REVISION
Gavin Lenaghan
Elena Lusk
CONTACTS
Executive Director - ceo@applemagazine.com
Relationship Management - crm@applemagazine.com
Magazine and Website Editor - editor@applemagazine.com
Advertise - ads@applemagazine.com
Social Network - network@applemagazine.com
Promotions - promo@applemagazine.com
SPECIAL THANKS
Rui da Costa
Lise Berda
James Jarvis
Lauren Brown
Richard Sawyer
Roger Gayalkar
Matthew Coburn
Robert Fluellen
Raquel Serrano
EXECUTIVE DIRECTOR
Ivan Castilho
Executive Director / Design Conception
MINDFIELD DIGITAL ART & GRAPHIC DESIGN

PRIVACY POLICY
Glauco Ribeiro
applemagazine.com/privacy-policy/
Art & Graphic Design Director
TERMS OF USE
Raphael Vieira
applemagazine.com/terms-of-use/
Art & Graphic Design
Michael Danglen
Art & Graphic Design
SOCIAL NETWORKS
Twitter
@apple_magazine
twitter.com/#!/Apple_Magazine
Facebook
facebook.com/applemagazineinternational
Authorized Publisher
AppleMagazine Copyright 2015-2011. All Rights Reserved.

No part of the document may be circulated, quoted, or reproduced for distribution without prior written approval.
Proper Trademark Notice and Attribution iPad, iPhone, iPod, Mac, iMac, Macbook, iOS, OS X are trademarks of Apple Inc., registered in the US and other
countries. Please contact support for additional trademark ownership rights information.
The following is a list of Apples trademarks and service marks http://www.apple.com/legal/ trademark/appletmlist.html.
All other trademarks are the properties of their owners.
AppleMagazine is an independent publication and has not been authorized, sponsored, or otherwise approved by Apple Inc.

Apple Magazine 20150522

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Apple Magazine 20150522

Uploaded by

Copyright:

Available Formats

Q&A: DEEZER CEO SEES

BIG UPSIDE FOR MUSIC

APPLE HAILED AS WORLDS GREENEST

SCIENCE: GREAT WHITE

LATEST SELFDRIVING GOOGLE

The latest version of Googles self-driving car - a

brake and recognize road hazards without human

Chris Urmson, who directs Googles self-driving

The prototype cars - assembled in suburban

But Urmson says that approach is

PRYING PARENTS: PHONE MONITORING

Lee Chang-june can be miles from his 12-year-old

It is the same as installing a surveillance camera

South Korea underestimated the chilling effect,

THE KING OF THE BLUES NOW

OTHER WELL-DESERVED PRAISE

BB King peace and love to his family Ringo

Image: Valentin Flauraud

Image: AP Photo/Rogelio V. Solis

WHAT MADE B.B. KING SO GREAT

A LEGEND IN MORE WAYS THAN ONE

King knew exactly what he was doing,

WHERE IT ALL BEGAN...

Image: Larry Busacca

RISE TO IMMORTAL STATUS

career, influencing rock gods like the Rolling

A HERO, NEVER FORGOTTEN

Image: Valentin Flauraud

Investors can for the first time bet on the value of

HOW DOES THIS NEW INDEX WORK?

WHY BUY BITCOIN SHARES?

WHO CAN BUY BITCOIN SHARES?

APPLE UPDATES MACBOOK PRO,

Apple is introducing an updated MacBook Pro and

Image: Frank van biemen / EvoSwitch / Greenpeace

WHAT ELSE WE LEARNED FROM THE

attention to the ever-more prevalent role

THE PRESSING NEED FOR A GREENER

still have large coal industries, and while the

The rest of the report's findings only make

HOW THE BIG PLAYERS ARE

renewable energy goal, but was criticized for

APPLE TRULY LEADING THE WAY

Image: Andreas Messner

goal of making Apple a thoroughly green tech

price for the renewable energy, and there's

He has commented: "Quite frankly, we are

Will - or can - Apple's rivals respond to such an

NOT YOUR MAS

The company whose name has long been

We dont view ourselves as a phone company

- With DirecTV, AT&T will be able to package

- And AT&T is making a big push for business

Q: Thats very similar to Muve Music, which

Q: Is that the main selling point in the U.S. market?

#01 Facebook Messenger

#06 Pandora Radio

#08 WhatsApp Messenger

#09 Google Maps

#10 Spotify Music

#02 Microsoft OneNote

#06 Microsoft Remote Desktop

#07 App for Instagram

#08 The Unarchiver