Hernacki had joined Palm in 2009 as its chief security architect, before it was acquired by HP in a $1.2 billion deal the following year. Previously, he’d spent nearly seven years at Symantec, where he was a researcher and architect.

His departure follows not only that of Rubinstein, but of Richard Kerris, the former head of webOS developer relations, who decamped for Nokia in October.

Coming as these moves do after HP’s decision to turn webOS into an open source project, one suspects they aren’t the last.

The company swung to a crushing €1.07 billion ($1.4 billion) loss for the three months ended Dec. 31st, down from a €745 million profit in the same period last year. Group sales dropped 21 percent to €10 billion from €12.65 billion.

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In a new report, Flurry Analytics estimates that in the final seven days of 2011, 1.2 billion apps were downloaded worldwide across both Android and iOS, representing a 60 percent jump over a typical week.

More important, it is the first time the globe has punched through the billion-download mark, according to the technology company, which builds tools that thousands of developers use to track usage of their mobile applications.

Flurry had said last week that a record-breaking 6.8 million iOS and Android devices were activated on Christmas Day, along with an equally record-breaking 242 million application downloads. For the entire week, it now is estimating that 20 million iOS and Android devices were activated.

Additionally, Flurry discovered that Americans represented the biggest app addicts, downloading 509 million of the worldwide total.

The remainder of the top five countries are: China (99 million); the U.K. (81 million); Canada (41 million); Germany and France (40 million each).

In the new year, Flurry is forecasting that application downloads will frequently break the one-billion-a-week mark.

In 2011, it added, Apple’s App Store was on pace to exceed 10 billion downloads, which was twice the number it recorded over the three previous years combined. Likewise, the Android Market is also setting records. Over the past seven months, it achieved more than seven billion downloads, taking its life-to-date total past 10 billion.

(Image credit: iStockphoto | mbortolino)

In a filing yesterday (see below), Judge William Alsup proposed a trial plan to lawyers for both sides, stating that the trial “will not be in 2011.” Alsup said he expects a long trial that will likely be considered a hardship by people selected to sit on the jury. “Although the trial will not be in 2011, the Court needs some lead time to pre-clear a venire for hardship for a long trial,” Alsup wrote in the filing. The word “venire” refers to the jury selection process. Alsup didn’t hint when he expects the trial to begin.

Court-mandated face-to-face talks between Oracle CEO Larry Ellison and Google CEO Larry Page failed last month. The trial had been expected sometime this month.

Oracle has claimed that Google owes it more than $6 billion for parts of its Java software that were used in the Android mobile operating system, which Oracle took over after it acquired Sun Microsystems last year. Google has argued that Oracle’s claims for damages are flawed.

Goog Orcl Delay

That legacy — and his influence on the lives of people around the world — is inestimable, and we will be talking about him and his amazing, interesting life a great deal in the coming days and weeks.

But as the sun comes up here in New York this morning, still mourning the departed, we are forced to confront more immediate and material concerns. Insensitive though it may seem to consider at this moment, Apple is not simply a great company — it has also proven over the last decade to be a great investment, and as such is one of the most widely held stocks in the world. Its largest shareholders are the big mutual fund companies like Fidelity, the Vanguard Group, State Street Corp. and T. Rowe Price, who among them own more than 15 percent of Apple’s shares.

And as Apple’s value, as measured by market capitalization, has ballooned from less than $10 billion a decade ago to north of $350 billion as of yesterday, the anxiety about the mortality of its founder has regularly caused its value to swoon. Over the seven-year course of Jobs’s illness, Apple shareholders have had to come to terms with the so-called “Jobs premium,” the extra value attached to the company’s shares that existed as long as he was directly involved in mapping company strategy and applying his unique touch to its products.

The conventional wisdom among Apple analysts now is that Apple investors, once known for their hair-trigger reflex to sell on any whiff of rumor, have gained a more complex and reasonable understanding of the situation. Apple, without Jobs, will still be Apple, and for the immediate and medium-term future, there is no reason to believe that its strategy and execution will falter in his absence.

But as I wrote in August, when Jobs resigned his position as CEO, it’s important to understand that Apple’s long-term vision has been deposited deeply within the DNA of the company. There is a script for the next several years. Products are mapped out, schedules are set, components have been purchased, manufacturing deals have been inked. In short, everyone at Apple knows what their job is and will continue to do it without missing a beat. The path ahead is no less clear today than it was yesterday.

No doubt the shares will be volatile as the markets open today. But that volatility will be much less than might have been expected years ago. It wasn’t so long ago that analysts predicted that, upon the death or departure of Steve Jobs, the company would lose as much as a third of its value. That’s no longer likely.

Today, investors seem to understand intuitively that the fundamental reasons to invest in Apple remain unchanged. The growth trajectory and profitability in the sales of its products remain the envy of the industry. There are predictions that Apple will sell more than 100 million iPhones next year, and nearly 30 million iPads in the second half of this year. Mac sales continue to set records quarter after quarter.

For all its strength in North America and Europe, Apple still has significant room to grow overseas. There are already signs of progress. In its most recent quarter, Apple reported revenue in the Asia-Pacific region of $6.3 billion, amounting to 22 percent of sales, and more than triple the sales seen in that region a year ago. One key market — China — remains a strategic priority for CEO Tim Cook and his team. Apple is still something new to the people of China, and introducing them to the brand on an ever-widening scale will be an interesting journey.

If history is any judge, it will be a fruitful introduction. Wherever it goes, Apple’s brand seems to succeed. Ask anyone familiar with it — it is easily one of the best-loved and most recognized brands. And yet when branding experts measure its brand equity, it ranks high but surprisingly also shows room to improve.

Just this week, Interbrand, a consultancy that focuses on corporate brands, released its annual survey of the world’s Top 100 brands. Apple is ranked No. 8, one notch above the Walt Disney Company (of which, ironically, Jobs was the largest shareholder), and two notches above Hewlett-Packard; the company had seen the largest year-over-year improvement in the value of its brand. It’s informative to consider some other names that appeared in the Top 10: Stalwart consumer brands like Coca-Cola (No. 1), General Electric (No. 5) and McDonald’s (No. 6).

Yet it’s also interesting to note that among the technology names that appeared in the Top 10 of the Interbrand survey, Apple wasn’t at the top: That distinction goes to IBM (No. 2), Microsoft (No. 3), Google (No. 4) and Intel (No. 7). Rather than a weakness, I think this fact speaks to Apple’s potential.

The story of Apple has never been one of narrow horizons. It has always been about looking ahead. Not just to the next quarter or to the next year, but of seeing how the march of technological progress can be harnessed to make life better in ways we can hardly grasp now. And yet when things like the iPhone materialize, they become part of us and quickly embed themselves into the very fabric of day-to-day existence. They’re not tools so much as extensions of our minds and identities. And that vision, so carefully articulated by Steve Jobs yet revealed only one product at a time, is still incomplete.

And so I find myself writing something that at once seems absurd and yet completely obvious: It may very well be, on this deeply sad day following the death of its founder, that Apple’s best days are still ahead.

Image via Jonathan Mak’s Tumblr.

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Steve Jobs Full Coverage »

As reported in March around the time the merger was first proposed, T-Mobile, a division of Deutsche Telekom, stands to gain about $3 billion in break-up fees should the deal fail to close. AT&T would also give T-Mobile certain wireless spectrum that’s not needed for the rollout of its next-generation wireless network.

While AT&T has said it plans to fight the action in court, the sudden move by the Justice Department and the fact that the Federal Communications Commission — which would also have to sign off on the deal — has yet to weigh in on it, make it extremely unlikely that the merger will ever be consummated, says James Ratcliffe, a telecom analyst with Barclays Capital in a note to clients today. He points out that, historically, when they challenge mergers in court, the agencies tend to win about 60 percent of the time.

“We believe that the deal is by no means dead, as the DOJ has stated that the ‘door is open’ for AT&T to propose remedies, but the fact that the DOJ took this strong step this early in the process makes the probability of completion much lower,” he wrote. “We now view the probability of success at 35-40%, down from our previous 75% view.”

One of the primary arguments in the complaint (the original filing is embedded below via Scribd) focuses on government and enterprise customers. Where critics of the deal would charge that the only notable competitors to AT&T and T-Mobile are Sprint and Verizon Wireless, AT&T management would rebut that Leap and MetroPCS are also players. The DOJ complaint discounts that argument, especially with regard to business and government customers. Leap and MetroPCS are really regional players, the DOJ says, and so corporations and government agencies with many offices around the country can only realistically consider national carriers, the number of which would be reduced to three were the deal approved.

“T-Mobile makes its presence felt competing head to head with AT&T and other carriers for a number of accounts, winning business in some cases and often pushing prices lower when it does not,” the DOJ’s complaint reads. “The merger’s elimination of T-Mobile as an aggressive competitor would likely result in fewer choices and higher prices for enterprise and government customers.”

And while the DOJ has drawn its legal line in the sand, it’s not the only agency yet to be heard from. The Federal Communications Commission would also have to sign off on the deal for it to be approved. Its chairman, Julius Genachowski, issued a carefully worded statement that gives a strong hint that it will ultimately oppose the merger. “Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition,” Genachowski said.

In a conference call with reporters today, Harold Feld, the legal director of PublicKnowledge, a telecom advocacy group that has opposed the merger, speculated that the FCC will likely send the matter to an administrative law hearing, which he called “the kiss of death” for mergers. “By the time that procedure would be finished, T-Mobile would have taken its breakup fee and gone and built an entirely new network,” he said.

So on what legal basis might AT&T and T-Mobile fight the case? The DOJ is using some new market analysis techniques that haven’t been used in antitrust cases before, says Barclays’s Ratcliffe. “Traditionally, the DOJ has used regional impact analysis to study the impact of wireless mergers, and it does so here again,” he writes. “In addition, however, the DOJ is also viewing the market as being national, a comparatively new approach, which might be more open to challenge in the courts.”

AT&T CEO Randall Stephenson has promised to fight it, and continued to argue that the deal will bring real benefits to spectrum management nationwide, and create jobs. Deutsche Telekom said it will join the fight, too.

Justice-ATT-TMobile-Complaint

Windows may be 25 years old, but it is no less critical to Microsoft’s future. The software generated $19 billion in revenue last fiscal year and produced $12.3 billion in profit — nearly half of Microsoft’s operating income. But Windows revenue has declined in each of the past two quarters.

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Saverin, who also helped inform the plot of Aaron Sorkin’s “The Social Network,” invested in the company’s $6.5 million round back in March. He will also oversee the company’s entrance into the Asian market, although today the company is launching in the U.S. and Europe.

The goal of the Mountain View, Calif.-based company is to make entering a user’s credit card information into an online form a snap, while also making it much more secure, according to Jumio Founder and CEO Daniel Mattes (pictured right).

It works like this: To purchase something online, consumers hold their credit card in front of their webcam. The card is quickly recognized and verified without taking a picture or storing the data on the computer. The information is then entered in the correct format.

The technology will soon also be adapted for mobile phones so merchants can accept payments in person by using the phone’s camera.

Mattes said it solves two pain points — usability and security.

During trials, he said Netswipe was able to decrease the number of consumers who abandoned their purchases at checkout to 21 percent from slightly more than half. It can also cut down on fraud, because consumers must have the actual card in hand.

“It’s almost impossible to make and use fake cards. We can detect if the type is embossed or if there is a hologram,” Mattes said. “We spent a lot of time and money and effort on accuracy.”

With so many advances taking place in the payments space right now, the technology is already similar to a couple of solutions on the market.

First, there’s Square, the well-backed San Francisco start-up, which has created a card reader that plugs into either a cellphone or a tablet, so that payments can be accepted cheaply and easily in person. Second is Card.io, which captures payment data by holding a credit card up to a phone’s camera to automatically read the card information and enter the appropriate data.

Mattes said Jumio is “like Square for online,” although Jumio will also soon be coming out with a mobile version for making in-person payments.

Jumio will have three products initially, which will let merchants decide how comprehensive a payment network they want. If merchants only want to use the scanning technology via the webcam, it costs 15 cents a scan; for more comprehensive services, smaller merchants will pay a flat rate of 2.75 percent per transaction with no set-up or monthly fees.

So far, Mattes said Jumio has five merchants signed up, but he wasn’t willing to name them at this time.

“You’re both asking for the moon and you should be more reasonable,” Judge William Alsup told lawyers for both companies, according to a Reuters report.

Alsup told Oracle that the damages it expects to collect are too high, while Google’s argument that it owes Oracle nothing is “ridiculous.” Oracle has said its damages calculations range from $1.4 billion to as high as $6 billion. It recently told the court it is seeking $2.6 billion.

Alsup also talked about how internal Google emails appeared to show its executives knew it was using Java in Android. “I’m not saying there was willful infringement, but how are you going to answer this?” Alsup asked attorneys for Google during the hearing, according to the Mercury News.

The tone of exasperation with both sides seems to indicate that Alsup wants the two companies to start settlement talks. Oracle sued last year, accusing Google of infringing on Java patents which Oracle now owns as a result of its acquisition of Sun Microsystems.

Alsup also granted Oracle’s request to grill Google CEO Larry Page and several other current and former Google employees in a pretrial deposition. (See the judge’s order below.) Oracle had sought the order last week, arguing that Page, as Google’s president, had been directly involved with its 2005 acquisition of Android and had participated in Java licensing discussions with Oracle CEO Larry Ellison last year. Google had opposed the request.

The judge also granted Oracle’s request to depose two other current and former Googlers, including Bob Lee, who’s now CTO at Square, but he denied the request to depose Dipchand “Deep” Nishar, a senior vice president at LinkedIn. (Update: I revised this paragraph to correct Nishar’s name. I also initially said the judge had granted Oracle’s request to depose Nishar when in fact he denied it. Sorry about that.)

Java Docket 229

All the security attention paid in recent years to securing the Windows desktop and the applications running on it have paid off a little, Cisco found, making it harder for computer scammers to successfully carry off their intended crimes on that platform. The trouble is they’re now starting to focus more attention on mobile devices, including Apple’s iPhone and iPad, and devices running Google’s Android operating system, Cisco said.

Meanwhile, the overall global volume of spam, which often contains troublemaking links that are used to deliver attacks, decreased for the first time ever in 2010. Even so, spam still increased in some developed countries where broadband connections are multiplying. In the United Kingdom, spam volume nearly doubled, while the volume in France went up 115 percent. The U.S. saw a slight decline–11.1 trillion messages down from 11.3 trillion in 2009. Spam in Brazil, China and Turkey also declined. Some of the decline can be attributed to last year’s arrest by FBI agents in Milwaukee of a Russian accused of being the “king of spam,” and to the shutdown of a few botnets used by scammers to send spam.

One thing about Cisco’s report that’s likely to draw some attention is its finding that the raw number of vulnerabilities on Apple products appear to be growing. Apple users are usually pretty sensitive about this topic, and any comparison of the Mac to Windows on the security front tends to make them grind their teeth and pound out annoyed comments on tech blogs. I know because I’ve done the same teeth-grinding and have in the past criticized other reports for similar findings.

Here Cisco is addressing vulnerabilities that Apple has itself documented and patched in software updates. One thing that’s not clear to me–though it sure looks like it–is whether Cisco is combining vulnerabilities found on both iOS (iPhone and iPad) and OS X (the Mac). The data it’s using is from its IntelliShield service, which tracks vulnerabilities and security incidents, and shows that over five years Apple’s vulnerabilities rose, from less than 200 in 2006 to more than 350 in 2010. That rate was higher than Microsoft and Hewlett-Packard and Cisco itself, the report found, though it goes on to say that Apple has worked harder than most other vendors to protect its users. Security is one of the reasons Apple imposes such strict rules on what’s available in the App store, though people still jailbreak their phones.

Another trend Cisco found is something called “money muling.” Tom Gillis, VP and general manager of Cisco’s Security business unit, describes money muling as using unsuspecting people who are attracted by “work at home” spam messages and Web ads to participate in money laundering by moving small amounts of money into bank accounts, just a few thousand dollars at a time. He says the operations around this are becoming increasingly elaborate, and criminals will devote a lot of effort to developing it this year.

I talked with Gillis about the report and other security trends that Cisco found. Here are a few highlights from our conversation:

NewEnterprise: So you’re seeing fewer attacks on Windows and more on mobile devices. Is that simply because there are more of them?

Tom Gillis: It’s the simple fact that there’s this new class of mobile device coming into the enterprise that used to be a phone and now it’s a computer, and it can access enterprise information. So what we’re seeing is that the raw number, but not the severity, is down on Windows. Part of this is that Windows 7 was a very good release on Microsoft’s part from a security standpoint. And we’ve got these new devices coming into the enterprise, and so we’re seeing a shift in focus of attacks on these mobile devices. They’re vulnerable to attack and they’re relevant in the enterprise. Two years ago this would have been too small a population to be meaningful.

What kind of attacks are you seeing?

It varies. In some cases there’s a little “phone home” code in a free gaming app. Pretty gentle stuff so far. But as people start using smartphones to access sensitive information we need to start thinking about security considerations on these devices. There’s a larger theme here that the whole nature of attacks is changing dramatically. The fact that spam volumes dropped at all is a big tell. For 10 years this has only gone up. We’re not forecasting a steady decline in spam, but the fact that it slowed down at all is an indicator of the shift in the way that attackers are using email. The attacks are more targeted and personal, for one thing.

Can’t some of this decrease be attributed to some of the arrests that happened last year?

It can. There’s been a handful of arrests. And they went after not only the botnet operators but other parts of the spam value chain. There are firms and entities that build botnets of compromised machines that relay the spam, and then there are other firms and entities that rent time on those botnets that do the merchandising. The biggest category is selling fake pharmaceuticals. Some of these fake pharma operations were shut down and the people associated with them arrested. It’s not an easy thing to do, because they’re global, they move around, and so to make an arrest in this space is a huge accomplishment.

So what is the thinking now about securing the mobile device?

We think there are two ways to make mobile devices work in the enterprise. The flood of devices into the enterprise is huge, and everyone wants to use them to check their email and access corporate directories and other fundamental things. There needs to be some kind of software on the end point–the phone or device. It will have to be light. You can’t have some kind of antivirus suite running on the phone. It would be a little piece of software that’s on all the time that knows when you’re behind the corporate firewall and when you’re not, and manages your connection accordingly. We bought a company called ScanSafe that has 40 data centers around the world. When you’re outside the firewall it connects to you the nearest data center and enforces your corporate policies, but all you as the user know is that it just works. This notion of being on or off the corporate network goes away. And we can do all kinds of scanning for security, independent of the device that’s being used.

This year we also saw the Stuxnet attacks, which we now know for certain were carried out against the Iranian nuclear program. Clearly this is a new kind of attack that can be mounted against industrial control systems via computer networks. Is Cisco researching this?

Massively. Often these types of attacks are targeted against Cisco’s biggest enterprise customers. Who buys Cisco’s infrastructure? The biggest banks in the world, the defense contractors. If the goal of an attacker is to disrupt an economy, their targets will be our customers, and they’re demanding a response from us. I like to call it global threat correlation, but it comes down to taking huge samples of network traffic and picking out good traffic from the bad. Cisco has a good advantage here because our equipment is so widely deployed around the world. As we start measuring traffic we can develop reputation data on every publicly routable IP address on the Internet. As we start putting telemetry info into that equipment–and the customer can choose to enable it or not, and it’s turned off by default. But people turn it on because it helps them against the unknown kind of attacks that are popping up. If a Web server says its a Web server, but you just saw it sending spam three minutes ago, there’s a pretty good chance it’s part of a botnet. Once you know that you know that, you can start to mount a pretty good defense. We’re putting a lot of energy into developing that, and it’s proven to be pretty robust.

Their new tactic involves mobile ads that appear when a person using a competitor’s phone or network launches an application or browses the Web on their phone. The basic message: Oh, you could do better than that thing.

Nokia Corp. recently targeted ads for its Nokia Twist device at users of the Motorola Inc.’s Razr phone. Razr users who surf the Web would be dealt an ad saying, “Are you really still rockin’ a flip phone?” It then suggests upgrading to a Twist, says Gene Keenan, creative director of mobile at Isobar, a digital marketing agency owned by Aegis Group PLC that worked on the campaign on behalf of Nokia.

In industry jargon, the tactic is called “intercept campaigning.”

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Following the release, the company’s stock began a free fall, dropping 15.25 percent to $35.34 a share over concerns that the retailer is losing market share to Amazon, Target, Wal-Mart and others.

What’s worse is that the retailer appears to be one of a few that is not seeing this year’s goodwill. ComScore is reporting big online sales gains this year compared to last year, and the Commerce Department said today that retail sales rose for a fifth straight month in November due to increasing consumer confidence.

Meanwhile, Best Buy reported a 4.4 percent drop in quarterly profits, and was forced to lower its per-share profit forecast for the year to the range of $3.20 to $3.40, which is down from its previous guidance of $3.55 to $3.70 a share.

In the three months ended Nov. 27, Best Buy reported $11.9 billion in revenues, falling from $12.02 billion in the same period a year ago. Net income fell to $217 million from $227 million in the same period last year.

In the quarter, Best Buy said sales of TVs declined in the U.S., but the loss was partially offset by an increase in smartphones and tablet computers. Best Buy faces stiff competition from retailers such as Wal-Mart, Amazon, Target and GameStop, which were more aggressive on pricing. The Wall Street Journal reports that the company surrendered 110 basis points of market share in the most recent quarter.

BlueCava hopes that its device identification system may eventually replace online tracking tools such as cookies. Instead, BlueCava hopes companies will track users based on their device IDs. Consumers will be able to visit BlueCava to see how they are being tracked and to choose not to be tracked.

“We represent a brand new way to disclose to consumers how they can receive targeted advertising,” said BlueCava Chief Executive David Norris. “Some people view us as the next generation of technology that will extend beyond what cookies can do.”

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The U.S. International Trade Commission has announced plans to formally investigate HTC’s allegations that Apple (AAPL) infringed upon its mobile phone patents.

“The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain portable electronic devices and related software,” the ITC announced. “The products at issue in this investigation are portable electronic devices that utilize certain power management methods and may incorporate hardware and software for telephone directories within mobile telephone systems….The complainant requests that the USITC issue an exclusion order and a cease and desist order.”

The agency is already investigating HTC for a similar but broader complaint filed earlier this year by Apple, so this is familiar territory. A decision against either company could see some or all of its phones and mobile devices blocked from import into the U.S., though that seems unlikely.

Collins Stewart telecom analyst Greg Miller this morning noted that the industry “continues to slow at a surprisingly fast rate.” The first quarter, he says, could market the first-ever period of negative net subscriber additions in the history of the industry.

For AT&T (T), he cut his forecast for post-paid net adds to 499,000 from 632,000 for Q1, and to 2.607 million from 2.976 million for 2010.

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Nokia today upped the ante in its ongoing patent dispute with Apple, filing a complaint with the U.S. International Trade Commission in which it claims that Apple infringes its patents “in virtually all of its mobile phones, portable music players and computers.”

According to the Finnish cellphone maker, Apple (AAPL) is illegally leveraging seven Nokia (NOK) patents related to user-interface design and camera, antenna and power-management technologies to “create key features” in its products.

“Nokia has been the leading developer of many key technologies in small electronic devices,” said Paul Melin, general manager of patent licensing at Nokia. “This action is about protecting the results of such pioneering development….The ITC case filed today is about Apple’s practice of building its business on Nokia’s proprietary innovation.”

Nokia’s ITC complaint escalates a nasty legal battle that began in October when it sued Apple, claiming the company’s iPhone infringed 10 of its patents. Apple subsequently countersued, alleging Nokia copied the iPhone and 13 of the patented technologies on which it is based.

I’ve asked Apple for comment and will update here if the company responds.

Where? In Sweden, of course, which is where Spotify started, and which acts as a sort of test lab/best-case-scenario provider for the service.

The company has announced a two-year deal with Telia, a European telco/Internet service provider, “to work together developing Spotify’s music service for computers, mobile phones and eventually TV as well.” No details about what that TV service might be, but the companies say a mobile offering will be available for Swedes within a “few months.”

That’s interesting, since Spotify already has a mobile offering: Subscribers to its premium service can use the company’s iPhone app, which Apple (AAPL) approved last month. No description of how the new service will differ.

It’s also worth noting that this is Spotify’s second deal with a Swedish ISP. It already has a linkup with Bredbandsbolaget, owned by Telenor, a Scandinavian telco, which allows users to bundle their subscription fees with their Internet bills.

It’s also the only territory where the service has a bundling deal, and industry observers think that tie-up has a great deal to do with the company’s much talked about success there.

Everywhere else, though, Spotify remains a work in progress. It claims 5.5 million users, but as of last month only about 100,000 of them were paying the company a monthly fee, according to people familiar with the service. It is currently trying to break into the U.S. market, but has been mired in discussions with the big music labels–the same ones that have licensed the company in Europe–for months.

For more on the company’s plans, see this interview Kara Swisher conducted with co-founder Daniel Ek last month: