We really dont know. Meanwhile, oil stocks were up today. The price of oil slid nearly 3 after yesterdays big rebound. Ibm signs more Cloud Computing deals as it tries to boost revenue. The latest deals are with wpp and thomson reuters. They could add 4 billion to ibms top line. The revenue comes at a crucial time for big blue, which recently ditched its earnings forecast. A federal judge in minnesota refused to file out to toss out a lawsuit filed by banks against target over last years huge seven security breach. They sued target for negligence, saying they failed to protect systems, and the banks had to reimburse people for fraudulent charges. Uber has partnered with America Movil. The right sharing app will be on all America Movil phones in mexico. Raise moreking to money, a move that could value the company as high as 40 billion. Back in the day, apples ipod was king. Remember this . Ipod, 1000 songs in your pocket. Those days are back again, at least in federal court. Apple is appearing in a decadesold classaction suit over the ipod. The issue, whether apple violated antitrust laws by forcing customers to use the ipod to play music downloaded only from itunes and nothing else, blocking access to music from other services. Apple could be on the hook for as much as 1 billion in damages. Late apple cofounder steve jobs will play a key role in the trial. Emails from jobs and a video deposition from just months before he died are expected to be key pieces of evidence. Feldman,s now is robin professor of law at uc hastings in san francisco. Also, a distinguished professor at rutgers law school. What is that state in this case . Antitrust, the damages can be high. But the questions are simple. Antitrust, big is not bad, is what you do that matters. The question will be, was apple competing on merit or trying to throw its weight around . Thereit relates to that, is a lot of discussion about apple saying that they are trying to control their own world with music. I remember when they announced you could not download other kinds of music onto the device. What would make that illegal . Show thats trying to they have a reason for doing what they did, that when they make it harder for users of the ipod to connect with itunes, that there is a reason. If it is a security reason, if they want the best quality of music. That will be crucial. If you have a good reason for doing what you are doing, that gives you a get out of jail free card. On the other hand, plaintiffs will claim there is no good reason at all. The only reason apple linked the ipod with itunes was to hurt rivals and increased price. Can they make the argument thateveryone else says, adding anything would make it confusing for users . If it is legitimate, they could say that the itunes store had the best Quality Music and that if there were competitors out there it would not be as good. It could crash the ipod. They could come up with stuff like that, but they would have to substantiate it. If it looks like there was no such good reason, they could be in more trouble. As i understand it, beauty is in the eye of the beholder. If they say it was beautiful to exclude other services, is that enough . You have a jury in front of you. Who can tell a story that the jury believes . The question for the jury, was apple trying to do the things that Consumers Want . Greater security, greater products. Or where the updates just a way strangle strongarm competitors in the cradle . The technology that cap told her kept ipods from playing music from other services, were they doing something legitimate . Jobs. Ming large, steve there is no better storyteller in the history of technology. Is the sympathy of a sick steve jobs before his death, is that going to shape the jury . What has the judge done to keep that from happening . It is a complex question. The judge has said that apple, the plaintiffs do not get to introduce some sort of inflammatory material that jobs may have said. As long as you dont open the door to talk about what a great visionary he was. One of the difficulties that you face in antitrust litigation if you are apple, steve jobs, no matter what a visionary he was, what a genius he was, said some things in terms of apple striving to be the best and to quash competitors, that through the lens of an antitrust filter do not necessarily look so great. When you say in a Business World we will be the best, thats one thing. When you say we will quash our rivals and that is tossed in front of a jury in an and interest trial, that is something antitrust trial, that is something else. You mentioned what might be a magic word in this trial visionary. Youjudge has said that if go back to all the things that have been found to be at a competitive the attempt to roll down wages. The case in new york with Book Publishers who conspired with apple to fix prices. The whole issue of describing steve jobs is a visionary could trigger some big changes in this trial. Raising steve jobs from the dead is a risky strategy. The plaintiffs will try to show that he was an aggressive businessman determined to win at all costs. But that could backfire, particularly for a jury in silicon valley. Steve jobs still holds icon status here. One does not have to use the term visionary to remind people of the type of sympathy he brings in this area. Inthis trial is being held oakland. Technology is all around us in the bay area. Is it reasonable that the jury would hold steve jobs in a unique regard . Juries are human beings. They will remember the impressions they bring with them from what i heard today. Steve jobs is a character that is largerthanlife. Apple has also been in the news a lot. It has done things tremendously procompetitive, and things that are anticompetitive. Itunes itself is one of the most exciting procompetitive moves that happened in recent times. It opened up a tremendous amount of competition in the Music Industry by allowing individuals to download songs individually and to buy them online. On the other hand, as you mentioned, apple got into trouble with the electronic books by trying to broker agreements among publishers. The question for the jury in this case would be, which side of the divide was the company on this time . Cyber monday sales are up. But they have been slowing perhaps because we will look at the confusing numbers. You can watch us on your apple tv and amazon fire tbv. Im cory johnson, and this is bloomberg west. Preliminary cyber monday results are in. Growth was slow, but sales were up. Ibm estimated sales rose 8. 5 . Shopping on smartphones and 41. 2 ofccounted for traffic yesterday. How is Online Shopping changing over the holidays . Us scott, what does your data show . We showed that on cyber monday we were up 16. 7 . The ciber five, the days between thanksgiving and cyber monday, overall we were up 20. 6 for those five days. We saw things shift earlier, so it is important to look at the whole fiveday periiod. Five soundsr like a superhero team. Numbers out of amazon showed that saturday had tremendous yearoveryear growth, sunday as well. Ebay saw a big boost. Amazon, not quite as much. What is going on . You have to look at the fiveday period. , on cyber monday ebay outperformed. They held back a lot of promotions for cyber monday. Amazon went early. Thats why they had a really great saturday. We saw a lot of things out of stock. A lot of top toys and Electronic Items became hard to find on real shelves and virtual shelves. Ebay benefits when that happens. With the auction format, thats where people go when they are desperate to find the one specific item they are looking for. So there is a market for that hot tickle me elmo or whatever it is this year. Unthinkable i dont know what it is this year. I was struck by the numbers that showed different results. Ibm had their numbers. You had your numbers. They were dramatically different. Ibm said 8. 5 . 16. 7 id something, yearoveryear growth on monday. Talk to me about that discrepancy, which is not small. I want to speak to the ibm data. Clickstream data, looking at clicks and that kind of data. Customers, and00 we measure the transactions they go through a software. So were not taking a survey or clickstream data. We are looking at our data. We also do samestore sales reports so that we are not limited by customers we gain or lose over a period of time. Thats the best approach. What we do, we help retailers buy traffic with search and comparison shopping, and we look at what is happening at ebay and amazon. Lets talk about how people shop. I found myself in an Airport Shuttle buying a shirt. People are strapping shopping on smartphones and tablets in bigger numbers this year. How has that changed . If people are not waiting until monday, does the whole notion of cyber monday go out the window if people have phones and tablets . Throughout the year when we look at traffic trends, about 40 use mobile. Ks on thanksgiving it went up to 50 , the highest watermark we have seen in the u. S. In europe they are well ahead of us there, and certain retailers in the u. S. Are ahead of 50 . The numbers are lower because the Conversion Rate on mobile is lower than on desktop. On thanksgiving, 35 of sales were for mobile. To your point, it is becoming interesting, what we see is a movement for the same thing that happened to black friday, where everyone is trying to move it to thanks giving or even the week before thanksgiving. Everyone is moving cyber monday up. Walmart, target, amazon all ran w cibereek cyber week deals. You ask yourself, does the whole trend of cyber monday even matter anymore . It used to be that we would use broadband at work. It also used to be that the peak hours were 12 00 to 1 00 eastern, then after 7 00 p. M. Now we see it later in the evening. 10 00 p. M. Was the peak. The 6 00 to 10 00 p. M. Eastern window was where we saw cyber monday sales this year. It is not for work anymore. Largely the promotions are driving it. It is interesting, almost like after work is when people are doing cyber monday shopping. The death of cyber monday, makes me so sad. Thank you very much. The fallout from the massive hacking at Sony Pictures might be just getting started. The fbi is warning u. S. Businesses to be on the lookout for disruptive cyberattacks. That story, next on bloomberg west. Im cory johnson, and this is bloomberg west. The fbi is warning businesses that hackers have already used anicious software for attack in the united states. An unreleased movie starring brad pitt leaked onto the internet after an attack on sony. Experts already connected the dots. How many other businesses should be concerned about this warning from the bureau . The Vice President of research chris, what makes us think these attacks go beyond Sony Pictures . Well, i think that the investigations suggest there is malware, common types of malware that have been seen elsewhere. I would suspect they have intelligence that whoever is pervading the attacks is targeting other companies as well. Tois, and to use malware extract information that might be useful in further attacks. Thesethese might be are attacks were they will see what they can find in the maybe later exploit those . That is the typical way it goes. You are not that far off when attack. Phishing the most common way to get malware on systems is to use phishing, sending emails to fool people into going to sites hosting malware. Sometimes they will target highlevel executives in the company to get them to install malware. Once thats installed a number of Different Things can be done. Whichctive malware, essentially destroys all the information on the hard drive, makes the machine inoperable, deletes everything it finds. Theres spyware that tries to observe what the user is doing, capture keystrokes or files. Botnet, all different kinds of malware can be used to extract information. Theres speculation that the james franco and seth rogen movie that somewhat ridiculously hem as leaders in a plot to assassinate the leader theyrth korea, its said got north korean hackers to attack them. The fbi is suggesting this might not be the case, and is a broader phishing expedition. D the world be afraid of og is really the question hereen. It makes a good question that there is a movie a good story that there is a movie coming out, so north korea is doing it. Not a lot of specific information is tied to that. Generally speaking, all companies are being targeted. Anyone with viable information, sensitive information, cardholder information, all the mosthes we have seen, make Large Companies very lucrative targets for attackers. So its not unreasonable to think it would go beyond sony. Chris eng, thank you very much. Speaks out, the latest to weigh in against spotify. The new threat to the Music Industry, next. Watch this streaming on your tablet, phone, bloomberg. Com, or your apple tv or amazon fire tv. Time for Bloomberg Television on the markets. Get you caught up on where stocks traded today. A little bit of a rally pushing the Dow Jones Industrial average to an alltime high, 102 points up. 60 . 500 up 0. You are watching bloomberg west. I am cory johnson. It came of age at a time when there was no such thing as itunes and spotify and became one of the worlds best selling artists, sting. Sting still hasnt millions of potential revenue at stake in streaming. Betty liu set down with the 16 time grammy winner and asked him where he stands on the changing music Business Model. The model is changing obviously and i dont think the model we have at the moment is necessarily the one that will be there in 510 years. We need something with a little bit more equity for musicians. Musicians need to be paid for their work. Its fine for me. You have made your money. I am have made my money and i am welloff. Those beginning their career, the idea of making a living from this business is tough and increasingly so. Whatever model is created needs to be equitable. The streaming model is a good one but they also need to be paid. You are on streaming services. In some ways you support these models . I think they are evolving. I was interested in the taylor swift stand. I thought it was a brave stand and she also brought it into public debate. It was good and people me to talk about this. What is good for music . Music is important to our society. It must not die out. It is a vibrant part of society. So you agreed with her move. I thought it was good to get the debate out. Whether she goes back to spotify or not is up to her. To raise the debate is a good move. When that happened, that created some seismic changes. Some people have no idea there is any issue. But musicians need to be paid. I would hear from people who said why should artists feel they have any rights to be making tons of money like they have in the past . Not tons and tons of money, its making a living. In this industry, you can make a killing but its hard to make a living. It needs to be more equitable. Do you think mark artists should push back like taylor swift . I think the streaming companies have gotten the idea and they are working as best they can, i suppose, to make it better. It is evolving. Every day is different. I am intrigued by where it is going. Im glad i am starting out in the Music Industry now. That would be a tough one. Would you be able to make as much money as you have if you started out today . No, i have no guilt about making extravagant amounts of money. I did that at the time. But i worked hard for it. Im still working hard. I enjoyed it. You are still taking risks. Yes. What do you think of the new artists today . You have made comments about justin bieber. I feel sad sometimes when people leave school and they have a hit on x factor and then they get involved in this crazy World Without any kind of thing to compare it to. I dont know how you stay sane in that. The pressures are enormous. Unless you have had some grounding in real life, it must be very difficult to survive. Should the Music Industry be more responsible towards that . Is there anything that can be done . You cannot entirely blame the Music Industry. The media is responsible and society generally. You put people in these positions that are difficult to sustain. When you are a young person and you suddenly become famous and successful, you think youre entitled to that forever. Entitlement doesnt help. You dont let that get to your head . No, because i had a reallife before and i may not be possible in this era. Im glad of my time. That was a former schoolteacher, sting. Speaking with betty liu. For more on the changing music model, paul sweeney joins me from new york. He has done work in the Music Industry. With streaming industry, there has been a big change with different artists fighting against and suddenly they are fighting against spotify and their increasingly dominant model. What do you think . The music business once again is changing and its really going from a business where consumers actually own content to where they just rent it. No longer are people buying albums. We have known that for over a decade. If you look at the apple results, they talk about how their itunes sales were down last quarter. People are actually renting music and streaming music and i think the artists are saying this is a bigger part of the business and we need to make sure we get paid adequately for our content on these services. As sting phrased it, a more equitable pricing policy is what i think a lot of these artists like taylor swift are pushing for. Its interesting that there has always been a battle within the Music Industry of the songwriters versus the performers and who will get the most money. You can make a killing but you cannot make a living said sting. Has that balance of power change in the world of streaming . It has. An interesting companys live nation, the largest concert promoter in the u. S. One of the stories they tell is that for performers, its very difficult to make a living producing content where the performers really make their money is on live events. Thats why the concert business remains a vibrant business in the music sector. Its really a challenge as consumers change the way they consume music from owning lots and lots of music and building libraries of music to simply renting it on streaming services and it makes it