Judge may lower Apple's award in Samsung patent case

































































SAN JOSE — A federal judge signaled Thursday that she might reduce Apple Inc.'s $1-billion jury award in its patent infringement case with Samsung Electronics Co.


U.S. District Judge Lucy Koh did not specify by how much she might shave the award, but during a marathon afternoon hearing in federal court in San Jose she said it did appear that the jury had miscalculated damages.


In August, after three days of deliberations in the complex patent case, a jury awarded Apple more than $1 billion.








In the months since the verdict, Samsung has mounted an aggressive campaign to overturn the verdict, raising a host of legal issues including juror misconduct. Apple hotly contested those issues during the hearing Thursday and sought to increase the damage award.


Lawyers for the world's two largest smartphone makers sparred for more than three hours over a bevy of legal issues in the dispute that produced one of the largest damage awards in an intellectual property case. Koh said she would issue rulings in the coming weeks.


Samsung argued that the damage award should be reduced because the jury incorrectly calculated the amount. Apple asked the court to award $535 million more in damages because the jury found that Samsung had willfully infringed Apple's patents.


Both sides seemed to be gearing up for years of legal appeals despite the judge's plea for "global peace." The case is likely to go before the U.S. Federal Circuit Court of Appeals, the Washington court that decides patent disputes, and perhaps the U.S. Supreme Court.


Apple also asked the judge to ban some Samsung products. The judge did not rule on whether the infringing Samsung products should be taken off store shelves.


The products are older models and would not dent Samsung sales, but the ban would give Apple a win in its high-stakes patent war against the South Korean company that is playing out around the globe.


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Facebook voters: Everything you need to know to cast your ballot



jessica.guynn@latimes.com






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Oscar Niemeyer dies at 104; modernist Brazilian architect









Oscar Niemeyer, the architect whose soaring buildings form the heart of Brasilia, the instant modernist capital built in the wilds of Brazil in the late 1950s, has died. He was 104.


Niemeyer, who had outlived his contemporaries to become the world's oldest practicing architect of international stature, died Wednesday at a Rio de Janeiro hospital. The cause was a respiratory infection, a hospital spokeswoman told the Associated Press.


During his long and productive life, Niemeyer was revered as well as ridiculed for his daring designs, but the creativity and sheer volume of his works ultimately spoke for him. In 1988, at 80, he shared architecture's biggest prize, the Pritzker.





Niemeyer, a diminutive, soft-spoken man, worked well into his 90s in a Rio de Janeiro penthouse office with a stunning view of Sugar Loaf Mountain and overlooking Copacabana Beach. Hundreds of projects came into being kindled by this view.


Many of his designs began with a quick sketch that embodied his love of the curve — from Einstein's universe, to the sinewy white beach that he gazed at nearly every day, to the voluptuous women he so loved to watch walking along that beach.


These women, he often said, were his inspiration.


"Curves are the essence of my work because they are the essence of Brazil, pure and simple," Niemeyer told the Washington Post in 2002. "I am a Brazilian before I am an architect. I cannot separate the two."


A passionate man, he lived in protest of the right angle "and buildings designed with the ruler and the square." His politics were also those of protest — he became a communist in the 1940s because of his anger over the inequality he saw around him, and he was a longtime friend of Cuba's revolutionary, Fidel Castro. His designs — especially of Brasilia — were partly an attempt to push his country toward egalitarianism, bringing rich and poor together through housing projects and public spaces.


A few years after Brasilia was completed, when a rightist military coup in 1964 not only destroyed Niemeyer's dreams of a just society in Brazil but also took away his sponsors, he fled to Algiers and then Paris. In the city, he had an office on the Champs Elysees and met Pablo Picasso, Jean-Paul Sartre and many other notables and, he later recounted, lived a hedonistic life far away from his wife, Annita. He returned to Rio in the late 1970s.


Oscar Ribeiro de Almeida de Niemeyer Soares was a Carioca — a native of Rio — whose heritage was Portuguese, Arab and German. Born Dec. 15, 1907, he was the son of a businessman and his wife who lived in Laranjeiras, a quaint, hilly neighborhood within the city.


While at the National School of Fine Arts, from which he graduated in 1934, Niemeyer worked with architect and urban planner Lucio Costa, who would lead Niemeyer to projects that would make his name in international architecture.


Costa, the master planner of Brasilia and an early proponent of Brazilian modernism, at first was unimpressed when the young draftsman joined his firm. Before long, they were working with Swiss-born architect Le Corbusier — who was in Brazil as a design consultant to the government — on the defiantly modern design for the Ministry of Education and Health Building in Rio. The building, which incorporated Le Corbusier's signature "brise-soleil" louvers to shield it from Brazil's intense sunlight, became a symbol of the new architecture in Brazil.


Le Corbusier would greatly influence Niemeyer, instilling in him a sense of fluidity, spontaneity and what David Underwood, writing in "Oscar Niemeyer and Brazilian Free-form Modernism" (1994), called jeito — "the lightness of touch, the graceful elegance of form and the movement inherent in the sauntering 'Girl from Ipanema' celebrated in the best of Brazilian modernism."


While Le Corbusier opened doors to creativity, however, Niemeyer saw his work as very distinct from his mentor's. As he told The Times: "He posited the right angle. I posit the curve."


In bringing to life his sensuous designs, he relied on what was then a new and versatile material — reinforced concrete — which he pushed to its limits, especially at load-bearing points, he wrote in a 2003 essay for Deutsches Architektur Museum, "which I wanted to be as delicate as possible so that it would seem as if [they] barely touched the ground."


The first Niemeyer structure built was a maternity clinic in Rio in 1937. His first major project, commissioned in 1940, were buildings for Pampulha, a then-new suburb of the southeastern city of Belo Horizonte, including a yacht club, casino and a church so avant-garde in design that church officials refused to consecrate it for 16 years.


With Costa, Niemeyer also designed the Brazilian Pavilion at the New York World's Fair in 1939, and Niemeyer influenced the ultimate design of the United Nations headquarters while serving as Brazil's design consultant in 1947.


In time, his portfolio would include a postwar housing project in Berlin; the universities of Constantine and Algiers in Algeria; the French Communist Party headquarters in Paris; the Cultural Center of Le Havre, France; and the Mondadori headquarters in Milan.


He also designed the Strick House in Santa Monica— thought to be his only residential commission in the United States.


He will perhaps be best remembered for Brasilia, the bold project launched by Brazilian President Juscelino Kubitschek in 1956 in an effort to unify his vast country and move it forward half a century in a mere five years.





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Casio’s new G-Shock smartwatch can display alerts from your iPhone [video]












Since the Dick Tracy cartoon days, every gadget nerd’s dream has been to have a smartwatch. And while smartphones have largely made the need for wearing wristwatches unnecessary, companies continue to search for ways to connect watches and smartphones. Casio’s GB6900AA G-Shock is the latest smartwatch that connects to Apple (AAPL) iPhone 4S and iPhone 5. Using Bluetooth 4.0, the watch can provide a number of notifications such as alerting you when you have new calls, text messages and incoming email. The G-Shock also has a “Phone Finder” feature that’s similar to the Find My iPhone app that lets you locate your misplaced iPhone with the press of a button on your watch. To our disappointment, the G-Shock doesn’t have a built-in microphone for one-button Siri operation, but it does have an automatic time adjuster that changes time zones on the fly.


As with all G-Shocks, the GB6900AA is one tough watch. It has a two-year battery based on 12 hours of Bluetooth syncing per day and 200 meters of water resistance and shock absorption. Casio’s selling the watches for $ 180 at select U.S. department stores and its online website.












A video demonstration of Casio’s new Bluetooth G-Shock follows below.


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Grammys spread the love with 6 top nominees


NASHVILLE, Tenn. (AP) — The Grammy Awards celebrated the diversity of music as six different artists tied for lead nominee — Kanye West, Jay-Z, Frank Ocean, Dan Auerbach of The Black Keys, Mumford & Sons and fun.


Auerbach received five nominations as a member of the Keys and also is up for producer of the year, earning a spot with the others at the top of the list as the Grammy's primetime television special came to his hometown Wednesday night.


"We're speechless," Auerbach said in a statement to The Associated Press from Germany, where he's on tour with drummer Patrick Carney.


The rockers little resemble any of the other acts at the top of the list. The nominations for Jay-Z and West, two of hip-hop's most important figures, is a familiar refrain. Each has routinely been at or near the top of the nominations list for the last several years.


Indie pop band fun., a featured performer during the show, aired live from Nashville's Bridgestone Arena on CBS, rode the success of its anthemic hit "We Are Young" featuring Janelle Monae to sweep of the major categories, earning nods for best new artist, song and record for "We Are Young" and album of the year for "Some Nights." The band's producer Jeff Bhasker is up for four nominations.


"When you call your band fun. with a period at the end of the sentence, you set a very high standard for yourself and for fun itself," Taylor Swift, the concert's co-host, said in introducing them. "Fortunately this band from New York has lived up to the name in the best possible way."


R&B singer Ocean, whose mother was in attendance, made a bold social statement earlier this year when he noted he had a same-sex relationship in the liner notes of his new album "channel ORANGE," and The Recording Academy rewarded him with the nominations for best new artist, record for "Thinkin Bout You" and album of the year.


And British folk-rock band Mumford & Sons, which made an auspicious debut in front of an international audience during the 2011 Grammys, is up for album of the year for "Babel," one of 2012's best-selling releases.


Miguel, who helped Ocean shake up the R&B world this year, and jazz great Chick Corea join the Keys with five nominations apiece. Nas and recording engineer Bob Ludwig join Bhasker at four apiece.


There were no major snubs. Most of 2012's inescapable hits are represented in some way — Gotye's "Somebody That I Used To Know" is up for record of the year and Carly Rae Jepsen's "Call Me Maybe" garnered a song of the year nod. Drake, Rihanna and Nashville residents Swift, Kelly Clarkson, Jack White and best new artist nominee Hunter Hayes were among 16 nominees with three nods.


In many ways the nominations reflect a singles-driven year when no album rose to the level of acclaim as Adele's "21" or West's "My Beautiful Dark Twisted Fantasy," which dominated the Grammys last February.


The best new artist category is a great example of this year's diversity. From the minimalist R&B of Ocean, the pop-influenced sounds of fun. and Hayes, the soulful rock of Alabama Shakes and the Americana swing of The Lumineers, there's little resemblance between the acts.


"I think people listen to a lot of types of music and Spotify has proven that, and iPod has proven that," Lumineers member Wes Schultz said. "... Every person in that audience tonight, I saw them freaking out about various artists that have no relationship to each other."


Alabama Shakes drummer Steve Johnson noted the diversity in the category after the show, then made a surprising statement: "If I were on the other side of the fence, I'd vote Frank Ocean personally."


The members of fun. were "dorking it up" as they learned about their nominations, lead singer Nate Reuss said, and were especially excited to show up in the album of the year category, which also included Ocean's major label debut, the Keys' "El Camino," Mumford's "Babel" and White's "Blunderbuss."


"It's been an incredible year in music," guitarist Jack Antonoff said. "It feels like alternative music is back, looking at album of the year, especially those nominations. We couldn't be more proud to be in there. ... I think when we were sitting in our chairs out there, when we saw Jack White up there, that's when we really pinched ourselves. We felt so honored to be in the same category."


Miguel also had his mind on the forgotten art form of the album. Nominated in the major category of song of the year for "Adorn," he said in a phone interview from New York that he was most excited about another category — urban contemporary album.


"Of all of the categories to be nominated for, that is the one that means the most to me just because I just, I miss great albums. That's a huge compliment to say that your entire body of work was the best of the year," he said. "I don't know. That's the one that means the most to me. I'm really hoping maybe, just maybe."


He'll find out when the 55th annual Grammy Awards take place Feb. 10 in Los Angeles. Trophies will be handed out in 81 categories.


The 5-year-old nominations show was held outside Los Angeles for the first time and showcased Music City for its growing role in the music industry. The Bridgestone Arena marked the largest venue the show has been held in and it may have been a dress rehearsal for a chance to host the main awards show sometime in the future.


LL Cool J returned as host, sharing duties with Swift, whose hit song "We Are Never Ever Getting Back Together" earned a nod in the jam-packed record of the year category. She was joined by fun., Gotye, Clarkson's "Stronger (What Doesn't Kill You)," The Black Keys' "Lonely Boy" and Ocean's "Thinkin Bout You."


Song of the year nominees were Ed Sheeran's "The A Team," Miguel's "Adorn," Jepsen's "Call Me Maybe," Clarkson's "Stronger (What Doesn't Kill You)" and fun.'s "We Are Young."


Swift and LL Cool J opened the show by putting together a beat-box version of Swift's hit "Mean." Hayes displayed his versatility while announcing the best pop vocal album by singing snippets of each star's hit song. Maroon 5 played headliner, singing three songs mid-show before finishing off the live broadcast. The group stuck around for an hourlong performance afterward for the crowd in attendance.


Assisted by Monae, fun. reimagined "We Are Young" with orchestral strings as the crowd sang along, Ne-Yo, in wine-colored bowler, kicked things up with a cadre of dancers on his new club-infused song "Let Me Love You." And the show tipped its hat to Nashville with a salute to Johnny Cash by Dierks Bentley and The Band Perry.


___


AP Music Writer Mesfin Fekadu contributed to this report from New York.


___


Online:


http://grammy.com


___


Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.


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Sign Language Researchers Broaden Science Lexicon





Imagine trying to learn biology without ever using the word “organism.” Or studying to become a botanist when the only way of referring to photosynthesis is to spell the word out, letter by painstaking letter.




For deaf students, this game of scientific Password has long been the daily classroom and laboratory experience. Words like “organism” and “photosynthesis” — to say nothing of more obscure and harder-to-spell terms — have no single widely accepted equivalent in sign language. This means that deaf students and their teachers and interpreters must improvise, making it that much harder for the students to excel in science and pursue careers in it.


“Often times, it would involve a lot of finger-spelling and a lot of improvisation,” said Matthew Schwerin, a physicist with the Food and Drug Administration who is deaf, of his years in school. “For the majority of scientific terms,” Mr. Schwerin and his interpreter for the day would “try to find a correct sign for the term, and if nothing was pre-existing, we would come up with a sign that was agreeable with both parties.”


Now thanks to the Internet — particularly the boom in online video — resources for deaf students seeking science-related signs are easier to find and share. Crowdsourcing projects in both American Sign Language and British Sign Language are under way at several universities, enabling people who are deaf to coalesce around signs for commonly used terms.


This year, one of those resources, the Scottish Sensory Centre’s British Sign Language Glossary Project, added 116 new signs for physics and engineering terms, including signs for “light-year,”  (hold one hand up and spread the fingers downward for “light,” then bring both hands together in front of your chest and slowly move them apart for “year”), “mass” and “X-ray” (form an X with your index fingers, then, with the index finger on the right hand, point outward). 


The signs were developed by a team of researchers at the center, a division of the University of Edinburgh in Scotland that develops learning tools for students with visual and auditory impairments. The researchers spent more than a year soliciting ideas from deaf science workers, circulating lists of potential signs and ultimately gathering for “an intense weekend” of final voting, said Audrey Cameron, science adviser for the project. (Dr. Cameron is also deaf, and like all non-hearing people interviewed for this article, answered questions via e-mail.)


Whether the Scottish Sensory Centre’s signs will take hold among its audience remains to be seen. “Some will be adopted, and some will probably never be accepted,” Dr. Cameron said. “We’ll have to wait and see what happens.”


Ideally, the standardization of signs will make it easier for deaf students to keep pace with their hearing classmates during lectures. “I can only choose to look at one thing at a time,” said Mr. Schwerin of the F.D.A., recalling his science education, “and it often meant choosing between the interpreter, the blackboard/screen/material, or taking notes. It was like, pick one, and lose out on the others.”


The problem doesn’t end at graduation. In fact, it only intensifies as new discoveries add unfamiliar terms to the scientific lexicon. “I’ve had numerous meetings where I couldn’t participate properly because the interpreters were not able to understand the jargon and they did not know any scientific signs,” Dr. Cameron said.


One general complaint about efforts to standardize signs for technical terms is the idea that, much like spoken language, sign language should be allowed to develop organically rather than be dictated from above.


“Signs that are developed naturally — i.e., that are tested and refined in everyday conversation — are more likely to be accepted quickly by the community,” said Derek Braun, director of the molecular genetics laboratory at Gallaudet University in Washington, D.C., which he said was the first biological laboratory designed and administered by deaf scientists.


This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of a correction with this article misstated the name of an institute that works on the ASL-STEM Forum. It is the National Technical Institute for the Deaf at Rochester Institute of Technology not the National Institute for the Deaf. 

This article has been revised to reflect the following correction:

Correction: December 6, 2012

An article on Tuesday about efforts to develop standardized sign language for common scientific terms misidentified the university that started the ASL-STEM Forum, a Web site dedicated to such improvements. It was developed by researchers at the University of Washington, not at Gallaudet University. (Researchers at Gallaudet and the National Technical Institute for the Deaf work with the University of Washington to provide content and help the forum grow.)



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Netflix buys exclusive rights to Disney movies









Netflix Inc. has acquired exclusive U.S. rights to movies from Walt Disney Studios in a deal that catapults the Internet video-on-demand service into direct competition with pay TV giants such as HBO and Showtime.


The three-year agreement takes effect in 2016 and is a blow to the pay channel Starz, which currently has the rights to broadcast Disney movies, including its Pixar animated films and Marvel superhero pictures, about eight months after they are released in theaters.


Starz's sole remaining movie provider is now Sony Pictures. That partnership ends in 2016.





VIDEO: Disney buys Lucasfilm - Mickey meet Darth Maul


Disney has also agreed to give Netflix nonexclusive streaming rights to more of its older titles — including "Dumbo," "Pocahontas" and "Alice in Wonderland" — starting immediately.


Netflix's chief content officer, Ted Sarandos, called the deal "a bold leap forward for Internet television."


"We are incredibly pleased and proud this iconic family brand is teaming with Netflix to make it happen," he said.


Netflix stock soared on the news, rising $10.65, or 14%, to $85.65.


Shares in Starz's parent company, Liberty Media Corp., fell $5.49, or 5%, to $105.56.


Currently, Netflix has nonexclusive rights to movies from Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer via a deal with pay channel Epix, as well as an array of library titles from other studios. Its only exclusive movie rights come from independent studios such as Relativity Media and DreamWorks Animation. It also has a wide variety of television reruns.


Sarandos and Netflix Chief Executive Reed Hastings have long said the company wanted to get exclusive pay TV rights to films from one of Hollywood's six major studios to boost its online entertainment service.


PHOTOS: Disney without Pixar


However, Hastings has also at times downplayed the importance of new movies. Netflix previously had streaming rights to Disney and Sony movies via a deal with Starz. In January, investors expressed their concerns that the pending disappearance of those movies would hurt the service. Hastings said in a letter to investors that Disney films accounted for only 2% of domestic streaming and the loss would not be felt.


Since then, though, the Disney movie slate has become more attractive. At that time, Netflix did not have access to movies from Disney's Marvel superhero unit or the "Star Wars" titles from its pending acquisition of Lucasfilm Ltd.


The end of the Starz agreement accelerated a trend that has seen Netflix evolve into a television company, with reruns of shows such as "Mad Men" accounting for about two-thirds of the content streamed by users.


With several original programs launching next year, including the Kevin Spacey political drama "House of Cards," and a direct connection to a growing number of Internet-enabled televisions, Netflix is on the verge of standing on par with many TV networks.


Netflix charges $8 a month for its streaming service, while premium cable networks such as HBO cost $13 to $18 a month, and that's on top of a monthly bill for other channels that typically exceeds $50. It remains to be seen whether the addition of Disney products and more original programming could lead Netflix to increase its price.


PHOTOS: Hollywood back lot moments


The Netflix spending spree could continue, with Sarandos telling Bloomberg News on Monday that his company would bid for rights to Sony movies when its Starz deal expires.


Netflix might have a tougher time wresting away the rights to Warner Bros., 20th Century Fox or Universal Pictures releases from their current deals with HBO, which like Warner is part of Time Warner Inc. Paramount, Lionsgate and MGM are almost certain to stick with Epix, of which the trio are co-owners.





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4 arrested in Las Vegas in Northridge slayings









Los Angeles police detectives Tuesday arrested four people at a Las Vegas casino in connection with a quadruple homicide at a Northridge house over the weekend.


The four people were taken into custody without incident at the Silverton Hotel and Casino, LAPD Chief Charlie Beck announced at a news conference.


Beck declined to answer specific questions about the case, including any possible motive for the slayings.





But law enforcement sources told The Times the killings appeared to stem from a dispute over personal property, although they would not say what kind of items were involved. The sources, who spoke on the condition of anonymity because the case was ongoing, said detectives were surprised that the dispute would have led to multiple deaths.


City Councilman Mitchell Englander said one of the suspects was believed to have lived at the Northridge home, which authorities said had been converted into an illegal boardinghouse. It's unclear whether any of the victims lived at the home.


LAPD officials identified the suspects as Ka Pasasouk, 31, of Los Angeles; Howard Alcantara, 30, of Glendale; Donna Rabulan, 30, of Los Angeles; and Christina Neal, 33, of Los Angeles.


Pasasouk was arrested on suspicion of murder, Beck said.


Court records show Pasasouk has an extensive criminal record and was on probation at the time of the killings. He has several convictions dating back to at least 2004. Pasasouk pleaded no contest to possession of methamphetamine in 2011. The year before that, he pleaded no contest to unlawful taking of a vehicle and was sentenced to state prison. In 2006, he pleaded guilty to second-degree robbery and assault likely to produce great bodily injury and sentenced to state prison. In 2004, he pleaded guilty and no contest in separate cases again involving unlawful taking of a vehicle.


The three others faced charges of aiding a felon; Alcantara faced an additional charge of robbery.


All four suspects remained in Clark County jail and were expected to be extradited to Los Angeles in the coming days, Beck said. The FBI assisted with the arrests, along with Las Vegas and Henderson, Nev., police.


Officers went to the home in the 17400 block of Devonshire Street about 4:25 a.m. Sunday after a 911 caller reported hearing yelling and shots fired, police said. Authorities found four people — two men and two women — shot dead outside.


Three of the victims — a man and two women — were shot on the walkway on the left side of the home, a source familiar with the case told The Times on Monday. They were wearing hooded sweat shirts and were about two feet apart. All three had at least one bullet wound to the head.


One victim was crumpled on her knees, the source said, her face buried in the palms of her hands, "almost like she was praying." The other two victims on the walkway were face down.


The fourth victim — a man — was farther away and appeared as if he was trying to run to the backyard when he was shot. He had at least one gunshot wound, according to the source.


"It looked like a quick kill," said the source, who spoke on the condition of anonymity because the case is ongoing.


The names of the victims have not been released. Police said the women were in their mid-20s; one man was in his mid-30s and the other man in his late 40s.


Authorities said that up to 17 people lived at the home, with conditions that Englander described as "deplorable." City inspectors red-tagged parts of the property Tuesday after finding "numerous code violations," said Department of Building and Safety spokesman David Lara.


The owner of the home, Yag Kapil, said he rented out rooms but denied he was running a boardinghouse. Kapil, 78, who lives at the home, said he was bedridden and was asleep at the time of the shootings. He said he didn't hear anything and didn't know the victims.


andrew.blankstein@latimes.com


kate.mather@latimes.com





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HTC, Apple ordered to show which patents were included in their settlement agreement












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David Mamet, Kathie Lee Gifford suffer losses


NEW YORK (AP) — David Mamet's new play "The Anarchist" and Katie Lee Gifford's "Scandalous" will both end their Broadway runs much earlier than their creators wanted.


Producers said Tuesday night that Mamet's play starring Patti LuPone and Debra Winger portraying an inmate and warden respectively will close Dec. 16 after just 23 previews and 17 performances.


Producers of "Scandalous," a musical about the life of preacher Aimee Semple McPherson, said it will quit even earlier, after the matinee on Dec. 9 following 60 shows. Both shows got dreadful reviews and struggled at the box office.


Those two shows join "The Performers," a play set in the porn industry, with quick exits in the past few months on Broadway. "The Performers" opened and closed in November after just 23 previews and seven regular performances.


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Generic Drug Makers Facing Squeeze on Revenue


They call it the patent cliff.


Brand-name drug makers have feared it for years. And now the makers of generic drugs fear it, too.


This year, more than 40 brand-name drugs — valued at $35 billion in annual sales — lost their patent protection, meaning that generic companies were permitted to make their own lower-priced versions of well-known drugs like Plavix, Lexapro and Seroquel — and share in the profits that had exclusively belonged to the brands.


Next year, the value of drugs scheduled to lose their patents and be sold as generics is expected to decline by more than half, to about $17 billion, according to an analysis by Crédit Agricole Securities.“The patent cliff is over,” said Kim Vukhac, an analyst for Crédit Agricole. “That’s great for large pharma, but that also means the opportunities theoretically have dried up for generics.”


In response, many generic drug makers are scrambling to redefine themselves, whether by specializing in hard-to-make drugs, selling branded products or making large acquisitions. The large generics company Watson acquired a European competitor, Actavis, in October, vaulting it from the fifth- to the third-largest generic drug maker worldwide.


“They are certainly saying either I need to get bigger, or I need to get ‘specialer,’ ” said Michael Kleinrock, director of research development at the IMS Institute for Healthcare Informatics, a health industry research group. “They all want to be special.”


As one consequence of the approaching cliff, executives for generic drug companies say, they will no longer be able to rely as much on the lucrative six-month exclusivity periods that follow the patent expirations of many drugs. During those periods, companies that are the first to file an application with the Food and Drug Administration, successfully challenge a patent and show they can make the drug win the right to sell their version exclusively or with limited competition.


The exclusivity windows can give a quick jolt to companies. During the first nine months of 2012, sales of generic drugs increased by 19 percent over the same period in 2011, to $39.1 billion from $32.8 billion, according to Michael Faerm, an analyst for Credit Suisse. Sales of branded drugs, by contrast, fell 4 percent during the same period, to $174.2 billion from $181.3 billion.


But those exclusive periods also make generic drug makers vulnerable to the fickle cycle of patent expiration. “The only issue is it’s a bubble, too,” said Mr. Kleinrock. He said next year, the generic industry would enter a drought that was expected to last about two years.  Of the drugs that are becoming generic, fewer have exclusivity periods dedicated to a single drug maker.


In 2013, for example, the antidepressant Cymbalta, sold by Eli Lilly, is scheduled to be available in generic form. But more than five companies are expected to share in sales during the first six months, according to a report by Ms. Vukhac.


Heather Bresch, the chief executive of Mylan, the second-largest generics company in the United States, said Wall Street analysts were obsessed with the issue. “I can’t go anywhere without being asked about the patent cliff, the patent cliff, the patent cliff,” she said. “The patent cliff is one aspect of a complex, multilayered landscape, and I think each company is going to face it differently.”


Jeremy M. Levin, the chief executive of Teva Pharmaceuticals, the largest global maker of generic drugs, agreed. “The concept of exclusivity — where only one generic player could actually make money out of the unique moment — has diminished,” he said. “In the absence of that, many companies have had to really ask the question, ‘How do I really play in the generics world?’ ”


For Teva, Mr. Levin said, he believes the answer will be both its reach  — it sells 1,400 products, and one in six generic prescriptions in the United States is filled with a Teva product  — and what he says is a reputation for making quality products. That focus will be increasingly important, he said, given recent statements by the F.D.A. that it intends to take a closer look at the quality of generic drugs. Mr. Levin also said he planned to cut costs, announcing last week that he intended to trim from $1.5 to $2 billion in expenses over the next five years.


This article has been revised to reflect the following correction:

Correction: December 5, 2012

An article on Tuesday about business strategies of generic drug makers in the face of fewer drug patent expirations misidentified the country in which the pharmaceutical company Endo is based. It is in the United States, not Japan.



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