The problem with the release of a Transportation Security Administration security screening manual was not, as many news outlets reported yesterday, the fact that it appeared "out there on the Internet." As US Homeland Security Secretary Janet Napolitano told reporters this morning, according to the Washington Post, the TSA manual was supposed to have been posted on the Internet -- it was part of a cache of documents intentionally posted to a government procurement Web site.

The real problem is that the portions of the PDF document that were supposed to have been redacted -- or removed from the file and replaced with blackouts -- were not actually removed. Sec. Napolitano said this morning that disciplinary action may be taken against the TSA employees responsible, and at one point implied that only one person may inevitably be to blame.

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The sour economy soured consumer technology retail revenue on Black Friday, according to new research from NPD Group. Related, U.S. retail pricing declined year over year in all major categories -- camcorders, GPS systems, LCD TVs, notebook computers, point-and-shoot digital cameras and stereo headphones. NPD did not publicly report pricing on cell phones or desktop PCs. The company tracks online and brick-and-mortar sales.

Black Friday revenue declined for a second year in a row -- both days since the late-September 2008 stock market crash that sent an already recessionary economy tumbling downward. Overall Black Friday revenue was $2.7 billion at U.S. retail, down 1.2 percent from the same day a year earlier. On Black Friday 2008, year-over-year revenue fell 3.4 percent.

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Apple's iPhone is supposed to be about the cool, new mobile Internet future. But using the smartphone reminds me too much of the past. The beautiful, ergonomically-designed iPhone has two related flaws: Fixed battery and prohibited background applications. Apple wrongly chose to put form before function in designing iPhone hardware and software.

The device's related flaws remind me of MS-DOS PCs' 640k memory limit. Microsoft used digital steroids -- extended and expanded memory -- to bulk up MS-DOS. But it was never enough to make up for what memory limitations took away from DOS' performance or stability.

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Do you browse the Web on your phone, iPod touch or other portable wireless device? Congratulations, you're one of the 450 million mobile Internet users, according to IDC. The analyst firm today predicted that number would reach 1 billion by 2013.

I'll do some quick math. Apple has shipped more than 30 million iPhones, so there's a possible 6 percent or so of mobile Internet users -- and that's not counting more than 20 million iPod touch users. Another nearly 30 million Crackberry -- ah, BlackBerry -- addicts accounts for another 6 percent of users.

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Is there any money in it?

Is there a plan for the Times and the Post to be compensated for their appearance in Google Living Stories? "As for direct compensation, this was a collaborative effort: Google provided the technology platform for Living Stories, the Times and Post's journalists wrote and edited the stories, and we collaborated to make the user interface fit with these news organizations' editorial vision," responded Google's Chris Gaither. "We decided with our partners that Google Labs was the best place to host this experiment for now as we test the ideas behind it, but our goal is for publishers to host Living Stories on their own Web sites."

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Those of you who follow my Tweets (@TimConneally) know that I got into a car accident yesterday. Nothing too serious, mind you, just a little unexpected voyage into converging traffic. I was hurriedly trying to obey my Google Maps turn-by-turn directions without noticing that the light I was approaching was actually red.

I'm not speaking against Google Maps navigation at all, but the incident successfully brought one of the application's new features to mind: Report Problems in Maps.

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Three years and seven months after Microsoft promised to produce full documentation for its communications protocols, so that licensees can figure out what they mean and how to use them, the US Justice Dept.'s Antitrust Division has declared that the documentation project is pretty much done. It's not completely done, but there's enough of it complete that Microsoft will now be allowed to collect royalties again.

In the Dept.'s latest Joint Status Report, now semi-annual and released today, the ATR Division writes, "As explained in prior Joint Status Reports, by 'substantially complete,' Plaintiffs mean that the documentation, when considered as a whole, appears on an initial reading to cover the information required by the templates in a reasonably thorough and comprehensible manner. The 'substantially complete' determination means that Microsoft may now end the MCPP [Microsoft Communications Protocol Program] licensee interim royalty credit and will be able to resume collecting royalties. This determination, while a significant milestone in the overall documentation rewrite project, does not mean that the documents are finished or that no additional work remains to be done. There is, in fact, much work left to do."

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We know many Hollywood studios view Redbox $1 DVD rental kiosks as a problem that must be kept in check. A recent report from the Los Angeles Economic Development Corporation (LAEDC) says those rental kiosks could represent a billion dollar drain on Hollywood's revenues.

The report, entitled "The Economic Implications of Low-Cost DVD Rentals" (PDF available here) characterizes those red boxes as pockmarks on the face of a sickened home video industry.

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Up to now, if you wanted a smartphone with power and without complexity, the only orchard you could go to was Apple's. With the arrival of the Motorola Droid, though, that's changed.

The Droid uses Google's Android operating system. It's not as slick as the OS in Apple's iPhone, but it's still a breeze to use, and it has some tricks of its own, like voice search. Yes, you can talk to this phone, and it will fill in your search terms. It's accurate, too. As a goof, I asked it to find "chronosynclastic infundibulum," and performed the search without a sneeze.

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The European Commission has agreed to a proposal by US-based memory parts designer Rambus, to limit its royalties that memory makers worldwide will pay for double data rate (DDR)-based memory units to 1.5% per unit, and DDR memory controllers to 2.65% per unit. This in order to put to rest an ongoing EC investigation into Rambus royalties practices -- one which continued long after the US Supreme Court upheld an April 2008 Appeals Court ruling that stated the entire global memory standards system had lost its credibility.

During a morning press conference in Brussels Wednesday, EC Commissioner for Competition Neelie Kroes told reporters Rambus made this offer in order to redress prior conduct: specifically, manipulating the memory standards process in order to claim exclusive rights to high royalties.

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Simply put: Apple doesn't play by the rules. It reinvents them. Apple applies what I call "David Thinking" to its broader business, product development and marketing. Apple is David to Microsoft Goliath -- and other ones, too. Goliath plays by one set of rules. David choses to change the rules, which favor his strengths rather than those of Goliath.

David Thinking is most provocative and surprising when Goliath acts like David. After all, David sometimes becomes Goliath; Apple is a giant in music with iPod and iTunes Music Store. But David turned Goliath also risks making mistakes that would allow another upstart advantage. Today, Apple is both David and Goliath, depending on market.

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12:15 pm EST December 9, 2009 · European Commission spokesperson Jonathan Todd confirmed to Betanews this morning that statements attributed by the Associated Press to Commissioner Neelie Kroes were "accurate" as the AP portrayed them, although he did add that they were unprepared remarks. This means the EC is unlikely to report those remarks as official. Todd declined to add anything further.

In an extraordinary parting shot from the outgoing European Commissioner on Competition, Neelie Kroes -- who transfers to oversight of the 'Digital Society' in January -- the Associated Press quotes her as having openly responded, in a speech earlier today in Brussels, to a request by several US senators. Those senators, led by John Kerry (D - Mass.) and Orrin Hatch (R - Utah), had asked Comm. Kroes to expedite her investigation of Oracle's proposed acquisition of Sun Microsystems.

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Stranger things have happened than this. I think. Microsoft has formed a new group within the Server & Tools Business: The Server & Cloud Division, or SCD. Is it me, or is there some redundancy in the name, seeing as how cloud services run on servers?

"This change reflects the alignment of our resources with our strategy, and represents a natural evolution for Microsoft as the Windows Azure business moves from an advanced development project to a mainstream business," according to an uncredited post on Microsoft's Windows Server Division blog. The new group "combines the Windows Server & Solutions group and the Windows Azure group."

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Click here to listen to the inaugural What Are We Learning Today? Betanews podcast (MP3 format)

We inaugurate our first Betanews podcast today with a look at two serious problems -- the quandary over how publishers can make the online news business sustainable long-term, and the problem with securing the Web's transaction layer. From the top of the cliff, to borrow an Arlo Guthrie analogy, they look like two little piles; but up close, they're one big one: We haven't really solved how to pay for things online, and the TLS problem is an illustration of that.

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Do you have AT&T as wireless carrier? Are you happy with the network service quality? I encourage Betanews readers to respond in comments to these questions, which are suddenly surreal now that AT&T has released the "Mark the Spot" app for iPhone. There's something comical about an app that tells AT&T about its connection problems. The app also is tacit admission that AT&T has voice service problems. Surely for some greedy lawyer, there's a lawsuit for that.

Some readers will ask why post a commentary like this one. What's newsie about whacking AT&T aside the head for its well-publicized service problems? Answer: Most of us here -- me writing and you reading -- are gadget freaks. Many American Betanews readers use iPhone, for which there is only one official carrier choice: AT&T. In that context, bad service is a problem. Additionally, it's the holidays, when some people give the gift of phone. Since most dumbphones and smartphones are sold subsidized and locked to a single carrier, network should be considered in any handset purchase.

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