OPEC Raises Production Limit, Amazon Sued Over Web Patents, and More

Strategic Insights -

In a largely symbolic decision, OPEC agreed to increase its formal production ceiling to 27 million barrels a day, up from 26 million barrels a day, starting November 1. Meanwhile, Amazon and three other online retailers were sued over patents that help track customers as they browse the Web. Additionally, Delta Air Lines CEO Gerald A. Grinstein backed away from his earlier suggestion that a deal with pilots to stem early retirements could be reached by the end of the week.

Key Takeaways:

  • OPEC agreed to increase its formal production ceiling to 27 million barrels a day, starting November 1, but the move is largely symbolic as most OPEC members are already producing at or near capacity.
  • Amazon and three other online retailers, including Netflix and Overstock.com, were sued over patents that help track customers as they browse the Web.
  • Delta Air Lines CEO Gerald A. Grinstein backed away from his earlier suggestion that a deal with pilots to stem early retirements could be reached by the end of the week, citing the complexity of the issue and the need for further review.
  • Delta's auditors questioned the airline's ability to continue as a viable business, citing "recurring losses, labor and liquidity issues, and the potential need for Chapter 11 bankruptcy protection".
  • A judge cut in half a $268 million request for fees from lawyers who represented California consumers in an antitrust suit against Microsoft, awarding them $112.5 million.
  • Nancy C. Peretsman resigned from the board of Charter Communications to avoid a potential conflict of interest related to her employer's role in advising bankrupt Adelphia Communications.
  • Charter Communications will target new high-speed Internet customers with the help of Leapfrog Online, which will use geographically targeted Web sites, online networks, and other means to acquire customers.

Statistics:

  • OPEC's formal production ceiling will increase from 26 million to 27 million barrels a day, starting November 1.
  • OPEC's actual production is around 28 million barrels a day, excluding Iraqi output.
  • The California antitrust suit against Microsoft resulted in a $1.1 billion settlement.
  • The award to lawyers representing California consumers in the Microsoft case is $112.5 million, about $35 million more than Microsoft suggested.
  • Charter Communications has said it may bid on some of Adelphia's cable systems in an expected auction.

Sources:

  • Associated Press
  • Bloomberg News
  • Post-Dispatch
  • BTG PLC
  • Amazon.com Inc.
  • BarnesandNoble.com Inc.
  • Netflix Inc.
  • Overstock.com Inc.
  • Microsoft Corp.
  • San Francisco Superior Court Judge Paul Alvarado
  • Charter Communications Inc.
  • Allen & Co.
  • Adelphia Communications Corp.