Study questions kidney cancer treatment in elderly


In a stunning example of when treatment might be worse than the disease, a large review of Medicare records finds that older people with small kidney tumors were much less likely to die over the next five years if doctors monitored them instead of operating right away.


Even though nearly all of these tumors turned out to be cancer, they rarely proved fatal. And surgery roughly doubled patients' risk of developing heart problems or dying of other causes, doctors found.


After five years, 24 percent of those who had surgery had died, compared to only 13 percent of those who chose monitoring. Just 3 percent of people in each group died of kidney cancer.


The study only involved people 66 and older, but half of all kidney cancers occur in this age group. Younger people with longer life expectancies should still be offered surgery, doctors stressed.


The study also was observational — not an experiment where some people were given surgery and others were monitored, so it cannot prove which approach is best. Yet it offers a real-world look at how more than 7,000 Medicare patients with kidney tumors fared. Surgery is the standard treatment now.


"I think it should change care" and that older patients should be told "that they don't necessarily need to have the kidney tumor removed," said Dr. William Huang of New York University Langone Medical Center. "If the treatment doesn't improve cancer outcomes, then we should consider leaving them alone."


He led the study and will give results at a medical meeting in Orlando, Fla., later this week. The research was discussed Tuesday in a telephone news conference sponsored by the American Society of Clinical Oncology and two other cancer groups.


In the United States, about 65,000 new cases of kidney cancer and 13,700 deaths from the disease are expected this year. Two-thirds of cases are diagnosed at the local stage, when five-year survival is more than 90 percent.


However, most kidney tumors these days are found not because they cause symptoms, but are spotted by accident when people are having an X-ray or other imaging test for something else, like back trouble or chest pain.


Cancer experts increasingly question the need to treat certain slow-growing cancers that are not causing symptoms — prostate cancer in particular. Researchers wanted to know how life-threatening small kidney tumors were, especially in older people most likely to suffer complications from surgery.


They used federal cancer registries and Medicare records from 2000 to 2007 to find 8,317 people 66 and older with kidney tumors less than 1.5 inches wide.


Cancer was confirmed in 7,148 of them. About three-quarters of them had surgery and the rest chose to be monitored with periodic imaging tests.


After five years, 1,536 had died, including 191 of kidney cancer. For every 100 patients who chose monitoring, 11 more were alive at the five-year mark compared to the surgery group. Only 6 percent of those who chose monitoring eventually had surgery.


Furthermore, 27 percent of the surgery group but only 13 percent of the monitoring group developed a cardiovascular problem such as a heart attack, heart disease or stroke. These problems were more likely if doctors removed the entire kidney instead of just a part of it.


The results may help doctors persuade more patients to give monitoring a chance, said a cancer specialist with no role in the research, Dr. Bruce Roth of Washington University in St. Louis.


Some patients with any abnormality "can't sleep at night until something's done about it," he said. Doctors need to say, "We're not sticking our head in the sand, we're going to follow this" and can operate if it gets worse.


One of Huang's patients — 81-year-old Rhona Landorf, who lives in New York City — needed little persuasion.


"I was very happy not to have to be operated on," she said. "He said it's very slow growing and that having an operation would be worse for me than the cancer."


Landorf said her father had been a doctor, and she trusts her doctors' advice. Does she think about her tumor? "Not at all," she said.


___


Online:


Kidney cancer info: http://www.cancer.net/cancer-types/kidney-cancer


and http://www.cancer.gov/cancertopics/types/kidney


Study: http://gucasym.org


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Beyonce joined by Oprah at documentary premiere


NEW YORK (AP) — Oprah Winfrey made a surprise appearance Tuesday night at the premiere of Beyonce's HBO documentary, 'Life is But a Dream,' posing with the star and speaking of the candor she showed in making it.


The film takes a no-holds-barred look at moments in the 31-year old singer's life, including her miscarriage, reports of faking her pregnancy, and firing her father as her manager.


While the revelations Beyonce makes about herself in the film are comparable to the results Winfrey usually gets from her tough style of interviewing, the talk show host gave kudos to the singer.


Winfrey said Beyonce did a "much better job" of telling her own story. "I wouldn't have been in the bedroom and in the closet and in the car and on vacation," she said.


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Downtown condo market showing signs of life









Downtown Chicago's condo market is on the rebound after many moribund years, as sales volume and pricing improve in a market constrained by a lack of inventory.

It's a rare piece of good news for downtown condo owners as well as for developers pondering projects and trying to line up financing.

With a steady stream of apartment projects delivering in the next two years, the lack of new condo construction could signal opportunities for companies interested in pursuing smaller projects in key neighborhoods because the demand is there. Until those projects materialize, condo owners looking to sell face a better market than they have in several years.

Sales of existing downtown condos rose 31.2 percent last year, to 4,675 units sold, while the median sales price of $300,000 was a gain of about 2.6 percent from 2011, according to data from Appraisal Research Counselors.

Another piece of good news for current condo owners: Of the 65 downtown buildings studied by the firm, the average sales price per square foot of units sold during the second half of last year rose while the number of distressed condo sales in those buildings saw a substantial drop. Distressed sales, which accounted for  28 percent of sales since 2010, fell to 17 percent of sales during the second half of 2012.

In addition, only 1,104 newly constructed condo units remain unsold downtown.

"When we see more transactions occurring, that's a really good indication of demand," said Gail Lissner, a vice president at the firm. "The look of the condo market has changed in terms of unsold inventory."

Lissner's remarks came Tuesday during a lunchtime briefing on the local housing market.

Most of the unsold inventory, more than 500 units, is in the South Loop and the bulk of it is in the newly named and repositioned 500-unit South Loop Luxury by Related.

The three buildings, once called One Museum Park West, 1600 Museum Park and Museum Park Place 2 were taken over by New York-based Related Cos. in July have been renamed the Grant, Adler Place and Harbor View, respectively.


Since December, 40 units there are under contract, according to Related Midwest, which officially launched sales in the project Tuesday.

Other new projects reporting positive sales trends are Park Monroe Phase II, a 48-unit adaptive reuse project with 16 sales and CA3, a 40-unit building with 18 sales.

"These are all great indicators of strong sales," Lissner said. "Price stabilization has occurred in the market. You don't hear people talking about bottoming out. That was so yesterday."

mepodmolik@tribune.com | Twitter @mepodmolik



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Hadiya's dad: 'Thanking God that these two guys are off the streets'









Two reputed gang members were out for revenge from a previous shooting when they opened fire on a group of students in a South Side park last month, killing 15-year-old Hadiya Pendleton in a heartbreaking case that has brought national attention to Chicago's rampant gun violence, police said.


Michael Ward, 18, and Kenneth Williams, 20, were each charged with first-degree murder, attempted murder and aggravated battery with a firearm in the Jan. 29 attack that also left two teens wounded.


Ward confessed to police that he and Williams mistook a Pendleton companion for rivals who had shot and wounded Williams last July, police Superintendent Garry McCarthy said at a news conference Monday night at the Area Central police headquarters.








Ward told police that he and Williams got out of their car, crept up on the group and opened fire in Harsh Park, McCarthy said. Williams then drove them from the scene, he said.


"The offenders had it all wrong. They thought the group they shot into included members of a rival gang. Instead it was a group of upstanding, determined kids who, like Hadiya, were repulsed by the gang lifestyle," said McCarthy, flanked by two dozen detectives and gang investigators who worked the case.


Detectives arrested the two Saturday night as the suspects were on their way to a suburban strip club to celebrate a friend's birthday, McCarthy said. Pendleton had been buried only hours earlier in a funeral attended by first lady Michelle Obama.


"I don't even know what to say about that," McCarthy said. "They were going out to celebrate at a strip club."


Williams did not confess and police have not recovered a weapon, McCarthy said. Both are due in bond court Tuesday.


Hadiya's father, Nathaniel Pendleton, said Monday night that news of the charges marked the first time since his daughter's slaying that he had a "legitimate" smile on his face.


"I'm ecstatic that they found the two guys," he told the Tribune during a brief telephone interview from Washington, D.C., where he and wife Cleopatra Cowley-Pendleton will attend the State of the Union address Tuesday as guests of President Barack Obama. "(I'm) thanking God that these two guys are off the streets, so that this doesn't happen to another innocent person."


Danetria Hutson, 15, who held Hadiya in her arms after she was shot, said she and others in the group have had nightmares since the shooting.


In addition to waking up in the middle of the night, Hutson, also a sophomore at King, said she and other in that group also haven't been able to bring themselves to hang out at parks since that day.

"A lot of us were actually paranoid because the guys were still out there," Hutson said in a telephone interview. "They knew where we went to school."


On Monday night, Hutson was a little frustrated because of the "ignorance" portrayed in social media, where some people are suggesting that Ward and Williams weren't involved in Hadiya's slaying. But Hutson felt a sigh of relief today when charges were announced against them.


"I just want to see how her family reacts," she said. "It gave me some closure, but I don't think (Hadiya's) family will get closure."


McCarthy said that two days before the killing, police had stopped Ward in his Nissan Sentra as part of a routine gang investigation. That information wound up being the starting point for detectives when witnesses in the shooting described seeing a similar car driving away from the shooting scene, he said.


Through surveillance and interviews — including several fruitful interviews with parolees in the neighborhood — detectives were able to home in on Ward and Williams, McCarthy said. On Saturday night, the decision was made to stop the two if they were spotted. Police watched as they departed in a caravan of cars headed to the strip club in Harvey. They were stopped near 67th Street and South King Drive and taken in for questioning.


McCarthy said Williams was shot July 11 at 39th Street and South Lake Park Avenue, and an arrest was made. But that gunman was let go after Williams refused to cooperate, McCarthy said.


McCarthy also noted that at the time of Hadiya's slaying, Ward was on probation for a weapons conviction. McCarthy said weak Illinois gun laws allowed Ward to avoid jail time because of the absence of mandatory minimum sentences.


"This incident did not have to occur," McCarthy said. "And if mandatory minimums existed in the state of Illinois, Michael Ward would not have been on the street to commit this heinous act."


In announcing the charges, McCarthy praised the "meticulous" detective work that led to the arrests, but he also expressed frustration that despite a $40,000 reward for information in the shooting, no one who had knowledge of the crime came forward.





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Judge speeds up schedule in Apple versus Einhorn case


SAN FRANCISCO (Reuters) - A judge approved Apple Inc's request to speed up the schedule in a lawsuit filed by star hedge fund manager David Einhorn's Greenlight Capital, part of an effort to get the company to share its huge cash reserves with investors.


U.S. District Judge Richard Sullivan of the Southern District of New York on Monday brought forward the legal schedule by a few days at Apple's request, which argued that the issue would have a big impact on the upcoming shareholder meeting on February 27.


Apple told the judge that the request to modify the schedule had the support of Einhorn's counsel.


Einhorn, a well-known short-seller and Apple gadget fan, shocked Wall Street last week by suing Apple to stop the iPhone maker from eliminating from its charter the ability to issue preferred stock without shareholder approval.


He wants Apple to return a bigger piece of its $137 billion cash pile to investors, through the issuance of perpetual preferred shares that pay dividends to existing shareholders.


Einhorn is objecting to how the proposed charter change is bundled together with two other corporate governance-related proposals in the proxy document for the annual meeting.


The lawsuit contends Apple violated Securities and Exchange Commission rules that prohibit companies from "bundling" unrelated matters into a single proposal for a shareholder vote.


Apple says removing the board's ability to issue preferred stock at its discretion heightens governance, because future issuances would then require shareholder approval.


The company will file its response to the lawsuit by the end of Wednesday while Greenlight will file its own response papers by Friday. The judge ordered both parties to appear for oral arguments on February 19.


Apple has said that the proposal in its proxy had the support of many shareholders, and striking such a "blank check" provision from its charter would not preclude preferred share issuances in future.


The law firm of O'Melveny & Myers LLP is representing Apple in the case, with San Francisco-based partner George Riley arguing for Apple.


(Reporting By Poornima Gupta; Editing by Tim Dobbyn)



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Mullens, Bobcats end Celtics' win streak 94-91


CHARLOTTE, N.C. (AP) — All in all, Monday proved to be a painful night for the Boston Celtics.


Not only did the Celtics have their seven-game losing streak snapped at the hands of the NBA's worst team, but they might have suffered yet another costly injury in their 94-91 loss to the Charlotte Bobcats.


Backup guard Leandro Barbosa, who has seen increased playing time since the season-ending injury to Rajon Rondo, injured his left knee late in the third quarter and had to be carried to the locker room by a trainer and teammate.


Coach Doc Rivers said Barbosa will have an MRI on Tuesday.


"It doesn't look great but we'll see," Rivers said.


In the seven games since Rondo's injury Barbosa had averaged nine points while playing an average of 22.5 minutes. The Celtics had won all seven games.


All of that came crashing down Monday night.


This night belonged to Charlotte's unheralded big man, Byron Mullens.


The four-year NBA veteran turned in a career game with 25 points and 18 rebounds as the Bobcats snapped a seven-game losing streak.


The 7-foot Mullens hit 10 of 16 shots from the field, including 4 of 5 from 3-point range. Ramon Sessions had 19 points for the Bobcats, including the go-ahead jumper from 18 feet with 25.7 seconds left. Kemba Walker had 18 points, six assists and six rebounds, and Gerald Henderson chipped in with 16 points.


Mullens was playing his fifth game after missing 19 with an ankle injury.


"It's big time," Walker said of Mullens' effort. "We need that from him. We need that from Byron and he can do it. We know he can do it every night. He is very capable. When he has big games like that, you know, I think that gives us a much better chance."


Mullens said he was more pleased with his rebounding than his scoring "because that is not what I'm known for.


"I just have to show the league and this organization that I can rebound," he said.


Kevin Garnett had 16 points and 13 rebounds for the Celtics, but missed a key 18-footer that would have given Boston the lead late in the game. Paul Pierce and Avery Bradley had chances to send the game into overtime in the final seconds, but missed open 3-pointers.


Jeff Green had 18 points for the Celtics and Pierce finished with 13 points, eight assists and eight rebounds.


"We had a win streak going and we had momentum going," Celtics guard Courtney Lee said. "We wanted finish out the rest of these games going into the (All-Star) break. So it's definitely a letdown. This one hurts more because we had the lead with one minute to go."


It was a back-and-forth game throughout.


After Henderson gave the Bobcats an 85-84 lead with 3:58 remaining, Jason Terry made a 3 from the wing and Garnett followed with a turnaround jumper in the lane to push the Boston lead to four.


It appeared as though the Bobcats were on their way to another fourth quarter collapse.


But trailing by four, Henderson hit a 3-point with 1:01 left. After Bradley missed an open jumper, Sessions came free off a screen and knocked down an 18-footer to give the Bobcats the lead with 25.7 seconds remaining.


The Celtics called timeout but Garnett missed from the left wing. Mullens grabbed his 18th rebound and the Walker made a pair of key free throws to give the Bobcats a three-point lead with 14.8 seconds left.


Boston set up an inbounds play and Pierce got an open look but missed. He grabbed his own rebound and dished out to the wing for Bradley, but he missed a 3 as time expired.


Boston's loss came after a triple overtime win against Denver on Thursday night, but the Celtics refused to use fatigue as an excuse.


"We put that one behind us," Green said.


As he'd planned to do before the game, Rivers went deep into his bench in the first half with 10 players seeing at least 10 minutes of action.


The Bobcats battled back in the third quarter behind 12 points from Mullens to take a 75-72 lead into the fourth. Mullens, who scored Charlotte's first 10 points of the game, did most of his damage from outside, knocking down 3-pointers and turnaround jumpers, showing great touch for a big man.


"Byron was as good as you can get in the NBA statistically in many ways," Bobcats coach Mike Dunlap said. "He's still young. He's growing. ... He's a different player because he was able to take a res. He's got live legs and he's able to see the game."


NOTES: Pierce scored in double figures for the 50th game this season. ... Bobcats center Bismack Biyombo was a force inside on the defensive end blocking four shots and grabbing seven defensive rebounds.


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'Identity Thief' grabs $34.6M to debut at No. 1


LOS ANGELES (AP) — Jason Bateman and Melissa McCarthy's "Identity Thief" has made off with the weekend box-office title with a $34.6 million debut.


The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:


1. "Identity Thief," Universal, $34,551,025, 3,141 locations, $11,000 average, $34,551,025, one week.


2. "Warm Bodies," Lionsgate, $11,356,090, 3,009 locations, $3,774 average, $36,481,172, two weeks.


3. "Side Effects," Open Road Films, $9,303,145, 2,605 locations, $3,571 average, $9,303,145, one week.


4. "Silver Linings Playbook," Weinstein Co., $6,425,271, 2,809 locations, $2,287 average, $89,519,510, 13 weeks.


5. "Hansel and Gretel: Witch Hunters," Paramount, $5,753,165, 3,285 locations, $1,751 average, $43,836,018, three weeks.


6. "Mama," Universal, $4,229,665, 2,677 locations, $1,580 average, $63,951,810, four weeks.


7. "Zero Dark Thirty," Sony, $4,006,860, 2,562 locations, $1,564 average, $83,567,450, eight weeks.


8. "Argo," Warner Bros., $2,375,344, 1,405 locations, $1,691 average, $123,608,957, 18 weeks.


9. "Django Unchained," Weinstein Co., $2,303,495, 1,502 locations, $1,534 average, $154,516,627, seven weeks.


10. "Bullet to the Head," Warner Bros., $2,078,192, 2,404 locations, $864 average, $8,269,214, two weeks.


11. "Top Gun" in 3-D, Paramount, $1,965,737, 300 locations, $6,552 average, $1,965,737, one week.


12. "Lincoln," Disney, $1,873,537, 1,517 locations, $1,235 average, $173,621,006, 14 weeks.


13. "Parker," FilmDistrict, $1,867,411, 2,004 locations, $932 average, $15,848,064, three weeks.


14. "Life of Pi," Fox, $1,745,744, 924 locations, $1,889 average, $108,530,249, 12 weeks.


15. "Les Miserables," Universal, $1,555,550, 1,447 locations, $1,075 average, $143,983,705, seven weeks.


16. "The Hobbit: An Unexpected Journey," Warner Bros., $1,468,374, 1,001 locations, $1,467 average, $298,333,426, nine weeks.


17. "Parental Guidance," Fox, $1,071,766, 1,219 locations, $879 average, $74,344,256, seven weeks.


18. "Wreck-It Ralph," Disney, $1,065,817, 757 locations, $1,408 average, $184,414,532, 15 weeks.


19. "The Impossible," Summit, $957,594, 739 locations, $1,296 average, $16,668,338, eight weeks.


20. "Quartet," Weinstein Co., $940,930, 244 locations, $3,856 average, $5,000,417, five weeks.


___


Online:


http://www.hollywood.com


___


Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.


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Judge OKs auction of Hostess brands













Twinkies deal near


Workers prepare Twinkies for packaging at a Schiller Park plant in 2005. The Twinkie, one of America's best-known snack treats, was created in Chicagoland by James Dewar in 1930.
(Tim Boyle, Getty / April 20, 2005)



























































Hostess Brands Inc., the bankrupt maker of Twinkies snack cakes, received court permission on Monday to proceed with auctions for several of its brands, including Twinkies and Wonder Bread.

The U.S. Bankruptcy Court in White Plains, N.Y., cleared Hostess to sell off assets related to its Hostess and Dolly Madison Brands.

A hearing to approve the successful bidder is scheduled for March 19.

Private equity firms Apollo Global Management LLC and C. Dean Metropoulos & Co have set a baseline offer of $410 million to buy the company's snack cake brands including Hostess Twinkies and Dolly Madison, Hostess said last month.

The so-called stalking horse bid by the private equity firms, working together to buy the 82-year-old baker, would serve as the minimum offer for the business, which could still be topped by others.

Hostess was granted permission by a U.S. bankruptcy court judge in November to wind down its business and liquidate its assets after a strike by a baker's union crippled the company's operations.

The sale of assets, which range from Twinkies and Wonder Bread to real estate and baking equipment, is being run by Perella Weinberg Partners.


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Obama coming to Chicago to 'talk about the gun violence'









President Barack Obama will visit Chicago on Friday, when he will discuss gun violence as he focuses on his economic message from Tuesday's State of the Union address, according to the White House.


Obama will "talk about the gun violence that has tragically affected too many families in communities across Chicago and across the country," a White House official said in a statement.


The president's visit answers calls from Chicago anti-violence activists that Obama talk about the recent spate of gun violence in the city, several of the activists said.





"This is an important issue," said Cathy Cohen, founder of the Black Youth Project, which attracted about 45,000 signatures by Sunday night in an online petition that urges Obama to speak up. "We think of this as a victory for all of us."


The group posted the petition on change.org shortly after Hadiya Pendleton, 15, was shot to death last month at a South Side park. The King College Prep student was slain about a week after performing with her school band at Obama's inaugural festivities.


Since Hadiya was shot about a mile from the president's Kenwood neighborhood home Jan. 29, during the deadliest January for Chicago since 2002, pastors, parents and activists have demanded that more be done about the city's violence.


First lady Michelle Obama attended Hadiya's funeral Saturday. Hadiya's mother, Cleopatra Cowley-Pendleton, will also attend the president's State of the Union speech on Tuesday, family spokeswoman Shatira Wilks said late Sunday.


Hadiya's godmother, LaKeisha Stewart, said she hasn't heard whether the president will spend time with the Pendletons during his trip to Chicago.


Stewart said she's happy about Obama's plans. "Any awareness that can be brought to this issue that can prevent any family from ever feeling the pain that we as a family have felt … is awesome," she said. "This city is in pain right now."


Nathaniel Pendleton, Hadiya's father, said his family didn't know much about the president's Chicago trip, but "if he decided to speak with us, we'll be more than happy."


The Rev. Jesse Jackson said the president's remarks in Chicago will play a different role than Michelle Obama's attendance at Hadiya's funeral. The first lady didn't speak publicly about the events surrounding the teenager's death.


"Her being there is very important since it was her neighborhood," Jackson said. "I think the president's coming is important because she did not deal with the politics. … She dealt with the calming concern for a broken-hearted family," he said.


Jackson made a public appeal this month for the president to speak to the bloodshed in Chicago.


Because of the upcoming visit, parents of children who have been shot to death in the city will finally feel heard by Obama, said Annette Nance-Holt, who lost her son Blair Holt in 2007 after he was shot on a crowded CTA bus.


"This sends a message to the parents here that their kids are important too," Holt said. "It may not have been a big shooting with an assault rifle. But to see (Obama) come and hopefully rally some support here means a lot."


The White House said the president's visits to Asheville, N.C., Atlanta and Chicago this week will also press issues that he will raise in his State of the Union speech Tuesday.


"The president will travel to Chicago for an event amplifying some of the policy proposals included in the State of the Union that focus on strengthening the economy for the middle class and the Americans striving to get there," a White House official said in a statement.


Clergy on Sunday praised Obama's decision to speak in Chicago, arguing his speech could bring greater attention to the killings plaguing communities here.


"Hopefully and prayerfully, his coming will make a real impact," said the Rev. Kenneth Giles of Second Mount Olive Missionary Baptist Church in the South Austin neighborhood. "Now that the nation is focused on (gun violence), maybe they will hear his voice and hear what he has to say."


The Rev. Michael Pfleger, senior pastor of the South Side's St. Sabina Catholic Church, said he's grateful the president is "zooming in" on the issue.





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Insight: Apple and Samsung, frenemies for life


SAN FRANCISCO/SEOUL (Reuters) - It was the late Steve Jobs' worst nightmare. A powerful Asian manufacturer, Samsung Electronics Co Ltd, uses Google Inc's Android software to create smartphones and tablets that closely resemble the iPhone and the iPad. Samsung starts gaining market share, hurting Apple Inc's margins and stock price and threatening its reign as the king of cool in consumer electronics.


Jobs, of course, had an answer to all this: a "thermo-nuclear" legal war that would keep clones off the market. Yet nearly two years after Apple first filed a patent-infringement lawsuit against Samsung, and six months after it won a huge legal victory over its South Korean rival, Apple's chances of blocking the sale of Samsung products are growing dimmer by the day.


Indeed, a series of recent court rulings suggests that the smartphone patent wars are now grinding toward a stalemate, with Apple unable to show that its sales have been seriously damaged when rivals, notably Samsung, imitated its products.


That, in turn, may usher in a new phase in the complex relationship between the two dominant companies in the growing mobile computing business.


Tim Cook, Jobs' successor as Apple chief executive, was opposed to suing Samsung in the first place, according to people with knowledge of the matter, largely because of that company's critical role as a supplier of components for the iPhone and the iPad. Apple bought some $8 billion worth of parts from Samsung last year, analysts estimate.


Samsung, meanwhile, has benefited immensely from the market insight it gained from the Apple relationship, and from producing smartphones and tablets that closely resemble Apple's.


While the two companies compete fiercely in the high-end smartphone business - where together they control half the sales and virtually all of the profits - their strengths and weaknesses are in many ways complementary. Apple's operations chief, Jeff Williams, told Reuters last month that Samsung was an important partner and they had a strong relationship on the supply side, but declined to elaborate.


As their legal war winds down, it is increasingly clear that Apple and Samsung have plenty of common interests as they work to beat back other potential challengers, such as BlackBerry or Microsoft.


The contrast with other historic tech industry rivalries is stark. When Apple accused Microsoft in the 1980s of ripping off the Macintosh to create the Windows operating system, Apple's very existence was at stake. Apple lost, the Mac became a niche product, and the company came close to extinction before Jobs returned to Apple in late 1996 and saved it with the iPod and the iPhone. Jobs died in October 2011.


Similarly, the Internet browser wars of the late 1990s that pitted Microsoft against Netscape ended with Netscape being sold for scrap and its flagship product abandoned.


Apple and Samsung, on the other hand, are not engaged in a corporate death match so much as a multi-layered rivalry that is by turns both friendly and hard-edged. For competitors like Nokia, BlackBerry, Sony, HTC and even Google - whose Motorola unit is expected to launch new smartphones later this year - they are a formidable duo.


THE WAY THEY WERE


The partnership piece of the Apple-Samsung relationship dates to 2005, when the Cupertino, California-based giant was looking for a stable supplier of flash memory. Apple had decided to jettison the hard disc drive in creating the iPod shuffle, iPod nano and then-upcoming iPhone, and it needed huge volumes of flash memory chips to provide storage for the devices.


The memory market in 2005 was extremely unstable, and Apple wanted to lock in a supplier that was rock-solid financially, people familiar with the relationship said. Samsung held about 50 percent of the NAND flash memory market at that time.


"Whoever controls flash is going to control this space in consumer electronics," Jobs said at the time, according to a source familiar with the discussions.


The success of that deal led to Samsung supplying the crucial application processors for the iPhone and iPad. Initially, the two companies jointly developed the processors based on a design from ARM Holdings Plc, but Apple gradually took full control over development of the chip. Now Samsung merely builds the components at a Texas factory.


The companies built a close relationship that extended to the very top: in 2005, Jay Y. Lee, whose grandfather founded the Samsung Group, visited Jobs' home in Palo Alto, California, after the two signed the flash memory deal.


The partnership gave Apple and Samsung insight into each other's strategies and operations. In particular, Samsung's position as the sole supplier of iPhone processors gave it valuable data on just how big Apple thought the smartphone market was going to be.


"Having a relationship with Apple as a supplier, I am sure, helped the whole group see where the puck was going," said Horace Dediu, a former analyst at Nokia who now works as a consultant and runs an influential blog. "It's a very important advantage in this business if you know where to commit capital."


Samsung declined to comment on its relationship with a specific customer.


As for Apple, it reaped the benefit of Samsung's heavy investments in research and development, tooling equipment and production facilities. Samsung spent $21 billion (23 trillion won) on capital expenditures in 2012 alone, and plans to spend a similar amount this year.


By comparison, Intel Corp spent around $11 billion in 2012, and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) expects to spend $9 billion in 2013.


But component expertise, cash and good market intelligence did not assure success when Samsung launched its own foray into the smartphone market. The Omnia, a Windows-based product introduced in 2009, was so reviled that some customers hammered it to bits in public displays of dissatisfaction.


Meanwhile, Samsung publicly dismissed the iPhone's success.


"The popularity of iPhone is a mere result of excitement caused by some (Apple) fanatics," Samsung's then-president, G.S. Choi, told reporters in January 2010.


Privately, though, Samsung had other plans.


"The iPhone's emergence means the time we have to change our methods has arrived," Samsung mobile business head J.K. Shin told his staff in early 2010, according to an internal email filed in U.S. court.


Later that year, Samsung launched the Galaxy S, which sported the Android operating system and a look and feel very similar to the iPhone.


STANDOFF


Jobs and Cook complained to top Samsung executives when they were visiting Cupertino. Apple expected, incorrectly, that Samsung would modify its design in response to the concerns, people familiar with the situation said.


Apple's worst fears were confirmed with the early 2011 release of the Galaxy Tab, which Jobs and others regarded as a clear rip-off of the iPad.


Cook, worried about the critical supplier relationship, was opposed to suing Samsung. But Jobs had run out of patience, suspecting that Samsung was counting on the supplier relationship to shield it from retribution.


Apple filed suit in April 2011, and the conflagration soon spread to courts in Europe, Asia and Australia. When Apple won its blockbuster billion-dollar jury verdict against Samsung last August, it appeared that it might be able to achieve an outright ban on the offending products - which would have dramatically altered the smartphone competition.


But Apple has failed to convince U.S. judges to uphold those crucial sales bans - in large part because the extraordinary profitability and market power of the iPhone made it all but impossible for Apple to show it was suffering irreparable harm.


"Samsung may have cut into Apple's customer base somewhat, but there is no suggestion that Samsung will wipe out Apple's customer base, or force Apple out of the business of making smartphones," U.S. District Judge Lucy Koh wrote. "The present case involves lost sales - not a lost ability to be a viable market participant."


Samsung, meanwhile, came under pressure from antitrust regulators and pulled back on its effort to shut down Apple sales in Europe over a related patent dispute.


A U.S. appeals court recently rejected Apple's bid to fast-track its case, meaning its hopes for a sales ban are now stuck in months-long appeals, during which time Samsung may very well release the next version of its hot-selling Galaxy phone.


THE WORLD IS OURS


The legal battles have been less poisonous to the relationship than some of the rhetoric suggests.


"People play this stuff up because it shows a kind of drama, but the business reality is that the temperature isn't that high," said one attorney who has observed executives from both companies.


Still, the hostilities appear to have put some dents in the partnership. Apple is likely to switch to TSMC for the building of application processors, according to analysts at Goldman Sachs, Sanford Bernstein and other firms. But analysts at Korea Investment & Securities and HMC Securities point out that Apple will not be able to eliminate Samsung as a flash supplier because it remains the dominant producer of the crucial chips.


Apple declined to comment on the details of its relationships with any one supplier.


Meanwhile, both companies are deploying strategies out of the other's playbook as they seek to maintain and extend their lead over the pack.


Samsung has developed a cheeky, memorable TV ad that mocks Apple customers, and dramatically ramped up spending on marketing and advertising, a cornerstone of Apple's success. U.S. ad spending on the Galaxy alone leaped to nearly $202 million in the first nine months of 2012, from $66.6 million in 2011, according to Kantar Media.


For its part, Apple is investing in manufacturing by helping its suppliers procure the machinery needed to build large-scale plants devoted exclusively to the company.


Apple spent about $10 billion in fiscal 2012 on capital expenditures, and it expects to spend a further $10 billion this year. By contrast, the company spent only $4.6 billion in fiscal 2011 and $2.6 billion in fiscal 2010.


But Apple and Samsung retain very different strategies. Apple has just one smartphone and only four product lines in total, and tries to keep variations to a bare minimum while focusing on the high end of the market.


Samsung, by contrast, has 37 phone products that are tweaked for regional tastes and run the gamut from very cheap to very expensive, according to Mirae Asset Securities. The company also makes chips, TVs, appliances and a host of other products (and its brethren in the Samsung Group sell everything from ships to insurance policies).


Apple devices are hugely popular in the United States; Samsung enjoys supremacy in developing countries like India and China. Apple keeps its core staff lean - it has only 60,000 employees worldwide - and relies on partners for manufacturing and other functions. Samsung Electronics, part of a sprawling "chaebol," or conglomerate, that includes some 80 companies employing 369,000 people worldwide, is far more vertically integrated.


It is those differences, combined with the formidable strengths that both companies bring to the market, that may render quiet cooperation a better strategy than all-out war for some time to come.


Said Brad Silverberg, a former Microsoft executive who was involved in the Mac vs. Windows wars, "Apple had learnt a lot of lessons from those days."


(Reporting by Dan Levine and Poornima Gupta in San Francisco, and Miyoung Kim in Seoul; Editing by Jonathan Weber, Tiffany Wu and Peter Cooney)



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