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Apple Computer is recalling 1.8 million Sony-made laptop batteries for the same reason Dell is recalling 4.1 million of the power cells: They could burst into flames. ...

Apple also said it will pay $100 million to Creative Technology, the world's second-largest maker of MP3 music players, to settle all patent litigation over its popular iPod music player. ...

Sun Microsystems was the only one of the big four server vendors to post an increase in worldwide server revenue in the second quarter, moving the company past Dell into third place behind IBM and Hewlett-Packard. ...

A federal judge in Texas ruled that Microsoft willfully violated the patents of z4 Technologies for product-activation software and added $25 million in penalties to the $115 million a jury awarded the company, but he refused to grant z4 an injunction to prevent Microsoft from using the disputed technologies. ...

Sprint Nextel chief operating officer Len Lauer resigned and CEO Gary Forsee will assume his duties. The company also cut its financial forecasts for the year. ...

In video news, Cisco Systems bought Arroyo Video Solutions, a content distribution company, for $92 million and Sony Pictures Entertainment acquired online video-sharing site Grouper for $65 million.

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