International Business Machines Corp

IBM Corp. and PricewaterhouseCoopers have agreed to pay nearly $5.3 million combined to settle allegations that they made improper payments on government technology contracts, the Justice Department said Thursday. IBM agreed to pay nearly $3 million, while accounting firm PricewaterhouseCoopers would pay $2.3 million. Neither company admitted wrongdoing. The agency said both companies solicited, paid money or provided other benefits to several companies, in violation of federal regulations.

Anything pretty much goes in online virtual worlds. Identities are nebulous. Online characters known as avatars chat it up, gamble or even have sex at first sight. Increasingly though, these online zones such as "Second Life" are also becoming places where commerce is happening. Big companies such as IBM Corp. and Intel Corp. use these graphics-rich sites to conduct meetings among far-flung employees and to show customers graphical representations of ideas and products.

IBM Corp., the world's largest technology services company, Wednesday posted a 12% jump in second-quarter profit and raised its 2007 earnings forecast as revenue surged on software company acquisitions. IBM shares, which earlier this week hit a five-year high, rose 3.1% to $114.17 in after-hours trading following the earnings report. They gained 31 cents to $111.08 in regular trading.

IBM Corp. said it agreed to buy Swedish software provider Telelogic for $745 million in cash. Telelogic has its U.S. headquarters in Irvine and more than 900 workers in 20 countries. Telelogic products help companies develop and test software used in complex systems such as aircraft radar or anti-lock braking systems.

IBM Corp. misled investors by overestimating the effect of stock option expenses on the company's earnings in 2005, the Securities and Exchange Commission said Tuesday. The agency made the statement as it reached a settlement with IBM in which the company agreed not to commit future violations of disclosure rules. The SEC, however, didn't fine IBM, and the company didn't admit or deny the SEC's findings.

IBM Corp., the world's largest provider of computer services, plans to spend $1 billion a year to make corporate data centers more energy-efficient. New software, hardware and services will double the computing power of IBM's data facilities over the next three years without increasing energy use, the Armonk, N.Y.-based company said Thursday. The effort comes as electricity usage soars in data centers, which run the Internet and store corporate information.

Online retailer Amazon.com Inc. and IBM Corp. settled all their patent infringement lawsuits and signed a long-term patent cross-license agreement, the companies said. Under the deal, Amazon.com will pay IBM an undisclosed amount of money, and each company will share some of their technology. Amazon.com said the settlement would not affect financial results.

In trying to tackle some of the semiconductor industry's biggest technical hurdles, IBM Corp. took inspiration from seashells and snowflakes. IBM plans to announce a breakthrough in chip-making technology Thursday that the company said would solve a vexing problem -- how to keep the 27 miles of copper wiring that are wedged into a thumbnail-sized piece of silicon from generating interference, which slows the processing speed and creates heat. The Armonk, N.Y.

The Police Commission on Tuesday selected IBM Corp. to install 300 digital video cameras in patrol cars in the first phase of a program that could put cameras in all 1,600 police vehicles. "It is a high priority for this commission and for the department," said Commission President John Mack. The $5-million contract needs City Council approval.

IBM Corp. said Monday that it had developed a tiny chip capable of transmitting an entire high-definition movie in a single second, a breakthrough that could make computers faster and more energy-efficient. The chip was made using existing production methods. It works by converting electrical signals to laser light, allowing it to transmit 160 gigabits of data per second, enough to handle telephone traffic for all of New York City.