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In a filing late Wednesday with the U.S. International Trade Commission, Sony said LG violated U.S. trade rules by importing mobile phones and modems that infringed Sony patents.

Sony said LG also infringed patents of some of its licensees, including its Sony Ericsson joint venture, Samsung and Nokia.

The company filed a related complaint with the federal court in Los Angeles, court records show. A copy of that complaint was not immediately available.

LG spokesman John Taylor said in an email that it is company policy not to discuss pending litigation.

Sony said the patent infringement relates to more than 10 phones including the Encore, LG Accolade, Neon, Quantum, Rumor Touch and others.

The patents in the suit involve audio and microphone devices in phones, caller ID technology and transmission power.

LG, South Korea's fourth-largest conglomerate, this month said it is trying to expand its major businesses, including smartphones, and on Tuesday said it wants to raise 2011 sales by 11 percent to 156 trillion won ($135 billion).

Since October, LG has sold 2 million units of the Optimus One smartphone, its most popular smartphone model to date.

Sony reported an operating profit of 68.7 billion yen ($847 million) in the three months ended September 30, reversing a loss the previous year.

The ITC case is In re: Certain Mobile Phones and Modems, U.S. International Trade Commission, No. 337-TA. The California case is Sony Corp. v. LG Electronics USA Inc. et al, U.S. District Court, Central District of California, No. 2:10-09967.

(Reporting by Liana B. Baker; Editing by Phil Berlowitz)

The snowstorm shut roads and canceled flights in New York City and created havoc across the Northeast, where shopper traffic was 11.2 percent below ShopperTrak's expectations for Sunday December 26 and off 13.9 percent on Monday December 27.

The firm said sales for the entire November and December holiday period are on track to be up 4 percent, helped by strong sales in November and December 23, a particularly heavy day for shopping before Christmas.

It expects consumers who stayed home because of the snowstorm will venture out and shop more in the coming days.

"While we do think there will be some retail strength later this week and into the weekend as folks begin to dig out, it will be interesting to see if levels recover in time to boost December sales and the overall holiday shopping season," ShopperTrak co-founder Bill Martin said in a statement.

Other analysts agreed that the blizzard, which dropped 20 inches of snow on Central Park in New York City and more in suburban areas, should only put a small dent into holiday season.

International Council of Shopping Centers chief economist Michael Niemira told Reuters the snowstorm could lower the December sales growth rate by 0.5 percentage point, though some purchases may show up in January.

Scott Bernhardt, the chief operating officer of Planalytics, put the hit at 0.25 percentage point, saying that people will eventually go to malls to redeem gift cards and exchange gifts, which they normally do on December 26 and the following days.

While the gift cards themselves don't generate new sales, customers often end up buying more items when they redeem gift cards or exchange gifts they didn't like.

Shares tracked by the Standard & Poor's Retail Index rose 0.4 percent on Wednesday, slightly better than a 0.3 percent increase for the wider stock market. The retail index is trading close to a 3-1/2 year high reached earlier in December on hopes a strong holiday season will add momentum to consumer spending into 2011 and propel an economic recovery.

Most analysts and research firms are expecting holiday retail sales to improve from 2009's sales.

The National Retail Federation sees holiday sales up 3.3 percent, compared with a 0.4 percent increase last year and a 3.9 percent fall in 2008 due to the financial crisis.

Online sales were up 13 percent to a record $30.8 billion for the November 1 to December 26 holiday period, data company comScore said later on Wednesday.

SALES OFF BEFORE BLIZZARD

U.S. retail sales fell 4.1 percent in the week ending on Christmas Day, according to ShopperTrak, largely because December 26 fell on a Sunday this year and was not included in the week's sales.

China, which produces about 97 percent of the global supply of rare earth minerals, cut its export quotas by 35 percent for the first half of 2011 versus a year ago, saying it wanted to preserve ample reserves. It also cautioned that it has not decided on the quotas for the second half of the year.

The little-known class of 17 related elements is used in numerous electronic devices and clean energy technology.

A European Commission spokesman said the European Union "notes the latest quota figures and expects China to respect its recent assurance of a guarantee of rare earth supplies to Europe." The United States, which earlier this month threatened possible World Trade Organization action over Chinese rare earth export restraints, voiced concern on Tuesday as well.

While Japanese giant Sony said China's move represented a hindrance to free trade, for other companies the Chinese action provided a boost.

Shares of Lynas Corp, which owns the world's richest known non-Chinese deposit of rare earth minerals, jumped more than 10 percent even though it will be at least a year before it is capable of mining any material from a new lode in Australia.

Other rare earth companies, including China Rare Earth Holding Ltd, Arafura Resources, Alkane Resources and Greenland Minerals and Energy Ltd, also gained between 8 percent and 10 percent.

Shares in Colorado-based Molycorp closed Wednesday's session on the New York Stock Exchange up 6.76 percent at $49.30. That was its second-highest close ever and represented a nearly 400 percent jump from the company's initial public offering price of $14 in July.

Molycorp owns a rare earth mine in Mountain Pass, California, which is scheduled to resume production next year after a 10-year hiatus.

"Any reductions China makes in its 2011 exports versus 2010 levels will only exacerbate the global supply shortfall of rare earths we can expect in 2011," Molycorp CEO Mark Smith said in a statement.

U.S. makers of high-tech products such as Apple Inc's iPads and various Japanese companies have been scrambling to secure reliable supplies of the minerals outside of China as Beijing steadily reduces export allocations.

While Sony does not import or buy rare earth elements directly, the minerals are crucial for the production of components used in its finished products. These include magnets, condensers, and abrasives for polishing LCD glass, company spokeswoman Ayano Iguchi said.

SONY MULLS OPTIONS

Sony, maker of Bravia brand flat TVs, Vaio PCs and the PlayStation 3 videogame console, will look for ways to cut its use of rare earth elements, including developing alternative materials, Iguchi said.

"We cannot welcome rare earth export controls or any restrictions that hinder the system of free trade," Sony said in an e-mail statement in response to questions by Reuters.

Interval Licensing LLC, a small research company set up by Allen in 1992, originally filed a broad patent suit in federal court in Seattle in August, but Judge Marsha Pechman dismissed it on the grounds that it did not specify any actual products or devices. The revised suit was filed by Interval on Tuesday.

Allen, who co-founded Microsoft with Bill Gates in 1975, claims Interval was central to research and development of technology in the Internet arena in the 1990s, amassing more than 300 patents and providing research assistance to Google.

In the suit, Allen's firm claims four of its patents -- chiefly related to the way Web data is sorted and presented -- have been infringed by a number of successful companies.

The first patent concerns the generation of data related to information being browsed. Interval claims Google uses this technology to match advertisements from third parties to content being displayed, while AOL's sites use it to suggest items related to news stories.

Interval claims Apple's iTunes service uses the technology to suggest music based on a user's searches, and that eBay Inc, Facebook, Netflix, Yahoo Inc and Office Depot's sites have also infringed the patent in the way they direct users to related content.

The second and third patents concern relaying information on a computer screen in a peripheral, unobtrusive manner, such as in an instant messaging box or overlay.

Interval claims its patent has been infringed by features in AOL's Instant Messenger, Apple's Dashboard, Google Talk and Gmail Notifier, Google's Android phone system and Yahoo Widgets.

The fourth patent concerns alerting web browsers to new items of interest based on activity of other users. Interval claims AOL uses this technology on its shopping sites, while Apple's iTunes uses it to recommend music.

Interval claims eBay, Facebook, Google, Netflix, Office Depot, Staples Inc, Yahoo and Google's YouTube all have infringed the patent in the way they suggest content to users.

Interval has asked the court for damages and a ban on products that use the disputed patents.

The case is C10-1385 MJP in the U.S. District Court Western District of Washington at Seattle.

(Reporting by Bill Rigby; Editing by Derek Caney)

European stocks inched higher in early trade, mirroring gains in Asia and on Wall Street and adding to their sharp December rally, but the rise was limited by a drop in mining shares as heavy rains disrupt Australian coal exports.

Investors will keep an eye on the fixed income market on Wednesday, as U.S. Treasuries prices fell broadly and some maturities were on track for their worst monthly performance in years after an auction of 5-year notes drew dismal demand.

Oil steadied above $91 a barrel on Wednesday ahead of U.S. inventory data expected to show a drawdown in crude and distillate stocks due to severe weather in the world's largest oil user.

The dollar stabilized on Wednesday after a spike in U.S. Treasury yields helped it recover from a sharp loss against the euro in a yo-yo session the previous day marked by thin year-end flows.

SAP AG (SAPG.DE) must pay Oracle Corp (ORCL.O) prejudgment interest on a recent $1.3 billion copyright infringement verdict, but not at the formula suggested by Oracle, according to a judge's ruling filed on Tuesday.

Shares of rare earths prospectors soared on Wednesday after China cut export quotas, threatening to reduce already tight global supplies and risking action from the United States at the World Trade Organization.

Private equity company Blackstone Group (BX.N) has joined the bidding for Australian shopping-center owner Centro Properties Group's (CNP.AX) asset portfolio, the Wall Street Journal reported on Tuesday.

Starbucks Corp (SBUX.O) denied Kraft Foods Inc's (KFT.N) claim that the packaged food maker performed "exceptionally well" under an agreement to sell Starbucks' packaged coffee, court documents showed.

The Dow and S&P 500 rose in light trading on Tuesday, extending December's rally, as cold weather in the Northeast lifted oil prices and energy shares.

The Dow Jones industrial average .DJI was up 20.51 points, or 0.18 percent, at 11,575.54. The Standard & Poor's 500 Index .SPX was up 0.98 point, or 0.08 percent, at 1,258.52. The Nasdaq Composite Index .IXIC was down 4.39 points, or 0.16 percent, at 2,662.88.

(Reporting by Blaise Robinson; Editing by Jon Loades-Carter)

Oracle had sought more than $211 million in interest after winning a high stakes trial in an Oakland federal courtroom last month.

SAP argued in court filings that it shouldn't have to pay any interest. However, Europe's top software maker asked U.S. District Judge Phyllis Hamilton to use a different methodology should she decide interest was necessary.

Hamilton endorsed SAP's formula on Tuesday, though she did not specify the amount SAP would pay.

In its own court filing, SAP pegged the number at roughly $16.5 million.

"While we believe that Oracle should only be awarded damages, we appreciate that the Court agreed with SAP on the proper calculation of interest in this case which dramatically lowered the amount," a spokesman for SAP said in an emailed statement.

A representative for Oracle declined to comment.

The case in U.S. District Court, Northern District of California is Oracle USA, Inc., et al. v. SAP AG, et al, 07-1658.

(Reporting by Dan Levine; Editing by Phil Berlowitz, Gary Hill)

The dollar was steady after a sharp reversal against the euro in an erratic previous session, while the Swiss franc held near a record high against both the dollar and the euro as investors sought refuge from euro zone debt.

A weaker dollar had lifted demand for commodities priced in the U.S. currency, and London Metal Exchange copper rose to a record $9,437.50 a tonne on Wednesday, boosted also by a stoppage at a key port in major producer Chile.

Copper's strength failed to support mining giants Rio Tinto (RIO.AX) and BHP Billiton (BHP.AX), which both fell more than 1 percent as heavy rain disrupted mining and shipping operations. China's Christmas Day interest rate rise also prompted investors to fret about weaker demand for industrial metals, but analysts said the impact was likely to be short-lived.

"The Chinese rate rise was key but it appears it is more about curbing inflation and demand for base metals will not fall sharply," said Ben Potter, research analyst at IG Markets.

Tokyo's Nikkei .N225 rose 0.5 percent, despite the stronger yen that hurt some big exporters such as Canon Inc (7751.T). The Nikkei has risen nearly 10 percent in the final quarter of 2010, although it is down 2 percent for the year.

With shares trading around 1.1 times book value, Japan remains one of the cheapest developed markets after debt-hit Ireland, Greece and Italy.

"There is no solid reason to sell Japanese shares actively as the outlook for the market is still bright," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS was also up 0.5 percent and has risen more than 13 percent this year. Australia's benchmark .AXJO underperformed the region to end flat as the big miners weighed.

Australia's Lynas Corp (LYC.AX), which owns the richest known deposit of rare earth outside China, rose 10.8 percent after China, which produces 97 percent of the minerals, cut it export quotas. Rival Arafura (ARU.AX) rose 11.1 percent.

DOWNBEAT DATA

U.S. shares eked out gains on Tuesday on strength in oil majors such as Chevron (CVX.N) and Exxon Mobil (XOM.N), although downbeat consumer confidence data kept gains in check. The Dow Jones industrial average .DJI gained 0.2 percent and the broader S&P 500 .SPX was up 0.1 percent.

Foreign exchange trading was typically choppy in thin year-end trade, when light volumes can cause exaggerated moves from modest flows of funds.

A spike in U.S. Treasury yields boosted the allure of the U.S. currency, with the dollar index .DXY, which measures its performance against a basket of major currencies, steady around 80.3, off an overnight low of 79.596.

"The market is not driven by factors, but the thin conditions mean there could be more volatile moves," said a trader at a Japanese bank.