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By Dan Levine SAN FRANCISCO (Reuters) – Apple Inc defeated a U.S. class action lawsuit brought by Apple retail workers over bag search practices at the company's California brick and mortar outlets, according to a court ruling on Saturday. The decision, from U.S. District Judge William Alsup in San Francisco, came in a case where employees sued to be reimbursed for the time taken by Apple to search their bags to ensure they did not steal any merchandise. At least two Apple retail store workers complained directly to Chief Executive Tim Cook that the technology company's policy of checking retail employees' bags as a security precaution was embarrassing and demeaning, according to court filings made public earlier in the case.

By Andrew Chung NEW YORK (Reuters) – Apple Inc could be facing up to $862 million in damages after a U.S. jury on Tuesday found the iPhone maker used technology owned by the University of Wisconsin-Madison's licensing arm without permission in chips found in many of its most popular devices. The jury in Madison, Wisconsin also said the patent, which improves processor efficiency, was valid. The trial will now move on to determine how much Apple owes in damages.

By Julia Love SAN FRANCISCO (Reuters) – With its highly profitable iPhone due for an upgrade, Apple is expected to unveil a pair of new handsets at an event in San Francisco on Wednesday, analysts say, in addition to showing off a larger iPad and an updated Apple TV. When Apple executives take the stage at the Bill Graham Civic Auditorium, investors will be scrutinizing their plans for the next generation of the iPhone, which drove nearly two-thirds of the company's $49.6 billion in revenue in the most recent quarter. Apple is widely expected to keep the size of the phones the same but upgrade it with an improved camera and Force Touch, a display technology that responds differently depending on how hard users press their screens.

Apple has ramped up its hiring of artificial intelligence experts, recruiting from PhD programs, posting dozens of job listings and greatly increasing the size of its AI staff, a review of hiring sites suggests and numerous sources confirm. The goal is to challenge Google in an area the Internet search giant has long dominated: smartphone features that give users what they want before they ask. As part of its push, the company is currently trying to hire at least 86 more employees with expertise in the branch of artificial intelligence known as machine learning, according to a recent analysis of Apple job postings.

(Reuters) – Antitrust authorities in Europe failed to find evidence that Apple Inc's deals with record labels and online music streaming services are blocking rivals' access to its music streaming platform, Re/code reported, citing sources. The European Commission, the executive arm of the European Union, started an investigation in April and had sent out questionnaires to several record labels seeking information about their dealings with Apple. The investigation did not turn up evidence of any illegal activity, but the European Union will continue to monitor the market, the report said, citing sources.