News bites: Google's Schmidt warns against 'digital caste system'

Google's Eric Schmidt warned against legislation that would create a "digital caste system" in a speech in Barcelona, PC Magazine reports.

Time Warner Cable is experimenting with caps on broadband Internet use, The Wall Street Journal reports.

Apple may begin paying a dividend this year to appease investors who say the company is sitting on too much cash, Bloomberg reports.

Apple is expected to unveil its iPad 3 next week, Reuters reports.