August 15, 2011 by staff
Motorola Mobility, Taking charge of the product line and tablet Droid Xoom is great, but owning the patent rights of Motorola epic is the real prize. August is supposed to be a quiet month for Wall Street and technology industry, but Google and 12500000000 acquisition of Motorola’s mobility certainly changed.
Google is accelerating a venerable hardware manufacturer has had some successes (4G Motorola photons) and some misses (Motorola Xoom). The measure could also breath new life into the stagnant Google Google TV platform Motorola is one of the largest manufacturers of decoders in the country. However, focusing on Motorola hardware properties is a mistake, this agreement is really about intellectual property.
Undoubtedly, there are advantages to building your own hardware. Apple’s ability to design, code, create, and even selling their retail products have become one of the most valuable technology companies in the world. When Google launched products like Nexus S, one can see the company appreciates the potential exists. If this deal goes through, I imagine that Motorola will become the exclusive manufacturer of cigars Android devices. This will cause Google some of the economies of scale, and certainly better in the margins of the products it sells, but this is secondary to the acquisition of Motorola’s patents.
The math is compelling. Motorola has 17,000 patents, Google has about 1,000. As CEO of Google, Larry Page, said in a blog postannouncing the agreement, “the acquisition of Motorola will increase competition by strengthening the Google patent portfolio, allowing us to better protect Android anticompetitive threats from Microsoft, Apple and other companies. ”
In fact, only a few weeks ago, Motorola Mobility President Dr. Sanjay Jha, boasted in an earnings call that its holdings of patents has separated from the rest of the Android Market.
“As most of you know, we own a portfolio of patents stronger and more respected in the industry,” said Jha. “We have over 17,000 patents granted and over 7,000 patents pending with particular force in 2G and 3G essential patents essential not important for the delivery of competitive products on the market, including video compression technologies, decompression and security and, finally, a position of leadership in 4G LTE essential.
In fact, a growing number ofanlysts and investors have been pressuring Motorola to be more aggressive with its patents and to begin to make other providers who are using Android technology. Part of this is due to slow sales of its products, but no one disputes that Motorola could do much damage if the attack was launched. Google will undoubtedly be much more flexible. At least when it comes to salespeople Android.
Despite Google’s growing influence in almost all aspects of our digital lives, are relatively poor patents. A rich portfolio of patents takes time to build and Google is a relatively young age of 13. Both Apple and Microsoft have been exploiting this fact to go after Google and its hardware partners.
Apple is suing HTC and Samsung to mimic the “look and feel” of the iPhone. Both companies are countersuing Apple make their own claims. Similarly, Microsoft and Motorola have also adapted to open Mobility. Everyone, literally, is suing everyone. And so far, Google was the man with a knife to a gunfight.
Much more than a set of hardware, this agreement is to defend the Android platform attacks the patent. For most businesses, 12.5 billion is a ridiculous price for patent protection, but remember that Google has about 39 billion and cash on hand. With such a bank could continue shopping. (Eastman Kodak reported, putting 1,000 of its patents for digital images for sale.) But I really hope not.
Auction impressive 4.5 million won Nortel patent by Apple, Microsoft and Research In Motion added fuel to the madness of game patents. Now that Google has its own arsenal, I can only wait for a cooling-off period is imposed. (There is much to expect in August, I know.) Patent trolling is not passed to protect the innovations generating new ones. Instead of dark sue these companies should focus their energies and resources in building better products.
And to be completely honest, the Motorola Xoom could use attention.
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