An Analysis of Google’s Motorola Purchase

Its all about the patents. But not the ones you might think. Google has been accused of being short sighted in its acquisition of Motorola Mobility citing the lack of support Motorola's patents will provide against Oracle and Apple. It is true, Motorola’s patents are not going to change Google lawsuits against Oracle and Apple, but these lawsuits are not a large problem for Google. Oracle just had a key patent ruled invalid and the judge over the case is calling for Oracle to significantly reduce their damages claim against Google. And it will be extremely difficult for Apple to get a significant amount of money from any of its dozens of lawsuits relating to usability and user interface given the broad nature of Apple’s patents and the numerous similar patents issued to other organizations. But Google did not buy Motorola’s patents to defend against the current Oracle or Apple lawsuits.

Google will use Motorola’s patents to defend against the ongoing hushed patent bullying by Microsoft. Microsoft has been coercing Android phone manufactures to paying up to $15 per handset for “licensing fees” and so far hasn’t even taken anyone to court! Even if you assume that each major Android handset manufacturer negotiated Microsoft down to $5 per handset that could be $40 BILLION next year!

Motorola already announced that they want to go after other phone manufactures and that they have the patents to do it. Google’s acquisition also ensures “patent attacks” with Motorola’s patents will be contained to non-Android handset manufacturers. Motorola’s patents can provide a sort of deterrence against Microsoft and others (either in court or behind closed doors) from collecting these “licensing fees” in the future and prevent them from leeching off of Android’s success.