Costly Patent War Heating Up

Google announced today that it is buying Motorola Mobility at 12.5 billion with  60% premium. At prima facie, this move may seem like Google’s entry into mobile hardware devices to challenge Apple. However, Google never positioned itself in hardware or devices moreover. So, if Google is serious about entering into making mobiles, it would be in a direct competition with vendors like Samsung, LG, HTC who are manufacturing mobile devices on Google’s Android platform. This would negatively impact the partnership. As per Google, since Android is open-source, this move by Google should not cause any worry to the mobile devices manufacturers. Of course, this comment would not reduce the worried of the devices manufacturers. so, would Google really enter into the mobile device manufacturing? What is the rational for paying such a huge amount for buying ailing Motorola Mobility? Is there any other reason behind this? May be there can be another motive of this buy. For that, we need to see what was happening in last few weeks.

Recently Apple and Microsoft bought 6000 patents portfolio of Novell. Google was bidding for the same but lost the bid. A consortium led by Apple and Microsoft paid 4.5 billion for the patent portfolio. Immediately Google complained that Apple and Microsoft are ganging up to choke Google’s Android platform.

On this background, it is important to note that recent buy would give Google an access to Motorola Mobility’s 17,000 patetns and 7500 patent applications . May be it is the patent war that compelled Google to throw $12.5 b for Motoroloa Mobility.  Or is it Google going to be serious to take on Apple in its mobile devices turf?


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