Threat of Settlements May Have Spurred Google, Moto Deal
Sep 14, 2011 A blow-by-blow account of negotiations leading up to Google's acquisition of Motorola indicates that the deal may have been one of necessity rather than opportunity for Google.
In a proxy statement filed with the U.S. Securities and Exchange Commission [ http://sec.gov/Archives/edgar/data/1495569/000119312511246952/d224940dprem14a.htm#tx224940_40 ], Motorola said that it was considering settling some or all of the patent infringement lawsuits against it at the time it began negotiations with Google. Both Apple and Microsoft are suing Motorola for alleged infringement in its Android-based products.
If Motorola had settled those suits, the outcome might have been damaging for Android, patent expert Florian Mueller wrote in a blog post on Wednesday [ http://fosspatents.blogspot.com/2011/09/these-four-threats-against-android.html ]. "The fallout for Android would have been nothing short of catastrophic," he wrote. Motorola's "likely capitulation would have been a disastrous signal and resulted in pretty much every other Android device maker's surrender on the patent front. It would have made it clear to everyone that Android infringes patents held by Microsoft" and Apple.
Apple is also suing HTC and Samsung for alleged patent infringement in their Android products. Unlike most operating system developers, Google does not agree to protect Android licensees in the event of a patent lawsuit. That has left many of the largest Android manufacturers exposed to legal attacks from competitors.
If those licensees have to pay other companies including Apple and Microsoft to use Android, the economics of Android changes dramatically. ...
[...] http://www.pcworld.com/article/240015/threat_of_settlements_may_have_spurred_google_moto_deal.html [no comments yet]
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