The reason for buying Motorola Mobility was the "patent umbrella"
Yesterday, Google announced the acquisition of mobile phone manufacturer Motorola Mobility. The deal will allow Google to enter the smartphone market and strengthen the position of its Android mobile operating system. However, one of the main reasons for Google's interest in the smartphone manufacturer is its patent portfolio.
As a result of the deal, Google will be able to expand its patent portfolio by more than 17,000 registered patents. Thousands more patents for Motorola Mobility are in the process of being registered. The company's patents relate to wireless communication standards and other technologies used in the smartphone market. Experts have described the acquisition of Motorola Mobility as providing a "patent umbrella."
The merger of Google and Motorola Mobility patents will allow the company to protect Android from attacks by competitors accusing Google of patent infringement.
Several weeks ago, Google accused competitors Oracle, Microsoft, and Apple of orchestrating a "hostile campaign" aimed at ousting the Android operating system from the mobile platform market through patent lawsuits. Android is currently the fastest-growing mobile platform. Competitors, "instead of competing with new features or models, are fighting us with lawsuits."
For example, Apple has already filed claims against Samsung and Motorola, as well as HTC. Patent claims against Samsung led to Apple securing a ban on sales of the Samsung Galaxy Tab tablet in Europe. Apple is seeking a similar ban on Motorola devices.
Furthermore, a consortium of IT companies, including Microsoft and Apple, recently acquired patents from the bankrupt company Nortel, paying $4.5 billion for them. Google also wanted to acquire these patents, but was not among the final bidders. Prior to this, Microsoft and Apple acquired patents from Novell. Thus, Microsoft and Apple gained control of a large number of patents on modern communications technologies, which these two leaders could use to sue virtually any manufacturer.
Google makes no secret of the fact that it needs a strong patent portfolio to ensure Android's success. Therefore, Google attempted to solve the patent problem by acquiring Motorola Mobility. Each Motorola patent cost Google $750,000.
It's worth noting that Motorola is currently involved in patent litigation with Apple and Microsoft. Until the deal is finalized, Motorola will defend itself against the patent lawsuits.
