August 17th, 2011 Filed under: Android — Cell Phone Author
You don’t hear alot about this but one big reason why Google decided to buy the Motorola Mobile Unit may have more to do with the 17,000 Patents they have more than anything else. Patent wars have heated up recently in the mobile space. This might just be more patents in Google’s war chest now. Interesting stuff:
RBC Capital Markets said the deal value of $12.5 billion equates to 0.7 times trailing twelve months (TTM) of equity value-to-sales. In RBC Capital’s view, rising intellectual property (IP) threats to Android (and its original equipment manufacturers) from Microsoft Corp. and Apple Inc. were the major driver of the acquisition.
\”Google gets Motorola Mobility’s portfolio (17,000 patents), and while this deal may not necessarily mitigate some of the intellectual property (IP) wars under way (e.g. Apple and Motorola already suing each other), it may position Google to defend itself against more fundamental IP attacks, and increase counter-threat and leverage in global patent negotiations and litigation,\” said Mike Abramsky, an analyst at RBC Capital Markets.
Implications for Apple
Apple’s smartphone patents relate to multi-touch, object-oriented operating systems, and user interface — so this may not necessarily mitigate some of the IP Wars currently underway (Apple was suing Motorola Mobility for patent infringement — and vice-versa — already so this unlikely to change).
See the Original Story here
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