When the acquisition of Motorola by Google completes, Google will have added around 17,000 patents plus 7,500 pending applications to its arsenal of intellectual property. This massive addition to Google’s patent portfolio is a strategic move to strengthen its position in the highly competitive tech industry. However, Bloomberg is reporting that just 18 of these patents could be worth the $12.5 billion Google is paying for Motorola.
David Mixon, a patent lawyer at Bradley Arant Boult Cummings in Huntsville, Alabama, calculated that out of all the patents Google will receive, there are inventions dating back to 1994 which form the heart of three Motorola lawsuits against Apple. These patents could really be the star patents in the haul for Google.
Key Patents in the Mobile-Device Industry
The 18 patents cover areas that are essential to the mobile-device industry, including location services, antenna designs, e-mail transmission, touch-screen motions, software-application management, and third-generation wireless technology. These patents are not just valuable because of their technological innovations but also because they are critical in the ongoing legal battles in the tech industry.
For instance, location services are crucial for modern smartphones, enabling features like GPS navigation, location-based advertising, and emergency services. Antenna designs are fundamental for ensuring strong and reliable signal reception, which is a key selling point for any mobile device. E-mail transmission and touch-screen motions are also integral to the user experience, making these patents highly valuable.
Legal Battles and Strategic Importance
In addition to the lawsuits against Apple, Motorola has also accused Microsoft of infringing its registered patents regarding video technology. Motorola has been seeking to block imports of the Xbox video-game console, which highlights the strategic importance of these patents. By acquiring Motorola, Google not only gains valuable technology but also strengthens its legal position against competitors.
Dean Becker, chief executive officer of Palm Beach, Florida-based ICAP Patent Brokerage, the world’s largest, stated: “There are a lot of sweet patents in that portfolio,” – “Google only needs a few to bolster its legal position.” This statement underscores the strategic value of even a small number of high-quality patents in the tech industry.
Moreover, the acquisition could provide Google with more leverage in negotiating cross-licensing deals with other tech giants. Cross-licensing allows companies to use each other’s patented technologies without the threat of litigation, fostering innovation and reducing legal costs. With Motorola’s patents, Google could negotiate more favorable terms with companies like Apple and Microsoft.
The acquisition also has implications for the broader tech industry. It could trigger a wave of similar acquisitions as companies seek to bolster their patent portfolios to protect themselves from litigation and gain a competitive edge. This trend could lead to increased consolidation in the tech industry, with larger companies acquiring smaller ones primarily for their intellectual property.
In conclusion, while the acquisition of Motorola by Google involves a vast number of patents, it is the 18 key patents that could justify the $12.5 billion price tag. These patents cover essential areas in the mobile-device industry and have significant strategic importance in ongoing legal battles. By acquiring Motorola, Google not only gains valuable technology but also strengthens its legal position and gains leverage in negotiating cross-licensing deals. This acquisition could have far-reaching implications for the tech industry, potentially leading to increased consolidation and a greater focus on intellectual property as a strategic asset.
Source: Bloomberg
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