#7855841, By NBZ Google buys Motorola Mobility for 12.5 Billion

  • NBZ 15 Aug 2011 13:11:41 2,419 posts
    Seen 2 weeks ago
    Registered 15 years ago
    Google could potentially start to indemnify OEM's against patent lawsuits so that they dont have to pay out big bucks (to toerh firms) to use android.

    Currently HTC (which is a pretty recent company without deep patent pockets) has to pay MS $5 for every android handset built and is also being sued by Apple (and Microsoft is making more money from its Android racket than from WIndows Phone 7).

    M$ want $15 from Samsung for every android handset built over alleged patent infringement.

    Big companies have thousands of patents and in a mafia protection racket style, they will go to other players and ask for a certain cut for not getting sued for patent infringement (though most of them may be invalid or of dubious quality, but if you throw enough shit, atleast some would stick). Now if the other side also has patents, they cross licence - allow both parties to use each others patents(and maybe some money exchanging hands if one sides patent pool is much larger).

    Now if one of the companies is pretty new or doesnt have a large patent pool, the fear of losing a patent case in court is quite huge (willful infringement = x3 the damages) and there is an urge to just pay up instead of risking losing a case which could put the small player out of business.

    Now, Mafia style, when someone goes knocking on the doors of e.g. HTC, they can tell them that they have the backing of Google and its patent portfolio, and its patent portfolio and can tell the other parties to simply do one.

    Motorola is a company that has been around a long time so it will have a huge number of patents - patents that cover real stuff too instead of patents and esigns and UI button placements etc that the likes of Apple/Microsoft probably own.

    Until now, when partners have been sued, Google has just stood in the sidelines watching as it did not have any large patent pool that it could defend them with (and just paying out would mean more rodents taking a sniff of the cheese).
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