Monday, August 15, 2011

Google Motorola Deal Could Benefit all Android Manufacturers


Three major patent infringement cases that Google’s acquisition of Motorola should help with, and Android partners will in all likelihood be indemnified as a result. So whatever other issues might ultimately arise for Android licensees not so thrilled to see their operating system supplier in the handset market, the value of the indemnification should outweigh those concerns.

Google likely will seek a broad patent license that covers the entire Android ecosystem and then indemnifys all of its partners against further patent lawsuits. That will materially affect manufacturing costs for every Android handset, something Google will be able to provide for the whole ecosystem.

Motorola and Apple now are in litigation, for example, about whether Motorola  smart phones clear infringe Apple’s patents. Having Google’s heft directly behind it might help settle that issue.

Motorola and Microsoft likewise also are involved in patent litigation. Google’s direct ownership might lead Microsoft to take a softer line on royalties it would like to collect from Motorola and all other Android manufacturers.

Oracle and Google also are involved in litigation over Android’s use of Java. Some speculate Oracle might be satisfied to gain access to Motorola networking and video encoding patents in exchange for dropping the suit and licensing Java to Android.

Read more here.

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