Google's Motorola Acquisition May Spark New Apple Patent War

by bchenglk44 on 2012-02-16 14:27:57

But across Google's bow came a clear message from the US Justice Department, which said that while Apple and Microsoft had made explicit commitments to license their "standard essential patents" (SEPs) used in smartphones, "Google's commitment statement is more ambiguous and does not provide the same direct confirmation of its SEP licensing policy." For that reason, the DoJ would continue to monitor the market and "will not hesitate to take appropriate enforcement action to stop any anti-competitive use of SEPs' rights". In approving the acquisition, Almunia added that the decision "does not mean that all past or future actions by Motorola Mobility or Google are blessed by the merger clearance" and considered any actions on "[t]he question whether Motorola's or Google's behaviour is compatible with EU antitrust rules" separately. If Apple can show that FRAND patents have been abused in cases such as Joaquin Almunia, the EC competition commissioner who warned last Friday in a speech of the need to watch owners of SEPs such as standards essential patents "are given power in the market which they must not be allowed to abuse." It did the trick: at the end of the day, Google had offered $40 per share - enough to swing both Gerha and MMI board. They squeezed Google into issuing $12.5bn; Icahn's stake rose from $750m when Google first approached MMI, to $1.34bn when the deal was done. Icahn owes Gerha a big favour - if, as some expect, CEO pushes Sanjay Jha aside when the merger is complete, Icahn may be in a position to repay him. [Small town stock market engaged in enterprise website construction, website optimization, website promotion, overall marketing planning and implementation of enterprise e-commerce, owns the well-known team in SEO industry, has rich practical experience and higher technical strength, provides you with website SEO optimization service, aims at "marketing and conversion rate", lets customers see intuitive effect. Business QQ consultation: 466401604 ,8838478 Contact information: 13422475786 ] Google acquired the MMI portfolio of 17000 existing and 7500 patents pending. Photo: Robert Galbraith/Reuters The European Commission and US Justice Department have cleared Google's $12.5 billion (€10.4bn) purchase of Motorola Mobility (MMI), the US phone and set-top box maker - a move which could open a new and potentially explosive chapter in the battle over smartphone patents. How Motorola bid 33% higher, after Larry Page, Google chief executive, contacted Motorola Mobility following its loss from a series of patent bids at the Nortel Networks bankruptcy auction last July. Having abandoned bidding with Intel against consortiums including Google, Apple, Microsoft and Blackberry-maker RIM which reached $4.5 billion - its Motorola bid will go far beyond that. On the same day. Gerha gave a speech, he thoughtfully said, publicly suing other brands of Android phones for infringing Motorola's patent portfolio, and proposed the possibility of cooperating with Microsoft instead of Google, and adopting new Windows Phone software and dropping Android. Apple last week filed suit in the US which could explode, claiming MMI is abusing its ownership of basic patents for phones after it wrote in January to Apple and chipmaker Qualcomm. In the letter, human interface revoked Apple's ability, dimming film, to use two patents embedded in Qualcomm chips used in iPhone. This particular revocation generally would not be allowed under 'essential' patent licensing terms: if Motorola is found violating 'FRAND around its patent licensing rules' (fair, reasonable and non-discriminatory), then it may face sanctions from standard institutions, damages from Apple. China must also do the same before the merger can be completed. Approved deadlocked Google and Apple, Motorola subsidiary, trying to squeeze the iPhone manufacturer to pay one iPhone chip supplier, chipmaker Qualcomm, saying it has been authorized the patent. Microsoft has been forced to make almost all Android phones sign 50% royalty deals covering patent ownership, companies like Samsung and HTC. Such deals cover 70% of Android phones sold in the US - it is followed by Huawei, other Android phone manufacturers, the software giant claims. Microsoft is also locked in a patent war with MMI. According to the acquisition agreement afterward, files submitted by Motorola to the SEC, Google said it would be interested in purchasing the company - two weeks later, on July 20, the famous 'corporate sniper' Carl Icahn, who then held about 11% of the company said, Sanjiv Jha, MMI's chief, that the company 'should explore alternatives for MMI patent portfolio'. In other words, Icahn said: sell. (Icahn one day revealed this suggestion in filing) Almunia's team has not ruled out an independent investigation into Google's behavior in Europe, where it decides whether to launch a full antitrust investigation, advertising and search practices. A decision is expected in March. Google said it was human interface making phones because of its strength in the patent portfolio covering a wide range of wireless and mobile areas with 17,000 existing and 7500 pending patents covering basic standards in other areas. This acquisition will allow Google to offer patent protection to device manufacturers using its Android mobile operating system, facing legal attacks over patents from Apple and Microsoft etc. One week later, Google said it was considering buying the company at a "price high $20 or low $30s". On August 1, Google's first formal bid was $30 per share - worth $9.4bn for MMI. Google has repeatedly stated that it will run the MMI business at arm's length, which will disadvantage it compared to other phone manufacturers using Android software. But analysts doubt that it will increasingly seek its subsidiary to showcase new versions of Android phones, as it tries to enforce stricter compliance in the rapidly growing use of the software. MMI was spun off from Motorola in January 2011 but has struggled financially ever since, recording net losses every quarter, losing funding and market share in its phone business. Although quarterly revenue of around $3.4 billion will be small for Google, which is expected to bring $10 billion in tax benefits in the fourth quarter, meaning it will have no net effect on profitability. But Gerha held, by August 7, Google's chief negotiator Nikesh Arora - who is now通风报信 from Gerha in the merged company - asked him to offer a bid of $37. Apple is seeking to expand the case in Germany, where it is fighting Motorola's attempt to impose a ban on the sale and use of its iPhone 4S and iCloud web storage and sync services. Almunia can and will fine companies up to 10% of their global turnover for abuse - which, post-merger, will reach billions. Google's largest fine was $500 million, levied by the US government last August for its role in illegally selling internet drugs from Canadian sites to the US. The EU also issued a similar warning. Prolonged review of the proposed merger, the two companies shook hands in August, the Education Bureau announced Monday night that it had decided the transaction would not affect the supply of Android software to other phone manufacturers. However, EU Competition Commissioner Almunia warned that "the Commission will continue to closely monitor all market players in this sector, particularly the increasing use of patent strategies." Related theme articles: Google's Motorola acquisition could trigger a new Apple patent war To get the best way to free website promotion Group inspects Apple factory To get the best way to free website promotion Samsung announces Galaxy Tab 2 with Android 4.0 Ice Cream Sandwich