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Breakingviews: Patently Google

Thursday, May 02, 2013 - 03:09

May 2 - Richard Beales and Breakingviews columnists discuss why Google's Motorola Mobility patents aren't as strong a defense against Apple and Microsoft as expected.

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Because a lot of other Smartphone patent wars. An apple and Samsung have been on the front lines of that but there's another plan which is Google's military wrote Motorola mobility unit which -- -- for. It well over ten billion dollars and how to would -- the patents that -- you've concluded that lately at least they've been firing blanks from the Google. So I yeah I mean as as you point out in the Smartphone wars it's all about Pat -- apple Microsoft had a bunch. Google didn't have hardly any bomb had the android operating system wanted to protect it with its own -- so it bought Motorola mobility for the past but. Here's a thing. A lot of those patents turned out to be what's called standard essential patents which are so important they're sort of set the standard for the industry everybody's got to be able to use them -- is because they usually say you have the hack license doesn't have to run for reasonable price we don't one man's reasonable is another persons -- -- -- and Motorola have been very aggressive and what it -- and asking -- licensing fees. And the courts eventually some wore it a minute this is far too much if you gonna charge this much people are going to be able to make products that they've been losing. Cases in the courts over the -- so you know the big question is does that make the Motorola deal a Boston. I think -- be crossed -- are all these. A lot of Smartphone makers because the product apple makes really big margins on its to -- and make android phones. Make very much lower margins but it is Simpson Simpson's -- -- -- many other things that is like single digits that poses quoted as saying exactly and so that worry was that apple would come in there and basically it'd be like beating a bunch of first -- -- -- come in there. And they would have just they'd be able to disclose about the war all the seats because they -- take on that one into the company had time and say OK they can't compete for a drop out. And so they've the world Google with us to Munich the big prize it would come in there and defend all of these all these companies right with their patent true and I guess that's not quite an. And let me just say I mean. You know courts are to sort of making up and could not just the courts but the international trade commission German. Courts are not to sort of coming up -- these decisions out of their own hands. Apple and Microsoft are very much behind the scenes pushing this argument that these fees have every reason. But this is selling it takes to Apple's. Patents than. Sounds well and as well in the this not some skirmish in missiles hurtling down to a more reasonable arrangement or it. Not so much because apple and Microsoft their patents are largely non standard essential so they haren and under no obligation to do anything but enforce them. However they want. Junction -- which -- quarter orders to stop other companies from using them. They can get very high licensee fees. And courts are really gonna stand in the way of that but again if the industry needs to use the technology and the court's gonna be very wary. But anything that Tom that blocks and that's why mr. -- abilities patents of it kind of in the week his position and right I think that's front of him. Okay we'll leave that thanks guys we'll be watching the patent was closely and we'll have more breaking news -- tomorrow.

Breakingviews: Patently Google

Thursday, May 02, 2013 - 03:09

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