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The most interesting latest news on the topic: Motorola |
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Google won't jeopardize its valuable alliance with Android makers by beefing up Motorola, but rather, take what it needs from the beleaguered handset maker, leaving it to hemorrhage out.
Mototola reported losses again this quarter, with poor sales and merger-related costs dragging the company down. Though 20 percent of the company's losses were related to its pending merger with Google, the rest came from lackluster phone sales, as Samsung continues to edge the company out of the market. Google pledged to treat Motorola the same way it treats other Android partners, but as its new business venture hemorrhages money, the search giant may end up treating the company worse than its competitors, simply absorbing its parts. The search giant's interest in Motorola stems from the company's robust patent portfolio, which will help Google equip itself in patent skirmishes against Apple and other rivals. Google is also pushing into branded tablets and smartphones, and it may use Motorola's hardware know-how to move ahead with those plans. Motorola is not keeping up with Samsung and other more successful rivals like HTC. The company would certainly need help from Google to recapture its market share. Instead, Google is discussing the sale of Motorola's more profitable home segment, leaving its flailing mobile component even deeper in the hole, and it may not be long until it begins an even broader sale. Google would have to perform a tricky balancing act to help out its companion company without upsetting its more successful Android partners. Both HTC and Samsung, though initially publicly supportive of Google's acquisition of Motorola's patents, have expressed a willingness to beef up their phones on other platforms -- mainly, windows -- and Google won't be willing to jeopardize the standing of its OS with two major phone makers. Many Android manufacturers worried Google will favor Motorola in the wake of the acquisition, and bailing out the troubled company could be an unfavorable signal that Google may not want to send to its partners. The merger between Google and Motorola is still pending Chinese approval, although Europe and U.S. gave the go-ahead. Since Motorola is banking on the acquisition, it could be in even more trouble if the deal falls through. Motorola may not turn around its finances on its own, and if Google tries to help the flailing company, it risks angering its Android associates, which may lead to a major shakeup in the mobile industry. Google's alliance with Motorola gave it patents and boosted its hardware capabilities, but if it endangers the company's partnership with Samsung, it may have cost more than it is worth. Google spent a pretty penny on Motorola, but the biggest threat to its pocketbooks is a collapse of its Android empire, and that is likely to remain its priority. |
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Apple CEO Tim Cook said he'd "rather settle a patent lawsuit" than fight legal battles to a bitter finish, but a kinder, gentler Apple won't show up in the courtroom. |
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A Chicago district court ordered Google and Motorola hand over Android secrets to Apple, which the iPhone maker plans to use in its patent case against the Internet giant. Google will give Apple access to documents related to its Android development process and acquisition of Motorola. Apple, which contends two of its patents were violated, plans to comb through the documents for evidence of infringement. The first patent, filed in 1994, pertains to the "method and apparatus for distributing events in an operating system," while the second, filed in 1993, covers a special kind of multitasking system. "Apple has alleged that to remove or design around the claimed features would involve a substantial overhaul of the Android operating system, which would likely cost Motorola tens (if not hundreds) of millions of dollars to implement," said Apple in a court filing. The iPhone maker is arguing that the amount of money Google had to pay to purchase and work on the Android platform is directly related to the price of damages it should pay. Apple believes Motorola knew it violated its patents, but due to the high cost of developing a work-around, the company turned a blind eye and proceeded to develop its products. Motorola argued it was still a separate entity from Google and shouldn't have to turn over merger details. However, because both parties are closely tied together in the lawsuit, both will be affected if Apple finds the evidence it's looking for in these new documents. The court has scheduled the case to continue on June 11, and if Apple can prove its claims, the judge could demand Google and/or Motorola pay royalty fees for the violations. A win in a case like this would add credibility to Apple's late co-founder Steve Jobs' claim's that Android was a stolen product. The former CEO vowed to destroy Android before he passed away last year, and extracting royalty fees from every Android phone sold would be a tremendous victory for the company. Apple's ability to look over these documents will be a big help in attempting to prove its claims, but if the documents don't bolster the iPhone-maker's case in a substantial way, it may be back to the drawing board for the long-standing court battle. |
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Apple notched a victory over an attempted sales ban on its devices by Motorola, raising more questions over how common technology gets used under intellectual property ownership. A German court lifted a temporary sales injunction set upon Apple after the company offered revising licensing terms to use a Motorola-owned 3G patent. Originally, Motorola took Apple to court over the licensing terms since they could not agree on a fair price. Motorola claimed Apple's use of the patent violated fair use policies, and initially won an injunction to ban iPhone sales. Now that Apple revised the licensing terms it offered to Motorola, the sales ban cannot continue while Apple continues to appeal, according to a ruling by the German court handling the case. The sales ban revocation has an immediate effect on Motorola and Google as they seek, together, to combat Apple through patent ownership. The sales ban is no longer enforceable, and Apple's victory means Motorola could agree to licensing terms that are not as high as it originally sought. Whatever that figure is, it could set a precedent for what defines "fair" when it comes to licensing patents under FRAND, or standards-essential fair-use, policy. The potential is wide, as corporations and courtrooms attempt to decide what are fair licensing terms for industry-standard technologies in many court cases between top patent owners. The 3G patent owned by Motorola is standards-essential, which means it falls under FRAND laws, or fair-use agreements that require licensing between companies. Motorola said Apple failed to meet its terms, but Apple contended that Motorola's terms were unreasonably high. The first Motorola victory resulted in a sales ban that took iPhones and iPads out of online stores, but Apple's appeal keeps Motorola from enforcing it while it's proceeding. With Apple's revised terms, Apple's appeal will result in a settlement, though details on Apple's new offer aren't available. Patents on standards-essential technologies covered under FRAND agreements spawn many lawsuits in recent years, often when companies cannot agree on fair licensing terms to use common features covered by patents. Combined with Apple pushing for regulatory investigations of Motorola's treatment of FRAND patents, Motorola's treatment of its patent catalog are testing grounds for modern FRAND standards. Apple's success in blocking the sales injunction in this case means its proposed licensing terms, deemed fair by the court, offer a starting point for determining what licensing terms are reasonable under standards-essential patents. Apple's victory is a blow to Motorola, whose broad patent catalog offers plenty of ammunition to claim infringement in court, resulting in settlements or bans of competitors' products. But if sales bans are not enforced, the debate turns to what is fair on the licensing terms. If this case is any indication, courtrooms are forcing decisions on what that fairness actually means. |
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Google is set to replace Motorola Mobility CEO Sanjay Jha, promoting from within to foster unity between the two companies as the deal gets ready to close. Former Google senior vice president Dennis Woodside will replace Jha, Bloomberg reports, although Google has not officially announced the decision. By promoting from within its own ranks, Google sends a message it intends to bring about greater unity between the two companies after the acquisition is complete and keep its own alliances strong. Google and Motorola Mobility have disparate corporate cultures, which could set them up to clash once the acquisition is final. Differences in everything from dress code to management styles could keep the two companies from working together effectively. By moving Woodside in as CEO, Google will put someone who shares its corporate values and culture in charge of its newest acquisition, potentially ensuring a smoother transition. Jha's replacement may also put Google's group of Android hardware manufacturers and other partners at ease. By replacing Jha with one of its own, Google signifies that a major change in philosophy or leadership is unlikely as a result of its Motorola purchase. Woodside oversaw the Google-Motorola deal and led the transition as it progressed over the past several months. His understanding of the issues surrounding the two companies and their pending deal make him a logical choice to head up the Motorola Mobility division once it is officially part of Google. The decision is still speculation, however. Woodside emerged as a favorite from a short list that included Motorola senior vice president Christy Wyatt and chief strategy officer John Butcher, an anonymous source told Bloomberg. The U.S. Department of Justice and the European Union signed off on Google's purchase of Motorola earlier this month. Google still awaits approval from China before it can finalize the deal. |
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Microsoft is firing at Motorola for its treatment of fair-use patents, piling evidence against Motorola for alleged abuse of standard patent usage guidelines. Microsoft filed a complaint with the European Commission over how Motorola handles its fair-use standards essential patents. The move comes after Motorola offered what the company considered unfair terms on a video technology patent for Windows computers and Xbox. Motorola is now threatening to ban sales over possible infringement, a move that's worked in similar claims against Apple. The complaint is another signal Motorola's attempts to block products from being sold or licensed out on high terms is backfiring. Drawing the EU's attention toward Motorola's behavior means potential changes to policies about standards-essential patents, or FRAND laws, keeping the manufacturer, now owned by Google, from waging patent battles with others like Apple, Samsung or Microsoft. Apple also filed a formal complaint against Motorola with the European Commission about unfair licensing terms, while pushing for changes to FRAND laws. Fair-use, or FRAND, patents, like the ones on video technology at issue between Microsoft and Motorola, cover common functions that are industry-wide standards. European law allows use of the functions in any manufacturer's designs providing the patent owner and user set fair licensing terms. But when terms are not reached and the case ends up before a judge, the lawsuits keep mobile manufacturers from innovating as they argue ownership and rights to standard features. Motorola holds a large number of patents that form the basis of infringement claims, but Microsoft, and Apple, have sued Motorola in the past in attempts to take down Android. Microsoft is pointing its finger at Motorola for offering unfair licensing terms, but Microsoft benefits from such agreements to a high degree -- the Redmond, Wash., company has licensing agreements with makers of more than 70 percent of the Android-based smartphones in the U.S. For Microsoft, a PC heavyweight but runner-up in the mobile marketplace, access to Motorola patents on fair terms is essential to the company's push in the mobile market. A threat to its computers and game consoles poses challenges at a particularly tumultuous time for the technology company as it negotiates a transition into the mobile market. In a blog post, Microsoft calls out Google, close to a complete $12.5 billion acquisition of Motorola, for its treatment of other industry competitors. Microsoft cites licensing terms offered by Motorola it deems unfair, like a $22.50 demand for every $1,000 laptop sold. "Google has a chance to make a change," said Microsoft attorney Dave Heiner in the post. "For a company so publicly committed to protecting the Internet, one might expect them to join the growing consensus against using standard essential patents to block products." But Google says it will act fair about Motorola's patent catalog, a promise that, if followed through, would make it easier for Apple and Microsoft to do business. Still, past experiences might be keeping competitors from trusting their rival. Now that Motorola is facing patent pressure from both of its major device-making rivals, as well as potential investigations by European regulatory agencies, the battle over standards-essentials patents could come to a halt, replaced by a fair use debate. Until then, Microsoft will likely continue to defend its existing strongholds in the digital market in the form of computers and game consoles as it maneuvers into the mobile marketplace. |
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Apple is taking issue with Motorola's treatment of fair-use patents, filing a formal complaint about potential violations and pushing for changes to how patents are defended. Motorola stated in its annual report with the Securities and Exchange Commission that Apple filed a formal complaint to the European Commission over Motorola's use of FRAND patents. Apple alleged the rival manufacturer violated existing fair use laws with its use of the patents in a number of lawsuits. FRAND patents, which allow reasonable use standards between patent owners and other manufacturers, are becoming central to many of the patent lawsuits embroiling the industry. Apple's complaint follows previous attempts to urge the European Commission to change its treatment of FRAND, meaning Apple is focusing on updates to patent law as an alternative to courtroom battles. Should Apple's complaint trigger an investigation into Motorola's use of its FRAND patents, Apple and other device makers will receive the ability to license Motorola-owned technologies that previously would have landed them in court. According to Motorola's own SEC filing, "Apple's complaint seeks the Commission's intervention with respect to standards-essential patents." The FRAND patents provide the wireless industry with methods for using patented technology, described as "fair, reasonable and non-discriminatory," under licensing agreements. Setting such industry standards would reduce competitive device makers from using patents against rivals in attempts to stop device bans or score a settlement. Some lawsuits over FRAND patents already resulted in sales injunctions of devices. In one case, Motorola won a suit against the Apple over 3G technology on iPhones and iPads that resulted in an online sales ban, which Apple quickly appealed. A similar ruling fell in favor of Apple over slide-to-unlock technology applying to Motorola smartphones. Patent infringement cases have the potential to balloon once Google's approved acquisition of Motorola is complete, though Google promises it will allow fair licensing of its expanded catalog. Both Europe and the U.S. will be watching this promise closely -- Apple's formal complaint with the European Commission follows a letter asking for FRAND revisions, anticipating the thousands of mobile device patents now owned by Google. Apple's iPhone sales are also part of the picture, since Google is using its Motorola patent holdings to seek royalties from iPhone sales with new standards-essential agreements. Potential changes to the FRAND laws could alter the legal landscape for patents, shifting toward standard arrangements for licensing agreements, and fewer lawsuits overall to distract device makers from their overall innovation. But before regulators consider long-term changes, the European Commission could follow-up on Apple's complaint looking into potential Motorola violations of FRAND, which could mean immediate penalties for Motorola. A similar investigation, also brought by Apple, is underway for Samsung regarding a patent on 3G technology, which is the basis for a number of the manufacturer's infringement claims. Apple may be tiring of lawsuits with Android makers, and its inquiries to European regulators show it may shift strategy to avoid costly settlements in favor of licensing. Asking for European Commission intervention pressurizes the battle between iOS and Android as they race to out-develop each others' smartphones, but the potential outcome of new regulations would open new doors for companies to put their existing patents to good use. |
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Apple gained an edge in its patent battle with Android devices after securing a ban on Motorola smartphones for a slide-to-unlock infringement. The Cupertino, Calif.-based company secured the permanent injunction in Germany over almost all Motorola smartphones, which use the commonplace feature. Apple will likely try to apply this patent to any other smartphone maker on the market as its next offensive in the intellectual property wars between Apple and Google. But the prevalence may backfire on Apple, if Motorola, now owned by Google, argues fair use grounds in a potential appeal. Apple brought three infringement claims against Motorola in the lawsuit, which was argued in a German court December. Apple won the permanent injunction on two claims against Motorola's mobile phones, but lost the infringement claim against Motorola's Xoom tablet. The ban applies to most of Motorola's smartphones, and Apple can post bond to enforce it at its own discretion. The win positions Apple to take on other manufacturers using similar features, with cases already pending. The iPhone maker is also claiming infringement against Samsung in a German court for the same patent, which lays claim to "unlocking a device by performing gestures on an unlock image." A patent issued for slide-to-unlock in the U.S. proves Apple is fighting for ownership of the common feature. It's also seeking to back up those claims by pushing European regulators to issue fair licensing standards, which would benefit Apple if courts declare slide-to-unlock falls under FRAND. Then, Apple could license out the technology without having to go to court to get paid. The decision hinders Motorola sales in the short-term, but it puts other Android makers at risk for infringement. But if Motorola appeals on fair use grounds, the company could overturn the ban, and enter a licensing settlement for the feature instead. Such agreements are potentially becoming more common. Google, with a newly expanded patent portfolio from Motorola, assures European regulators it will license the patents fairly. Still, the tables are turning for Apple in European courtrooms. Apple lost a case against Motorola that resulted in a permanent injunction against iPhones, but a quick appeal put a stop to any long-term sales infractions. Whether or not Motorola follows through with a successful appeal, Apple's win is crucial to its ownership of smartphone features similar to the groundbreaking iPhone. Should Apple's win lead to other bans for Android devices, it could push Android to innovate a way around the patent to avoid the face-offs in the courtroom. |
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Google's Motorola purchase received U.S. approval, but government regulators will watch closely to prevent patent abuses, curtailing Google's new-found power. The U.S. Department of Justice sanctioned Google's buyout of Motorola Mobility, after the European Commission's decision to do the same. Both regulatory bodies granted the acquisition with the same condition that they intend to watch Google and Motorola for patent abuse, and will not abide an onslaught of litigation as a result of the deal, which grants Google access to Motorola's hefty patent portfolio. The Department of Justice requires Google license its Motorola patents under fair and reasonable use standards, or FRAND. Google previously assured the European Commission it intends to honor FRAND, which helped the company gain needed approval. Regulators are making it clear with its warning that it will hold Google to its promise. Compared to its rivals, Google lacked a strong patent collection before this deal. Google assisted HTC, Samsung and another Android partners in proxy battles against Apple, since the search giant lacked enough ammunition to enter into direct conflict with its biggest adversary. The Motorola buyout, however, equips Google with valuable standards essential patents, or SEP, potent enough to directly fight Apple. Some analysts believed the Motorola patents would help Google launch an attack of its own against rivals, but the regulator provisions dampen the chances that Google engages in any overt or aggressive legal moves against its business opponent. "The division continues to monitor the use of SEPs in the wireless device industry, particularly in the smartphone and computer tablet markets," said the Department of Justice, outlining its conditions after approving the deal. "The division will not hesitate to take appropriate enforcement action to stop any anticompetitive use of SEP rights." The Department of Justice also said it will focus on enforcing antitrust laws to prevent larger companies from dominating the market, therefore hurting consumer choice. This regulatory vigilance comes at a time when the big companies are, indeed, looking to consolidate power and patents as market battles find their way into the courtrooms. Android phone makers and Apple often clash in court as the Android OS comes under attack for patent infringement, but the smartphone giants also join forces to squash the competition, using their hefty patent arsenals. Google's deal with Motorola gives the company extra ammunition in court cases like this, which damages chances for smaller companies and start-ups to overcome patent charges. Even under the watchful eyes of regulators, Google's new patent power has the potential to stifle competitors, especially if it uses them to come to the aid of its Android phone makers in court. Google purchased Motorola to stay competitive as the smartphone industry continues its intellectual property skirmishes. Google could use its newly acquired patents to its advantage, despite regulatory scrutiny. The company will have to tread lightly as it attempts to make the most of the patents it purchased, or government inquiries are likely to continue. |
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Google's strategic expansion into hardware got a major push as its planned Motorola acquisition gained E.U. approval. The European Commission signed off on the Google-Motorola deal, and analysts expect the U.S. Justice Department to clear the buyout soon. The deal is noted for the influx of patents Motorola brings to its new partner, but the purchase will allow Google to begin manufacturing its own hardware as well, rattling both rivals and partners of the search engine giant. Google insists it does not intend to favor Motorola or alter Android's open platform, but nonetheless, its partners are seeking to lessen their dependency on the Android platform. Google's OS partners, like Samsung, LG, and HTC, are likely to intensify their search for alternative operating systems, as Google's alliance with Motorola threatens the Android market. The Motorola acquisition moves Google closer to developing an integrated phone, putting it direct competition with Apple's iPhone and RIM's BlackBerry. The purchase also intensifies Google's rivalry with Apple, as its expansion into hardware production mirrors Apple's production strategy. In addition to helping expand into hardware, the Motorola deal bolsters Google's patent portfolio, strengthening its arsenal in its tangle of legal battles against rivals like Apple. U.S. and E.U. regulators scrutinized the merger amid concerns Google plans to exploit its newly acquired patents, but the European Commission's decision to approve the buyout signifies regulators' satisfaction with the results of their investigation. The E.U. approved the deal only after warning Google against using its new patent arsenal to launch additional litigation. Google stands to gain a share of the hardware market with its Motorola purchase, although it must contend with concern from its current hardware partners and an elevated rivalry with Apple. But the move is not without its risks. The Mountain View, Calif.-based company may lose revenue and stakes in its battle against Apple if Android smartphone makers pull out, so the company may profit best if it can allay their concerns and reassert its alliances with them. |
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