Google-Motorola Deal Fuels Patent War
You might have heard about Google’s announcement to purchase Motorola Mobility Holdings for $12.5 billion. On the surface this would seem to be a move to solidify the Android ecosystem and cult by starting to build and distribute their own mobile hardware (cell phones and tablets).
That’s part of it. Apple has demonstrated the market power and profitability that a proper cult following can generate and continues to demonstrate this commitment by practically giving away their newest operating system, Lion ($29), and actually giving away their upcoming iCloud service to all Lion users. Not a bad way to get people to buy the latest and greatest.

Not too far beneath Google’s surface brews a tempest that has significant implications for all mobile technology innovation in the years to come. Google’s main interest in Motorola is 17,000-plus patents that allow them to enter the patent wars currently underway. In this war, patents are conglomerated legal cards to be played as part of an ongoing legal strategy for each company vying for market share.
Patents were designed to fuel innovation by rewarding someone’s original idea, allowing him or her a specific period of time to capitalize monetarily on that idea. Technology moves much faster than the law, and we’re quickly seeing the limitations of copyright, trademark, and patent law as they currently stand.
On the heels of reports saying Android phones occupy nearly half the market, one might wonder how such a deal could get through anti-trust court. To Google’s credit, this does represent a new business sector for them as they wisely licensed the Android OS (classic Microsoft strategy) rather than building hardware (Apple). Now how do you think those dozens of hardware manufactures feel about competing directly with a company owned by their licensor?
While Larry Page states that the deal will “enhance competition and offer consumers accelerating innovation, greater choice, and wonderful user experiences,” I’m not convinced. The little guy doesn’t have the legal muscle to enter the patent wars, and is often only brought in unknowingly after he’s had some success.
Certainly Google has offered much innovation to the world, and some see as a defensive move. I have a limited amount of trust for any large corporation, and these days that includes Google and even Apple. If you’ve been watching this game awhile, it may seem somewhat ironic to see Apple and Microsoft banding together to sue Google. The enemy of my enemy and all that.
This situation makes me squirm the way much of our stock market does. What was created as an institution to allow anyone to invest in a company, hitching his or her star to the success and failure of that company, has become an abstraction that allows people to place bets on the success or failure of anything or nothing. We’ve seen how well that played out in recent years.








