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Google CEO: 'Anticompetitive' Apple, Microsoft forced Motorola deal

post #1 of 172
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Patent litigation from Apple and Microsoft, deemed "anticompetitive" by Google Chief Executive Larry Page, is what prompted the search company to buy handset maker Motorola Mobility.

In a post on the company's official blog, Page revealed that Google's acquisition of Motorola is a strategic move to strengthen his company's patent portfolio. The company's Android operating system has recently come under fire in an industry-wide patent battle, as Apple and Microsoft have taken Android device makers like HTC, Samsung and Motorola to court.

"The U.S. Department of Justice had to intervene in the results of one recent patent auction to 'protect competition and innovation in the open source software community' and it is currently looking into the results of the Nortel auction," Page wrote. "Our acquisition of Motorola will increase competition by strengthening Googles patent portfolio, which will enable us to better protect Android from anti-competitive threats from Microsoft, Apple and other companies."

The CEO touted Motorola's history of building devices, saying he loved the company's StarTAC phone first launched 30 years ago. Today, Motorola is one of the most popular Android device makers, with devices like the Droid 3, Droid X2 and Atrix 4G.

"In 2008, Motorola bet big on Android as the sole operating system across all of its smartphone devices," Page said. "It was a smart bet and we're thrilled at the success they've achieved so far. We believe that their mobile business is on an upward trajectory and poised for explosive growth."

Motorola's embrace of Android has made it a target of Apple in the courtroom, with the two companies engaged in a number of lawsuits. Just last week it was revealed that Apple has attempted to bar the sale of the Motorola Xoom tablet in Europe, something it managed to successfully do with Samsung's competing Galaxy Tab 10.1.

In their legal battle, Motorola struck first last October, accusing Apple of violating 18 patents related to a range of technologies, including 3G, GPRS, 802.11 wireless and antenna design. Accused Apple products include MobileMe and the App Store.

Motorola claimed that it attempted to license its patented technology to Apple, but "lengthy negotiations" could not produce a deal. Motorola said that Apple "refused" to pay for a license.

Google Chief Executive and co-founder Larry Page.

Apple responded in kind only weeks later, suing Motorola for alleged violation of six patents related to multi-touch features in the iPhone. A range of Motorola devices were alleged to have been in violation, including the Droid, Droid 2, Droid X, Cliq, and BackFlip.

As the number of lawsuits in the mobile industry have swelled, Motorola earlier this month even signaled that it could sue other Android device makers in pursuit of licensing fees. CEO Sanjay Jha said Motorola Mobility has a "very large" portfolio of intellectual property that could be leveraged in legal action.

In a patent licensing deal with Android device-maker HTC, Microsoft is rumored to receive a large $5-per-device for the use of patented inventions. That helped to set of a wave of concerns that handsets running Google Android could also have to pay high royalty fees to Apple.
post #2 of 172
Somebody call the waaahmbulance.
post #3 of 172
So they buy up a competitor (anticompetitive), which gives them now first-class priority amongst Android licensees (anticompetitive), and they do it just for the patents (anticompetitive), and they say Apple and Microsoft are being anticompetitive?
post #4 of 172
I hope for Larry's sake the Android user hardware fraternity feel this is just for patent portfolio content. I would suspect a few more will be looking at Microsoft or internal Mobile OS development after this morning. Unless of course he shuts down Motorola Mobility later today.

What next, HP open WebOS up to all manufacturers for free if they promise to use HP printers and Ink?
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Been using Apple since Apple ][ - Long on AAPL so biased
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post #5 of 172
So I take it Google will now withdraw the suits Motorola attacked Apple with.

F**king hypocrites.
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post #6 of 172


What will htc and samsung say about this???
post #7 of 172
Quote:
Originally Posted by hill60 View Post

So I take it Google will now withdraw the suits Motorola attacked Apple with.

F**king hypocrites.

Actually, yes, I expect they might. But, obviously, they would only do so with an agreement that it is not a unilateral withdrawal.

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post #8 of 172
Quote:
Originally Posted by AppleInsider View Post

Patent litigation from Apple and Microsoft, deemed "anticompetitive" by Google Chief Executive Larry Page, is what prompted the search company to buy handset maker Motorola Mobility.




Great move by Google. Only time will tell how the whole patent thing works out. But in the meanwhile I thinkSamsung, HTC and others are going to start looking elsewhere for their mobile platforms.

This move makes no difference to Apple. The only one who wins in this case is Microsoft and Nokia. With a decreased number of Android devices the Windows phone finally stands a chance to gain some traction in the market.

At the end of the day the Apple will be the Market leader with 50+% of the market and the rest split between Android, HTC, Samsung, HP and others.
post #9 of 172
Quote:
Originally Posted by digitalclips View Post

I hope for Larry's sake the Android user hardware fraternity feel this is just for patent portfolio content. I would suspect a few more will be looking at Microsoft or internal Mobile OS development after this morning. Unless of course he shuts down Motorola Mobility later today.

What next, HP open WebOS up to all manufacturers for free if they promise to use HP printers and Ink?

HP is in fact in talks with a few companies to license WebOS. Samsung is one of them.
Would love to them and HTC jump ship. HTC is taking a beating from Android suits with no help from Google.
post #10 of 172
Now it seems that Nokia's Elop turned out to be a friggin' genius.

This is getting to be better than the Soap Operas.
"As The (Tech) World Turns".

Can't wait for the next episode.
post #11 of 172
Quote:
Originally Posted by juandl View Post

Now it seems that Nokia's Elop turned out to be a friggin' genius.

This is getting to be better than the Soap Operas.
"As The (Tech) World Turns".

Can't wait for the next episode.

RIM is dead. In light of Samsung being sued, Nokia latching on to Microsoft's teat and now Google swooping in to buy Moto, it's pretty much game over for RIM.

I was at my local craptastic telco, a few years ago when the latest BlackBerries launched it was exclusive to one of the three major telcos and there was much fanfare. Now BlackBerries are sold by every telco and they're mostly a third or quarter of what iPhone still sells for.

Game over RIM.
post #12 of 172
Wasn't the StarTAC introduced more like 13-15 years ago?
post #13 of 172
Quote:
Originally Posted by jdsonice View Post

Great move by Google. Only time will tell how the whole patent thing works out. But in the meanwhile I thinkSamsung, HTC and others are going to start looking elsewhere for their mobile platforms.

I think the might stay where they are. If google offers to protect them with these patents, as long as they are Android vendors, that is a huge incentive to hang around.


Quote:
Originally Posted by jdsonice View Post

This move makes no difference to Apple. The only one who wins in this case is Microsoft and Nokia. With a decreased number of Android devices the Windows phone finally stands a chance to gain some traction in the market.

of course it makes a difference to Apple. Patents have become the key battleground in the wireless industry. Their main competitor is about to greatly strengthen their position in that battle.

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #14 of 172
Quote:
Originally Posted by jdsonice View Post

Great move by Google. Only time will tell how the whole patent thing works out. But in the meanwhile I thinkSamsung, HTC and others are going to start looking elsewhere for their mobile platforms.

This move makes no difference to Apple. The only one who wins in this case is Microsoft and Nokia. With a decreased number of Android devices the Windows phone finally stands a chance to gain some traction in the market.

At the end of the day the Apple will be the Market leader with 50+% of the market and the rest split between Android, HTC, Samsung, HP and others.

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

If there was any sliver of doubt of Google's duplicity, it is well and truly erased now. Mark this day. Mark it well.
post #15 of 172
Quote:
Originally Posted by digitalclips View Post

I hope for Larry's sake the Android user hardware fraternity feel this is just for patent portfolio content. I would suspect a few more will be looking at Microsoft or internal Mobile OS development after this morning. Unless of course he shuts down Motorola Mobility later today.

The issue is TRUST. At this stage, can any hardware maker seriously trust Google?
post #16 of 172
Quote:
So I take it Google will now withdraw the suits Motorola attacked Apple with.

F**king hypocrites.

Legally, they can't. That would either imply Apple does not infringe, or they're giving Apple a free license to use the patents in question which effectively nullifies them.

No matter what way Google's PR may spin it, Google can't just take the defence, they are legally required to seek out and litigate against entities who are violating on their patents.
post #17 of 172
This could be a big win for HP. HP could strike deals with HTC and others to license webOS In return for closing their handset business. HP seem to be realistic in their tablet aims and prepared to take a loss short term to gain share. Apple would only worry if Amazon joined a HP & HTC alliance, as then the proposition is complete. If the Amazon tablet turned out to be webOS, wouldn't that be interesting. An Amazon/Android/Motorola tablet is considered more likely, but, ultimately, is "just another Android tablet" - but an Amazon/HTC/webOS tablet seems better differentiated, could be cheaper, and certainly answers the question of "why should I buy this instead of an iPad."
post #18 of 172
Quote:
Originally Posted by Milwaukee, WY View Post

Wasn't the StarTAC introduced more like 13-15 years ago?

They also made the G3 and G4 processors that powered products which essentially saved Apple at their most critical juncture.

But thank goodness Steve and Co. saw the writing on the wall and jettisoned them and IBM.
post #19 of 172
Quote:
Originally Posted by nvidia2008 View Post

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

If there was any sliver of doubt of Google's duplicity, it is well and truly erased now. Mark this day. Mark it well.

Well Android stopped being open source with Honeycomb, no reason to think it was going to go back with Ice Cream Sandwich. I am sure if google could find a loop hole to get the kernel out of the GPL they would.
post #20 of 172
Quote:
Originally Posted by nvidia2008 View Post

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

Except that Google has reaffirmed (during this morning's conference call) that Samsung, HTC, etc are going to be considered on equal footing with Moto. You might be right someday. Just not right now.
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post #21 of 172
Quote:
Originally Posted by joindup View Post

This could be a big win for HP. HP could strike deals with HTC and others to license webOS In return for closing their handset business. HP seem to be realistic in their tablet aims and prepared to take a loss short term to gain share. Apple would only worry if Amazon joined a HP & HTC alliance, as then the proposition is complete. If the Amazon tablet turned out to be webOS, wouldn't that be interesting. An Amazon/Android/Motorola tablet is considered more likely, but, ultimately, is "just another Android tablet" - but an Amazon/HTC/webOS tablet seems better differentiated, could be cheaper, and certainly answers the question of "why should I buy this instead of an iPad."

WebOS is far, far from being anything close to iPad at this stage of the game. Throwing in Amazon and HTC into the mix does not seem promising in improving WebOS.
post #22 of 172
Quote:
Originally Posted by nvidia2008 View Post

They also made the G3 and G4 processors that powered products which essentially saved Apple at their most critical juncture.

But thank goodness Steve and Co. saw the writing on the wall and jettisoned them and IBM.

I suppose they were one company the. The company google is buying only makes mobile phones and the Xoom.
post #23 of 172
Quote:
Originally Posted by nvidia2008 View Post

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

If there was any sliver of doubt of Google's duplicity, it is well and truly erased now. Mark this day. Mark it well.

You honestly think this is a move to get into hardware? If it isn't, and is only meant to strengthen the Android patent portfolio, how would those partners feel betrayed? They are going to be more comfortable with google owning those patents than Apple or MS or even another Android vendor.

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #24 of 172
google is in a great position to screw their "partners" MS to the rescue

google bit off more than it could chew, made some bad assumptions like java without permission and now they are weaker, does moto have java licenses?? ellison may have the last laugh, SJ has been laughin all along, now customers may be stuck with 2 year contracts and no updates and junk hardware.

this all says that all this hyperbole from google just shows how much they got hammered.

wow don't you guys find 12.5 billion excessive but survival costs dearly

funny apple still has googleplex $$$$ in the bank and google is spending all theirs

what's the ROI and break even point for google stockholders when you spend 12.5 billion to capture more ad revenue from mobile. ill keep an eye on the stock price.

NOW apple needs to come out with its own search engine. wow
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post #25 of 172
Quote:
Originally Posted by nvidia2008 View Post

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

If there was any sliver of doubt of Google's duplicity, it is well and truly erased now. Mark this day. Mark it well.

Except android based vendors seem to be right behind the acquisition. This and the other thread show this news has caught apple fans off guard. There's no coherent response to this news here. Very interesting day
post #26 of 172
Quote:
Originally Posted by Gatorguy View Post

Except that Google has reaffirmed (during this morning's conference call) that Samsung, HTC, etc are going to be considered on equal footing with Moto. You might be right someday. Just not right now.

Yup, as equal footing as how they previously treated Android licensees... That is, not equal at all. I understand that Google is and has to reassure everyone from abandoning ship. But the evidence is out that Google "managed" Android licensees to quite an extent in the background while promising free and open. Is the Honeycomb source out yet in full open source? Nope? Thought so.

Even better, Honeycomb will NEVER be open source:

http://www.geek.com/articles/mobile/...-own-20110510/
post #27 of 172
Quote:
Originally Posted by AppleInsider View Post

... Motorola struck first last October, accusing Apple of violating 18 patents related to a range of technologies, including 3G, GPRS, 802.11 wireless and antenna design. Accused Apple products include MobileMe and the App Store.

... Motorola earlier this month even signaled that it could sue other Android device makers in pursuit of licensing fees.

Motorola demonstrated to Google that it has a large enough portfolio to sue both, Apple and Google. A great marketing technique that lead to this acquisition.
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post #28 of 172
Quote:
Originally Posted by jdsonice View Post

Great move by Google. Only time will tell how the whole patent thing works out.

How is it a great move? The just spent $12B on a "antiquated" company (albeit one with a rich patent portfolio), entered a field they are not familiar with (manufacturing) and pissed off their licensees in the process.

Seems like another reason for OEM's to flock to MSFT. MSFT has a much better mobile OS anyway. I think this will tank for Google.
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post #29 of 172
I thought google said they will keep Android open still despite now owning Motorola Mobile.

I can see a scenario where they have Android for all to please other handset makers, while they tightly integrate/optimize their hardware to produce an Apple-like synergy between Motorolas handsets and Android.
post #30 of 172
Quote:
Originally Posted by djsherly View Post

Except android based vendors seem to be right behind the acquisition. This and the other thread show this news has caught apple fans off guard. There's no coherent response to this news here. Very interesting day

Android-based vendors should be soiling their pants as we speak. Whatever support for this acquisition is putting on a bold face at best.

I'm not writing this as an Apple fan, I'm writing as a normal human being with common sense.

I mean, come on, Google is buying Moto for the good of the Android world, even long-time die-hard competitors of Motorola? Something's gotta give.
post #31 of 172
I wonder if Larry consulted Eric Schimdt about this before pulling the trigger or not. This certainly going to make the current Handset Alliance members nervous, as Google has gone on record as becoming more and more controlling in the once "open and free" wunderworld of Android.

As far as Moto is concerned, if their patent claims are similar in nature to Nokia's claims, the best they could have hoped for is a one-time settlement like Nokia got from Apple (technically a loss, but who's keeping track), due to the fact that their IP is part of world-wide standards, and as standards contributors are subject to FRAND (Fair and Reasonable, Non-Discriminatory) licensing by contributing to the standards. With Nokia settling as they did, that weakens Motorola Mobility's case in court. It seems as though Google is trying to leverage the situation in the short-term.

The other question is whether (and I would hope that Google - for all the money they spent - got a solid confirmation on this before purchase) Motorola Mobility actually holds the IP or if Motorola (the former parent company that spun them off) Solutions holds them and simply licenses them to Mobility for their use (usually under special conditions for essentially no charge). While there may have been a challenge by regulators if Apple sought purchase Motorola Mobility - if the IP were important to Apple products, Apple would have made a bid on them back when they were being sold off to the highest bidder, prior to being spun off. That fact makes me wonder if Motorola Solutions actually holds the patents and Google just paid a premium for a failing handset divsion with no real IP to provide actual value.

It will be fun to see how this all shakes out. Apple in the last 10 years has shown themselves to be just a titch more nimble than most of the other companies on stuff like this (well you can argue they got skunked on adMob).

Let's see if young and valiant warrior Google can outwit the crafty, worldly-wise and experienced warrior Apple.
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post #32 of 172
Now we will be anti-competitive too!
post #33 of 172
God, these people are such a bunch of cry babies. Sure, their search engine is a great invention, protected behind a wall of intellectual property patents, but that doesn't give them a permission slip to get into any business they want simply to justify their over-priced valuation and then expect the various companies already in that business to roll over for them. Android looks like it might turn out to be a Trojan Horse for various phone makers and Google itself operates a bit like the James Gang, all while pretending to be Robin Hood and his Merry Men. What a bunch of jerks.
post #34 of 172
Such sweet irony.
post #35 of 172
Quote:
Originally Posted by nvidia2008 View Post

Android-based vendors should be soiling their pants as we speak. Whatever support for this acquisition is putting on a bold face at best.

I'm not writing this as an Apple fan, I'm writing as a normal human being with common sense.

I mean, come on, Google is buying Moto for the good of the Android world, even long-time die-hard competitors of Motorola? Something's gotta give.

Google doesn't benefit if their partners leave. Google benefits if their vendors are happily producing Android handsets. Google has never shown an interest in their own hardware. why exactly should the Android vendors be upset or scared? Their common platform just gained a huge weapon in their mobile wars.

"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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...sometimes it's both
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post #36 of 172
Quote:
Originally Posted by Gatorguy View Post

Except that Google has reaffirmed (during this morning's conference call) that Samsung, HTC, etc are going to be considered on equal footing with Moto. You might be right someday. Just not right now.

Oh yeah, I believe Google.

Yep.

Yep.

I really do.

Yep.
post #37 of 172
Quote:
Originally Posted by Tulkas View Post

Google doesn't benefit if their partners leave. Google benefits if their vendors are happily producing Android handsets. Google has never shown an interest in their own hardware. why exactly should the Android vendors be upset or scared? Their common platform just gained a huge weapon in their mobile wars.

They are happy. Their profit margins will further erode.
post #38 of 172
Curious, excuse the n00b question, but Motorola is up 57.99% in pre-market. In a situation like this doesn't trading of shares of Moto have to be suspended?

Wouldn't people be buying into Moto shares like mad through today?
post #39 of 172
Quote:
Originally Posted by nvidia2008 View Post

Can you fathom the gravity of Google's betrayal?

Android, free and open and wonderful with pretty flowers.

But... oops, sorry, we got Moto now, HTC, Samsung, the rest of you can jog on and find your own OS. What's that? You invested billions in Android and had no legal protection from us? Well, too bad. Peace out, remember, don't do evil.

This is one of the biggest dick moves in Tech this past ten years.

If there was any sliver of doubt of Google's duplicity, it is well and truly erased now. Mark this day. Mark it well.

No, you are not reading the events correctly. This move means that google will not stand down and wait for all the shit hitting in the fan with all their partners. It means that Google will fight against appl and msft on a more equal ground. Which is good for their partners, not bad.

This is mainly good for android make no mistake about it.
post #40 of 172
Quote:
Originally Posted by strask View Post

God, these people are such a bunch of cry babies. Sure, their search engine is a great invention, protected behind a wall of intellectual property patents, but that doesn't give them a permission slip to get into any business they want simply to justify their over-priced valuation and then expect the various companies already in that business to roll over for them. Android looks like it might turn out to be a Trojan Horse for various phone makers and Google itself operates a bit like the James Gang, all while pretending to be Robin Hood and his Merry Men. What a bunch of jerks.

Well, Apple did get into the phone business too after never being in the space.

But then again, they already did HARDWARE, so it was a more natural progression.
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