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Google exec reiterates Motorola purchase not just for patents

post #1 of 109
Thread Starter 
Google Chairman Eric Schmidt said his company bought Motorola Mobility for its products, as well as its patents, while noting that the current state of patents in the U.S. is a "terrible."

Speaking at a Salesforce.com conference, Schmidt said, We did it for more than just patents. The Motorola team has some amazing products, downplaying the role the company's 25,000 patents and pending filings played in the deal, Bloomberg reports. The former CEO's position, however, backpedals from the company's early strong stance that patents were the primary reason for purchase.

The executive called the current patent issue "terrible," voicing concerns that "overbroad patents will somehow slow" innovation in the software industry, as noted by TechCrunch.

Schmidt also addressed the Nortel patent auction that saw Google lose out to Apple and other competitors after a fierce bidding war, calling the patents "questionable" and the final $4.5 billion bid "too pricey." The Mountain View, Calif., company has characterized the Nortel deal, as well as other group patent purchases, as a conspiracy by competitors to block its Android mobile operating system.

Google announced its $12.5 billion acquisition of Motorola Mobility in August, billing it as a way to "supercharge Android, enhance competition, and offer wonderful user experiences." Chief Legal Officer David C. Drummond said Motorola's patent portfolio would help Google fight off "some very aggressive licensing demands in the Android ecosystem."

Larry Page, CEO and co-founder of the search giant, published a blog post shortly after the deal was announced, characterizing it as a way to protect itself from "anti-competitive threats from Microsoft, Apple and other companies."

However, recent analyses from intellectual property experts have suggested that Google overpaid for the company, as its patents, despite being numerous, may not provide as much protection as previously thought.



"What they bought is crap, because at the end of the day Motorola sold off its good assets," said Dr. David Martin, founder and chairman of M-Cam Inc, in an interview. Martin also added that Google actually increased its patent vulnerability with the deal.

Patent specialist Florian Mueller reports that many of Motorola's patents are already committed to F/RAND (fair, reasonable, and non-discriminatory) terms that limit their defensive usefulness.

Schmidt's comments on Thursday also run counter to an assertion by Sony Ericsson executive Nikolaus Scheurer that "Google confirmed that this [acquisition] is not making Google a hardware manufacturer."

The executive did take the time to praise Apple during his interview. As a former Apple board member before a conflict of interest forced him to resign, Schmidt praised Apple co-founder CEO for giving the "best performance of a CEO in 50 years."

Weve all benefited from the tremendous innovation at Apple. And I say this as a very proud former board member at Apple, he said. Jobs stepped down as Apple CEO in late August, leaving Tim Cook to serve in his stead.

But, Schmidt's remarks from Thursday on Apple's innovations stand in contrast to comments he made in July where he accused competitors like Apple of "responding with lawsuits as they cannot respond through innovations."
post #2 of 109
More Google doublespeak and they wonder why they have a credibility problem.

The MM acquisition will probably go down in history as the moment Google 'jumped the shark'.
post #3 of 109
If the Motorola purchase proves to be a boat anchor it really will call into questions Google's basic business acumen. They already looked kind of silly when they lost out on the recent Novell/Nortel bidding war, seemingly by not taking it all that seriously.

No one questions Google's technical chops, but I wonder if they have the people in charge to make the smart decisions when it comes to these kind of strategic acquisitions.
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post #4 of 109
I never believed that Google paid $12.5 billion just to get at Moto's patents. They wanted to be a phone maker. They want to be Apple.

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #5 of 109
Quote:
Originally Posted by AppleInsider View Post

Speaking at a Salesforce.com conference, Schmidt said, We did it for more than just patents."

No, you didn't.

Quote:
"The Motorola team has some amazing products.

No, they don't.

Quote:
The executive called the current patent issue "terrible," voicing concerns that "overbroad patents will somehow slow" innovation in the software industry, as noted by TechCrunch.

Thats what people say when they don't own any important patents. When they haven't invented anything of their own except a search algorithm.

Quote:
Schmidt also addressed the Nortel patent auction that saw Google lose out to Apple and other competitors after a fierce bidding war, calling the patents "questionable" and the final $4.5 billion bid "too pricey."

You think those were pricey? Wait until you find out what its like to have Moto's 29,000 thousand employees chained to your ankle. Now thats expensive.
post #6 of 109
such seething hate for no real reason from users here.
post #7 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

such teething hate for no real reason from users here.

It is only natural to be a little grumpy when teething.
post #8 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

such teething hate for no real reason from users here.

@AbsoluteDesignz this isn't a great site for comments, most come from rather uneducated fan boys. But then again most of the articles are also by ignorant fan boys, so just read it for the occasional actual news and don't let the comments get to you, it isn't worth the frustration.

Apple is to this site what Republicans are to FOX News.
Both provide an equal level of ignorant reporting and shameless bias.
post #9 of 109
Quote:
Originally Posted by anthropic View Post

@AbsoluteDesignz this isn't a great site for comments, most come from rather uneducated fan boys. But then again most of the articles are also by ignorant fan boys, so just read it for the occasional actual news and don't let the comments get to you, it isn't worth the frustration.

Apple is to this site what Republicans are to FOX News.
Both provide an equal level of ignorant reporting and shameless bias.

Or... Google made a huge mistake.

Huge.
post #10 of 109
Antrix 4 G chromebook is all I can say right now. Android on the phone, Chrome OS on the dock. Plus a way to get into the tablet business. That is why they bought moto.
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--SHEFFmachine out
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post #11 of 109
Quote:
Originally Posted by anthropic View Post

@AbsoluteDesignz this isn't a great site for comments, most come from rather uneducated fan boys. But then again most of the articles are also by ignorant fan boys, so just read it for the occasional actual news and don't let the comments get to you, it isn't worth the frustration.

Apple is to this site what Republicans are to FOX News.
Both provide an equal level of ignorant reporting and shameless bias.

Don't be so hard on yourself. Then again...
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post #12 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

such teething hate for no real reason from users here.

I read your comment here and thought are you just playing DUMB?? or are you just dumb.

then I read the little bit at the bottom of your post: i.e.;
"reasonable, rational, Fandroid with a general respect for Apple product design" ... and i realized why your making this ridiculous comment, first where was your head at when Mr. Shit (Eric) did what he did to Steve Jobs ... maybe it was up your arse where it prob would be or in the ground like an Ostrich and have you forgotten what Gaggle did to Apple previously?? well KARMA's a BITCH, then U DIE and I hope Gaggle dies a slow death with all those 29,000 Moto employees chained to his friggin ankle and the rest of them too... serves them right .. bunch of wannabe's.... my 2 cents...
post #13 of 109
On another news, a teenager claims he does not want to be with his girlfriend only for sex.
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post #14 of 109
Quote:
Originally Posted by bitzandbitez View Post

maybe it was up your arse where it prob would be or in the ground like an Ostrich and have you forgotten what Gaggle did to Apple previously??

Ok then, educate us. What did Google do to Apple and more importantly, why aren't Apple fighting back against whatever Google did directly with the company?

Are Apple pussies with nothing to fight back against or are you simply talking shite?
"Very disappointing to have people judging something without all the facts." - charlituna.
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"Very disappointing to have people judging something without all the facts." - charlituna.
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post #15 of 109
Quote:
Originally Posted by kresh View Post

It is only natural to be a little grumpy when teething.

hahahahahahha thanks for pointing out such a stupid mistake on my part

Quote:
Originally Posted by anthropic View Post

@AbsoluteDesignz this isn't a great site for comments, most come from rather uneducated fan boys. But then again most of the articles are also by ignorant fan boys, so just read it for the occasional actual news and don't let the comments get to you, it isn't worth the frustration.

Apple is to this site what Republicans are to FOX News.
Both provide an equal level of ignorant reporting and shameless bias.

seems such

Quote:
Originally Posted by bitzandbitez View Post

I read your comment here and thought are you just playing DUMB?? or are you just dumb.

then I read the little bit at the bottom of your post: i.e.;
"reasonable, rational, Fandroid with a general respect for Apple product design" ... and i realized why your making this ridiculous comment, first where was your head at when Mr. Shit (Eric) did what he did to Steve Jobs ... maybe it was up your arse where it prob would be or in the ground like an Ostrich and have you forgotten what Gaggle did to Apple previously?? well KARMA's a BITCH, then U DIE and I hope Gaggle dies a slow death with all those 29,000 Moto employees chained to his friggin ankle and the rest of them too... serves them right .. bunch of wannabe's.... my 2 cents...

I don't give a damn about Mr. Schmidt. Nor do I see what Google did to Apple...funny how Apple has yet to file any complaints against Schmidt...a lesser man than myself may think you're assuming, inventing, and fanatically hoping.

Also...90% of Google's business is not like Apple at all...oh wait...they design software...only Apple should be allowed to design software.
post #16 of 109
Quote:
Originally Posted by GalaxyTab View Post

Ok then, educate us. What did Google do to Apple and more importantly, why aren't Apple fighting back against whatever Google did directly with the company?

Are Apple pussies with nothing to fight back against or are you simply talking shite?

lol, that's what I'm saying.
post #17 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

lol, that's what I'm saying.

Let me guess what it'll be "Google stole teh multitouch!" (something Apple does not own) or "Android woz teh blackberry before iFone was shown!!!!!!!1one" (which is also bollocks because Android is software, not hardware. Software is scalable and able to run on many form factors/devices)
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post #18 of 109
Quote:
Originally Posted by GalaxyTab View Post

Let me guess what it'll be "Google stole teh multitouch!" (something Apple does not own) or "Android woz teh blackberry before iFone was shown!!!!!!!1one" (which is also bollocks because Android is software, not hardware. Software is scalable and able to run on many form factors/devices)

Hell, Android was designed to be scalable regardless...the BB style prototype was just one of I think 3 prototypes.

I think he's talking about the Schmidt was on Apple's board of directors thing...

which, if so, becomes the ONE time Apple has proven to not be willing to take an offender to court.
post #19 of 109
http://www.reuters.com/article/2011/...77T20I20110831


Interesting. Net purchase price for Google not as high as announced.
post #20 of 109
"Google Chairman Eric Schmidt the current state of patents in the U.S. is a "terrible.""


Eric Schmidt or Super Mario?
post #21 of 109
Quote:
Originally Posted by AppleInsider View Post


Speaking at a Salesforce.com conference, Schmidt said, We did it for more than just patents. The Motorola team has some amazing products,

Google announced its $12.5 billion acquisition of Motorola Mobility in August, billing it as a way to "supercharge Android, enhance competition, and offer wonderful user experiences."

That makes a lot of sense. The Motorola Atrix is one sweet phone, and Motorola makes a lot of set top boxes.

The Moto box I've used with FIOS had lousy software. Adding Android to the box could supercharge it, as well as allowing Google to get its act together WRT GoogleTV.

I'm waiting for the other shoe to drop. Motorola Mobility has a lot of irons in the fire - I hope Google can heat them all up a bit.
post #22 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

such seething hate for no real reason from users here.

They just "root, root, root for the home team"...

I don't quite understand being a fan of a corporation, but I see it as the same sort of thing as Red Sox fans hating the Yankees.
post #23 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

Also...90% of Google's business is not like Apple at all...oh wait...they design software...only Apple should be allowed to design software.

I think that Apple tried to patent that
post #24 of 109
Quote:
Originally Posted by lukei View Post

http://www.reuters.com/article/2011/...77T20I20110831


Interesting. Net purchase price for Google not as high as announced.

"The tax benefits of the deal make what was a good deal into a great deal," said Robert Willens, a New York accounting and tax expert. He estimated that through the acquisition, Google can expect to reap $700 million a year in tax deductions from future profits each year through 2019. Google also will be able to immediately reduce its taxes by $1 billion due to Motorola Mobility's U.S. net operating loss, and by a further $700 million due to its foreign operating loss, he said."

VERY interesting. It seems that most of the "anal-a-cysts" missed that little detail...
post #25 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

Hell, Android was designed to be scalable regardless...the BB style prototype was just one of I think 3 prototypes.

I think he's talking about the Schmidt was on Apple's board of directors thing...

which, if so, becomes the ONE time Apple has proven to not be willing to take an offender to court.

If people are hung up on Schmidt stealing iPhone secrets when he was a board member, they should remember that Google bought Android before iPhone was released.

Furthermore, the insistence of this version of history depicts Apple as stooges who can be easily fooled. In that case, they deserve whatever spell Google has ostensibly cast on them. But given the size of Cupertino's vault, what exactly is that spell?
post #26 of 109
Quote:
Originally Posted by AbsoluteDesignz View Post

such seething hate for no real reason from users here.

Such pointless participation from people who have contempt for their surroundings.
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post #27 of 109
Quote:
Originally Posted by ConradJoe View Post

"The tax benefits of the deal make what was a good deal into a great deal," said Robert Willens, a New York accounting and tax expert. He estimated that through the acquisition, Google can expect to reap $700 million a year in tax deductions from future profits each year through 2019. Google also will be able to immediately reduce its taxes by $1 billion due to Motorola Mobility's U.S. net operating loss, and by a further $700 million due to its foreign operating loss, he said."

VERY interesting. It seems that most of the "anal-a-cysts" missed that little detail...

That's missing the point. There is value in this deal - and people who jumped into making their comments without understanding everything are starting to look foolish. Do you really think Google plunked down $13 B on a whim?

The value falls into 3 areas:
- Tax benefits
- Value of patents and IP
- Value of operating division.

The first two are largely fixed. They are worth whatever they're worth - and Google doesn't have much control over that. What everyone is missing is the third one - they're not just buying patents and tax losses, they're buying an entire operating division - which thousands of employees, factories, products, assets, and so on. The key to the value of this deal is in maximizing the value of the operating division itself. One magazine has got it right:
http://www.mediapost.com/publication...art_aid=157475

As I said when this came out, I can picture Google breaking the division up:
- Unrelated businesses (walkie talkies and baby monitors) could be sold immediately. No need to keep them around. Since breaking a business up often unlocks hidden value, they may not even have to take a hit to do this
- Related businesses which have a hidden downside (mobile phone handsets). Google is smart enough to realize that competing with their Android customers carries risks - especially since Motorola wasn't competing all that effectively to start. Unless Google has some magic dust to make it more competitive (and their lack of hardware experience argues against this), this is a loser for them. Sell it off with a license to use the IP. I could picture RIM being interested, but perhaps Sony or some other company.
- Related non-cellphone businesses. This is where the real value is. Set-top boxes could be a HUGE winner for them. Entry into your living room. Given Google's overriding business plan to intrude itself into every element of your life and gather every piece of personal data about you that they can, this opportunity can not be ignored. Furthermore, it could easily be expanded. For example, wireless home phones could be upgraded to Android to become smart home phones. Google would now have access to every call you make except at work. They'd have a screen in front of you 18 hours a day (and 24 on weekends).

There's value here. The key will be watching for a Google announcement soon on selling off some of the unrelated businesses. You can bet that Google has a strategy to monetize this acquisition for far more than the $12.9 B they paid.
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post #28 of 109
Quote:
Originally Posted by kresh View Post

It is only natural to be a little grumpy when teething.

So you're someone who hangs out with babies to feel like a big kid? Nice.
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post #29 of 109
Quote:
Originally Posted by stelligent View Post

If people are hung up on Schmidt stealing iPhone secrets when he was a board member, they should remember that Google bought Android before iPhone was released.

This, of course, ignores the fact that the pre-iPhone Android looks absolutely nothing like the current (post-iPhone) Android. Clearly, the iPhone changed Android's direction immensely.

Quote:
Originally Posted by stelligent View Post

Furthermore, the insistence of this version of history depicts Apple as stooges who can be easily fooled. In that case, they deserve whatever spell Google has ostensibly cast on them.

So the victim is always guilty? That's absurd. Apple trusted Schmidt to honor his non-disclosure agreement and to honor his fiduciary responsibility to Apple shareholders. How is it Apple's fault that Schmidt violated that trust? (although it would be interesting to see a shareholder suit against Schmidt).

Quote:
Originally Posted by stelligent View Post

But given the size of Cupertino's vault, what exactly is that spell?

What does that have to do with anything? Apple is successful. That doesn't mean that Google didn't steal from them.

"Your Honor, I did steal $1,000,000 from Bill Gates, but given the size of his vault, no harm done, right?"
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post #30 of 109
Quote:
Originally Posted by anthropic View Post

@AbsoluteDesignz this isn't a great site for comments, most come from rather uneducated fan boys. But then again most of the articles are also by ignorant fan boys, so just read it for the occasional actual news and don't let the comments get to you, it isn't worth the frustration.

Apple is to this site what Republicans are to FOX News.
Both provide an equal level of ignorant reporting and shameless bias.

Funny, I would have thought there were less objectionable ways of getting a bit of news than hanging out with "ignorant fanboys," I mean, you did register to be able to let everyone know you think the discussion is worthless. I'm guessing you also actually watch Fox news while smirking and reminding yourself that your better than all that?
They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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They spoke of the sayings and doings of their commander, the grand duke, and told stories of his kindness and irascibility.
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post #31 of 109
Hey, look! Over there! People I hate! Let's go over there and hang out and tell them about it! Ha ha I am certainly better than these people! I feel great! What do you mean, I'm fucking pathetic?
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post #32 of 109
Quote:
Originally Posted by scottkrk View Post

More Google doublespeak and they wonder why they have a credibility problem.

The MM acquisition will probably go down in history as the moment Google 'jumped the shark'.

I think your missing the point, for example, all androids work well with gmail, calendars and so on and if not for them. .Mac wouldn't be free from now on.

I've played with some of the newer phones and they offer quite a bit.

Peace. I'm pro apple and have had 2 and latest iPhones but 4g is really fast. Like using wifi on the road. My .02 cents.
post #33 of 109
Quote:
Originally Posted by Suddenly Newton View Post

I never believed that Google paid $12.5 billion just to get at Moto's patents. They wanted to be a phone maker. They want to be Apple.

Agree! I suspect that Steve Jobs can see it and isn't afraid of it.
post #34 of 109
Quote:
Originally Posted by addabox View Post

Such pointless participation from people who have contempt for their surroundings.

here I thought people were allowed to participate on whatever they wish on an open forum on an open web. Silly me.
post #35 of 109
he's mocking the fact that I initially wrote teething instead of seething.

Quote:
Originally Posted by addabox View Post

So you're someone who hangs out with babies to feel like a big kid? Nice.
post #36 of 109
Quote:
Originally Posted by ConradJoe View Post

They just "root, root, root for the home team"...

I don't quite understand being a fan of a corporation, but I see it as the same sort of thing as Red Sox fans hating the Yankees.

hmmmm. I never thought of it like that. I had a friend who broke his hand punching a wall when the Eagles came back to defeat the Giants in the 4th qtr. Upset is one thing, seething rage is irrational.
post #37 of 109
Quote:
Originally Posted by scottkrk View Post

More Google doublespeak and they wonder why they have a credibility problem.

Spot on.

You can tell the difference when Larry & Eric and Steve Jobs speak to the media, Steve tells the truth, Larry and Eric lie.

Tip to Larry & Eric: Never lie to the media, we can instinctively tell when you're lying and it will be reported as such.
post #38 of 109
Quote:
Originally Posted by jragosta View Post

This, of course, ignores the fact that the pre-iPhone Android looks absolutely nothing like the current (post-iPhone) Android. Clearly, the iPhone changed Android's direction immensely.

but it was still touch screen oriented if the hardware allowed for it. everyone keeps showing one Prototype. Also. duh Android changed directions after the iPhone. for a bunch of people who go on about how apple changed the game you sure get mad when others start playing too.

Quote:
So the victim is always guilty? That's absurd. Apple trusted Schmidt to honor his non-disclosure agreement and to honor his fiduciary responsibility to Apple shareholders. How is it Apple's fault that Schmidt violated that trust? (although it would be interesting to see a shareholder suit against Schmidt).

point is the fact that there are no lawsuits going on after all this time and no comments from anyone actually important at apple to support this claim suggests the whole scenario is a fanatical iPhanboy wish.

Quote:
What does that have to do with anything? Apple is successful. That doesn't mean that Google didn't steal from them.

"Your Honor, I did steal $1,000,000 from Bill Gates, but given the size of his vault, no harm done, right?"

you misunderstood him. not surprised.
post #39 of 109
The current patent system is far better than what we had before. Companies like Apple have always innovated but use to have companies like Microsoft spend far less on R&D and just wait to see what they did and copy it. It was the lack of patent protections that nearly destroyed them. Without the current system I don't think Apple would have invested so much in the technologies they have over the last 12 years. Google is the new Microsoft. They think innovation is copying someone else's work and making changes to it. Some trolls might say hey, Apple copied Xerox, but there is a difference in licensing or buying tech and just stealing it.
post #40 of 109
Quote:
Originally Posted by King of Beige View Post

Spot on.

You can tell the difference when Larry & Eric and Steve Jobs speak to the media, Steve tells the truth, Larry and Eric lie.

Tip to Larry & Eric: Never lie to the media, we can instinctively tell when you're lying and it will be reported as such.

wow. The Father. The Son. And Steve Jobs.
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