WSJ: Google may settle mobile FRAND patent antitrust claim
The Wall Street Journal on Friday reported that Google is thinking about settling a potential antitrust claim by the U.S. Federal Trade Commission regarding the use of Motorola patents, which the company allegedly used as weapons against rival mobile phone makers likeApple.
According to two people familiar with the situation, Google is contemplating a settlement of an FTC investigation that is probing whether the company purposely refused to license industry essential patents to competing mobile device makers, and in some cases leveraged the IP to seek injunctions.
The FTC in June began investigating Google's use of patents it acquired after purchasing Motorola in May.
Following the buyout, the internet search giant continued to press forward with a number of existing lawsuits, including possibly anticompetitive litigation regarding standards-essential FRAND patents.
One of the sources noted that the FTC had threatened to bring a case against Google over alleged unfair business practices involving the use of Motorola's IP against rival mobile device makers like Apple and Microsoft. During discussions, the agency's lawyers cited a number of cases in which the Google subsidiary possibly violated FRAND terms.
Google reportedly argued that competitors currently holding FRAND patents also violated their duties in bringing suit against Motorola and others, including filings from Apple. The company went on to say that if a settlement was reached, it would be left defenseless as rivals push forward with their own FRAND claims.
In a surprise move earlier in October, Motorola withdrew an ITC complaint against Apple without explanation. At the time, speculation suggested the move was either a goodwill gesture or a determination by Google that the suit was unlikely to succeed.
According to two people familiar with the situation, Google is contemplating a settlement of an FTC investigation that is probing whether the company purposely refused to license industry essential patents to competing mobile device makers, and in some cases leveraged the IP to seek injunctions.
The FTC in June began investigating Google's use of patents it acquired after purchasing Motorola in May.
Following the buyout, the internet search giant continued to press forward with a number of existing lawsuits, including possibly anticompetitive litigation regarding standards-essential FRAND patents.
One of the sources noted that the FTC had threatened to bring a case against Google over alleged unfair business practices involving the use of Motorola's IP against rival mobile device makers like Apple and Microsoft. During discussions, the agency's lawyers cited a number of cases in which the Google subsidiary possibly violated FRAND terms.
Google reportedly argued that competitors currently holding FRAND patents also violated their duties in bringing suit against Motorola and others, including filings from Apple. The company went on to say that if a settlement was reached, it would be left defenseless as rivals push forward with their own FRAND claims.
In a surprise move earlier in October, Motorola withdrew an ITC complaint against Apple without explanation. At the time, speculation suggested the move was either a goodwill gesture or a determination by Google that the suit was unlikely to succeed.
Comments
Is the Moto acquisition beginning to unravel?
The whole point to FRAND is that it is meant to (1) prevent technologies employed by a particular industry such as telecommunications from being fragmented and in doing so permit standards to be developed and (2) reward those companies whose IP becomes part of the standard. Google would have fully realized this and finally, that realisation has hit home.
Oooh, boy.
If Google settles then what will all the haters have to say? They seem to think it's OK to abuse SEP's or ask for royalty rates based on the final selling price of a device simply because big, bad Microsoft or evil Apple are on the receiving end.
How would they be able to spin this so they could keep believing MS and Apple are the bad guys? Maybe imply that they paid off the judges? Bribed FTC officials? Spent millions on lobbying? Paid for college educations for their kids?
Did the management of Google due their due diligence? Everybody and their mutt in this board knows about FRAND patents.
Perhaps Google should look to its core business and reinvent itself there... http://au.finance.yahoo.com/news/why-google-could-disappear-5-172220950.html (Not an endorsement, for edification...)
Companies usually settle for one of two reasons. One is that they don't believe they will win.Two is that they think that even if they do win, the costs will exceed the gains.
In this case, they are being told by the Feds, and the EU that they will be taken to court over anti trust and other violations over their practices. Google may be trying to prevent that by giving up several lawsuits that they are being told are in violation.
But if you want to apin it another way, that's ok.
Quote:
Originally Posted by jungmark
12.5 billion down the drain.
MotoMo just announced a half-billion dollar loss, so added up it's been a $13 billion dollar blunder...if not more.
These kinds of losses and poor acquisitions come right out of the cookie jar. Think about it, how much did Google have to earn in order to have this much flushed away? Normally it would be around 1:20 ratio.
Quote:
Originally Posted by IQatEdo
Perhaps Google should look to its core business and reinvent itself there... http://au.finance.yahoo.com/news/why-google-could-disappear-5-172220950.html (Not an endorsement, for edification...)
Google's preoccupation with the smartphone business will be their undoing in the end. Besides costing them billions of real dollars, it has distracted upper management from the company's core business. If those two things were not enough, the whole smartphone focus has alienated the support of two major bases of positive synthesis -- Microsoft and Apple.
The loss of Apple's goodwill has especially bad long-term consequences. Apple about two steps away from isolating Google from Apple's customers, and that never needed to have happened. When I can ask Siri for information and I get the answer to most of my questions without Google even being part of the process, then Google loses about 45% to 70% of the input needed to fuel its search engine's loop.
While Bing by Microsoft is considered a lightweight by Google's standards, it really can do a reasonably comparable search. Compare the two search engines side-by-side here: http://www.bingiton.com
Five years out and Google could be a marginalized company unless they get back to their knitting quickly and quit playing hardball with companies whose friendship they need.
Quote:
Originally Posted by Macky the Macky
Google's preoccupation with the smartphone business will be their undoing in the end. Besides costing them billions of real dollars, it has distracted upper management from the company's core business. If those two things were not enough, the whole smartphone focus has alienated the support of two major bases of positive synthesis -- Microsoft and Apple.
The loss of Apple's goodwill has especially bad long-term consequences. Apple about two steps away from isolating Google from Apple's customers, and that never needed to have happened. When I can ask Siri for information and I get the answer to most of my questions without Google even being part of the process, then Google loses about 45% to 70% of the input needed to fuel its search engine's loop.
While Bing by Microsoft is considered a lightweight by Google's standards, it really can do a reasonably comparable search. Compare the two search engines side-by-side here: http://www.bingiton.com
Five years out and Google could be a marginalized company unless they get back to their knitting quickly and quit playing hardball with companies whose friendship they need.
I just wonder about the role of Eric Schmidt in all of this. I think that Larry Page would not have crossed Apple (Steve Jobs) without the influence of the company's then CEO. What good is Schmidt to Google now? Might be time to march.
Should the semantic web gain traction (http://en.wikipedia.org/wiki/Semantic_Web), Google will be further diminished. Machines (via Siri) talking to machines (via Wolfram Alpha) - interesting times!
Quote:
Originally Posted by Hoss the Dog
How much could this possibly cost Google/Moto?
Is the Moto acquisition beginning to unravel?
"Beginning to".....?
An insanely insightful post.
Quote:
Originally Posted by IQatEdo
I just wonder about the role of Eric Schmidt in all of this. I think that Larry Page would not have crossed Apple (Steve Jobs) without the influence of the company's then CEO. What good is Schmidt to Google now? Might be time to march.
Should the semantic web gain traction (http://en.wikipedia.org/wiki/Semantic_Web), Google will be further diminished. Machines (via Siri) talking to machines (via Wolfram Alpha) - interesting times!
I don't know. I just think it's the opposite. Despite all the appearances, I think it's Page who want to rule the world.
Quote:
Originally Posted by matrix07
I don't know. I just think it's the opposite. Despite all the appearances, I think it's Page who want to rule the world.
Well, Schmidt seems to have no delusions of grandeur, that's for sure...
In the process they alienated key partners and got scorched either directly or indrectly. It seems sad that they were forced to buy a manufacturer to protect themselves from parent attacks, except this particular manufacturer doesnt have the strongest patent portfolio. So all they could field seems to be mostly FRAND patents, which they obviously knew wouldn't fly for very long.
And finally, for me the saddest part. Whilst they were very innovative in seach they seemed to have borrowed stuff to make a mobile platform. They originally borrowed Blackberry O/S, switched to using iOS features, and even some WebOS bits I think. And then they stuck extra bits on to try and differentiate it. They even borrowed a Java-like VM LOL. Whereas, love it or hate it (and I'm not keen myself) at least Microsoft tried to bring an original mobile OS to market. Yes it uses touchscreen, like everybody else, and not some amazing holographic voice and expression activated system, but its a little different, like WebOS was. So good for Microsoft.
I think Google needs to reasses its priorities. Look at what is really good at and get back to basics. Everyone would probably admire them for the ability to change their act once again.
Quote:
Originally Posted by matrix07
I don't know. I just think it's the opposite. Despite all the appearances, I think it's Page who want to rule the world.
Quote:
Originally Posted by GTR
Well, Schmidt seems to have no delusions of grandeur, that's for sure...
Maybe they do, maybe not. Reality is that sometimes, those with big ambitions achieve big things.
Quote:
Originally Posted by IQatEdo
I just wonder about the role of Eric Schmidt in all of this. I think that Larry Page would not have crossed Apple (Steve Jobs) without the influence of the company's then CEO. What good is Schmidt to Google now? Might be time to march.
Should the semantic web gain traction (http://en.wikipedia.org/wiki/Semantic_Web), Google will be further diminished. Machines (via Siri) talking to machines (via Wolfram Alpha) - interesting times!
Machines do not talk to machines via Siri. People talk to machines (like Wolfram Alpha) via Siri. You would have been closer to the mark by saying that Siri the machine talks to Wolfram alpha the machine. But Siri is most certainly not a conduit between two machines.
Quote:
Originally Posted by Harbinger
Machines do not talk to machines via Siri. People talk to machines (like Wolfram Alpha) via Siri. You would have been closer to the mark by saying that Siri the machine talks to Wolfram alpha the machine. But Siri is most certainly not a conduit between two machines.
What I meant was that we (can) get into the conversation via Siri, which agrees with your statement. Ambiguous I guess, my assumption was that we created the query being transacted. The context was that our machine representative doesn't care about advertising presented along with the results of our query.
All the best.