August 12, 2011

#Motorola to join #Apple, #Microsoft in #Android #patent racket

It's not surprising that after the $4.5 billion sale of Nortel's patents to a group dominated by Google's competitors, mobile investors such as Carl Icahn called upon Motorola (of which he owns over 11%) to do more to monetize it's patent holdings. Apparently Motorola's CEO Sanjay Jha agrees, this is what he had to say yesterday speaking to Oppenheimer's Technology and Communications conference:
I would bring up IP as a very important for differentiation (among Android vendors). We have a very large IP portfolio, and I think in the long term, as things settle down, you will see a meaningful difference in positions of many different Android players. Both, in terms of avoidance of royalties, as well as potentially being able to collect royalties. And that will make a big difference to people who have very strong IP positions.
It was also reported that Motorola is willing to make a Windows phone, an alternative to it's strong ties with with Android-run handsets.


Unlike HTC, Wistron, and others that have agreed to pay Microsoft up to $15 per Android (and Samsung's willingness to negotiate a deal), Motorola has thus far fought back vigorously, embroiling itself in bitter legal battles across the globe with both Microsoft and Apple over Android tablets and phones. But it seems Motorola is ready to join its competitors in seeking licences fees from other Android makers. After all if you can't make an Android phone or tablet without being brought to court by Microsoft, Oracle, Apple and others, why not join them in extorting royalty fees from other Android makers?

The news may be a disappointment to those hoping Motorola's patents could be used to fend off those suing Android makers for royalties, keeping the licensing costs closer to the zero dollars Google charges instead of the high-range estimated of $60 dollars in licensing fees, the costs of which will obviously passed on to the customer, making Android far less appealing. Now there's nothing Jha said that rules out some sort of licensing arrangement directly with Google, but it won't be cheap. Reminds me of that old nursery rhyme:

There Was An Old Woman
There was an old woman who swallowed a fly,
I don't know why she swallowed a fly,
Perhaps she'll die.
There was an old woman who swallowed a spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don't know why she swallowed the fly,
Perhaps she'll die.
....
There was an old woman who swallowed a cow,
I don't know how she swallowed a cow!
She swallowed the cow to catch the goat,
She swallowed the goat to catch the dog,
She swallowed the dog to catch the cat,
She swallowed the cat to catch the bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don't know why she swallowed the fly,
Perhaps she'll die.
There was an old woman who swallowed a horse,
She's dead—of course!

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