Larry Page’s $12.5 billion offer for Motorola Mobility will soon be put to the test as the U.S International Trade Commission is set to issue findings in the patent infringement cases Motorola has against Microsoft and Apple.
While Apple has claimed that several manufacturers have copied distinctive characteristics of its iPhone, Microsoft is arguing that it deserves royalties because of its hand in the development of the Android platform. Alex Spektor, a New York based analyst believes that a win for either Google or Motorola will give them the necessary intellectual assets to give their rivals stiff competition. In 2011, Apple dominated the smartphone market in the U.S. with 29% share, as compared to a much lower 8% for Motorola Mobility. Android outdid both Apple and Windows Phone, with 55% market share among operating systems.
Motorola is trying to get an import ban on several Apple products which include the iPad and Microsoft’s Xbox, after Apple failed to win its case against the company as the judge found only one of the seven patents violated. Patent litigations over based on mobile technology have been instituted in over four continents, the majority of which is concentrated in Germany. Google is also in the middle of a case where Oracle has accused the company of infringing its Java patents in developing Android. On the other side, Apple has filed a case against HTC for ripping off its iPhone design.
Motorola Mobility has a collection of over 17,000 patents. Google, in fact, admits the patents were the main reason behind acquiring the company. David Long, a patent lawyer in Washington thinks Google can be a stiff competitor in the long run in the mobile industry but to continue without the necessary intellectual property would have proved disastrous for the company. These patents are expected to bolster Android manufacturers in their fight against Apple and to prevent paying licensing fees to Microsoft.
According to Motorola Mobility, Microsoft infringed two patents covering patents related to video decoding and Wi-Fi technology. Microsoft, in turn, has blamed Motorola Mobility of violating its promise to authorize use of standard-essential patents on a “reasonable and non-discriminatory” basis. Apple is also facing lawsuits for infringing patents related to Wi-Fi and proximity sensor technology. Judges at the ITC have looked into these cases and final judgements are scheduled to be announced on August 23.
