Google's Android IP headache may become a migraine
Summary: How dominant can Google's Android operating system become? Dominant enough for almost an entire industry of rivals to play a $4.5 billion game of patent keep away. Now it's time to rev up the lawsuits.
How dominant can Google's Android operating system become? Dominant enough for almost an entire industry of rivals to play a $4.5 billion game of patent keep away. Now it's time to rev up the lawsuits.
Last week, a consortium that included Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony won 6,000 Nortel patents for a cool $4.5 billion. Google had started the bidding with a $900 million stalking horse bid, reportedly got cute with Pi-related offers and lost its best chance to defend Android in the courtroom. Nortel's patents are one swell swan song for the bankrupt telecom equipment provider that has already been split up and sold in chunks.
Few parties involved in the consortium are talking, but Android must be a real pain for Apple, Microsoft and RIM to all team up against Google. RIM chipped in $770 million and Ericsson added another $340 million to the winning patent bid. The remaining splits are unknown, but Robert X Cringely reported that Apple put up $2 billion for Long Term Evolution (LTE) 4G patents with Microsoft and Sony added $1 billion. Microsoft is staying mum about its role.
The odd thing here is that Google initially said it was bidding on Nortel's patents to defend against lawsuits. Apparently, Google thinks it can get better returns on $4.5 billion by paying lawyers to defend Android.
So what's next? Lawsuits. Lots of them.
As previously noted, Citigroup analyst Walter Pritchard reckons that Google has little intellectual property to defend Android. He said:
Google appears to have very little IP to defend itself with. The general protocol when a defendant is faced with an IP infringement accusation is to “retaliate” with infringement counterclaims and ultimately force some sort of cross licensing or other détente instead of entering a prolonged and costly legal proceeding that may result in a costly or disruptive settlement. Without significant IP of its own, Google is not likely to be able to deploy this defense…
Cringely said that it's likely that Google will file lawsuits over the $4.5 billion winning bid with an antitrust and restraint of trade complaint. The search giant will juggle any upcoming suit with its ongoing battle with Oracle over Android.
But the real battle royale will come as the consortium moves to sue Google over Android. If Oracle vs. Google is notable just wait until Apple sues over Android. For its part, Microsoft is already busy collecting royalties over Android. Florian Mueller recaps Microsoft's licensing deals with Android device makers.
Google wasn't going to cure all of its Android IP problems with Nortel's patents, but it would have acquired one nice line of defense. Losing Nortel's patents---even at the ridiculous $4.5 billion price tag---may come back to haunt Google and Android.
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Talkback
RE: Google's Android IP headache may become a migraine
RE: Google's Android IP headache may become a migraine
People like extortionists...
...even less than they like thieves.
RE: Google's Android IP headache may become a migraine
>>It seems to me that the monopolistic practices the Sherman Antitrust act prohibits would be a lot harder to accomplish if governments didn't charter corporations, or if patents (also granted by governments) were a lot harder to get.
Then Google shouldn't have been allowed to buy YouTube! because both were competing on the same. Here Google also clearly crushed competition to its Google Video.
Rama.NET: I don't see your point
But it all started
RE: Google's Android IP headache may become a migraine
the DOJ should start an antitrust and restraint of trade lawsuit against the greedy cartel led by Apple and M$! Android should be set free by the people!
View of the wonder of socialism.
Remove all profit and incentive to develop new and exciting software and simply give it away. Allow the market to stagnate and any growth be tied to intrusive advertising.
Sounds like paradise to me.
Because, of course, using someone else's IP without
Bruzier: One man's "socialism"...
RE: Google's Android IP headache may become a migraine
You keep referring to the people. You 're not asking us to believe you have a friend or friends?
OK everyone! I just filed for a patent on the steering wheel.
Pay up!
;-)
RE: Google's Android IP headache may become a migraine
educate me on patents
Here is what I don't get. Apple bought the camera components from some supplier. Doesn't some of the money per component go back to Kodak, as royalties for its intellectual property? If not, shouldn't Kodak be suing the supplier and not Apple?
Same thing here. If HTC makes an Android based phone using LTE tech, that now belongs to the consortium, then the hardware maker will pay for the components, won't they? Then we should also assume that part of that price will go back to the companies in the consortium, in the form of royalties.
Can someone explain what is the problem? Any lawyers out there?
RE: Google's Android IP headache may become a migraine
In the big leagues, the first defense against a suit is to file a brief with the court arguing that the plaintiff does not have standing, e.g., the plaintiff has chosen the wrong jurisdiction, the plaintiff does not own the property where the trespass allegedly occurred, the plaintiff was not damaged, the defendant was acting under a license, and so on.
As to sub-licensing, some of this may be statutory and some may be contractual, the latter meaning broader licenses or more rights are exchanged for more money.
I think the conclusion to be drawn is that in this case Apple did not receive a sub-license from the camera manufacturers, or the infringement occurred not via the use of a camera, but via the interface between the camera and the processor.
Kodak also prevailed against Sun in a patent case it brought back in the late 90s. Sun was not making devices with cameras and the complaint was regarding java. Now, it might have been over a different set of patents.
Not a lawyer, etc.
RE: Google's Android IP headache may become a migraine
You have your widget, the lawyers have no one to sue.
RE: Google's Android IP headache may become a migraine
Honestly though, I think Ice Cream Sandwich will have measures that eliminat many of the law suits. In the long run they might even create some hybrid system that moves away from their JVM and more to the standard to shut Oracle up. Either way, I bet they do get some patents of their own.
RE: Google's Android IP headache may become a migraine
I agree here. I was watching a short video showing some of the features of ICS and all I have to say is wow. I think Google will simply change their code (just like Microsoft did) so that it complies and there you have it.
Speaking of the 4.5 billion dollar price tag, well what is Oracle asking for in ways of a fine against Google? 2.5 billion I think, well that would save them 2 billion dollars right there :)
RE: Google's Android IP headache may become a migraine
RE: Google's Android IP headache may become a migraine
Android rise was due to the vaccum in smart phone space from 2007 to 2011 partly thanks to Microsoft.
WP7 is reaching maturity and nokia and many OEMs joing WP7, its a matter of time that android will be relegated to fourth of fifth place.
Even if goole is going to loose only 10 percent of its 40 or more lawsuits, it may not survive, no matter they release Ice cream or cheese cake or curry.