NNSquad - Network Neutrality Squad
[ NNSquad ] Analysts react to Google buying Motorola Mobility (MMI) + My Comments
Analysts react to Google buying Motorola Mobility (MMI) + My Comments
http://j.mp/ppPtrz (WSJ)
"Google had two choices: (1) acquire available patent portfolios
that generate zero cash flow at bubble prices; or (2) acquire a
company with a real business - albeit in an intensely
competitive space with less attractive returns - that has a
substantial patent portfolio."
- - -
My comments:
Especially given the fact that Motorola's share of the handset market
these days is something like 10%, it is indeed clear that the Motorola
patents are the dominant value proposition in this transaction, and
the bringing of those patents into the Android ecosystem can benefit
all Android players, especially in light of recent hostile patent
moves by Google competitors.
There is every reason to believe Google's assertion that Android
will stay open and fairly licensed -- any move by Google to the contrary
would likely invoke an immediate regulatory barrage.
Other points of view regarding this transaction do exist of course,
including this one suggesting that Google should asset-strip the patents
from Motorola Mobility and re-sell what's left:
http://j.mp/oWBs8F (HP)
Frankly, it's not immediately clear to me that the value of MMI sans
the patents would make a particularly attractive purchase in the
current marketplace, but I suppose anything is possible given the
complicated forces in play.
Most of all, this is yet another example of the consequences of market
distortions and costs being imposed by the dysfunctional patent
system, costs that are being borne by consumers at large on an
enormous scale.
--Lauren--
Lauren Weinstein (lauren@vortex.com): http://www.vortex.com/lauren
Co-Founder: People For Internet Responsibility: http://www.pfir.org
Founder:
- Network Neutrality Squad: http://www.nnsquad.org
- Global Coalition for Transparent Internet Performance: http://www.gctip.org
- PRIVACY Forum: http://www.vortex.com
Member: ACM Committee on Computers and Public Policy
Blog: http://lauren.vortex.com
Google+: http://vortex.com/g+lauren
Twitter: https://twitter.com/laurenweinstein
Tel: +1 (818) 225-2800 / Skype: vortex.com