It’s always amusing to hear Google rant against patents and pretty much anyone who dares compete with them. In their latest salvo they explain that all of those pesky patents are bogus and are being used just to hurt them because they’re so good. The real irony comes out the end when a company who is under scrutiny for anticompetitive practices throughout the world is “encouraged” that the DOJ is looking into the use of patents as an anticompetitive practice. Of course, to fight this they intend to buy bogus patents themselves. And then the kicker “Unless we act, consumers could face rising costs for Android devices — and fewer choices for their next phone.” I mean, it would be ridiculous for a company who is infringing on other patents to have to pay for those and then pass the cost on to the buyer…just obscene…
8/03/2011 12:37:00 PM
I have worked in the tech sector for over two decades. Microsoft and Apple have always been at each other’s throats, so when they get into bed together you have to start wondering what’s going on. Here is what’s happening:
Android is on fire. More than 550,000 Android devices are activated every day, through a network of 39 manufacturers and 231 carriers. Android and other platforms are competing hard against each other, and that’s yielding cool new devices and amazing mobile apps for consumers.
But Android’s success has yielded something else: a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents.
They’re doing this by banding together to acquire Novell’s old patents (the “CPTN” group including Microsoft and Apple) and Nortel’s old patents (the “Rockstar” group including Microsoft and Apple), to make sure Google didn’t get them; seeking $15 licensing fees for every Android device; attempting to make it more expensive for phone manufacturers to license Android (which we provide free of charge) than Windows Mobile; and even suing Barnes & Noble, HTC, Motorola, and Samsung. Patents were meant to encourage innovation, but lately they are being used as a weapon to stop it.
A smartphone might involve as many as 250,000 (largely questionable) patent claims, and our competitors want to impose a “tax” for these dubious patents that makes Android devices more expensive for consumers. They want to make it harder for manufacturers to sell Android devices. Instead of competing by building new features or devices, they are fighting through litigation.
This anti-competitive strategy is also escalating the cost of patents way beyond what they’re really worth. Microsoft and Apple’s winning $4.5 billion for Nortel’s patent portfolio was nearly five times larger than the pre-auction estimate of $1 billion. Fortunately, the law frowns on the accumulation of dubious patents for anti-competitive means — which means these deals are likely to draw regulatory scrutiny, and this patent bubble will pop.
We’re not naive; technology is a tough and ever-changing industry and we work very hard to stay focused on our own business and make better products. But in this instance we thought it was important to speak out and make it clear that we’re determined to preserve Android as a competitive choice for consumers, by stopping those who are trying to strangle it.
We’re looking intensely at a number of ways to do that. We’re encouraged that the Department of Justice forced the group I mentioned earlier to license the former Novell patents on fair terms, and that it’s looking into whether Microsoft and Apple acquired the Nortel patents for anti-competitive means. We’re also looking at other ways to reduce the anti-competitive threats against Android by strengthening our own patent portfolio. Unless we act, consumers could face rising costs for Android devices — and fewer choices for their next phone.
Posted by David Drummond, Senior Vice President and Chief Legal Officer