The internet giant has made a deft move by proposing
to buy Motorola Mobility after which it will be entitled for four times the
number of patents that Microsoft and Apple jointly acquired.
Google will spend $12.5 billion on this deal with
which it will acquire 17,000 patents. If the application filed by Motorola
works then Google will acquire around 25,000 patents.
The approval of the board of directors of both Google
and Motorola has been received. The two
companies may contribute Google TV in terms of technology.
Google was almost out of competition because of its
poor patent portfolio, this move had become very essential for Google in order
to build its patent portfolio.
"This acquisition will not change our commitment
to run Android as an open platform. Motorola will remain a licensee of Android
and Android will remain open. We will run Motorola as a separate business. Many
hardware partners have contributed to Android's success and we look forward to
continuing to work with all of them to deliver outstanding user
experiences." said Google's chief executive officer Larry Page, in his
blog post.
The market is now set to see innovative products and
the patent war may end up in a win-win situation for every one especially for
consumers.
Google has received many common complaints which say
that it is efficient with product development but not with customer service.
This acquisition is likely to solve this problem.
The major Motorola Patents included are key smartphone
technologies including wireless email, proximity sensing, software application
management, location-based services and multi-device synchronization and
wireless communication technologies such as WCDMA (3G, GPRS, WiFi and antenna
design.
But as they say there are two faces of a coin.
Gartner research director Michael Gartenberg says, "The repercussions are
huge, it shows that it's so hard to look at this market beyond the short term
because we've seen so many twists and changes.”
He further adds, “Google has the resources to shake
up everyone else's business model if they so choose. Google can now undercut
everyone if they choose in terms of premium handset pricing, go to the carriers
with a different set of terms."
