Google's aquisition of Motorola Mobility is set to be approved by the U.S. Justice Department as early as next week, according to the Wall Street Journal and people "familiar with the matter." These sort of deals are never a given, as the various governments across the world always have the final say on matters of commerce. This deal would arm Google with very desirable hardware patents for mobile devices, which really is the reason for the entire investigation.
The Justice Department, as well as European Union legislators, are very concerned that Google allows other companies to use these patents under FRAND (fair, reasonable and nondiscriminatory) rules, which prohibit things like overcharging for licenses or blocking access to the patents outright. They should be -- look at all the legal mess smartphone manufacturers are in now, then muddy that picture further by changing license requirements for the things that make a cell phone work. We're not talking lock screens or rounded corners here, Motorola owns IP that all cell phones need and use to operate. Taking away licenses for core technology would benefit nobody, and Google has pledged not to do it.
Instead, Google has sent letters to to numerous standards organizations, stating that it would offer FRAND licensing for patents in Motorola's portfolio. They didn't promise not to seek damages or injunctions from potential violators, though. Google stated that it "reserves its right to seek any and all appropriate judicial remedies against counterparties that refuse to license its FRAND patents." Mutual destruction tactics at their finest.
We tend to take things like this from the Wall Street Journal at face value, and this is no exception. Their track record stands on it's own. If this is true, and the EU (whose own deadline for a decision is Feb. 13) gives a green light we should know more next week. We'll keep you posted.
Source (paid content): WSJ
- Filed under: