Motoogle and The Patent Arms Race

Today Google (GOOG) announced that it would acquire Motorola Mobility Inc (MMI). The move has two components for Google. It is a move into the consumer goods business where it will compete now directly with companies like Apple, Samsung, etc. . MMI is currently a shadow of its former glory. Nevertheless it gives Google a spot in the material world with lots of growth potential. It also shows that the future of entertainment will be in the mobile sector.

The other motivating factor, according to Larry Page on his blog, for paying 12.5 billion USD for a money loosing business seems to be protection from patent litigation. Marc Cuban just recently wrote an interesting article about this nonsensical Patent Arms Race that goes on due to the unquantifiable risks through the thousands of software and process patents. The only way companies can try to protect themselves from litigation, by patent trolls, is to build up their own arsenal of patents which they can use to counter sue.

 

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