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Google will play nice with Motorola's patents, it insists

As Motorola demands $15 per iPhone for its IPR, its future owner tells standards bodies it will stick to 'Frand' guidelines

By CAROLINE GABRIEL

Published: 8 February, 2012

READ MORE: Google | Patents/IPR | Standards | Android

Amid all the conflict and uncertainty about wireless patent licensing, Google is keen to take the high ground ahead of its IPR-driven acquisition of Motorola Mobility. It is reported to be preparing a formal statement to standards organizations, insisting that it will adhere to international 'Frand' (fair reasonable and non-discriminatory) terms when it licenses its new patents.

Gaining the handset maker's substantial patents portfolio has been viewed as a mainly defensive tactic by Google, designed to strengthen its position against attacks by Apple, Microsoft and Oracle against the Android platform. But some partners and rivals have also raised fears of offensive moves by the search giant, not so much to boost revenues as to weaken rival mobile operating systems. This is a strategy which has been successfully adopted by Microsoft, which has signed up a large number of Android OEMs to pay reputedly hefty licensing fees for its Linux-related patents, thus denting the perception that Android is 'free'.

Google denies it will emulate this approach, and indeed, it would be in a more difficult position than Microsoft. It has been a vocal supporter of open source and free licensing and Android itself does not carry any licensing fees. Also, many of Motorola's patents are considered essential to international wireless standards, which makes them particularly sensitive to regulatory scrutiny. The European Commission recently launched a probe into whether Samsung is sticking to Frand rules for its essential IPR, and the EC is taking a very serious line on possible manipulation of patent ownership to distort competition. And Google, of course, will face the final EC decision on whether to approve its Motorola transaction later this month, so is no doubt keen to put itself in the best light.

By contrast, many of the Apple and Microsoft patents at the heart of the current IPR wars relate to software rather than fundamental wireless technology, and are not part of standards, so their owners' flexibility on licensing is greater. In the case of Motorola's essential IPR, Google knows it needs to tread carefully to avoid regulatory heat and also to reassure other Android partners, with fewer patents, that they will not be disadvantaged. According to CNet, the web giant's letter will be sent this week. "Since we announced our agreement to acquire Motorola Mobility last August, we've heard questions about whether Motorola Mobility's standard-essential patents will continue to be licensed on Frand terms once we've closed this transaction. The answer is simple: they will," a Google spokesperson told the online news service.

Google is apparently taking a more conciliatory line than Motorola itself. Court documents recently revealed that the smartphone maker is seeking 2.25% of Apple's iPhone sales in return for a licence to its standards-essential patents, which are at the heart of a series of lawsuits between the two firms. That would amount to about $15 per iPhone, based on a 16Gbytes 4S model. Apple argues that these terms would not comply with Frand guidelines, an argument it has also used against Samsung in some of the Korean company's patent suits.

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