Sunday, 28 August 2011

Google’s Motorola deal ‘by and large a defensive play’ in patent wars

Google Inc. (GOOG-Q526.866.821.31%) is writing the biggest cheque in company history to save its Android operating system from a slow, litigious death.

The Web search giant, which earlier this summer lost a high-stakes battle for Nortel’s 6,000-patent portfolio to rivals Apple, Microsoft and Research In Motion, will purchase handset manufacturer Motorola Mobility for $12.5-billion (U.S.). The acquisition target’s primary asset? An arsenal of 17,000 existing and 7,500 pending patents.

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