Impetus for deal is huge patent portfolio
The company is Motorola’s smartphone business, spun off from the rest of Motorola in January this year. The move will increase Google’s share of the smartphone and tablet market through its operating software – already big business and set to be a substantial growth area.
However, the real impetus for the move is likely to be Motorola Mobility’s impressive patent portfolio – protecting a wide range of technologies and innovations, many of which are likely to relate to wireless technology and other technologies utilised in smartphones and tablets, whether software or hardware.
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Hide AdMotorola Mobility owns more than 17,000 patents and has 7,500 pending. Patent portfolios have become a major battleground as tech companies scramble to position themselves to dominate the promising markets. Google’s move is that of a company seeking to protect itself in the face of escalating aggressive intellectual property strategies in the sector.
l Alison Hyde is technology fund manager at Cavendish Asset Management.