Google’s $12.5 billion Motorola buy is ‘an immense mistake’ according to patent expert

By on Sep 1, 2011 at 3:25 PM
Business September 1, 2011

Google’s proposed $12.5 billion acquisition of Motorola Mobility is an “immense mistake” that will do little to help Google defend Android against patent predators, one expert claims. David Martin, founder and CEO of patent consulting firm M-Cam, told Bloomberg in an interview that Motorola already sold off the bulk of its valuable patents. Motorola Mobility still holds more than 25,000 issued and pending patents, but Martin doubts they will be of much use to Google as Android and its partners come under fire from the likes of Apple and Microsoft. Read on for more.

“What they bought is crap, because at the end of the day Motorola sold off its good assets,” Martin told Bloomberg. “Back in the early years, Motorola sold off some MPEG patents to GE in a securitization deal. After that, they took a bunch of the Freescale patents and sold those off.” He continued, suggesting that the patents that might be useful to Google actually have “a huge dependency on Freescale, and Freescale actually has an Apple link.” Martin believes that Google carefully considered the present when working out the Motorola deal, but it wasn’t thorough enough in its considerations of the past. For that reason, the patent expert thinks Google “painted a target” on itself with this deal, and it is now more likely than ever to face an increased number of lawsuits as a result.

[Via Gizmodo]

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  • Bgr

    Freescale might gained some pattents from Moto, but they have IP full of hole when it come to phones aspects. I don’t see how FSL is linked with FSL, as most of the tech are comming from other companies; FSL is providing a lot of tablets maker with their i.MX while APPL is using their own chips…

  • Taylor Davis

    Ya…because I remember Google saying………nothing about why they are trying to buy Moto.  Everything is speculation until Google says it. This guy is worthless as a reporter if he doesn’t check his facts.

  • Anonymous

    This guy makes Google’s lawyers look stupid, which means he’s an idiot.

    It may be that Moto sold a lot of valuable patents off, but a portfolio of 25k patents is bound to contain some of those sold off patents ‘dependencies’, and/or other ‘more valuable’ patents’ dependencies in it.

    In the final analysis, sifting through single patents isn’t really the point of this acquisition – it is buying leverage overall. It’s like the guy at the poker table, with the most chips, that can take on everyone else’s “all in” and still eat them alive, all the while he’s bluffing…

    It’s all a stupid game, everyone knows it, and it’s just a matter of who’s ‘playing’ it “better” until it all turns to shit and the whole IT/software industry goes to hell in a handbasket….

  • http://twitter.com/fyrfyter33 fyrfyter33

    IF this guy is a “patent Expert” he is only unhappy because he didn’t get to it first with 12.5B in hand. Stupid.

  • Anonymous

    let me translate this article for you. Here is what they are saying.

    google: lets buy motorala for 12 kabigillion dollars.
    some guy:why?
    google: for shits and giggles,we dont even know what we’re buying…
    some guy: sounds legit, do it
    google: fuck yeah!

    and if you believe that,i can tell you whos gonna win the superbowl this year for $100!

    • Anonymous

      The Packers, like you were the only one who knew that.

      • Anonymous

        Pfft, superbowl goes through NOLA….. Damn it there goes my $100

  • Sam Davis

    oh no you din’t!

  • Brian

    I don’t get the logic behind BGR feeling the need to repost every analyst that has something negative to say about Google since it does nothing but feed the Apple bias attached to this blog. This guys opinion is just that, and essentially meaningless. But while we’re on the topic, my “analysts” tell me that David Martin would have given his left nut to broker that deal had Google approached his firm about it. 

    Sounds like sour grapes to me.

    • http://www.facebook.com/profile.php?id=25001493 Hank Godwin

      Because BGR loves to take Apple’s cock and slather it up and down over their faces.

  • Anonymous

    This may have been a bad idea if Google was only buying their patents. What about the relationships Motorola has with all the telcoms. And the set top box everyone has their house?

    Also, didn’t the CEO of Google just speak in front of the telcoms in the UK?

    I know Motorola has been setting this up for 3 years now.

  • Anonymous

    Regardless that’s probably pocket change to Google.

  • Anonymous

    David Martin, founder and CEO of patent consulting firm M-Cam

    specialize in patented CRAP
    can’t believe how they make a profit out of this

  • Pham T

    It’s an immense mistake because there is a hell of a lot of fat in upper management and in the software development staff.  A bunch of lazy nerds who couldn’t find their butts with a map.  I worked there & every day going to work killed me a little bit inside.  Talk about a bunch of lightweights.  Google staff will have very little patience for them.

    Every software developer there, even in little Libertyville, IL is paid like a king.  $125K is starting salary.  These people couldn’t get an entry level job at Google.

    That is the real issue.

    • Anonymous

      You’re right on. Google is going to lay everyone off from software and keep the hardware developers to save them money. Its only a matter of time.

  • Avicenna27

    If I’m correct motorolla is one of biggest rogged device manufacturers, where microsoft is still a king (win mobile and ce) … Google has an opportunity here.. If they manage to bring android to all those barcode scaning device for every warehouse in US alone… It will make them a good penny, I think… -avici

  • http://www.TheGuruReview.net TGR

    Good because Google=The Devil

  • Anonymous

    buy webos just for shits and giggles.

  • Anonymous

    Oh really i cant believe this!! me and my sister just got two i-pads for $42.77 each and a $50 amazon card for $9. the stores want to keep this a secret and they dont tell you. go here, http://bidsbug.com //

  • http://twitter.com/acapata Adrian Capata

    It sounds to me that Mr. Martin read, understood and rated as crap the 25,000 patents that Motorola has. He also read and understood that the “early years” patents that Motorola got rid off in the past was the real asset. Well, there is indeed something that smells like crap in this interview, but it’s definitely not the Motorola’s patents.

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