Google Acquires More Patents from IBM in Shopping Spree to Defend Android

  • Google has purchased another 1,023 patents from IBM as part of what Digital Trends describes as Google’s Android defense strategy against smartphone lawsuits from Apple and other companies.
  • The article indicates that the transfers were recorded by the U.S. Patent and Trademark Office last week, and reminds us that Google also acquired 1,030 IBM patents in July and picked up 17,000 additional patents in its recent acquisition of Motorola.
  • “Indicative of how the patents are being put to use,” reports Digital Trends, “Google recently sold a batch of newly acquired patents to HTC — including some formerly owned by Motorola — in order to allow HTC to sue Apple.”
  • “Google is building an arsenal of patents that the company has said is largely designed to counter a ‘hostile, organized campaign’ by companies including Apple Inc. and Microsoft Corp. against the Android operating system for mobile devices,” adds Bloomberg.

Tech Trends: Will the Patent War go Nuclear?

  • Tech companies are spending from $400K -$750K per patent. This is money companies are not spending on innovation or jobs.
  • Writing for InfoWorld, Bill Snyder makes the analogy to problems with the high costs of healthcare due to money spent defending against medical malpractice. He points out that while the “patent arms race goes nuclear,” not only will new tech jobs not be created, but existing jobs will be lost.
  • “Think what Google could do with $6 billion, writes Snyder. “Think of the research that would spawn new products, advance innovation, and create who knows how many thousands of good jobs up and down the technology food chain. Instead, that money is going to buy patents.”
  • Snyder indicates more patent buyouts are on the way. “Everyone knows what an arms race is. One side builds a new weapon, and the other side has to match it. Then the first side builds an even more powerful weapon, prompting the other guy to build more and so on. Remember how well that worked out for the Soviet Union?”