Feeds

Hello Moto: Lenovo grabs Motorola biz for $3bn. But Google's KEEPING the patents

The Chinese are coming and let a 1,000 lawsuits bloom

Internet Security Threat Report 2014

Lenovo has signed a deal to buy the loss-making Motorola Mobility smartphone manufacturer for $2.91bn, but a switched-on Google is keeping the patents owned by the firm it gobbled two years ago for $12.5bn.

"The acquisition of such an iconic brand, innovative product portfolio and incredibly talented global team will immediately make Lenovo a strong global competitor in smartphones," said Lenovo's CEO Yang Yuanqing. "We will immediately have the opportunity to become a strong global player in the fast-growing mobile space."

Beijing-headquartered Lenovo has made no secret of the fact that it would like to buy an established smartphone vendor in the US and European market. While Lenovo has been growing strongly in the Chinese domestic market, the company has little presence in the Western sector, which is largely sewn up between Apple and Samsung.

According to the latest data Lenovo is the fifth-largest smartphone seller in the world, with 4.5 per cent of the market. Another half a per cent increase would take it to the number three position, and another ten to second after overtaking Apple. That's not possible without getting serious presence in markets where people buy smartphones often and at a high price.

"As part of Lenovo, Motorola Mobility will have a rapid path to achieving our goal of reaching the next 100 million people with the mobile Internet," said Dennis Woodside, CEO of Motorola Mobility. "With the recent launches of Moto X and Moto G, we have tremendous momentum right now and Lenovo's hardware expertise and global reach will only help to accelerate this."

But while an established brand (who didn't have a RAZR ten years ago?) Motorola's mobile arm has been making losses for years, and the value of the company is now largely predicated on its patent portfolio. Motorola built the first commercial mobile phone back in 1972 and has amassed a large stash of intellectual property that Googorola is now using to try and get royalties from.

That legal jamboree looks set to continue. Under the terms of the deal Google keeps almost all of Motorola's intellectual property, although Lenovo will get a bundle of around 2,000 patents from the deal. It will also have the licensing rights to the remaining IP, and Google indicated that it was looking forward to adding a new Android adherent.

"Lenovo has the expertise and track record to scale Motorola Mobility into a major player within the Android ecosystem," said Larry Page. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem, for the benefit of smartphone users everywhere." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.