
Google vs Microsoft
Google co-founder and CEO Larry Page revealed on Thursday that he believes Microsoft’s Android patent deals will ultimately backfire.
Page revealed his feelings in an earnings call on Thursday. Google reported third quarter earnings of $2.73 billion on Thursday, earnings of $8.33 a share. The search giant now has around 190 million Android devices activated and continues to push forward in market share. Business Insider reports that an analyst asked Page about his plans to protect the Android ecosystem. Page responded with the following:
“We see no signs the patent attacks are effective. We think other companies’ actions there will alienate customers….We announced our intention about Motorola, we’re serious about protecting the Android ecosystem.”
Page did not reference Microsoft in the call but he clearly feels that Microsoft’s patent deals will backfire. Business Insider points out that when Page refers to “customers” he means “partners” who licence and manufacturer devices. It’s possible that partners might be reluctant to market Windows Phone following Microsoft’s move to force them into royalty payments. Microsoft has successfully convinced nearly all the main Android manufacturers to pay them royalties on each Android device they sell. The exception is Motorola Mobility. Microsoft has previously inked patent protection deals with Quanta Computer, Wistron, General Dynamics Itronix,Velocity Micro, Onkyo, Acer, Viewsonic and Samsung. The agreements are all similar and provide cash royalties to Microsoft. Samsung’s deal also includes a Windows Phone marketing aspect that will see the companies work closer on Microsoft’s mobile platform. HTC also have a similar deal with Microsoft.
Microsoft is chasing Motorola for a similar Android patent deal. Google announced in August that it plans to acquire Motorola Mobility for $12.5 billion. Google CEO Larry Page noted at the time of the deal announcement that Microsoft and Apple are “banding together in anti-competitive patent attacks on Android.” Google hopes its move to purchase Motorola Mobility will better protect Android in the future. Microsoft kicked off its trial at the International Trade Commission (ITC) in late August by seeking to block imports of the Droid 2, Droid X, Cliq XT, Devour, Blackflip and Charm. Microsoft’s Motorola ITC case is ongoing and the administrative law judge, Theodore Essex, will release his initial findings in the case on November 4. The commission will complete its full investigation by March 5.