Microsoft, Google Cease Fire In Global Patent Deal

Microsoft has been pursuing a more collaborative approach under CEO Satya Nadella, engaging longtime rivals like Salesforce, VMware and Apple. There hasn’t been much love between Microsoft and Google, but an announcement on Wednesday points towards an easing of those tensions.

Google Sells A Piece Of Motorola

Google plans to unload the TV set-top box business of its Motorola Mobility subsidiary to Arris Group, a broadband device vendor, for $2.35 billion.

Arris will also receive patents belonging to the business, called Motorola Home, and will get a perpetual license to other Motorola Mobility patents as part of the deal. The companies announced their agreement late on Wednesday and expect the sale to close by the second quarter of next year.

Google acquired Motorola Mobility in a closely examined deal that concluded in May. It bought the business primarily for its mobile assets and proceeded to seek a buyer for its Motorola Home division, which primarily makes set-top boxes for bringing video and other broadband services to TVs. Motorola Home had revenue of $3.4 billion in the year ending Sept. 30.

Despite the growth of Internet-based video services, Arris sees growth ahead in the set-top box business. The combined companies will have more than 500 customers in 70 countries, according to a press release.

“Every operator that we’ve talked to tells me that in-home devices are not going to go away,” Arris Chairman and CEO Bob Stanzione said on a conference call to discuss the deal. He sees a new generation of the boxes that will carry both traditional and IP (Internet Protocol) video services going into homes soon.

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Motorola To Close More Locations

Motorola Mobility will shut down most operations in South Korea in 2013 as part of an ongoing restructuring under Google ownership.

The decision is estimated to displace about 500 jobs in South Korea and follows a decision made a month ago to close down most international Motorola websites and to lay off about 4,000 workers.

Motorola Mobility said in a statement that it began telling staff in South Korea on Monday about “plans to close most of our operations in Korea, including our research and development and consumer mobile device marketing organization.”

The statement said the changes “reflect our plans to consolidate our global R&D efforts to foster collaboration, and to focus more attention on markets where we are best positioned to compete effectively.”

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Intel Wants To Deliver Cheap Smartphones

Intel has revealed some additional information on the 2012 mobile strategy to its partners and it even shared some pricing guidelines for mobile products.

According to a slide entitled Mobile Landscape in 2012, Intel wants to sell mobile phones powered by its CPUs for as little as $199 to $299. This is where Intel sees a market opportunity for its phones and the prices are surprisingly low.

It also places netbooks in the same price range $199 to $299 while Intel based tablets should float between $399 and $499. Naturally more expensive options are always a reality. Tablets can go up to 12.1 inches and the starting price for these bigger machines should be $299, and in the high end the sky is the limit.

Hybrid notebooks should stay at less than $699 and this is a category where you can twist the display, slide the keyboard or even take the keyboard off from the netbook, or tablet. Think Asus’ Eee Pad Slider, Transformer, this will give you an idea of what to expect, but with x86 support. Phones, netbooks, hybrids and tablets are all based on Atom architecture.

Intel plans to sell laptops starting at $3xx and up. Probably slightly more than $300, but less than $400 is what they have in mind. Top notch notebooks based on Core i7 chips will start at less than $799 and Ultrabooks with 11-inch or larger screens might be coming down to $599 to $699. Of course, high end models will end up a lot pricier.

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Xoom Tablets To Get Android 4.0

Motorola Mobility has confirmed the Android Ice Cream Sandwich upgrade to the Xoom Wi-Fi tablet will arrive over-the-air via Wi-Fi to U.S.-based devices on Wednesday.

In addition to faster browser rendering, the free update lets users type via voice and includes a Data Manager tool for monitoring and controlling network data usage, something seen as especially helpful to reviewers of the Samsung Galaxy Nexus smartphone running Ice Cream Sandwich, also called Android 4.0.

Motorola called it the first tablet of its kind to receive the upgrade to Ice Cream Sandwich, though the update for the Asus Transformer Prime tablet was distributed a week ago, as several bloggers, including Slashgear noticed.

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Motorola, Lenovo To Offer Intel-Smartphones

Intel announced multi-year deals with Motorola Mobility and Lenovo to create smartphones and tablets, and said the first Google Android phones using the top chipmaker’s processors would go on sale this year.

Speaking at the Consumer Electronics Show in Las Vegas on Tuesday, Intel Chief Executive Paul Otellini said Lenovo would launch a smartphone for the Chinese market using Intel’s newest chip in the second quarter of the year, while Motorola will release its phone in the second half.

The agreements with the U.S. and Chinese consumer electronics makers help shore up Intel’s boldest foray into the mobile arena. The company is hoping its new “Medfield” chip conserves enough power to compete with rival smartphones using ARM Holdings’ more energy-efficient architecture.

The world’s largest chip maker is also making a concerted push for the likes of Hewlett Packard to go big on super-slim, Apple Macbook Air-like laptops called Ultrabooks, which it hopes will preserve its dominance of the PC market as tablets like the iPad draw consumers away.

“It is a multi-year, multi-product strategy that will bring both phones and tablets to the (U.S.) marketplace starting with a phone in the second half of 2012,” Dave Whalen, a vice president in the Intel Architecture Group, said of the agreement with Motorola.

“You’re going to see us working very closely with them on technologies,” Whalen told Reuters in an interview.

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Is Motorola Mobility A Patent Pimp Too?

Motorola Mobility has received $228m in patent licensing deals.

Motorola Mobility, which is in the process of being bought by Google, confirmed in its accounts that in June 2010 the firm signed a licensing deal with an unnamed company for which Motorola would receive $175m and future royalties. Those future royalties stacked up to an impressive $228m in just the nine months leading up to 2 October 2010.

Google’s attempt to buy Motorola’s handset division was generally regarded as a move to acquire the firm’s considerable patent portfolio. Motorola’s handset division is widely credited with being one of the major contributors to the development of mobile phones and while the firm’s smartphones might not be as fashionable as devices from Apple, HTC or Samsung, it clearly has patents that can bring home the bacon.

Although Motorola did not disclose the name of the other party in its licensing deal, there is a better than average chance that it is Research in Motion. The two firms came to a “long-term, intellectual property cross-licensing arrangement involving the parties receiving cross-licenses of various patent rights” in June 2010.

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Will The FTC Block The Google?

The FTC has asked Google for more information about its $12.5 billion acquisition of Motorola Mobility. Google is buying the outfit as a defence against Apple and Microsoft patent law suits, however in a filing with the U.S. Securities and Exchange Commission, Motorola said it received a request for “additional information and documentary material” from the U.S. Department of Justice’s antitrust division.

According to Reuters, Motorola said Google also received a similar request and repeated its expectation the deal would close by the end of 2011 or early 2012. Writing in his bog, Google Senior Vice President Dennis Woodside said the DOJ’s “second request” was “pretty routine” and there was nothing to see here, move on please. Google usually gets a note from the FTC even if it buys lunch for a client. A similar one appeared when it bought ITA Software.

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Google Buys Patents From IBM

Google has purchased more than 1,000 patents from IBM, as part of its strategy to strengthen its patent portfolio to counter litigation, according to records of the United States Patent and Trademark Office.

Jim Prosser, a Google spokesman, confirmed the transfer, reported by a blog SEO by the Sea, but did not provide details such as the the purchase price Google paid for the patents.

Google also acquired another over 1,000 patents from IBM in July. It transferred recently some patents to smartphone maker HTC to help it pursue patent litigation against Apple.

Google has been interested in buying patents for some time now, which led to its failed bid in June for the patents of Nortel Networks, and its proposed acquisition of Motorola Mobility for about US$12.5 billion.

The tech world has recently seen an explosion in patent litigation, often involving low-quality software patents, which threatens to stifle innovation, Kent Walker, Google’s senior vice president and general counsel, said in a blog post in April.

“But as things stand today, one of a company’s best defenses against this kind of litigation is (ironically) to have a formidable patent portfolio, as this helps maintain your freedom to develop new products and services,” he added.

The acquisition of Motorola Mobility’s patents was a key consideration for Google to start talking to the company in early July. But Motorola told Google that it could be a problem for Motorola Mobility to continue as a stand-alone entity if it sold a large portion of its patent portfolio, according to a filing by Motorola to the U.S. Securities and Exchange Commission on Tuesday.

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Motorola Xoom Sales Better Than Expected

Motorola Mobility shipped 250,000 Xoom tablets in the first month the device was released, the company said on Thursday as part of their first-quarter earnings report.

The tablet, the first to run Google’s Android Honeycomb OS, went on sale in February. Within weeks, several analysts said early sales numbers were disappointing. By early April, one analyst estimated that Motorola had sold a total of 100,000 of the tablets.

Shipping a quarter of a million in a month isn’t quite the same as  Apple first iPad shipment, but the number appears to be better than most had expected.

For the full year, Motorola is expecting to sell 1.5 million to 2 million tablets, it said. It plans to introduce new tablets, including some with new form factors, this year, executives said during a conference call to discuss first-quarter results.

During the quarter, Motorola Mobility also began selling the Atrix, a phone that can be docked into a device with a full keyboard and monitor. Some analysts have also said sales of the Atrix are unimpressive.

The company did not release Atrix sales numbers separately. It said it shipped 9.3 million mobile devices, including 4.1 million smartphones, during the quarter.

Motorola expects to record an operating profit for the full year, but faces challenges ahead. It has delayed the launch of the Bionic, its first LTE device, and on Thursday said the delay is related to a software problem. That same problem is also pushing back the launch of LTE on the Xoom, which was initially expected for the first half. Both the LTE Xoom and the Bionic are now expected to come in “summer,” which in North America could be as late as September.

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