Google-Motorola-Lenovo Deal

On January 4, 2011, Motorola Inc. was split into two publicly traded companies; Motorola
Solutions took on the company's enterprise-oriented business units, while the consumer divisions
were spun off to form Motorola Mobility
1. On August 15, 2011, Google announced that it would acquire Motorola Mobility for
$12.5 billion, pending regulatory approval.
a. The turning point came during a meeting on July 6. At the meeting, Motorola
CEO Sanjay Jha discussed the protection of the Android ecosystem with Google
senior vice president Nikesh Arora, and during that talk Jha told Arora that "it could
be problematic for Motorola Mobility to continue to exist as a stand-alone entity if it
sold a large portion of its patent portfolio".
2. In a post on the company's blog, Google CEO and co-founder Larry Page revealed that
Google's acquisition of Motorola Mobility was a strategic move to strengthen
Google's patent portfolio; at the time, the company had 17,000 patents, with 7,500 more
patents pending
3. In a post on the company's blog, Google CEO and co-founder Larry Page revealed that
Google's acquisition of Motorola Mobility was a strategic move to strengthen
Google's patent portfolio; at the time, the company had 17,000 patents, with 7,500 more
patents pending
4. On January 29, 2014, Google announced Lenovo plans to acquire the Motorola Mobility
smartphone business. The purchase price is approximately US$2.91 billion (subject to certain
adjustments), including US$1.41 billion paid at close: US$660 million in cash and US$750
million in Lenovo ordinary shares (subject to a share cap/floor).
5. Google will maintain ownership of the vast majority of the Motorola Mobility patent
portfolio, including current patent applications and invention disclosures. As part of its
ongoing relationship with Google, Lenovo will receive a license to this rich portfolio of
patents and other intellectual property. Additionally Lenovo will receive over 2,000 patent
assets, as well as the Motorola Mobility brand and trademark portfolio.
6. Google's mobile strategy is to get Android onto as many phones as possible, as almost all of
the company's revenue comes from advertising, including on mobile devices. This is very
different from Apple, BlackBerry, and Microsoft, which are all now integrated hardware-
software businesses.
7. Google wanted Motorola for the patents, not for the manufacturing. Apple's patent attack on
Android licensees was slowing down and worrying Google's customers. Motorola had a
massive patent library that can be used defensively.
8. Lenovo is one of the world's top five smartphone makers, but its market share in the U.S.,
one of the world's largest smartphone markets, is zero. Motorola has an 85-year history in the
U.S. and, at this point, pretty poor distribution elsewhere.
9. The Federal Trade Commission has issued a civil investigative demand, which is similar to a
subpoena, to the owner of the Android mobile operating system as it scrutinizes whether
Google is improperly blocking rivals’ access to patents for key smartphone technology.
10. At the same time, the department also approved the acquisition of Nortel Network Corp.
patents by a group led by Microsoft and Apple, as well as Apple’s acquisition of some
Novell Inc. patents.
11. Microsoft and Apple pledged they wouldn’t seek to block use of any standard-essential
patents. Google said it wouldn’t, either, as long as good faith negotiations were under way,
while maintaining the right to seek court orders if no agreement could be reached on
licensing.
12. Microsoft requested European Union antitrust regulators to probe Motorola Mobility on
claims that the United States phone manufacturer is blocking sales of Windows and Xbox
products. The products in question apply industry standards for which Motorola owns
patents, and the firm demands a $22.50 royalty for its 50 patents on the video/Wi-Fi standard,
called “H.264.”
13. The Chinese antitrust regulator, the Ministry of Commerce. The law requires that the
ministry must approve any acquisition for antitrust purposes if the combined company would
have about $63 million in Chinese sales and $1.5 billion in global sales.

Kodak vs. Apple
1. Eastman Kodak sued Apple and Research In Motion (RIM) in January 2010, filing two
lawsuits against Apple and a complaint with the U.S. International Trade Commission
against both Apple and RIM after the companies refused to pay royalties for use of Kodak's
patents for digital cameras.
2. After Kodak filed an additional suit in January 2012 against Apple and another against HTC
claiming infringement of four of its key patents, Apple filed a countersuit with the U.S.
Bankruptcy Court to block Kodak's efforts to use the disputed patents as collateral for loans.
3.