Google retains majority of patents in Motorola sale
Google has sold Motorola Mobility for $2.91 billion to Chinese technology company Lenovo, but will retain the “vast majority” of its former subsidiary’s patents.
The deal, revealed on Wednesday, comes two years after the search company bought Motorola for $12.5 billion and acquired 17,000 patents.
Google will retain the “vast” majority of this portfolio and license it to Lenovo, a statement said, confirming that the Chinese company will acquire more than 2,000 patents in addition.
As part of the deal, Lenovo, which makes smartphones and PCs, will assume control of the Motorola Mobility brand and trademark portfolio, which includes Moto X and Moto G.
In a blog post, Google chief executive Larry Page said the deal is important for Android users “everywhere”.
“We acquired Motorola in 2012 to help supercharge the Android ecosystem by creating a stronger patent portfolio for Google and great smartphones for users.
“Motorola’s patents have helped create a level playing field, which is good news for all Android’s users and partners,” he said.
Page said Lenovo intends to keep Motorola’s “distinct brand identity”, just as it did when it acquired ThinkPad, a PC business, from IBM in 2005.
Yang Yuanqing, chairman and chief exeuctive of Lenovo, welcomed the deal.
“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. We will immediately have the opportunity to become a strong global player in the fast-growing mobile space.”
By retaining the majority of Motorola’s patents, said Page, Google will continue to use them to defend the “entire Android ecosystem”.
Motorola is locked in patent litigation with smartphone rivals Apple and Microsoft. In one dispute, in January this year, the US International Trade Commission (ITC) cleared Apple of infringing a patent belonging to Motorola. In December last year, the ITC upheld a banning order against some of Motorola’s products deemed to infringe a Microsoft patent.
The $2.91 billion price includes a $1.41 billion sum paid when the deal closes, comprised of $660 million in cash and $750 million in Lenovo ordinary shares. The remaining $1.5 billion will be paid in the form of a three-year promissory note.
The deal has yet to receive regulatory approval in the US and China.
