Google to buy Motorola Mobility – it may be a patent play

Google – the company behind Android – is buying Motorola Mobility for US$12.5 billion.

Motorola, a U.S.-based telecommunications infrastructure equipment maker formed in the 1930s, spun off its Mobility handset subsidiary in January 2011. Perhaps the Google deal was in the cards all along. In any case, here are my first thoughts upon hearing about the pending acquisition this morning.

1. The Android platform will become more like the iPhone platform.

Apple’s iOS runs only on Apple’s hardware, and the company ties its hardware and software releases together. The benefit to consumers and developers is, of course, that the hardware and software work together as an integrated and seamless entity. The downside is that if you want an iOS-based device, you have few choices in form factor, features and functionality. It’s Apple’s way or the highway.

Android goes the other way: Google creates the operating system, but it’s up to the handset/tablet makers to adapt that software to fit their hardware. Despite everyone’s best efforts, the experience is not as seamless as you find with iOS; it’s always a compromise.

In the past, Google has designed and sold a few handsets, but they’ve been little more than glorified reference platforms. With the Motorola Mobility deal, however, Google can make sure that future devices from that company are 100% in tune with Android features (and vice-verse). This should result in a better experience on those devices, giving Apple more of a run for its money.

Note that with the Motorola Xoom tablet, we already saw Google willing to bend the rules – the version of Android released for the Xoom was not as open as previous versions of Android.

2. The other Android handset/tablet makers are not going to be pleased.

Firms like HTC, LG and Samsung have invested hugely in Android. They are not going to see one of their top competitors being brought inside the tent.

In the press release announcing its planned acquisition of Motorola Mobile, Google wrote,

Andy Rubin, Senior Vice President of Mobile at Google, said, “We expect that this combination will enable us to break new ground for the Android ecosystem. However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

To paraphrase George Orwell, all Android device manufacturers may be equal, but some may be more equal than others. It’s inevitable that Motorola Mobility will receive special treatment by Google, by the partner ecosystem and by consumers.

(Were I in charge of Microsoft’s Windows 7 Phone division, I’d be busy speed-dialing all the Android device makers instead of writing this column.)

3. The deal may be about patents, not hardware profits.

Success in the tablet and smartphone markets requires both innovation as well as intellectual property litigation. Patents are used offensively to delay and harass competitors, and they are used defensively to shield against lawsuits.

Once a company has amassed a sufficiently large patent portfolio, either through invention or acquisition, it can use its portfolio as a serious weapon. When multiple companies have large patent portfolios, they can cross-license with each other, shielding both from lawsuits while also raising barriers against players who aren’t party to the cross-licensing agreement.

Google might be calculating that Android will be strengthened by buying Motorola Mobility’s patent portfolio – either for the benefit of Google itself, or for the benefit of the entire ecosystem through licensing and indemnification. Given Google’s publicly stated concerns about Android patents attacks, don’t be surprised if IP turns out to be as important as device revenue in this strategic acquisition.