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Eric Schmidt: We bought Motorola for more than patents

Posted: , by Alan F.

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Eric Schmidt: We bought Motorola for more than patents
Speaking at the Dreamforce conference in San Francisco near the end of last week, Google Chairman and former CEO Eric Schmidt made it clear that the purchase of Motorola by the Mountain View based form was for more reasons than just to buy a huge portfolio of patents. On stage during the conference, Schmidt said, "We did it for more than just patents. We actually believe that the Motorola team has some amazing products coming,” and went on to add that, "We’re excited to have the product line, to use the Motorola brand, the product architecture, the engineers. These guys invented the RAZR. We know them well because they’re Google Apps users.”

Besides raving about the engineers that developed the RAZR, Schmidt had some not so kind words about the state of the U.S. patent system which he said is in need of an overhaul. His solution? Take patents as they are published and crowdsource them. He adds that the best way to deal with these patent battles is to publish patents publicly and then let the public comment to see if there is any prior art. Of course, as Schmidt pointed out, this is illegal. He also added that legislature in the Senate that he hopes will pass this year, will provide more funds for the patent office and also allow them to kick out bogus patents faster than they get rejected at present.

source: BGR, TechCrunch

49 Comments
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posted on 03 Sep 2011, 23:57

1. remixfa (Posts: 14255; Member since: 19 Dec 2008)


"These guys invested the RAZR"

woopsie :)

posted on 04 Sep 2011, 00:35

6. remixfa (Posts: 14255; Member since: 19 Dec 2008)


that was a pretty quick edit :)

posted on 04 Sep 2011, 06:29

16. protozeloz (Posts: 5396; Member since: 16 Sep 2010)


He should have come with another phone...... I would fire anyone related with it and erase the existence of it from people's mind

posted on 04 Sep 2011, 00:07 4

2. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


I wonder how Google's attitude towards patents will shift once they build up a portfolio of patents. MS in the early years was echoing almost verbatim, the comments that Google is now making. But with time and a large patent portfolio (that at present is making MS more coin than sales of WP7...), attitudes change. It is just business.

posted on 04 Sep 2011, 00:09

3. engaged tech (unregistered)


"ultimately android will be dominant" by Steve Wozniak.
Do your best and f.ck the rest Motorola like in the past.

posted on 04 Sep 2011, 00:22

4. bobfreking55 (Posts: 866; Member since: 15 Jul 2011)


Motorola Droid Razr FTW. Clamshell Android Phones. Also, I trust google to create phones with updated OS always.

posted on 04 Sep 2011, 00:34 1

5. snowgator (Posts: 3600; Member since: 19 Jan 2011)


OF COURSE they bought Moto for their patents. That is why most of his discussion of the purchase revolved around the patent system. Translation:

"If only the system wasn't so screwed up that everyone is sueing everyone else just to see what will score them some cash and what doesn't, we wouldn't have had to drop a few of our many billions into this fine, fine hardware maker. But since we did, maybe we can have some fun with it while we got it!!"

I hope they do support Moto's handset division, which had really started to show some profit for the first time in a few years. It isn't like Motorola wasn't already all in on Android, so the fit is good. We will see future hand-in-hand developments and some exclusive goodies developed just for Moto. Hopefully they will not forget the other Mobile needs like some good basic phones for those who do not want smart phones, a segment of the market which is still strong and awfully neglected. That is IF Google keeps it past a couple of years. We shall see.....

posted on 04 Sep 2011, 00:37 3

7. remixfa (Posts: 14255; Member since: 19 Dec 2008)


speaking of which, im actually surprised we havent seen a simplified non touch screen version of android for regular texting, calling phones. Get them using it on the cheap ones to make it easier to move to a smartphone. "look grandma, this smartphone looks exactly like that cool flip phone i got ya last year! Now you can get on the internet too!"

posted on 04 Sep 2011, 05:45 3

14. snowgator (Posts: 3600; Member since: 19 Jan 2011)


Freaking great idea. Get a patent on that one QUICK remixfa!!!

posted on 04 Sep 2011, 10:59 2

25. remixfa (Posts: 14255; Member since: 19 Dec 2008)


apple already invented it :(

posted on 04 Sep 2011, 10:45

23. jbash (Posts: 345; Member since: 07 Feb 2011)


They have, and moto actually has one on Sprints iden network the i886. there are actually quite a bit of these basic phones in developing countries.

posted on 04 Sep 2011, 04:42 1

10. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


What have i been saying guys ???? : )
Just proves google will do their own phones, schmidt has confirmed it now !

posted on 04 Sep 2011, 05:33 1

11. snowgator (Posts: 3600; Member since: 19 Jan 2011)


Okay Pete: I did some copying from various sites (Wall Street Journal, Fierce Wireless, Mobelida News) to show your assumption that Motorola and Google will freeze out other manufacturers is just not shared. I know you have inside sources, and I DO NOT doubt you one bit you heard it from them. But, it just doesn't seem to be what a lot of other mobile experts think:

TBR believes Google's acquisition of Motorola Mobility will bring innovation to the mobile industry, as the company has done with Android and many other services. Google will run Motorola Mobility as a separate business which will remain an Android licensee, though integrating the innovative Google culture will spur creation of new, unique products and services.

--TBR analysts Kate Price, Ken Hyers and Ezra Gottheil



One difference between this and previous failures to license OS' while making hardware (such as Palm) is that Google makes no revenue on licensing Android, so that is not a direct revenue stream. But it must still weigh the profitability of its own substantial handset business without threatening other leading licensees such as HTC and Samsung."
--NPD Group analyst Ross Rubin

Google with its uber-popular operating system Android didn't need to own a handset manufacturer to be successful. It had already created pull-through demand by building a strong application market and end-user demand. Even if the Motorola Mobility unit of Google doesn't end up being highly profitable, owning a credible manufacturer where you can begin to incubate, pre-test, and implement new mobile-centric solutions is a good thing for Google. Google will now own a hardware vendor where its OS and applications can--in theory--be leading-edge. Some consumer will be willing to pay for those types of solutions."
--Analysys Mason analyst Steve Hilton


HTC welcomes the news of today‘s acquisition, which demonstrates that Google is deeply committed to defending Android, its partners, and the entire ecosystem."
--Peter Chou, CEO of HTC

Samsung is excited by the news of the purchase of Mototrola, which demonstrates Google's deep commitment to defending Android, its partners, and the ecosystem which profits us all."
--J.K. Shin, president of Samsung Mobile

posted on 04 Sep 2011, 05:40

12. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


It doesn't matter what analysts say. Eric Schmidt has now said they will make their own phones, the analysts where wrong !
Now i have not said google will kick out Samsung and htc. I have been saying that when google starts making their own phones, everyone will be buying googles phones, leaving samsung and htc needing to sell other phones than android phones.

posted on 04 Sep 2011, 06:28 1

15. protozeloz (Posts: 5396; Member since: 16 Sep 2010)


They talked about their amazing products and making them available to many. But what could that mean? If you check Google's recent list if purchases they point at what I think could be Google's final plan. As you see they bought the company that invented the smallest smartphone and that company had the idea of making a device they could be switched to change its functionality, this reminds us of something else, the Atrix, so Android could become an OS that adapts to the dock is plugged in order to offer a different functionality from phone to tablet to computer to TV all this can be done now that they have Motorola without turning Android into a Motorola only OS. And will probably see mire Google TV devices being connected with Motorola. I've always said moto gives the wrong steps into the right direction

posted on 04 Sep 2011, 08:41 2

20. Jasonhunterx (Posts: 111; Member since: 20 Jul 2011)


That is the point of it it makes the other phone companies have to step there game up or they will lose to google because there updates are gonna be great

posted on 04 Sep 2011, 11:03 2

26. remixfa (Posts: 14255; Member since: 19 Dec 2008)


and everyone and their brother including google says you are wrong. your the only one that wants to believe it because if its true you think its good news for Bada. You have to ignore every fact and every track record to believe what you believe. Its a far stretch to say the least.


You have a horse in the race and thats why you are trying to convince people to bet your way. sorry, but Bada keeps coming in last, its not about to beat thoroughbreds named Android and iOS. Heck it cant even beat WP7.

posted on 04 Sep 2011, 12:55

32. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Why are you all in denial ???

Google's Eric schmidt said "We did it for more than just patents"

Ahem, that only means one thing. They WILL make their own hardaware.

What is hard to understand about this, 2 + 2 = 4 you can't deny it !

And when it comes to bada you are in denial again.

bada has more market share than WP7, in fact, over 20 % more market share than WP7, that is a big figure percent wise, there is no denying it !

posted on 05 Sep 2011, 15:46

51. Mookie Wilsonovich (unregistered)


"Don't go to korea house on speedway they serve cat."

posted on 04 Sep 2011, 05:42

13. snowgator (Posts: 3600; Member since: 19 Jan 2011)


And- in the truth in advertising department- several analysts think this is a horrid deal for Google- that their lack of experience with hardware will cause this to be a resource drain and deter them from doing what they do best - the Android platform. Several also say this will push manufacturers to W7 and other platforms just out of FEAR - not due to anything Google has said or will do.

I actually think Samsungs relationship with W7 and their development of Bada is a GREAT strategy. That is why they will be #1 for quite a while. I just think time will show Google will dump Moto before they give up the open source OS.

Okay. I am done trying to look smart!! :-)

posted on 04 Sep 2011, 11:06 2

27. remixfa (Posts: 14255; Member since: 19 Dec 2008)


i agree in the fact that i think google will sell off moto if it becomes a threat to its android operational partners. Moto hasnt made money, its nothing but a drain on google at this moment and its only purpose is a shield.
will google try to turn the ship around and make moto a better company? absolutely. Will google jeapordize their hugely dominating android platform? very very doubtful.

posted on 04 Sep 2011, 11:34 2

30. protozeloz (Posts: 5396; Member since: 16 Sep 2010)


Google is not the type to rock a single boat, that's how they survive they will kill Motorola completely if it makes Samsung HTC and LG become completely loyal to them

posted on 05 Sep 2011, 05:36 1

41. jbannach (unregistered)


Android/Search/Market is not profitable!
Google wants some of the profits that Samsung and HTC are making!!!! They will only do enough to keep HTC/Samsung profitable and in the ecosystem. Why should Google be shut out of the majority of the profits from the biggest consumer areas in the forseeable future (smartphones and tablets). Would you be happy making $5 per phone when your biggest competitor Apple makes $300 per phone? Even Microsoft makes more money per Android phone than Google. I don't deny that Google still wants HTC and Samsung in the ecosystem but if you think they will let them make the majority of the profits off Android especially after it "had" to spent $12 billion of its own money to "defend" them...then you are in serious denial.
You don't spend $12 billion just to defend a mildly profitable business like Android. If you estimate Android makes 100 million a year (big if) you need 120 years to make back your money!!! You spend that much to get into the real big potential money making profit pool which is selling HW to billions..

posted on 05 Sep 2011, 05:59 1

43. jbannach (unregistered)


Has it also not occurred to you that since Google now makes the HW, it can fill the gap and actually make more money if a HTC or Samsungs jumps ship?
That is incentive enough for HTC and Samsung to stay.
Part of reason IOS is so profitable is you can only get it from ONE company.
Don't think Google is all that worried about pleasing HTC and Samsung when the equation becomes more sales of THEIR own HW sell equals bigger profits.

posted on 05 Sep 2011, 09:11

46. protozeloz (Posts: 5396; Member since: 16 Sep 2010)


you should know Motorola's purchase was not only smartphones. now with that said Google has its Google TV among other stuff on a market that's yet to be expanded, just in development time Motorola has saved them on their android @ home project and faster ways for them to get their Google TV project expanded like no other could is worth the money, as I said Motorola could mean More money for Google in other ways than just building smartphones

posted on 05 Sep 2011, 05:42

42. jbannach (unregistered)


You did not do a good job looking smart...think again...
Android/Search/Market is not that profitable!
Google wants some of the profits that Samsung and HTC are making!!!! They will only do enough to keep HTC/Samsung profitable and in the ecosystem. Why should Google be shut out of the majority of the profits from the biggest consumer areas in the forseeable future (smartphones and tablets). Would you be happy making $5 per phone when your biggest competitor Apple makes $300 per phone? Even Microsoft makes more money per Android phone than Google. I don't deny that Google still wants HTC and Samsung in the ecosystem but if you think they will let them make the majority of the profits off Android especially after it "had" to spent $12 billion of its own money to "defend" them...then you are in serious denial.
You don't spend $12 billion just to defend a mildly profitable business like Android. If you estimate Android makes 100 million a year (big if) you need 120 years to make back your money!!! You spend that much to get into the real big potential money making profit pool which is selling HW to billions..

posted on 05 Sep 2011, 06:51

44. PeterIfromsweden (Posts: 1230; Member since: 03 Aug 2011)


Glad that there are at least some peopl here like jbannach whom understands that Google is not stupid in the head, and they want some profit from their purchase.

posted on 05 Sep 2011, 10:33

47. remixfa (Posts: 14255; Member since: 19 Dec 2008)


wow, if android search/market isnt profitable how did google become the giant company it is to day..


im pretty sure that was through SEARCH... lol

where do you people come from?!? :

posted on 04 Sep 2011, 06:42

17. som (Posts: 768; Member since: 10 Nov 2009)


Why is Apple filed lawsuits only Samsung?

posted on 04 Sep 2011, 06:55

18. ztedac (Posts: 69; Member since: 17 May 2010)


they want samsung to be a supplier only and not a competitor

samsung supplies apple's iphone materials

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