Google Buys Motorola Mobility Holdings

HTC, Samsung electronics and a host of smaller handset makers are at risk of losing their cachet after Google buys Motorola mobility holdings.
Google said on Monday it will pay $12.5 billion for Motorola mobility, purchasing more than 17,000 patents it can used to defend against allegations of infringement as competition accelerates in the $206.6 billion mobile phone market.
The rival handset manufacturers, which have been building devices with Google’s Android software 2008, may have a harder time cranking out bestselling devices because Motorola mobility may get earlier access to the newest Android technology.
The acquisition gives Google an incentive to favour Motorola mobility, and association with the internet company will give Motorola handsets a leg-up in competing for consumers.
Google is committed to making that whole eco system successful. Android partners are poised to benefit from the patent protection provided by the deal. HTC and other manufactures are defending against suits that claim their phone infringe patents held by Apple and Microsoft. Google will use the portfolio as leverage in negotiations over cross-licensing deals.

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