13Feb

Google-Motorola Deal Approved By U.S. Department Of Justice

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Just hours after the European Commission announced their approval of Google’s $12.5 billion Motorola purchase, the United States Department of Justice has announced that they too have given the deal their blessing.

With this, Google is one step closer to closing the deal, although they’re still waiting on approval from China, Taiwan, and Israel before the transaction can officially be completed.

According to the DoJ’s Antitrust Division, who conducted the investigation, the purchase was “not likely to significantly change existing market dynamics” or “substantially lessen competition.”

That isn’t to say that they didn’t have their concerns though — like the European Commission, the Justice Department will continue to keep their eyes on Google for any signs of patent abuse. Reuters reports that the DoJ “would not hesitate to take enforcement action” in the case that Google were to manipulate the licensing of standard essential patents to their own advantage.

But let’s back up a minute here: what does that actually mean? Standard essential patents (also known as SEPs) are patents granted for technologies that are required to meet an industry standard. LTE, for example, is a networking standard for the wireless industry, and quite a few patented processes and technologies are required to make it work properly.

Because those standards in question are often ones that rival manufacturers need to make use of, companies that hold SEPs are usually made to license them under what are called RAND (reasonable and nondiscriminatory) or FRAND (fair, reasonable, and nondiscriminatory) terms by the organizations that create the standards in the first place. As you could probably guess, RAND/FRAND licensing terms are meant to ensure that the companies that have to license those technologies don’t get the shaft because some rival of theirs was originally granted the patent.

Being a major player in the mobile space thanks to the Android operating system, Google stands to pick up roughly 17,000 patents from Motorola Mobility when the purchase is complete. The Justice Department and the European Commission are fully aware that once Google has access to all of Motorola’s SEPs, they’ll be able to effectively screw other companies with unfair licensing costs. With all those new patents, Google has much more ammo they could use to screw rivals like Apple.

Of course, being able to do something and actually doing it are two completely different things. With both the European Commission and the U.S. Justice Department sniffing around, Google would never be able to pull off a feat without raising major eyebrows. Not that they’d want to anyway — for a company that prides itself on not being evil, using patents to stifle innovation seems patently un-Google. Even so, expect the rest of the bodies that Google need approval from to take a similarly tough stance on the patent issue.



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21Sep

Analysts See AT&T/T-Mobile Network Sharing If Deal Isn’t Approved

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We await the outcome of this afternoon court hearing and AT&T’s efforts to do all it can to get an early hearing date to salvage it’s proposed T-Mobile acquisition. However, if the deal falls through, collapses or is outright rejected a Reuters suggest analysts expect that both AT&T and T-Mobile will try and strike a network-sharing arrangement… Read more

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04Aug

iOS 5 apps already approved – launch imminent?

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When Apple demoed iOS 5 a couple months ago, they really made it sound incredible. Notifications center, tabbed browsing, WiFi sync… the list goes on and on. Obviously customers were more than a bit eager to download the iOS update. Though, when pressed for a release date, the only thing Jobs&Co. could give us was “in the fall.” Luckily, though, it…

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07Jul

Official Pokemon game coming to iOS and Android, not Nintendo approved

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Although Pokemon is one of Nintendo’s most popular franchises that started on and still lives on Nintendo hardware, a new game is coming to Android and iOS this summer that isn’t backed by Nintendo, but the actual Pokemon Company.
On July 1, the Pokemon Company announced that a ‘Tap’ game will debut this summer, showing only a single Japanese graphic and giving little other information. The app is said to be releasing sometime later this summer and it’s still unclear whether …
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12May

AT&T To Pay T-Mobile $6 Billion If Deal Isn’t Approved

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According to the old “people familiar with the matter” story AT&T will have to pay Deutsche Telekom $6 billion in assets, cash and services if a deal isn’t approved by US regulators. The $6 billion would break down into the $3 billion in cash previously thought but an additional $2 billion worth of spectrum and a roaming agreement valued at $1 billion would also be picked up by Deutsche Telekom. The sources asked not to be named as those details were not public.

The cash break-up fee is approximately 7.7% of the total value of the deal and with the inclusion of the assets and services AT&T could stand to lose up to 15.4% of the total value of the deal. The high fee alludes to the high level of confidence that AT&T has it can convince regulars to approve the deal. After yesterday’s showing at the Senate Hearing both AT&T and T-Mobile have their work cut out for them to convince regulators this deal is in the best interest of the industry and consumers.

Reuters via BGR

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