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Mobile patents truce agreement formed between Google and Apple

These two technology giants have agreed to stop suing each other and to work together for systemic reforms.

Google and Apple have now come to an agreement that will enter them into a ceasefire within their mobile patents war, in which neither of them will sue the other and in which they will both work together in the effort to encourage patent system reforms in the United States.

The current truce is one of the outcomes of a massive trial that started back in 2010 between the two.

In that year, the trial in which Apple had sued Motorola Mobility was started. The latter company is the hardware manufacturer that was purchased by Google in order to divide it up and sell off its parts, maintaining a boatload of technology and mobile patents. As a result of the way that the lawsuit played out, a joint statement from the two companies now reads that “Apple and Google have agreed to dismiss all the current lawsuits that exist directly between the two companies.” It added that “Apple and Google have also agreed to work together in some areas of patent reform. The agreement does not include a cross license.”

It appears that some of the mobile patents lawsuits from Apple will continue, though not directly against Google.

Mobile patents truce - Google and AppleThe wording of the statement that was made by the companies indicates that the lawsuits that are underway from Apple against mobile device manufacturers that are using the Android operating system, from Google, would not cease. This includes the patent suit opened by Apple against Samsung that has brought about two massive headline making trials in San Jose, California, as well as comparable legal battles occurring in other nations.

In both of the high profile trials against Samsung, Apple has come out the winner. However, the second judgment’s damages were notably lower. It was in that second case that newer Samsung mobile devices were included.

The lawsuits against many of the companies using Android were carrying out a vow by Steve Jobs, the late CEO of Apple, in which he said that the company would go “thermonuclear” against Google for having copied the iOS for the iPhone in what he referred to as “grand theft.”. That statement was revealed in the Walter Isaacson biography of Jobs which was published after the Apple co-founder’s death.

An FTC and Google agreement opens up mobile industry market

Google mobile industryInternet giant Google has settled with the FTC (Federal Trade Commission) in regards to its antitrust lawsuit that allows smaller players in the mobile industry access to mobile patents. The move is said to lower the amount of suits related to patent holders.

Google’s hold on patents

Philip Solis, of ABI Research in Oyster Bay, NY, stated that concerns have been raised about Google buying ‘standard essential patents’ from Motorola, essentially giving Google the ability to greatly suppress smaller competition. This settlement states what Google has said all along – that they would not use the patents in such a manner.

“It could start a trend around standard essential patents not being used for offensive purposes,” Solis said. “That is a good thing because it means potentially less litigation.” He goes on to say that bigger companies are not effected by having to work around patents in the mobile industry, but smaller companies lack the resources to do so.

What it means for competitors

Smart phones, gaming consoles, tablets, and even online search advertising are all affected in this settlement. Google will allow competition to license patents on what are called critical standardized technologies for all of the above. When Google acquired Motorola Mobility, it gained hundreds of different patents. Many of these are for most basic functions like device internet connectivity.

Google agrees to allow use of standard patents and thus the number of patent-related lawsuits should drop. FTC Chairman Jon Leibowitz said in a statement that Google has made a step that allows consumers to enjoy the benefits of competition in the online marketplace as well through the gadgets that they buy.

“This doesn’t remove the patents issue in general,” Solis said. Overall, he believes that this agreement opens up markets in both advertising and the mobile device market. Google has agreed not to use patents to delay other companies from releasing new products in a timely manner. It is not perfect, however.

Online Advertising

Google is known as an online giant in search and also in search related advertising. As part of this agreement, Google will give those that advertise online more flexibility to use their program as well as the advertising programs of their competitors. The company also promises that any site can remain excluded from Google vertical search results while still remaining visible under their standard search.