Apple predicted to 'strike back' at Google with its own patent purchase
In a note to investors on Tuesday, Jeffries & Co. analyst Peter Misek concluded that Apple is likely to "strike back" by acquiring patents from rivals such as Nokia or Research in Motion as a response to Googleâs purchase of Motorola Mobility. He also mentioned InterDigital, which has been widely viewed as a potential target for acquisition by Apple and other major players in the smartphone industry.
Misek identified what he considers 500 "essential 3G and 4G patents" that are part of Motorolaâs significant patent portfolio. Based on the price Google paid for Motorola, he values each of these at $20 million, given the fact that they could be used by Google not only to defend Android against potential attacks from Apple, but also to counterattack the Cupertino-based company and other rivals in the future.
Apple is currently involved in various lawsuits both in the U.S. and internationally with some of its most important competitors in the mobile business. Apple has either sued, been sued, or both, companies like HTC, Motorola, Samsung, Nokia and Kodak over alleged intellectual property infringement. Such patent-based wars are likely to continue even after Google would complete its Motorola acquisition.
Misek analyzed the patent portfolios still in play from Nokia, RIM or InterDigital and concluded that any of them could be an important target for Apple in the future. Apple is currently sitting on impressive cash reserves, totaling $76.2 billion.
The analyst believes that Apple is in a position that would allow it to bid for any of the patents owned by it rivals. He believes Apple will focus specifically on "wireless patents that are truly essential and part of the standards."
Apple may already be paying Nokia "significant royalties for cross-licensing," Misek said, adding that the Finnish handset maker owns "at least 50 essential 4G patents and likely over 100 essential 3G patents" of interest." Another potential target, RIM, is said to have spent over $5 billion in developing its own patent portfolio with InterDigital also on the analystâs list as a potentially interesting purchase for Apple.
Despite Jeffriesâ note to investors, there have been no actual indications from Apple that the Cupertino-based company is actually going forward with such patent-buying plans. Google's $12.5 billion acquisition of Motorola, announced on Monday, is still pending regulatory approval.
Google's chief executive, Larry Page, candidly admitted that his company's purchase of Motorola was prompted by legal action from competitors — namely Apple and Microsoft — against the Android platform. Page said he believes the measures taken by Apple and Microsoft have been "anticompetitive," and ownership of Motorola's patents will better position the search giant to defend its mobile operating system from legal threats.
57 Comments
Give me a break. Does anyone seriously feel Apple doesn't already control enough IP to protect themselves from serious damage by other competitors? And they've already shown they have more than enough to wage war against anyone they choose.
But instead some talking head thinks the proper response is to ratchet things up a couple more notches.
Idiot.
I say they should buy RIM, they are a dead brand anyway. Plus they can use that to make a bigger impact in Enterprise. That could cause more companies to switch to Mac.
I say they should buy RIM, they are a dead brand anyway. Plus they can use that to make a bigger impact in Enterprise. That could cause more companies to switch to Mac.
that would make no sense.
Apple is not traditionally in enterprise space.
Furthermore, the iPhone is definitely not 'enterprise-ready' as security standards are not in place within iOS ecosystem.
Finally, RIM's clients would definitely take issue with that as well.
I say they should buy RIM, they are a dead brand anyway. Plus they can use that to make a bigger impact in Enterprise. That could cause more companies to switch to Mac.
I don't know what RiM has to offer Apple moving forward. I can see Nokia as being much more important? which would be funny since MS needs them to try to make WP7 relevant.
Qualcomm would be killer buy but I doubt that will happen. Since I'm no longer an AAPL stock holder (sold at 400) I do hope they buy something major that drops their stock significantly so I can buy back in.
that would make no sense.
Apple is not traditionally in enterprise space.
Furthermore, the iPhone is definitely not 'enterprise-ready' as security standards are not in place within iOS ecosystem.
Finally, RIM's clients would definitely take issue with that as well.
You're right, they do fall behind in enterprise, which would make a purchase of RIM, integrating top-notch user experience in iOS with industry-leading security of RIM possibly the smartest purchase anyone has ever done in the history of business.