UPDATED 08:00 EDT / NOVEMBER 07 2011

Google Breaks the Silence on Microsoft’s Bullying Royalties Deals

It’s no secret that Google has been in the center of patent disputes in the tech industry.  Companies like Apple, Microsoft, Oracle and others took a stab at Google in one form or another as these big players look to establish their reign in the mobile market.  The latest development comes from Microsoft making patent deals with OEMs using the Android platform and getting paid royalties for using their patents.  That puts Google’s partners in an awkward position, but what’s Google doing about it?

Google was questioned as to whether they would be shouldering a part of the royalties that ODMs have to pay, but the company’s hands are tied, as Google’s not always privy to the details of licensing agreements.  But finally, Google’s patent counsel Tim Porter breaks the silence during an interview with the San Francisco Chronicle regarding Microsoft’s latest strategy.

Porter was asked his opinion about a recent statement from Microsoft’s patent attorney Horacio Gutierrez, saying that licensing and cross-licensing deals are the natural and healthy solution to this wave of patent disputes.  He thinks it’s the fair way to work things out, considering Microsoft’s the one that put all the R&D into the disputed patents.

Porter answered, “I would hope that companies working out solutions between themselves is the result. The problem is if those deals are based on the threats of excluding products from countries or excessive damages, based on vague or overbroad patents. That leads to skewed settlements and skewed licensing agreements.”

“At the end of the day, my hope is people can reach sensible agreements and everyone can move forward and make great products.”

Google has been proud of the fact the Android is a free platform, that OEMs don’t pay them anything for using the platform, but with Microsoft making patent deals that require royalties, it takes away from Android as a free platform.  Porter was asked whether Android is no longer a free platform and if Microsoft is making more than Google because of the licensing deals, but still, Porter insisted that they do not have any idea what those licensing deals encompass, or how much Microsoft is asking for royalties.

Some argue that patent disputes hinder innovation and invention of new products since companies are quick to call out if they think their patents are being copied, even if they are not. It’s a tactic we saw with  Apple losing to NT-K.  But the fierce patent wars taking place amongst mobile kings has raised several questions about the patenting process, and Porter was asked to comment about the America Invents Act as well, looking at its impact to the current industry.

“I would characterize that as being maybe a good first step. There are a lot of improvements in the new law, the problem is it doesn’t go far enough,” said Porter.  “It doesn’t address the standards for patenting, it doesn’t address vagueness and over broadness. And it doesn’t address excessive damages.”

“It’s good to give the patent office more money to conduct more detailed examinations of patents, and I think there are things in the law that make it easier for the patent office to review patents that have been granted. But the bottom line is there is still a lot of work to be done and that’s frustrating after a process that lasted five or six years,” Porter added.


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