2. Recent “wars”...
• Yahoo! sued Facebook in January, claiming
10 patents related to advertising privacy
controls, photo tagging and more
• Facebook has countersued Yahoo! for its
“shortsighted decision to prioritize litigation
over innovation
• Tech giant Oracle sued Google in 2010,
charging that its Android mobile OS
infringed Oracle’s Java-related patents
• Apple has sued both Motorola and
Samsung over dozens of Android patents
3. ... And pacts
• Microsoft paid $1.1 billion to AOL for 800
patents related to advertising, search,
mapping and multimedia
• Apple and other firms shelled out $4.5
billion for Nortel’s 6000 patents, which
cover mobile design, wireless, data
networking and more
• Google ponied up $12.5 billion for
Motorola Mobility and its 17000 patents,
including some for mobile devices,
wireless networking and security
4. Question at Issue
• Tech companies are spending large
amounts of money to purchase patents
and software
• E.g. Facebook’s purchase of Instagram
for $1 billion
5. Purpose
• Companies want to grow economically
and pinpoint successful ventures in
order to earn the revenue generated by
these ventures
• Companies observe similarities in
software, design and operation and
want to make their products more
exclusive to its consumers by
eliminating their competitors
6. Implications and
• Domination of tech markets by large
companies with stable economies
• “Innovations” steered towards catering
to a particular company’s demands
instead of customer welfare
• Tech market becoming more political
• Stock prices of tech giants increasing
while those of small companies lose
value (increased margin in market value)
7. P.O.V.
• Point of view presented
• Tech-savvy consumers
• Economic observers and investors
• Interest group represented
• Teenagers and adults interested in
technology
• Stock market investors
8. My Point of View
point of view
• Tech giants purchasing companies and
software may be a good thing as
opportunities are provided for
companies to develop better software
with more funding
• Even after the purchase, a company
should not interfere excessively in the
development of software, as this may
lead to loss of innovation
For the Oracle and Google case, settlement talks between the two companies recently collapsed because of an “irreconcilable impasse”. The trial was set to begin on 16 April.\nThe Apple, Motorola and Samsung case is still ongoing. There are multiple cases proceeding in several different countries, but no clear winner has emerged.\n
Through Microsoft’s funds, AOL gained a much needed infusion of cash to distribute to shareholders, while Microsoft bolstered its portfolio.\nNortel, which was bankrupt, reaped billions to help it through liquidation, while the consortium, which included Microsoft, RIM and Sony, gained valuable patents.\nGoogle improved on its portfolio, thereby making Android less vulnerable to threats, and netted a potentially game-changing mobile-phone maker in the process.\n
