Google Enlarges Warchest With 1023 IBM Patents 245
First time accepted submitter ElBeano writes "Google has continued to beef up its patent portfolio in the face of the onslaught from Apple and Microsoft. The best defense is a good offense. 'Google is building an arsenal of patents that the company has said is largely designed to counter a "hostile, organized campaign" by companies including Apple Inc. and Microsoft Corp. against the Android operating system for mobile devices. Google had already acquired 1,030 patents from IBM in a transaction recorded in July, and will obtain more than 17,000 with its $12.5 billion acquisition of Motorola Mobility Holdings Inc.'"
Re:Why don't they just cross-license? (Score:5, Informative)
Because prior to Google buying the IBM and Motorola patents they had nothing to offer. Why would Apple (or Microsoft, or Samsung, or anyone else) let Google just use their patents when Google has nothing of value to offer them? That is just throwing away money. Now that Google has something to offer they are in a better position to make such a deal.
Re:Cross licenses? (Score:4, Informative)
Cross licensing gets rid of the concept of one party still attacking another for the most part. Party A sues Party B: result Party A either gets money or Party B has to stop doing what they are doing. However if Party B has its own trove of patents, the idea of cross licensing comes through by Party B telling Party A "Hey, if you don't back that lawsuit off, we will sue you for patents x, y and z." At that point both parties are pretty much in a stalemate - so they agree that Party A can use patents x, y and z while Party B holds off suing them.
Both parties will pretty much want to keep doing what they are doing, so they rattle their sabres for a while until an equilibrium is reached with the patents.
If (like in this case) one of the parties is new to the group or bought up a bunch of patents, they can still be attacked - but they already know what their patents are worth to the other companies - they were likely already using them as part of some agreement previously. If they still get sued, they (as the new patent owners) can revoke previous agreements allowing the other companies use of their patents. If this happens, then basically the whole things starts from the beginning of this post until an equilibrium is reached.