The patents were acquired from the wreckage of Nortel for US$4.5 billion after a bidding war. Google lost that auction. The winning consortium includes Apple and Microsoft as well as BlackBerry, Ericsson and Sony.
Now, as expected, the patents are being used against Google and its Android partners. The defendants are Samsung, LG Electronics, HTC, Huawei, Asustek, Pantech and ZTE Corp – pretty much everybody who is anybody in the Android world.
Rockstar patents certainly not worthless
Because Google also bid billions for the same patents, it’s going to find it difficult to argue they are worthless.
All Things D has the main news story and a copy of the litigation document.
Yes it’s a mess. And yes, it shows there’s something rotten with the entire patent system. As John Gruber at Daring Fireball points out, don’t feel sorry for Google. It is just as bad.
What does the patent action mean in practical terms for phone users like you and I?
Rockstar’s action hangs on five patents that revolve around matching search terms with advertising and user data. In other words, serving personalised advertising. This is central to Google’s business model. Apple, Microsoft and their partners are attacking the core of Android.
Should the Rockstar consortium win, Google will probably have to pay damages. Phone makers may have to halt sales – at least temporarily. It’s possible a settlement will include changes to Android. This could, in turn, mean forced upgrades and even some loss of functionality. Maybe even breaking some apps. All of this will be a short-term disruption.
It could also mean paying licence fees to Rockstar. This will undermine Google’s free-OS-and-apps-in-return-for-advertising business model. It will almost certainly make Android a more expensive option for phone makers. Google may just make advertisers pay more to target Android users.
There’s little chance Google and it’s partners will take this lying down. There could be protracted litigation. If they have any means to retaliate, you can rest assured they’ll be firing their weapons in the coming days. One possibility is less Google support for non-Android operating systems.