hats a nice tale. But its also a tall tale. Its writing something to fit an argument, rather than actually looking into it and writing something based on facts.
The Google Nortel patent maneuver was a rope-a-dope? Really? Because you know who didnt think it was? Google. How do I know that? Because I talked to several people at the company on it over the past few months. People high up, people low down. People on the record, people off the record.
Google absolutely wanted to win those Nortel patents. This wasnt like the Verizon spectrum bidding. This time (weird bids or not), Google was in it to win it. And they were devastated when they didnt. And they were pissed off. And they had every right to be.
As I laid out in one of the posts Lyons points to, Apple and Microsoft teamed up to screw Google. Considering that Apple and Microsoft had started out as separate bidders in the process, Google did not expect this. As Google CLO David Drummond wrote in his blog post on the matter recently: Microsoft and Apple have always been at each others throats, so when they get into bed together you have to start wondering whats going on.
The fact that Drummond wrote that post at all should tell you all you need to know about Googles feelings on the matter. Things were bad with regard to the patent situation surrounding Android. And with InterDigital in play, they were about to get worse.
Google had to do something. And buying Motorola was one of about a half-dozen things they could have done. It was the swing-for-the-fences option. But it was also the one they knew at least one rival, Apple, wouldnt touch.
And the deal has some big potential upsides, such as in the broader consumer electronics space, where Google has been struggling with things like Google TV.
Yes, Google and Motorola have undoubtedly been talking for a while. But high-level talks only began about five weeks ago, Om Malik reports. For those keeping score at home, thats well after Googles Nortel loss. So much for the rope-a-dope.
Google and Motorola were likely talking earlier about licensing agreements and/or patent buys on top of an outright acquisition. That was a last resort. But its one Google decided they had to pull the trigger on. Why? Because as Malik also reports, Microsoft was considering doing the same thing.
Im sure Google is just fine with Lyons characterization of this being some awesome Muhammad Ali-style strategy to kick ass and take names while fooling everyone. I mean, who wouldnt be fine with that? But thats just not how this went down.
Further, Lyons statement that Google just sandbagged their rivals may be premature. Both Apple and Microsoft already have ongoing patent lawsuits against Motorola itself. These thousands of patents Google just acquired, while important, are not necessarily the full deterrent they need.
As usual, FOSS Patents has a great breakdown of all of this, if youre really interested.
As for Lyons assertion that Google simply maneuvered the Nortel situation in such a way to drive up the price for their competitors thats laughable. If he would look over the court documents for how this played out, hed see that Google itself bid upwards of $4 billion and at a few points, nearly won the auction for several billion dollars.
Both Apple and Microsoft (and Google, for that matter) have billions of dollars that really are burning a hole in their pockets. Eventually, they need to figure out how to spend this money. Does anyone think Apple is sweating dropping $2 billion (their reported share) on valuable patents when they have nearly $80 billion in the bank?
But no one should be surprised at a post like this coming from Lyons. As I said, hes been getting his ass handed to him time after time again over the past few years as a vocal Apple curmudgeon.
Heres one favorite opening line from a Newsweek piece he wrote last year on Antennagate:
I wonder if panic has started to set in at Apple yet. If not, it should. Because todays hastily called news conferenceostensibly to discuss problems with iPhone 4 and how Apple intends to fix themonly did further damage to Apples reputation.
That was in July 2010. Almost exactly one year later, Apple posted their best earnings ever. iPhone sales the very same iPhone 4 that Lyons dubbed so problematic were 20.24 million units in Q3, by far a new record. And this is a device thats now over a year old. And broken, remember?
As Lyons fiddles, Apple isnt burning, but it is on fire. Maybe he saw the news that they recently became the most valuable company in the world. That sure sounds like a company with a lot of problems. One in panic. One that should be listening to Fake Steve.
This all raises the question: over the past two years, would you have gained more knowledge by reading Lyons, or by having your head up your own ass?
Tough call.
fan & "prosumer" since '01
