Ericsson Sells 2,185 Mobile Tech Patents To Newly Minted Troll, Unwired Planet

from the 2185-EXPLOITABLES!-NIB!-BID-NOW!!! dept

Well, if it wasn't clear before, it's certainly official now. Unwired Planet (formerly Openwave), a former innovator in the WAP browser field, decided back in April that it was no longer interested in competing in the marketplace. Instead, it set the dials to "troll" and announced a new "corporate strategy," one that would punish actual innovators for innovating. CEO Mike Mulica announced a "multi-pronged strategy to realize the value of [Unwired Planet's] unique patent portfolio."

Now, an aider and abettor has thrown Unwired Planet 2,185 additional trolling devices.

Last week, Unwired Planet, a patent licensing company that once upon a time was an Internet services company called Openwave, announced a deal to acquire a portfolio of 2,185 U.S. and international patents and patents pending from Ericsson.

The company said the deal “significantly broaden[s] Unwired Planet’s Mobile Internet-focused portfolio,” including 753 U.S. issued patents related to 2G, 3G and LTE technologies. Ericsson will also contribute 100 additional patent annually to Unwired Planet from 2014 through 2018. Terms call for Unwired Planet to compensate Ericsson with certain ongoing rights in future revenues generated from the enlarged patent portfolio. Unwired Planet will also grant Ericsson a license to the Company’s enlarged patent portfolio.

In other words, Ericsson will profit from any litigation or settlements Unwired Planet manages to extract from tech companies. Pretty good money, if you don't mind being part of the problem. Mulica was on hand again to put lipstick on the troll-pig with plenty of words that dance around the shakedown-and-sue "business model" Unwired is calling a "corporate strategy" these days.

Unwired Planet CEO Mike Mulica said in a statement that his company looks forward to “leveraging a strong, multi-dimensional patent portfolio and furthering discussions with key industry players who are interested in licensing these inventions to protect and further build their product strategies.”

Well, just replace "leveraging" with "exploiting" and "furthering discussions" with "shakedown letters" and "interested in" with "forced to" and we've got ourselves a sentence! For that matter, let's replace "protect and further build" with "tentatively move forward in a highly litigious atmosphere, infested with tapeworms sporting UP/E logos."

The costs inflicted by the new hybrid tapeworm will, of course, be passed on to the end users in the form of increased costs, fewer innovations and East Texan accents. Ericsson will receive, in exchange for patents covering a broad swath of "telecommunications infrastructure" (and part of its soul reputation), 20% of the first $100 million, increasing to 70% should Unwired be able to hit the $500 million mark. Unwired has already fired an opening salvo in the direction of Apple and Google, so the sky's the theoretical limit.

In addition, America itself will be blessed with several million more reasons for newly minted lawyers to embrace the patent field, which despite the best (but still very poorly done) efforts of the US government, still offers a good chance to make big money by doing little more than spamming successful companies with threatening letters. 

Filed Under: mobile, patents, wireless
Companies: ericsson, unwired planet

Google Decides Smartphone Market Share Is More Important Than Net Neutrality

from the dangerous-precedents dept

As a recent post noted, net neutrality is under threat in France, with ISPs like Free asking Google to pay extra for delivery of its traffic. According to this post on the Forbes Web site, Google has already agreed to pay the French telecoms company Orange in precisely this way. As well as damaging the whole principle of net neutrality, something that Google has been championing for many years, this would seem to be a pretty bad business decision. After all, if Orange is now getting paid to carry Google's traffic, why shouldn't every other telecom company out there also receive money for delivering Google's services?

It turns out that there are some very specific reasons why Google might have taken this surprising step, as Forbes explains:

Orange have implied their strong market position in Africa provided them sufficient leverage in the discussions with Google.

The African market is currently making the switch from feature phones with limited data access, to low-cost smartphones that provide far greater access to the internet and web services. Low-cost smartphones that are predominantly powered by Android. Google wants the emerging market to be running their OS so they can effectively monetize the continent. What they don't want is another platform becoming established, such as Nokia's low-cost Windows Phones or the upcoming Blackberry 10 devices.

This is really about the African market, then. As the analysis above notes, Google wants Android to become established there as successfully as it has elsewhere in the world. If it had refused to do a deal with Orange, which is apparently a major player in this region, there was a danger that Nokia or RIM could have taken advantage of the situation. Even though the payment is nominally about Net traffic, it's probably really about Google keeping a dominant telecom company sweet.

In most other parts of the world, Android is already established as the leading smartphone platform, so Google won't need to make similar deals. That doesn't mean that telecoms and ISPs won't demand them, but their bargaining position will generally be much weaker than Orange's. Google will probably be able to refuse without risking too much, secure in the knowledge that Internet users won't be best pleased with their ISPs if they can't access Gmail, or YouTube becomes unbearably laggy.

But even if the Orange deal is a special case, it's still bad news for the Internet. Google has clearly signaled that net neutrality is not sacrosanct, and that it is quite prepared to abandon it when necessary.

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Filed Under: africa, france, net neutrality, wireless
Companies: google