Recently, Google Inc. (NASDAQ:GOOG) and Samsung have expressed their apprehension, to China’s Ministry of Commerce, about Microsoft’s upcoming $7.5 billion acquisition of Nokia. Both companies conveyed their concerns stating that the purchase could give Microsoft excessive control over the patent market.
All of this is assuming that Microsoft takes complete ownership of Nokia’s huge patent portfolio. Google and Samsung fear this transformation would put them at a worrisome disadvantage. When you get into the details of the deal, Microsoft will not control all of Nokia’s patents. They will leave them under Nokia’s management, but that does not ease Google and Samsung’s fears. They also believe that it will give Microsoft enough power to hurt them on licensing fees.
It seems that Google and Samsung aren’t the only companies keeping a close eye on the Microsoft and Nokia deal. Last year, other companies made similar complaints against Microsoft with the EU. However, the EU did approve the deal, they said they would monitor the licensing meticulously.
Due to the complexity of the mobile space, large companies often license their patents to their competitors. This is because some firms own “standard-essential patents.” These types of patents have to be provided through fair and reasonable terms to any company. However, Nonstandard-essential intellectual property can be offered based on the preferences of the owner.
China’s Ministry of Commerce has not yet made any decisions regarding the matter. On the other hand, Nokia recently announced it would be manufacturing Android-based mobile devices. This helps the company tap into the ever-expanding Android market. As it stands, Google and Samsung have a very tight and dominant relationship in the market. We will see if Microsoft will soon give them a run for their money.
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