By John Gruber
Square Reader SDK lets you use Square hardware to take payments in your app.
David Drummond, Google senior vice president and chief legal officer, “When Patents Attack Android”:
But Android’s success has yielded something else: a hostile, organized campaign against Android by Microsoft, Oracle, Apple and other companies, waged through bogus patents.
They’re doing this by banding together to acquire Novell’s old patents (the “CPTN” group including Microsoft and Apple) and Nortel’s old patents (the “Rockstar” group including Microsoft and Apple), to make sure Google didn’t get them; seeking $15 licensing fees for every Android device; attempting to make it more expensive for phone manufacturers to license Android (which we provide free of charge) than Windows Mobile; and even suing Barnes & Noble, HTC, Motorola, and Samsung. Patents were meant to encourage innovation, but lately they are being used as a weapon to stop it.
So if Google had acquired the rights to these patents, that would have been OK. But when others acquired them, it’s a “hostile, organized campaign”. It’s OK for Google to undermine Microsoft’s for-pay OS licensing business by giving Android away for free, but it’s not OK for Microsoft to undermine Google’s attempts to give away for free an OS that violates patents belonging to Microsoft?
This anti-competitive strategy is also escalating the cost of patents way beyond what they’re really worth. Microsoft and Apple’s winning $4.5 billion for Nortel’s patent portfolio was nearly five times larger than the pre-auction estimate of $1 billion. Fortunately, the law frowns on the accumulation of dubious patents for anti-competitive means — which means these deals are likely to draw regulatory scrutiny, and this patent bubble will pop.
First, the “estimate” of $1 billion was partially set by Google itself.
Then when the auction actually started, it’s OK for Google to bid over $3.14 billion, but when Apple and Microsoft bid $4.5 billion, that’s “way beyond what they’re really worth”. And if these patents are “bogus”, why was Google willing to pay anything for them, let alone pi billion dollars?
No one other than Nathan Myhrvold and his cronies sees the U.S. patent system as functioning properly, but Google’s hypocrisy here is absurd. Google isn’t arguing against a handful of never-should-have-been-issued software patents. They’re not arguing against patent trolls like Myhrvold and his shell companies like Lodsys — companies that have no products of their own, no actual inventions, just patents for ideas for products. They’re effectively arguing against the idea of the patent system itself, simply because Android violates a bunch of patents held by Google’s competitors. It’s not “patents” that are attacking Android. It’s competing companies whose patents Google has violated — and whose business Android undermines — who are attacking Android.
Google supporters claim that Google only wants to use patents defensively. But what exactly does Google need to defend against, if not actual patents Android actually violates?
How is Google’s argument here different than simply demanding that Apple, Microsoft, Oracle, et al should simply sit back and let Google do whatever it wants with Android, regardless of the patents they hold? And, let’s not forget, give Android away for free.