Tag Archives: smartphones

Qualcomm counter-offensive reminds NY Times readers who put the ‘smart’ in smartphone

Qualcomm is the first known patent licensor to tout its invention prowess in a New York Times ad directed at the business community. 

One of the world’s most successful licensing businesses reminded Times readers – in a sparsely worded, full-page ad that ran in the business section on July 17 – that it “invented the essential technologies that make your smartphone so indispensable.”

“”You know how you’re in love with your smartphone?,” ran the headline in big block letters. “That’s just the beginning.”

Fighting Back

The ad is a brilliant counter offensive move – one that has been much needed among patent licensors. It reminds diverse audiences, including the public, lawmakers and the courts, as well as its and other shareholders, that Qualcomm technology is ubiquitous.

Its inventions may currently appear most dramatically in smartphones but will soon be almost everywhere through IoT, as Qualcomm “leads the world to 5G [technology]”.

Qualcomm’s $23.5 billion in 2016 revenue was driven primarily by patent licensing.

This exercise in self-promotion, sadly, is necessary to remind audiences that inventions matter, and that Apple, Samsung, et al. simply do not have all of the innovation they need to sell products.

If licensees are not going to pay fairly for inventions that make their products special, licensors, like Qualcomm, will remind audiences about the technology that does.

Qualcomm can use the positive visibility. In January, the Federal Trade Commission filed a lawsuit against Qualcomm, accusing the company of using anticompetitive tactics to maintain its monopoly on a key semiconductor used in mobile phones.

“We put the ‘smart’ in smartphones.”

Days later, Apple, Qualcomm’s longtime partner, sued the company over what it said was $1 billion in withheld rebates. In the lawsuit, filed in Federal District Court for the Southern District of California, in San Diego (where Qualcomm’s HQ is located), Apple said the money had been promised in conjunction with an agreement not to buy chips from other suppliers or to divulge Qualcomm’s intellectual property licensing practices.

Invention Credit

The Times ad concludes with the url: qualcomm.com/weinvent. It leads to a thoughtful one-minute video that essentially says: “We’re not the name you think of when you think of smart phones, but we put the ‘smart’ in them.”

The Qualcomm ad reminds the world that Apple and other handset makers would not be what they are without Qualcomm inventions – which is true enough.

“Qualcomm – Why you love your smart phone.”

Go here to see a web version of the print ad.

Image source: qualcomm.com; nytimes.com

 

$12.5b Motorola Sale Nets $1b for “Activist” IP Investor Carl Icahn

Recognition of Patent Value Results in Big Shareholder Win –

In developments discussed recently in IP CloseUp, activist IP investor Carl Icahn has made a truly historic impact on the wireless and intellectual property industries with the sale of Motorola Mobility to Google for $12.5 billion.

A couple of weeks ago in an SEC filing Icahn put pressure on Motorola Mobility management, demanding it explore the sale of patents in the wake of the Nortel’s $4.5 billion auction. This move resulted in yesterday’s announcement.

His 26.8 million shares are now worth over $1 billion, up from $655.8 million on Friday. They were worth less than $500 million when Icahn filed an amended 13D on July 20 to suggest that management explore patent sale options. Icahn also urged Motorola two years ago to split into the company into two entities, the Droid-owning Mobility (MMI) and Motorola Solutions (MSI).

It appears that patent-hungry Google has come away a winner, with more than 17,000 focused patents and about 4,000 applications. It also has acquired a business that appears to be in the turnaround mode, reporting strong profits. Shares of InterDigital, whose patents had been sought by Google, dropped just under 20% on Monday. InterDigital will likely continue to be pursued by other smartphone providers, probably at a lower valuation.

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Yet to be answered: What will the deal mean to Google’s Android users like HTC, Samsung, Kyocera and LG?

With Motorola, Google be competing more directly with them in smartphones. Might its OEM partners choose to seek an operating system like Microsoft’s Windows Phone 7 or other non-competitive alternatives. Microsoft and Nokia already have agreed to work together.

If so, a Google hardware spin-off may be not-too-far down the road.

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Icahn’s victory is not without its dark side: According to Fortune, “Based on Google’s $40 per share acquisition price, Icahn’s MMI stake currently is valued at around $1.07 billion. His MSI position is at around $1.23 billion. If we add that to the $1 billion in earlier disposals, Icahn has realized or holds around $3.3 billion in Motorola and its successor companies. That’s just 3.5% below Icahn’s original investment — or $120 million — compared to the double-digit percentage losses he previously was facing. For example, he was down more than $700 million when Bloomberg did its math.”

This is not the first time good patents have bailed out investors. It won’t be the last.

Image source: onenewspage.co.uk


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