wolf enuresis: Why Google is on an intellectual property spending spree

by Bruce Tyson

Created on: January 07, 2012

Google, a company with no shortage of cash, is spending money again, this time snapping up IBM patents being sold to the highest bidder. This comes on the heels of other patent buys and the acquisition of Motorola Mobility. The company is reportedly beefing up its patent library in an effort to bolster its defenses in lawsuits filed by Microsoft and Apple.

Social Networking in the Crosshairs

Some of the patents Google has bought pertain to social networking. That is understandable, seeing social networking continues to be the dominant online force. One of the patents deals with using semantic networks, and another deals with identifying subjects network users have in common. These jewels among hundreds of patents for older technology stand out and could signal the search giant is ready to go on the offensive.

A New Offensive

Google already has a social network, Google Plus, that is gaining traction in the social sphere. However, Facebook has an intractable position in the market and shows no sign of bowing under the weight of Google?s onslaught. These new patents from IBM can help Google have ammunition to use against Facebook in patent courts, allowing it to file infringement cases against the social networking giant.

Apple has led the charge in pursuing competitors in court in effort to preserve market share. Google could use similar tactics to tie its competitors? hands in ways that could force them to give up ground.

IBM Mum

The BBC reports that IBM will not comment about the patent deal with Google. Because of this, not all the details of the deal are known, including why IBM holds so many social networking patents when it seemingly has no relevant business interests.?

Playing the System

Some analysts feel Google has gone too long without playing the patent card and has decided to get in the game before it gets beaten. Google became the owner of thousands of Motorola patents when it bought that company in 2011 and seems poised to use those patents to counter accusations that the company stole ideas and technology from Apple and Microsoft to build its Android mobile phone operating system.

Google Wins and Loses

Google bids for patents have not always won. The company wanted to buy a batch of 6,000 patents from Nortel, but was outbid by a team of competitors that included Apple and Microsoft.?

Patent litigation in the technology world is becoming routine. In a recent case, AT&T lost in a court battle with Tivo and was ordered to pay that company a lump sum of more than $200 million plus monthly licensing fees for using its DVR technology.

Learn more about this author, Bruce Tyson.
Click here to send this author comments or questions.