Mobility's Benefits for Google Not Patently Obvious

Google is hoping to secure the long term future of its business -- by turning that business on its head.

With its proposed $12.5 billion acquisition of Motorola Mobility, Google is jumping into a lower-margin, cut-throat hardware business. Even for a company with as varied ambitions as Google, this is a risky deal. Google's willingness to buy Mobility highlights how much it needs to protect its Android mobile operating system, now caught up in a raging patent fight. Along with other Android-powered handset makers such as Samsung and HTC, Mobility has been sued for patent infringement by Apple and Microsoft. Google, until now largely on the sidelines of that fight, has good reason to get directly involved. As an increasing portion of people's Web surfing shifts to mobile devices, Android gives Google a vital position in mobile advertising. Having snared 47.7% of global smartphone shipments by operating system in the second quarter, according to Strategy Analytics, it is clear why Android threatens rivals like Apple and Microsoft.

Google's deep cash resources should strengthen Android's legal defenses. Moreover, Google will inherit Mobility's portfolio of 17,000 patents, a critical intellectual property weapon. But the risks are significant. Google's ownership of Mobility could undermine what has been Android's big advantage: namely, the support it gets from multiple handset makers.